One crucial aspect of inventory management is understanding Amazon removal order. 

Effective inventory management is essential for Amazon sellers to maximize profits and maintain a healthy cash flow. 

In 2023, Amazon had increased FBA removal and disposal fees for standard-size items by 45 cents to $1.06, with larger items seeing even steeper hikes of up to $4.38.  

What is the Amazon Removal Order?

Amazon FBA removal order is a formal instruction a seller submits to Amazon’s fulfillment centers to have specific inventory units retrieved from storage and sent to a designated location, or disposed of entirely. 

This process is beneficial in various situations. 

For instance, if a product line is discontinued or experiences slow sales, a removal order can be used to reclaim storage space and avoid ongoing storage fees. 

Sellers may also choose to remove damaged or defective products to prevent safety hazards and potential customer returns. 

Product updates or recalls necessitate the removal of existing stock to ensure customer safety and compliance with regulations. A change in selling strategy, such as a shift to a different fulfillment method or selling the inventory elsewhere, can prompt the use of removal orders to regain control over the products. 

Why Remove Inventory from Amazon?

Products that haven’t sold in a long time and are unlikely to sell soon can result in high storage fees, resulting in Amazon removal order cost is reduced and frees up space. 

Inventory that is damaged or defective cannot be sold and may even pose safety risks. Removal order Amazon prevents further issues and potential returns.  

If a product needs to be updated or recalled due to safety concerns or errors, removing existing stock is necessary. 

Sellers may decide to switch fulfillment methods or sell their inventory elsewhere. Removing inventory allows them to regain control over the products. 

How Does Removal Work on Amazon?

The removal process on Amazon is straightforward. Sellers initiate the process by submitting a removal order through Seller Central. 

This order specifies the items they want removed, the desired removal method (return or disposal), and the quantity. 

Once the removal order is submitted, Amazon’s system verifies the information and calculates any associated removal fees. These Amazon FBA removal fees typically cover the cost of Amazon picking, packing, and shipping the removed inventory back to the seller’s designated address, or the cost of responsibly disposing of the items according to local regulations. 

Amazon also provides an estimated timeframe for the removal process, which can vary depending on several factors such as the removal method chosen, the volume of items being removed, and the location of the fulfillment center. 

What Are Amazon Inventory Removal Fees?

Amazon removal order fees go divide into two main types:

Removal Fees

Removal fees Amazon covers the cost of Amazon picking, packing, and shipping the removed inventory back to the seller’s designated address. 

The removal fee varies depending on the item size, weight, and destination. 

Disposal Fees

Amazon disposal fees relate to if a seller chooses to have Amazon dispose of unwanted inventory, a disposal fee is applied. 

This FBA disposal fee covers the cost of Amazon responsibly disposing of the items according to local regulations. 

The disposal fee also varies based on the item category and weight. 

How to Create A Removal Order on Amazon?

Creating a removal order on Amazon is a simple process: 

  1. Log in to your Seller Central account. 
  2. Navigate to the “inventory” tab and select “Manage Inventory“. 
  3. Locate the item(s) you want to remove. You can use filters to narrow down the list by Fulfilled by Amazon (FBA) status. 
  4. Click the dropdown menu next to “Edit” and choose “Create removal order.”
  5. Select the removal method (Return to address or Dispose) and enter the desired removal quantity. 
  6. Review the removal order details, including estimated fees and processing time. 
  7. Confirm the removal order if everything is correct. 

How to Cancel A Removal Order?

Amazon allows sellers to cancel removal orders as long as Amazon hasn’t begun processing them. To cancel remove orders from Amazon, do the following steps:

  1. Go to “Manage Inventory” in Seller Central. 
  2. Locate the removal order you want to cancel. 
  3. Click on the remove order ID. 
  4. If the order status is still “Processing,” you will see a “Cancel Removal Order” button. Click on it to cancel the order. 

What Are the Possible Issues When Removing Inventory?

