As of August 2023, Amazon has discontinued its Small and Light Program, a significant change that Amazon sellers need to be aware of. This program was designed to make Fulfillment by Amazon (FBA) more cost-effective for sellers specializing in low-priced, small, and lightweight items. The program’s termination could have implications for sellers who had tailored their inventory to fit within its guidelines.
However, Amazon has introduced a replacement known as the Low Price FBA Fees program. This new initiative aims to continue providing cost-effective fulfillment solutions for sellers of less expensive products. The introduction of this program reflects Amazon’s commitment to versatile fulfillment options, designed to suit a variety of seller needs.
For those considering the initiation of an Amazon business focused on more budget-friendly items, this new program may still offer an optimal path for market entry.
What Was the Amazon Small and Light Program?
The Amazon Small and Light Program offered reduced fulfillment fees allowing sellers to offer small and light products that met specific criteria within their weight, size, and price.
Sellers selling cheap, small, and lightweight products found the regular Amazon FBA fees too high, making their products too expensive to be profitable. The FBA small and light program helped to increase their profit margins with lower FBA fees.
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The Eligibility Criteria for Amazon Small and Light Was;
You could sell small and lightweight products under the FBA Small and Light program only if you fulfilled all of the following conditions:
- The size of the item you sell can’t exceed 18 x 14 x 8 inches. (L x W x H). That’s the maximum measurement allowed, however your product can have smaller dimensions.
- The shipping weight of your product can’t exceed 3 lbs, which is the maximum allowed weight.
- The product must have a price of $12 or less.
- The product must be new.
- For a product you are already selling on Amazon, the existing ASIN must have an Amazon listing for 90 days or more and must have sold at least 25 units in the last month.
There are some restrictions that you need to be aware of, and they include:
- The product is not a Restricted Product.
- The product is not an FBA Prohibited Product.
- It should not be a dangerous good (including hazmat).
- You cannot sell temperature-sensitive products.
- The product is not an Adult Product.
If you want to sell products that can easily break or be crushed such as glass or potato chips, you’ll need to properly pack them. You can learn about prepping and packaging guidelines here.
If you fulfilled the conditions above, you could enjoy a lower fulfillment fee and save money using the Amazon FBA Small and Light program.
Fulfillment Costs And Fees For Amazon Small and Light
FBA Small and Light fees were lower than the standard FBA fees. The table below displays the new Low-Price FBA Rates from what was once the Amazon Small and Light fulfillment fee structure:
If you want to use the FBA Label Service with the Small and Light Program, the Label Service fee was $0.10 per unit.
What Were The Advantages & Disadvantages of the Amazon Small and Light Program?
The Advantages
By now, you already know that Amazon’s FBA Small and Light Program had reduced fulfillment costs. However, that wasn’t the only benefit of the Amazon Small and Light program. Here were some other benefits:
- Free Shipping for Prime Users: Amazon Prime customers purchasing your products will enjoy free shipping. Free shipping is also available for non-prime users, but the delivery time will be 6-8 days opposed to 4-5 days for free Prime delivery.
- Amazon’s A-Z Guarantee: Customers will enjoy Amazon’s guarantee of timely delivery and customer support. You don’t need to worry about picking, packaging, and shipping. Amazon will handle everything – even returns.
- No Minimum Purchase Requirement: There are no minimum purchase requirements, unlike Standard FBA, which offers free shipping only on orders worth $25 or more.
- Multi-Channel Fulfillment: Products you sell through FBA Small and Light are also eligible for sell-fulfillment. Thus, you can offer ‘Standard FBA,’ ‘FBA Small and Light,’ and ‘FBM’ for the same product.
- Free Promotions: Products in the Consumables Category (Health & Personal Care, Beauty, Baby, Grocery, etc., excluding Apparel) that cost $5 or less may be eligible for a 5% discount if customers order two or more units. FBA will cover the cost of the discount without impacting your revenue.
The Disadvantages of FBA Small and Light
Yes, the Amazon Small and Light Program reduced fulfillment costs and offers various benefits, but there were certain disadvantages, too!
- Some Big Amazon Marketplaces Are Not Available: Amazon FBA Small and Light is restricted only to the company’s US, UK, Germany, Spain, France, Italy, and Japanese marketplaces. Unfortunately, some big ones like Mexico, Canada, and Australia are absent.
- Specific Prepping and Shipping Requirements: The Amazon Small and Light Program has the same prepping and shipping requirements as the Standard FBA program. However, there are some distinct requirements that you must adhere to, and they include;
- You must bundle same-ASIN units in manufacturer or seller case packs or clear plastic bags.
- Every outer case, bag, or shrink-wrapped bundle must have a label clearly mentioning the number of sellable units.
