How To Set Your Price And Deal With Amazon Price Wars
Before setting your price its important to get a good idea of the market for your product. Once you see how much people are willing to spend on a similar product, you can calculate the landed cost of your goods to see if you can match or beat them.
You should also include a lot of wiggle room since price wars are very common on Amazon.
A price war occurs when your competitor undercuts you sometimes even by pennies in an effort to drive you away from selling your product. As a seller, you have several options for fighting in a price war:
Find Out Trending Product
There is a misconception about this marketplace to sell the product that no one else is selling. Well, in reality, you have more great chances to succeed on Amazon by going with the proven product who had become the best seller product on Amazon.
The Amazon product research tool could come really handy here.
Always go for the trending product whose demand is greater than the supply. Go the page and find out the best seller product from the niche that you want to get into.
Creating A Shipping Plan
Creating a shipping plan is the first step for shipping your items into Amazon. A shipping plan will identify:
- The products youre sending to Amazon
- Quantities of each product
- Your shipping method and carrier
- Who will handle product preparation and labeling
If youre shipping in a Private Label product, youll need to create a listing for that product before creating a shipping order. Shipping orders are tied directly to a listing creating that listing, if it doesnt already exist, will allow you to then create your Shipping Plan. If you havent already created a listing, log into Seller Central and head to Inventory > Manage Inventory. From there, you will be able to add products to your account by clicking on Add A Product in the top-right section of the page. After youve added your product, and filled out all of the appropriate information for that product, your listing will be complete!
Once this is done, youre ready to create your Shipping Plan. Go to the Manage Inventory page and select each item you want to ship to Amazon. Select Send/Replenish Inventory from the Actions on Selected drop-down menu. From here, you can create a new shipping plan or add to an existing one.
Next, verify your ship-from address. This is where youre shipping the products from, so it may be your home, business or supplier. If your products are shipping from a Chinese Manufacturer, for example, you would need to input your manufacturers address here.
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Whats The Cost Of Amazon Free Shipping For Sellers
Typically, this is free if youre a part of Amazon FBA. The consumer pays the cost through their Prime membership, which is only available by subscribing to the program and paying a monthly fee.
If youre not a part of Amazon FBA, it usually means youll need to factor the price into the price you set for the customer.
How Do Sellers Get Items Into Fba
One of the reasons FBA is so successful is because the experience is so streamlined from the shopper perspective. Many consumers dont know that the items they are buying are sold by third-party sellers. But how easy is it to sell with FBA? In a word: very.
- If youre already selling on Amazon, simply add FBA to your account and youre ready to go. If you dont have a selling account, set one up and choose the FBA option. The fee for a Professional selling account is $39.99 per month. While sellers with individual accounts can sell via Amazon FBA, they will not be able to take advantage of advertising options and other features of the program.
- Create your product listings. You can add products in bulk via flat files, or you can add them one by one. Pay close attention to the quality of your photo description.
- Prep your products. Amazon has packaging and prep requirements, as well as shipping and routing requirements, that you have to follow. By properly preparing, packing, and labeling your items, you can be sure they will be made available to customers quickly. Following these guidelines helps ensure that your items will arrive at Amazon fulfillment centers safely and in good condition.
- Ship your inventory to Amazon FBA. Create a shipping plan and print your shipping labels with inventory management software like RestockPro or in Seller Central. Then send your products to the Amazon fulfillment centers your shipping plan requires.
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How To Ship Pallets To Amazon Fba
CitizenShipper·24/7 shipping · For Shippers · Freight Shipping · 26 February 2021
FBA stands for Fulfillment by Amazon, meaning that from the moment the pallets with your product arrived at their warehouse, Amazon is taking over the storage, the delivery, the returns, and the customer service. FBA Amazon sellers benefit from the Amazon shipping infrastructure and offer Amazon Prime two-day and same-day delivery.
Amazon has 75 logistic centers in North America, with most being available for FBA sellers. The shipping process is relatively easy, but for the system to operate for maximum gains, you need to put work in and follow strict guidelines. Before you make your decision whether to work with Amazon FBA or not, you should carefully review its pricing structure and make sure that you read all the fine print taking into account any potential additional fees. While youre deciding if the Amazon FBA structure is worth it for your business, this article will inform you about everything you need to know about the logistics of shipping pallets to the Amazon distribution centers.
Amazon Upstream Storage Program
is a new Amazon program that is currently in beta for some sellers and should be rolling out more broadly in the new year. It is a low-cost bulk storage solution for shipping and storing FCL shipments to an upstream storage facility and then automatically moves units to Prime-ready FCs for replenishment as needed. Currently, this program is only available for Standard Ocean shipments from China to the U.S.
