Amazon FBA’s Most Recent Changes and Features

Amazon fulfilment is continually evolving and adjusting to meet the demands of both its consumers and the platform’s suppliers. Keeping up with the newest modifications and additions to the FBA service may help firms fulfil customer demand and stay on top of their game.

One significant change in 2020 is the addition of inventory comingling, which is permitted provided Amazon barcodes are utilized. What is the definition of commingling? It occurs when Amazon collects all units of a single product from all sellers and sends any one of them to a buyer. It’s also known as sticker-free inventory.

This has its own set of advantages and disadvantages, but it could result in counterfeits being shipped to your customers instead of the high-quality unit you placed in Amazon’s warehouses (since products are chosen from any available stock, including stock provided by someone other than you) or other problems. If you use this option, you’ll want to keep a close check on things. Because of poor reviews produced by damaged or phoney items, several legal Amazon FBA merchants have been barred from selling on Amazon.

The Inventory Performance Index, which will be implemented in August 2020, will monitor a variety of factors to assess how your inventory is performing and help you improve it by getting rid of surplus inventory, increasing your sell-through rate, and more. You’ll desire a score of at least 500, which is determined by criteria such as:

  • Inventory that is currently available
  • Inventory surpluses
  • Inventory that has become stranded
  • Rates of sell-through

Amazon imposes quantity constraints at the ASIN level to ensure that sellers have a diverse product offering, and the new inventory performance dashboard makes it simple to keep track of everything. You can keep track of your inventory activities, monitor your IPI score, and even get suggestions and ideas from Amazon on how to make better use of your inventory.

The FBA program is constantly developing and being updated by Amazon. Fortunately, they have a system in place that tells vendors of new modifications and functionality as they become available. Staying up to date and making essential modifications as they come down the channels is the most pressing problem here.

The Price of FBA

The cost is the section that everyone always wants to jump to. It will cost money, but it does not have to be a large sum. Consider how Amazon charges fees for storage – products are taxed based on size and weight, not pricing. Selling low-cost things through FBA might end up costing you more than it’s worth. Be selective about what you list on the FBA platform and what you don’t.

The Amazon FBA program charges storage and fulfilment costs. The more goods you have on hand, the more money you’ll spend. Amazon also offers a neat feature where the price of things that have been held for more than 180 days increases, incentivizing customers to get and keep stuff moving.

In addition, Amazon keeps track of stranded inventory, which is stuff that is in storage in an Amazon warehouse but isn’t available for sale. You lose money when you have stranded goods, but Amazon can help by giving a stranded inventory report.

Settlement fee reports may be found in the reporting area of your FBA dashboard, allowing you to view what type of fees you’re paying to Amazon as part of this program. Remember that during the Christmas season, you’ll pay greater storage rates than you would the rest of the year because of the increased demand. This is a good opportunity to double-check your FBA listings and delete anything that isn’t selling to avoid wasting money.

Yes, there are a variety of prices associated with FBA, as well as some other pricing aspects to consider. Amazon, on the other hand, does a good job of providing valuable information and support in order to maintain as much openness as possible.

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