- Each SKU in each shipment must contain at least 24 units.
- Each unit must have a barcode placed outside in a flat and easily accessible & scannable location. You can print and use an Amazon barcode if you don’t have a barcode.
- Shipment contents must match the shipping plan.
- Crushable items must be packaged properly so they do not crush when shipped.
- Sharp objects and glass must be safely packaged to prevent injury or breakage.
- Shipping boxes should not exceed 25 inches on any side and should not weigh more than 50 pounds.
- Items Ship in Poly Bags and Jiffy Bags: The FBA Small and Light Program only uses poly bags and jiffy bags. You must prep and pack fragile and crushable items properly to keep them safe.
What’s Replaced the Small and Light Program
The Amazon FBA Small and Light program was a sweet deal for selling low-cost, small, and lightweight products because they charged you less in FBA fees. The catch, however, was slower shipping speeds. Amazon realized that the lower fees have actually made it easier for sellers like you to offer a wider array of affordable products. Plus, customers love the faster shipping improvements.
So, here’s the big news: Amazon pulled the plug on the FBA Small and Light program and, on August 29, 2023, they’ve lowered the standard FBA rates for all items priced under $10.
What does that mean for you? You’ll get the same fast delivery your customers love, but at a lower fee. Even better? This new rate will be automatically applied to eligible items, and you won’t face those pesky holiday peak fees from October 15, 2023, through January 14, 2024.
On average, these new FBA rates will be about $0.77 cheaper per item than the current standard FBA rates for low-cost products. If you had items in the Small and Light program priced below $10, you’d pay roughly $0.30 more per item than before. The catch? Faster shipping!
And if you never opted into Small and Light but your items are under $10, you’re going to save an average of $0.77 per item. For anything above $10, it’s business as usual with standard FBA rates and shipping speeds.
You’ve got about two months to adjust your sails before these new rates kick in and the Small and Light program says its goodbyes.
Use this time wisely. Review your product line-up, check your inventory levels, and look at the new FBA rates to see where you stand.
You might hit a curveball during the initial stage, but it could also be a home run if you play your cards right.
Keep pushing forward; this could be a golden opportunity to revamp your Amazon FBA strategy!
How Sellers Enrolled In The Amazon Small and Light Program
Enrolling in the Amazon Small and Light Program was simple. Here were the steps you needed to follow:
Step 1: Sign up for or log into your Seller Central account
The Long Path:
Sign into your Amazon Seller Central account. If you don’t already have an account, register for one here.
Once inside the Seller Central account, select ‘Explore Programs’ under the ‘Growth’ menu item.
Once you redirect to the ‘Recommended Programs’ page, select ‘Fulfillment’ under ‘All Programs.’
On the ‘Fulfillment’ page, select ‘Small and Light’ and then click on ‘Enroll Products.’
The Short Path:
On the Amazon Small and Light landing page, scroll down to the ‘How do I enroll?’ section and click on the ‘Get Started’ button.
Clicking on that button will take you straight to the enrollment page. However, you will need to sign in to your Seller Central account, so make sure that you already signed up for Amazon Seller Central.
Step 2: Add or upload MSKUs (Merchant Skus)
On the enrollment page, you will find two options:
Quick enroll + button:
This option will allow you to check the eligibility of existing MSKUs (merchant stock keeping unit – in other words your products) for the Amazon Small and Light program. If eligible, you can enroll up to 100 SKUs quickly without going through too many steps.
Download template button:
If you want to enroll new ASINs, this is the option you need to select.
Once you click on this option, you will download an Excel file where you can input the MSKUs and the target marketplace.
With this file, you can upload up to 50,000 MSKUs at once.
You can check Amazon’s new ASIN enrollment guide here.
Using the Excel template
The Excel spreadsheet you download will have three tabs – Instructions, Example, and Upload.
The fields to add your MSKUs are in the Upload tab.
You need to add the MSKUs in Column A under the header MSKU. In Column B-Row 1 (Cell B1), add the appropriate marketplace.
While adding the MSKUs, remove spaces before and after the MSKUs. If you don’t, Amazon will return errors while uploading and processing the file.
Once you have added all MSKUs, save the file in Text (Tab delimited) format.
If you need help with creating new MSKUs, here is a step-by-step guide from Amazon.
Step 3: Upload the Excel spreadsheet to Amazon
Head back to the enrollment page and use the Choose File button to upload the Excel spreadsheet to Amazon.
The size of the file you upload will determine how long Amazon takes to process the file. Amazon will display the enrollment status of the last 10 uploads. You can click the ‘Refresh’ button to check the enrollment status.
For further confirmation, visit the Seller Central dashboard and check the FBA fees. You should now see lower fees under the Amazon Small and Light program.