Other benefits of the Amazon Upstream Program are:
- No restock or storage limits. Units stored in an upstream storage facility will not be counted against your current restock, inbound and storage limits.
- Save a lot of money. On average, upstream storage fees are 47% to 63% lower storage than those of fulfillment centers. The auto-replenishment service also comes free of charge and there are no overage fees!
- Integrated Amazon transportation. Amazon handles the delivery of your replenishment units from their upstream storage facilities to FCs, with lead times between 1-7 days.
The monthly storage fees will be based on your daily usage. However, we don’t really know what exactly that means and as of this writing, were still waiting for the fee page to be released.
While the benefits from using this program sound promising, there are a few pain points you must overcome:
- Getting approved for an account on so you can send your inventory to an upstream storage facility.
- Wiring money to pay for shipments
- Creating shipping plans using their web interface and spreadsheet
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Air Express: Manufacturer To Amazon Fba
Shipping costs from the manufacturer to Amazon FBA vary based on 3 factors:
- Supplier and freight forwarder relationship
- Size and Weight of your product
However, this method cuts out all the middlemen and is very fast but the cost of air shipment is significantly more expensive than sea shipment.
To lower costs its necessary to pay Amazon to ship all items to a single location. .
You can add a little control by including inspection on the China side . But there is still no one making sure the boxes werent damaged in transit. However, You wont be required to do any labeling or inspecting yourself, which saves you time. And time is money.
How To Ship Product To Amazon Fba Warehouse
So, youve made the decision to become an Amazon FBA seller youve researched what to sell, youve done your research and youve sourced your product now what?
The next stage is, of course, so that you can begin selling. Here is our step-by-step guide for you on how to ship products to Amazon warehouse.
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How Much Does It Cost To Ship To Amazon Fba
For those who are living in the United States and have access to a UPS drop-off point, the Amazon FBA shipping cost will be cheap. Small to medium-sized items that are fairly light can cost around $8, while big, heavy items can cost about $16.The rate depends on the dimensions and weight of the box. There is no way to know the exact cost until those factors have been entered and you are about to make the shipment, but, in general, the rates are very low even when shipping across the country.The distance is also a big factor, so for overseas shipment, the rate will be much higher.
How To Get Your Shipments From China To Amazon Fba
This is probably one of the most common questions I hear nowadays: how do I get my shipments from China to Amazon FBA?
While shipping products from China to Amazon warehouses isnt incredibly difficult, its also slightly more complex than asking your supplier to stick a UPS label on a product and send it to a single Amazon warehouse. In this post, Ill discuss the different ways you can get your products to Amazon FBA distribution centers.
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Benefits Of Choosing The Right Distribution Center
For example, if you , having a distribution center in California keeps your products on the water for about 16 days, as opposed to 30 to 45 days going to the East Coast.
- Shipping by sea is affordable extra costs of freight forwarders is often made up for in speed of delivery and quality control.
- Distribution centers help with quality control.
- You can ask them to open a box and send you a picture to ensure things look good inside the cartons.
- The center will be either palletizing or shipping/floor loading your products at FBA
- Damaged cartons will be rejected by FBA and held at the distribution center to be returned.
- Distribution centers handle your sea shipment and make the process entirely hands off.
- You get peace of mind knowing things are being labeled, handled and organized properly.
Pro Tip: The biggest appeal to sending products directly from the manufacturer to Amazon FBA is to cut out the added cost of prep centers.
Heres the thing:
After you understand the process, shift the labor over to your factory for a fraction of the cost.
Use a staging area like a distribution center warehouse .
Or have the products directly sent from the manufacturer to Amazon FBA by letting your factory overtake the labor involved.
How To Pack Products For Amazon Fba
Certain rules must be followed for product shipments in Amazon. These packing requirements are in place to ensure that the products are carefully stored.
- Use an appropriate box.A six-sided box with intact flaps is a must. It is possible to reuse old boxes but ensure that there are no confusing markings or previous shipping labels remain. To reduce delays in receiving or delivery, boxes with at least 6 x 4 x 1 dimensions are recommended.
- Put proper labels.The address label should be complete with its delivery and return information. There should be a label on the top center of each side of the box, and each box needs a label. Aside from packing requirements, Amazon also has its FBA label requirements that must be met.
- Pack the items carefully.The items must be wrapped separately and they shouldn’t move when the box is shaken. To ensure this, there must be at least two inches of cushioning between the items and the inside of the box. Use a strong shipping tape to secure the package.