While Amazon’s FBA removal process is generally efficient, there are potential issues that can rise: 

Inventory Discrepancies

Issues between a seller’s inventory records and Amazon’s fulfillment center data can occur due to various factors: 

Inconsistencies can stern from typos or mistakes during product listing or inventory updates on either the seller or Amazon’s side. 

Variations between the quantity of inventory a seller sends to Amazon and the quantity Amazon receives can lead to discrepancies. Damaged items during inbound shipping or fulfillment center counting errors can be culprits here. 

While uncommon, products can be damaged or lost while stored at Amazon’s fulfillment centers. This can cause discrepancies between seller records and Amazon’s data. 

Mitigating Inventory Discrepancies

Regularly reconcile your inventory records with Amazon’s data to identify and rectify discrepancies promptly. 

Meticulously verify incoming and outgoing inventory quantities to ensure data accuracy. 

Take clear pictures of the inventory before sending it to Amazon to document any pre-existing damage. 

Although rare, items can be lost or damaged during the removal process due to several factors. 

Lost or damaged items during removal can result in financial loss for the seller, especially for high-value or fragile products. 

Minimizing Loss During Removal

Consider purchasing shipping insurance for valuable or fragile items to protect against loss or damage during removal. 

Ensure proper packaging with adequate cushioning materials to minimize the risk of damage during transportation.

How to Sell on Amazon without Inventory?

There are two popular fulfillment methods for businesses venturing into ecommerce: Amazon FBA vs Dropshipping. 

Each offers distinct advantages and drawbacks, and the right choice depends on your specific business goals and resources. 

According to a 2023 survey by Jungle Scout, 89% of sellers use Amazon FBA, whilst it is estimated that only between 10-20% of dropshipping businesses succeed according to various dropshippers around the internet. 

What is Amazon FBA?

Amazon FBA is a comprehensive fulfillment service offered by Amazon that takes the burden of warehousing, picking, packing, shipping, and customer service off your shoulders. 

Sellers simply send their inventory to Amazon fulfillment centers strategically located around the world. This ensures fast and reliable delivery to customers, often with Prime benefits like free two-day shipping. 

When a customer places an order on Amazon, Amazon’s sophisticated fulfillment network efficiently selects, packages, and ships the product directly to the customer. 

FBA sellers also benefit from Amazon’s customer service infrastructure, which can handle inquiries and returns, freeing them to focus on other aspects of their business. 

Pros and Cons of FBA

Pros of FBA

FBA vs dropshipping listings often receive a boost in search rankings on Amazon, potentially leading to increased sales. Amazon’s search algorithms favor FBA products due to factors like faster fulfillment times and higher customer satisfaction rates. 

Prime badges on FBA listings can further enhance product visibility and customer trust, driving more sales. 

Fast and reliable fulfillment through Amazon can enhance customer satisfaction. FBA offers multiple shipping options, including free two-day shipping for Prime members, which can significantly improve conversion rates and customer loyalty. 

Additionally, Amazon’s efficient fulfillment process minimizes errors and ensures timely delivery, reducing customer frustration. 

Sellers are free to focus on marketing and business growth while Amazon handles fulfillment. FBA eliminates the need for sellers to invest in warehouse space, manage inventory levels, or handle packaging and shipping. 

This frees up valuable time and resources that can be channeled into product development, marketing initiatives, and customer service.

Cons of FBA

FBA offers a suite of advantages for Amazon sellers however, it’s important to note some drawbacks such as: 

FBA comes with a variety of fees, including storage fees, fulfillment fees, and referral fees. These may impact your profit margins significantly, especially following the Amazon FBA Fee changes in 2024.

Since Amazon fulfills orders, their packaging replaces yours, hindering your brand identity and customer connections. 

Inaccurate forecasting can result in stockouts, lost sales, or incurring long-term storage fees due to excess inventory held by Amazon. 

Failure to comply with Amazon guidelines for product preparation and labeling may cause delays, product returns, or even account suspension. 