Step 4: Ship products to Amazon
Once Amazon approves and enrolls your products for the Amazon FBA Small and Light program, it’s time to prepare and ship your inventory to Amazon.
Remember! There are some special requirements for shipping your inventory. Check the conditions in the Disadvantages section above. Amazon will sideline your products if you fail to comply with the rules.
That’s all!
Learn How to Build Your Own 7-Figure Amazon FBA Business
Part of the Junglescout suite of excellent FBA tools, the learning academy is a comprehensive video training library containing hours of content, including training videos, webinars, and interviews with successful Amazon sellers.
Whether you’re just starting your business, or growing your brand, get expert training from Amazon sellers without the hefty price tag.
Amazon Small and Light and new Low Price FBA Rates: FAQ
Is there any weight standard for Small and Light?
Yes, Amazon uses a standardized packaging weight of 0.7 oz for every package under the Small and Light FBA Program.
Is it possible to sell expiration-dated products through FBA Small and Light?
Yes, you can sell expiration-dated products through FBA Small and Light. But the products must have a shelf life of 105 days from the time Amazon receives them. Remember that Amazon will not accept temperature-sensitive items such as chocolates, wax products, etc.
What will happen if the price of a Small and Light enrolled item increases above $12?
Any product that costs more than $12 and has a shipping weight of more than 3 lb will automatically switch to standard FBA, and you will no longer enjoy lower fulfillment costs. You must then pay the regular fulfillment fees.
What are Low-Price FBA Rates?
Low-Price FBA Rates are a new feature introduced by Amazon to encourage sellers to offer products priced under $10. These rates are lower than standard FBA rates and are designed to benefit both sellers and buyers by making lower-cost items more accessible.
How Do Low-Price FBA Rates Differ From Standard FBA Rates?
While standard FBA rates apply to items of all price ranges, Low-Price FBA Rates specifically target items priced below $10. The savings average around $0.77 less per item compared to standard FBA rates, which can add up to significant savings over time.
Will These Low-Price FBA Rates Affect Shipping Speed?
Great news—no sacrifices on shipping speed! With Low-Price FBA Rates, your products will be delivered with the same speedy service that FBA is known for. This is a win-win for both sellers and buyers, who get affordability without compromising on delivery times.
What Happens to Items Priced Above $10?
Items priced above $10 will continue to be subject to standard FBA rates and shipping speeds. Nothing changes for these products.
What About Holiday Peak Fulfillment Fees?
Don’t sweat it! Items eligible for Low-Price FBA Rates are exempt from the holiday peak fees that typically apply from October 15 through January 14. A fantastic way to keep your holiday costs down!
How Do I Prepare for the Changes in FBA Rates?
It’s essential to review your current inventory and pricing strategy. You have about two months to adjust before these new rates take effect. Check your inventory levels and consider the benefits of focusing on low-price products under $10.
How Do I Know if My Items Qualify for Low-Price FBA Rates?
If your items are priced below $10, they automatically qualify for Low-Price FBA Rates. You don’t have to enroll them in a specific program; Amazon will apply the lower rate automatically.
Will the Low-Price FBA Rates Apply to International Orders?
The current changes are specifically for U.S. FBA. If you’re selling internationally, you’ll need to check Amazon’s international FBA fees to see if similar options are available.
Are There Product Categories That Don’t Qualify for Low-Price FBA Rates?
Amazon hasn’t specified any restrictions based on product categories. As long as your item is priced under $10, it should qualify for the Low-Price FBA Rates.
Can I Opt-Out of the Low-Price FBA Rates?
No need to opt-out; if you prefer standard FBA rates for some reason, simply price your items above $10.
Is Amazon Planning to Extend This to Other Programs Like FBA Export or Multi-Channel Fulfillment?
There’s no official word on that yet. However, given Amazon’s pattern of testing new features in one area before rolling them out to others, it’s possible we might see similar changes in other programs in the future.
Does This Change Affect Return Fees?
Amazon’s announcement about the new Low-Price FBA Rates didn’t mention any changes to return fees. It’s safe to assume that the existing policies will continue to apply.
Is Amazon Small and Light Worth It? Summary
Yes, the FBA Small and Light program is worth it. While the small savings you make on products sold don’t look big, the cumulative savings you enjoy due to lower fulfillment fees can be significant when you sell in large quantities.
You can always pass some of your savings to your customers to increase brand loyalty.
But remember that the Small and Large Program makes sense only when you are offering cheap and fast-moving products. Slow-moving products will make a dent in your profits due to storage fees.
If you are a lifestyle entrepreneur with a small budget, you can start your online retail journey using the Amazon Small and Light program due to low COGS, lower fulfillment costs, and increased profits.
I hope this helps! 🙂