- Protect the items.Don’t use packing peanuts like foam strips, Styrofoam, shredded paper, or crinkle wrap. The recommended protective packing materials are bubble wrap, inflatable air pillows, or polyethylene foam sheeting.
- Secure the boxesAll boxed shipments must be sealed securely, otherwise, there will be a reason for doubt that the product has been tampered with. The sides of the boxes must be able to withstand pressure to some extent.
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Not Managing Inventory Properly
Warehouse space is a valuable resource. Inventory management includes knowing your market and what quantities to supply to Amazon to maximize your returns and minimize costs. Amazon warehouses charge storage fees to FBA sellers, incentivizing you to sell products and ship what you know will sell promptly. The longer your inventory sits unsold in an Amazon warehouse, the more fees you incur.
You should also consider taking advantage of Amazon Prime. To use Amazon Prime for order fulfillment, you need to meet and maintain sufficiently good seller-performance metrics to demonstrate that both you and your products are trustworthy. This includes, for example, having inventory with a low defect rate and complying with the companys listing and product requirements.
Amazon Prime Shipping Options
Almost are Prime members. This means that, for the majority of your Amazon customers, the most important shipping options are under the Prime umbrella.
For most sellers to take advantage of the Prime shipping options, youll have to choose a seller option that puts the shipping process into Amazons hands . Well dive more into the specific options you have for having your products listed as Prime below.
Free Two-Day Shipping
The first and most common of the Prime shipping options is Amazons famous free two-day shipping for Prime members. This is available for all sorts of product types. Prime members have come to take the fast shipping for granted. And, they are that much more likely to opt for products that they know they can get fast for free. By choosing a seller option that makes your products eligible for Prime, you can expect to see an increase in sales.
Business Prime Shipping
Its not just individuals who have access to Prime membership. Any businesses that have invested in an Amazon Business account get free, two-day shipping as well. Prime shipping for these accounts works pretty much the same as it does for member accounts.
Amazon Prime Pantry
Amazon Prime Pantry is an option specific to non-perishable grocery products. So, if you sell food, beverages, household items, toiletries, or wellness products, it could be a worthwhile shipping option for your products.
Amazon Prime Now
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Where To Ship Your Amazon Fba Shipment
As one of the biggest companies in the world right now, Amazon has more than 175 fulfillment centers globally. The majority of these are in North America and Europe, and overall, it spans more than 150 million square feet of space.When you create your shipping plan on the Amazon Sellers Account, the location where the boxes should be shipped is automatically generated. Each FBA order is different, so the location isnt always the same. Amazon doesnt allow sellers to drop off products and boxes at the fulfillment centers directly, so you would have to ship them through UPS or FedEx.It is confusing to know where to ship the boxes, but Amazon has a service that allows a seller to ship to just one Amazon fulfillment center for all future shipments. It is cheaper than sending to multiple warehouses, saving you lots of money.How to do this?Simply go to the Inbound Settings in the Amazon Sellers Account and change the Inventory Placement Option.
After confirming that the selection has been updated, the Amazon Sellers Account will indicate where the products are being sent, and it will be specific to one fulfillment center only.
Configure Products For Fulfillment By Amazon
Make sure you’ve and added their shipping rates before you configure your products.
The procedure for configuring your products varies slightly depending on whether you are:
Click Fulfill items to mark the order as Fulfilled.
When you cancel an order in Shopify that includes a product fulfilled by Amazon, you need to manually cancel the fulfillment in Amazon as well to prevent the product from being shipped.
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Shipping Services And Reduced Delivery Times
If they qualify, sellers of Books, Music, Video, and DVD products are able to choose reduced shipment times for Standard and Expedited shipments. When selected, this will be available for Buyers to view during checkout and in the details of the Buyers order. The reduced shipping is as follows:
- Standard shipping can be reduced from 4-14 days to 35 days.
- Expedited shipping can be reduced from 2-6 days to 13 days.
In able to qualify for reduced shipping times of BMVD products, sellers must meet the following requirements:
- The seller must have shipped at least 10 units in the previous 30 days.
- The seller must have used tracking on 98 percent of shipments for the previous 30 days.
- The seller must have made deliveries on time and maintain a delivery score of 97 percent for the previous 30 days.
If the seller qualifies, the option to reduce shipping time will remain as an option for Buyers. However, if the sellers tracking dips below 98 percent or the on-time delivery scores go under 97 percent, the option for reduced shipping time for the sellers listings will automatically revert back to the Standard and Expedited shipping times.