Amazon also has complete control over customer experience, meaning that it handles packaging, picking, shipping, and most customer service inquiries. 

What is Dropshipping?

Dropshipping vs Amazon FBA is a fulfillment method where the seller doesn’t keep any inventory. Instead, the seller acts as a middleman between the customer and a third-party supplier. 

When a customer places an order on the seller’s online store, the seller transmits the order details and customer shipping information to the dropshipping supplier. 

The supplier then packages and ships the product directly to the customer under the seller’s brand. 

This creates the illusion that the seller is fulfilling the order themselves, when in fact the supplier is handling the entire fulfillment process. 

Pros and Cons of Dropshipping

Pros of Dropshipping

Dropshipping eliminates the need for upfront investment in inventory, a significant barrier to entry for many aspiring ecommerce entrepreneurs. 

This allows sellers to test the waters with a wider range of products without the financial risk of purchasing large quantities of inventory that may not sell. 

Sellers are not limited by storage space or financial constraints when it comes to product offerings. Dropshipping suppliers often carry a large range of products enabling sellers to offer a diverse selection to their customers without the burden of managing their own inventory. 

This flexibility allows sellers to experiment with different product categories and identity profitable niches. 

Dropshipping businesses can scale quickly and easily without worrying about managing inventory levels, who handle the fulfillment process. This eliminates the need for sellers to invest in additional warehouse space or staff to accommodate increased order volume. 

Cons of Dropshipping

When it comes to dropshipping, the cons or challenges you need to be aware of are: 

Buying from a supplier at wholesale and then marking up for retail sale results in slim profit margins. 

You also tend to rely on your supplier’s stock availability. If they run out, you would be unable to fulfill orders, leading to disappointed customers and lost sales. 

You’re responsible for handling customer services inquiries and returns, even though you don’t have the products physically. 

Building brand loyalty might be difficult and challenging since you’re unlikely to have custom packaging or control over product presentation, not only that but, you have limited control over shipping times and fulfillment processes. 

Scaling your overall business may also be complex due to inventory management and supplier relationships becoming more complicated with increasing sales volumes. 

How to Dropship on Amazon

The quick answer to the question, “Can you dropship on Amazon” is No. Amazon prohibits dropshipping to ensure a high level of customer service and control over the fulfillment process. 

Dropshipping on Amazon can lead to fulfillment delays, inconsistencies, and potential quality products, which could negatively impact customer experience. Violators of the Seller Agreement risk account suspension and loss of selling privileges. 

Amazon has sophisticated systems to detect dropshipping activity. These include identifying inconsistencies in shipping origin information or packaging not matching the seller’s branding. If caught dropshipping, your Amazon seller account could be suspended, jeopardizing your entire business on the platform. 

Drop shipping on Amazon, leads to limited control over fulfillment, resulting in issues like slow shipping times, incorrect orders, or damaged products arriving at the customer. 

These issues can severely damage your reputation and lead to negative reviews that can hurt your business. 

Dropshipping Suppliers for Amazon

Once you have identified a high-quality product that aligns with your brand, you can create a listing on Amazon. 

You don’t need to hold large quantities of inventory upfront. Instead, when a customer places an order through your listings, you can seamlessly fulfill it through a trusted supplier partner such as Forceget. 

This partner will handle order fulfillment, including picking, packing, and shipping directly to your customer. They offer flexibility in packaging, allowing for either unbranded or customized options to maintain your brand identity. 

Essentially, this approach allows you to operate as a virtual wholesaler on Amazon. 

What Is the Difference Between Amazon FBA and Dropshipping?

The key differences between Amazon dropshipping vs FBA boils down to inventory management and fulfillment responsibility:

Inventory Management

With FBA, you purchase inventory in bulk upfront and store it in Amazon fulfillment centers around the world. You’re responsible for managing stock levels and ensuring enough inventory to meet customer demand. 

You don’t hold any inventory yourself. The dropshipping supplier manages their stock and ensures they have products available to fulfill your orders. 

