Looking to reduce your Amazon fees without too much of a headache searching for leaks in your strategy as well as what to optimize in your selling process? Find and eliminate wasteful fees that are hurting your profits and learn how to eliminate unnecessary fees by discovering mistakes in your product information as well as filing claims on past Amazon fees.
Regardless if you’re a new seller or are an established merchant moving thousands of products a week, the smallest adjustments can lead to large savings in fees on products stored and shipped by Amazon fulfillment centers. By taking time now to review your current fees you’ll better understand how to reduce or even eliminate fees you’ve been charged for in the past, keeping more profit in your bank account.
If you’re ready to slash your FBA fees follow these tested strategies that help you efficiently find those unnecessary fees for future savings.
Running an audit on your FBA fees and invoices is the primary step for reducing your fees. Never accept your invoice as 100% correct as Amazon isn’t above making mistakes in their operations. Keep in mind that Amazon’s error margin is small, but it is recommended to check for discrepancies on a regular basis to avoid missing the 90 day window to make a claim on overcharged fulfillment fees. It’s a worthwhile effort but depending on the size of your business, it can become a time consuming process auditing and filing for fee reimbursement.
Many merchants on Amazon from beginners to established sellers find themselves too busy or overwhelmed after reading the many packaging requirements for using FBA service. It’s tempting to opt in to Amazon’s service for preparing and packing products, but this is one of the first things we suggest you seriously review in order to reduce your FBA fees. From bubble wrap to boxing Amazon will nickel and dime your bottomline. Consider avoiding these fees entirely for future orders, by asking your manufacturer to add Amazon compatible barcodes directly onto your product’s packaging as well as any other packaging required by FBA right at manufacturing. Worried about changing policies in requirements by FBA or ready to send on hand products for Amazon to prepare? Sellers can also use professional third party handlers that have competitive rates that will still have you seeing savings.
Are you treating the Amazon warehouse as your personal storage unit for your inventory? This isn’t just a big mistake, it’s a costly one. FBA purposefully uses storage fees and storage limits to keep seller’s inventory low. Resist the urge to reduce your on hand inventory by shipping it direct from the manufacturer to Amazon for holding, the longer it sits the bigger the fees can possibly be, versus filling your space as items sell.
Amazon’s sophisticated tech for measuring can produce inaccurate reading from time to time, making this an important area of focus in your FBA fee audit. Fulfillment and storage fees are based on size and weight of your product, keep in mind that Amazon’s cubiscan system can make errors when initially setting the weight and dimensions or during a re-scan to ensure your product dimensions haven’t changed. While the errors the cabiscan can vary, if it reports considerable changes between scans or an inaccurate size you will be charged higher fees. Sellers won’t be informed about the re-scan or if there were changes in product dimensions, Amazon’s system will simply update and begin charging you a fee. When running an audit for dimensional accuracy, check the measurements you recorded against Amazon’s reportings. A quick way to spot errors is if Amazon has put one of your products in a higher size tier than originally placed. Make sure to file a request with Seller Support for a rescan of the product in question as well as file a claim for incorrect fee reimbursement. Add performing a product dimension audits to your monthly account keeping tasks to catch inaccuracies sooner and faster.
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