Small and Light: Amazon launches new FBA program in Europe

Small and Light (SnL): Amazon launches new FBA-program for sellers and vendors

With Amazon Small and Light (SnL), Amazon offers a new shipping option for fast-moving, low-priced products which are light and small. The aim is to reduce the costs of processing and shipping these goods.

Both vendors and sellers using the Fulfillment by Amazon (FBA) service can use SnL.

The program has been available in the United States for some time. Now it will apparently be made accessible to the marketplaces of Germany and UK. The e-commerce giant has announced the opening of new SnL Fulfillment Centres in the respective countries and has already approached some vendors.

Conditions for participation in the Small and Light Program

To participate in the program, products and packaging must meet various requirements:

  • The average retail price should not exceed €10 (Germany) or £9 (UK)
  • The maximum weight, including packaging, is 225 g
  • The maximum package dimensions are 33.5 x 23 x 4.6 cm (Germany) and 30 x 22.4 x 2.4 x 2.4 cm (United Kingdom)

The following products are excluded from the program:

  • Products that require additional preparation for shipment to an Amazon Fulfillment Centre
  • Products in the range for adults
  • Dangerous goods

The delivery program’s potential strengths for sellers and vendors

  • Participating products are marked Prime-eligible
  • There will not be a minimum order value for SnL-eligible Add-on Items. At the time being, the total order value has to be at least  £20 to place an order
  • Lower delivery costs for non-Prime customers

SnL thus has the potential to increase sales for the participating products. For sellers with FBA, the reduced costs of shipping also entail a higher profit margin for low-priced products.

How can vendors benefit from the new FBA-program?

If a product is non-profitable on Amazon, no more orders will be placed for the respective ASINs with a vendor. By reducing shipping costs, the margin will increase for the e-commerce giant. Hence, products that were previously classified as non-profitable can be reactivated. The participation in SnL can also prevent profitability issues.

Another possible advantage: Orders of SnL-items are combined and the order volume per individual order increases. This allows costs to be saved within the company’s own supply chain.

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Michael Hajut
Head of Consulting
news@factor-a.com

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