Fulfillment Responsibility

Once a customer orders from your FBA listing, Amazon handles the entire fulfillment process. This includes picking and packing the product, shipping it to the customer, and managing customer service inquiries like returns. 

When a customer orders from your online store (not Amazon), you forward the order details and customer information to the dropshipping supplier. The supplier then fulfills the order directly, including packaging and shipping the product to the customer. You may also handle customer service inquiries related to the order.

Amazon FBA vs Dropshipping: Which One to Choose

FeatureAmazon FBADropshipping
Inventory ManagementSeller’s responsibilitySupplier responsibility
Inventory StorageAmazon fulfillment centersNo storage required
Fulfillment ProcessHandled by AmazonHandled by dropshipping supplier
Upfront CostsHigher (bulk inventory)Lower (no inventory)
Profit MarginsPotentially higherPotentially lower (due to supplier markups)
Control Over QualityMore controlLess control
Shipping SpeedGenerally faster (Prime)Variable, depends on supplier
ScalabilityEasier to scaleEasy to scale
Amazon FBA vs dropshipping

The difference between dropshipping and Amazon FBA depends on your specific business goals, resources, and risk tolerance. 

Choose FBA if: 

  • You have the capital to invest in upfront inventory. 
  • You prioritize fast and reliable fulfillment with Prime benefits. 
  • You have the ambition to build a strong brand presence on Amazon. 
  • You are comfortable with Amazon’s fees associated with FBA. 

Choose Dropshipping if: 

  • You are a new business with limited startup capital. 
  • You want to experiment with a wide variety of products. 
  • You prioritize flexibility and scalability. 
  • You are comfortable with potentially lower profit margins due to dropshipping supplier markups. 

Amazon FBA vs Dropshipping FAQ

How Profitable Is Amazon FBA?

Profitability with FBA depends on several factors such as the difference between your wholesale cost and your selling price. Higher margins lead to higher profits. 

These include storage fees, fulfillment fees, and pick and pack fees. You can calculate your estimated FBA fees using Amazon’s fee calculator tool. 

Factor in the cost of advertising on Amazon to increase product visibility and sales. 

Carefully calculate all your costs to ensure your products are priced competitively and generate healthy profits after accounting for FBA fees. 

Is Dropshipping Better Than Amazon FBA? 

There’s no single “better”option when choosing between Amazon and dropshipping:

Dropshipping Advantages: 

  • Lower startup costs (no upfront inventory) 
  • Easier to test a wider variety of products
  • More scalable (accommodate order growth easily) 

FBA Advantages:

  • Faster fulfillment and Prime benefits (can boost sales) 
  • Improved customer experience (potentially higher satisfaction)
  • Increased control over branding and product presentation

Is It Possible to Dropship on Amazon?

It is possible to use dropshipping Amazon FBA, however, keep in mind that Amazon has measures to detect dropshipping activity, and violators risk account suspension. 

If dropshipping is your preferred method, consider alternative ecommerce platforms that allow it. 

How to import furniture from India 2024?

Furniture imported from India in 2024 can be a strategic business decision. It offers a unique opportunity to access a vast selection of handcrafted pieces reflecting the country’s rich cultural heritage. 

The Indian furniture industry holds significant weight in the global market. In 2022, the market was valued at $23.12 billion, positioning India as the world’s fifth largest furniture producer and fourth largest furniture consumer. The Indian furniture market is posed to achieve a CAGR of $ 10.9 during 2023-28 to reach $32.7 Bn by 2026. 

Import Furniture from India Step by Step

In order to import from India, follow the step-by-step guide:

1. Research and Identify Suppliers

In order to start understanding better how to import furniture from India begin by researching reputable furniture manufacturers and exporters in India. Use online trade directories, industry exhibitions, and networking platforms to connect with potential suppliers. 

Evaluate factors like product quality, minimum order quantities (MOQ), and pricing to find the best fit for your needs. 

2. Negotiation and Agreements

Once you’ve shortlisted a suitable supplier, you can move to the negotiation process. 

This includes reaching an agreement on price, MOQs, payment terms, and expected delivery timelines. 

Ensure a clear and detailed contract is established to avoid any misunderstandings during the transaction. 

3. Quality Control Measures

Consider arranging for an independent inspection of the furniture before shipment from India. This crucial step verifies that the products meet the agreed-upon quality standards, minimizing the risk of receiving furniture that falls short of your expectations. 

4. Import Documents

Compile all necessary documents for customs clearance, including a bill of lading, commercial invoice, packing list, customs entry form, and any required permits or certificates obtained in the previous step. 

5. Shipping and Logistics

Partner with a freight forwarder to arrange transportation of your furniture import India to the US. They can help navigate customs clearance procedures and ensure proper packaging for safe transport.

6. Customs Clearance

Upon arrival at the US port of entry, your shipment will undergo customs clearance. A customs broker can assist you with this process to ensure all documentation is in order and facilitate the smooth release of your furniture. 

Benefits of Importing Furniture from India

Importing furniture from India industry offers a compelling proposition for importers seeking unique and high-quality pieces. Here are some key benefits to consider: 

India boasts a long history of skilled artisans, evident in the intricate details and time-honored designs of its furniture. From classic pieces showcasing traditional motifs to contemporary designs reflecting modern tastes, Indian furniture caters to a wide range of aesthetics. 

Imported furniture from India is known for offering competitive pricing compared to other furniture exporting countries. This can be a significant advantage for businesses seeking to expand their product offerings or design enthusiasts looking for unique pieces without breaking the bank. 

The imported furniture from India offers a wide selection of styles and materials to suit various tastes and budgets. From classic wood furniture crafted from sustainably sourcing furniture from India for hardwoods like teak and rosewood to contemporary pieces incorporating metal, glass, and other materials, you’ll find a wide variety to choose from. 

Sourcing furniture crafted from these unique materials can add a touch of luxury and exclusivity to your offerings. 

A growing number of Indian furniture manufacturers are committed to sustainable practices. They use ethically sourced wood and eco-friendly materials, catering to the increasing demand for environmentally conscious products. 

Popular Furniture Exporting Countries to the USA

The United States furniture import market is vast and diverse, with several countries vying for a significant share. 

  • China: Their dominance is attributed to factors like large-scale production capabilities, competitive pricing, and a wide range of product offerings.  
  • Vietnam: Its proximity to China and lower labor costs have made it an attractive destination for furniture manufacturing. Vietnamese furniture is known for its quality craftsmanship and focus on modern designs. 
  • Mexico: The Mexican furniture industry offers a good balance between quality and affordability, catering to a broad market segment in the US. 
  • Italy: While Italian furniture typically commands a premium price point, it caters to a specific segment of the US market seeking luxury and exclusivity. 
  • Malaysia: Malaysian furniture manufacturers are known for their ability to adapt to changing trends and produce furniture that caters to contemporary tastes. 

Important Regulations for Furniture Exporters in the US

US imports from India have regulations established by various government agencies which are vital. 

USDA Wood Import Requirements 

The United States of Agriculture (USDA) enforces regulations to prevent the introduction of harmful plant pests and diseases through imported wood products. Depending on the type of wood used in your furniture, you may need to obtain: 

  • Permits: Certain wood species require import permits from the USDA Animal and Plant Health Inspection Services (APHIS). 
  • Phytosanitary Certificates: These certificates issued by the exporting country’s national plant protection organization (NPPO) verify that the wood has been inspected and meets specific phytosanitary requirements. 

TSCA Declaration for Composite Woods 

The Environmental Protection Agency (EPA) enforces the Toxic Substances Control Act (TSCA), which regulates the import of composite wood products like plywood, MDF, and particleboard. 

These products must comply with formaldehyde emission standards set by the EPA. 

To ensure compliance, you’ll need to submit a TSCA Declaration with your customs entry documentation. 

‍CITES Endangered Species 

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) restricts the trade of furniture crafted from endangered wood species. If your furniture contains CITES-listed woods, obtaining permits from the US Fish and Wildlife Service (FWS) is mandatory. 

APHIS Sanitation Requirements

APHIS may impose sanitation requirements on wooden furniture, particularly untreated wood, to prevent the introduction of agricultural pests or diseases. These requirements may involve fumigation or heat treatment of the furniture before shipment. 

The Lacey Act 

The Lacey Act prohibits the import of wood products harvested illegally. As an importer, you are responsible for exercising due diligence to ensure your furniture originates from sustainable sources. 

This may involve requesting documentation from your supplier that demonstrates the legality of the wood harvest.  

FDA Regulations for Special Purpose Furniture 

The Food and Drug Administration (FDA) may have specific regulations for furniture intended for special purposes, such as medical or food contact surfaces. These regulations may involve specific material composition, safety testing, and labeling requirements. 

Anti-Dumping Duty 

Be mindful of potential anti-dumping duties levied on certain furniture imports from specific countries, including India. 

These duties aim to offset unfair pricing practices where imported furniture is sold at a price below its fair market value in the exporting country. 

Import Documents

When you import from India to the USA, you need to make sure that you have all the necessary documentation in order, which is critical for a smooth customs clearance process. 

  • Bill of Lading: This document issued by the carrier serves as a receipt for your furniture and a contract of carriage, outlining the terms of transportation. 
  • Commercial Invoice: A detailed commercial invoice from your Indian Supplier should include information like product descriptions, quantities, unit prices, and the total value of the shipment. 
  • Packing List: This document provides a detailed breakdown of the contents of your shipment, including the number of packages, their weight and dimensions, and a description of the contents of each package. 
  • Customs Entry Form: This form, electronically submitted to the US Customs and Border Protection (CBP), declares your furniture shipment and provides details on its origin, value, and intended use. 
  • Permits and Certificates: Depending on the type of wood used in your furniture, you may need to include permits from USDA APHIS, phytosanitary certificates, CITES permits, or a TSCA Declaration. 

Packaging Options for Shipping Furniture

When you import furniture from India there are requirements to carefully package them, to ensure they arrive safely. 

Wooden Crates

These sturdy crates offer the highest level of protection for valuable or delicate furniture pieces. 

They are ideal for long-distance transportation and can be custom-built to accommodate specific furniture dimensions. 

Cardboard Boxes with Dunnage

Cardboard boxes can be a cost-effective option for smaller or less fragile furniture pieces. However, it’s crucial to use high-quality, double-walled cardboard boxes and reinforce them with dunnage materials like packaging peanuts, bubble wrap, or foam to prevent movement and damage during transport. 

Specialized Containerization 

For large shipments or furniture sets, full container loads (FCL) or shared container loads (LCL) might be the most efficient option. 

Containers can be secured and sealed to minimize the risk of damage during transport. 

Additionally, some companies offer specialized containerization solutions with features like climate control or shock absorption for extra protection. 

How to sell on Amazon without inventory is a question asked by various individuals hoping to make money. 

According to a 2023 Jungle Scout report, there are over 2 million active third-party sellers on Amazon globally, highlighting the platform’s vast potential for entrepreneurs. 

However, the upfront investment in Amazon inventory can be a significant barrier for some. 

Fortunately, there are several methods to sell on Amazon without inventory, allowing businesses to participate in the ecommerce marketplace with minimal startup costs. 

4 Methods to Sell on Amazon Without Inventory

The Amazon marketplace provides innovative solutions for businesses to participate without the burden of managing physical stock. 

In order to sell stuff on Amazon without inventory you can choose to leverage Amazon’s fulfillment network, manage fulfillment yourself, or use a dropshipping model, there’s a strategy to suit your business goals and resources. 

The 4 methods to selling on Amazon without Inventory are:

  • Fulfillment by Amazon (FBA): Leverage Amazon’s vast warehousing and fulfillment network to store, pick, pack, ship, and provide customer service for your products. 
  • Fulfillment by Merchant (FBM): Maintain control over  storage, packaging, and shipping of your products while offering greater flexibility. 
  • Dropshipping: Acts as a middleman, connecting Amazon buyers with a third-party supplier who holds the inventory and ships directly to the customer. 
  • Wholesale: Source products in bulk from a wholesaler at a discounted price, then store and fulfill orders yourself (similar to FBM, but you own the inventory).

What is Amazon FBA and How Does it Work?

Amazon FBA allows you to make use of Amazon’s vast warehousing and fulfillment network. 

You send your products to Amazon fulfillment centers, and they handle storage, picking, packing, shipping, and customer service for a fee. 

The FBA process involves several key steps: 

Sending Inventory to Amazon Warehouses

You’ll create a shipment plan in Seller Central, specifying the products you want to send and the fulfillment centers you want them delivered to. 

Amazon will provide instructions on packaging and labeling your products to ensure proper identification and handling within their warehouses. 

You’ll then ship your inventory to the designated fulfillment centers, following Amazon’s specific guidelines for packaging, labeling, and box contents. 

Order Fulfillment by Amazon

Once your products arrive at an Amazon fulfillment center, Amazon will store them securely. 

When a customer places an order for one of your FBA products, Amazon’s fulfillment system will automatically pick and pack the item from the nearest fulfillment center for efficient delivery. 

Amazon will handle the shipping process, including selecting the most appropriate shipping method based on your customer’s location and chosen service level. 

Customer Service Handles by Amazon

Amazon’s customer service team will handle most customer inquiries and issues related to FBA inventory orders, including order tracking, product returns, and exchanges. 

You can set preferences within Seller Central to manage specific customer service aspects, such as returns or replacement authorization requirements. 

What is Amazon FBM and How Does it Work?

With Amazon fulfillment by merchant, you maintain control over storage, packaging, and shopping of your products. This method offers greater flexibility but requires more involvement on your part. 

You’ll be responsible for storing your products in a safe and secure location. This could be your garage, a rented storage unit, or a dedicated warehouse space, depending on the volume of Amazon products you manage. 

Once you receive an order on Amazon, you’ll need to package the product securely using appropriate shipping materials. 

Amazon provides packaging guidelines to ensure your products arrive undamaged to the customer. 

You’ll then select a shipping method through a carrier of your choice, such as Forceget, USPS, FedEx, or UPS, and ship the order directly to the customer. 

What is Amazon Dropshipping and How Does it Work?

In the dropshipping model, you essentially act as a storefront curating products for Amazon customers. You leverage a dropshipping supplier who holds the inventory, handles packaging and shipping, and fulfills customer orders on your behalf. 

Research and identify profitable products to sell on Amazon. Carefully consider factors like competition, profit margins, and customer demand. List these products on  your Amazon sellers account with compelling descriptions, high-quality images, and competitive pricing. 

When a customer places an order for one of your drop shipped products, you’ll receive the notification through your Seller Central account. 

You’ll then forward the order details and customer information to your dropshipping supplier. The supplier will locate, pack, and ship the product directly to the customer under your brand name. 

The difference between your selling price on Amazon and the cost you pay the supplier represents your profit margin. 

Selling on Amazon without Inventory: Pros and Cons

There are a couple of Pros and Cons when it comes to how to sell items on Amazon without inventory: 

Pros

No upfront investment in inventory allows you to test product ideas and market viability with minimal financial risk. Easily scale your business by adding new products without worrying about managing additional inventory. 

Maintain greater control over product selection and pricing strategies compared to FBA. 

Cons

Dropshipping suppliers often have higher wholesale costs compared to bulk purchasing, potentially leading to lower profit margins. 

You rely on the supplier for timely product shipment and quality control, potentially impacting customer satisfaction. 

Some dropshipping suppliers may not offer branding services, making it difficult to establish a strong brand identity. 

Best Practices to Sell on Amazon without Inventory

Regardless of the method you choose on how to sell products on Amazon without inventory, here are some best practices to ensure success:

  • Product Research: Identify profitable products with high demand and low competition. 
  • Reliable Suppliers: Partner with reputable dropshipping suppliers who offer competitive pricing, high-quality products, and reliable shipping. 
  • Optimize Product Listings: Create compelling product descriptions with high-quality images and competitive pricing to attract customers. 
  • Customer Service: Respond promptly to customer inquiries, address issues efficiently, and strive for positive customer reviews. 
  • Track Performance: Monitor key metrics like sales, returns, and customer feedback to identify areas for improvement. 

FAQ About How to Sell Products on Amazon Without Inventory

There are frequently asked questions on how to sell products on Amazon without inventory:

How to Start Amazon FBA with No Money 

Unfortunately, there’s no way to completely avoid costs when using Amazon FBA. You’ll need funds to cover product acquisition, fulfillment fees by Amazon, and other potential expenses like advertising or packaging materials. 

How to Start Selling on Amazon without Inventory 

All the methods mentioned above (FBA, FBM, and dropshipping) allow you to sell on Amazon without inventory. 

Choose the method that best suits your business model, budget, and level of control desired. 

How to Make Money on Amazon without Inventory 

When it comes to how to make money on Amazon without inventory, focus on the following steps:

  1. Choose a profitable product to sell. 
  2. Source the product from a reliable supplier at a competitive price. 
  3. List the product on Amazon with an attractive price point that allows for profit after Amazon fees and supplier costs. 
  4. Market and promote your product listings to generate sales. 
  5. Be sure of efficient fulfillment through FBA, FBM, or dropshipping to deliver products to customers. 

What is the Minimum Inventory to Sell on Amazon? 

There’s no technical minimum inventory requirements on how to become an Amazon seller without inventory.

Depending on the fulfillment method you choose, you may need to consider: 

  • FBA: While you don’t need to store inventory yourself, you’ll still need to purchase products upfront and send them to Amazon fulfillment centers. 
  • FBM: You’ll need to store the inventory yourself before fulfilling customer orders. 
  • Dropshipping: No upfront inventory purchase is required, but you’ll pay the supplier for each product ordered. 

How to Sell on Amazon without Buying Product

As mentioned earlier, the dropshipping model answers the question of how to sell on Amazon without buying product upfront. 

Identify profitable products with high demand and low competition on Amazon. Consider factors like market trends, pricing and potential profit margins. 

Research and partner with reputable dropshipping suppliers who offer competitive pricing, high-quality products, and reliable shipping services. Look for suppliers with experience fulfilling orders for Amazon sellers. 

Create product listings on your Amazon Seller Central account. This includes writing clear and informative product descriptions, using high-quality images, and setting competitive pricing that factors in your supplier costs and desired profit margin. 

When a customer places an order for one of your dropshipping products, you’ll receive a notification through Seller Central. Forward the order details and customer information to your dropshipping supplier. The supplier will locate, pack, and ship the product directly to the customer, often under your brand name. 

Maintain excellent customer service by responding promptly to inquiries, addressing issues efficiently, and striving for positive customer reviews. 

How to Dropship on Amazon without Money 

Dropshipping suppliers typically have higher wholesale costs compared to bulk purchasing, potentially to lower profit margins. Carefully calculate your costs (supplier costs, Amazon fees, marketing expenses) to ensure profitability. 

Your business success depends on the reliability and performance of your dropshipping supplier. Choose partners with a proven track record of quality products, timely shipping, and excellent customer service.

Some dropshipping suppliers may not offer branding services. This can make it difficult to establish a strong brand identity to your Amazon business. Explore alternative branding options or consider transitioning to a different fulfillment method like FBA as your business grows. 

How to Start a Business on Amazon without Money 

How to start a business on Amazon without money is not entirely doable.

As mentioned earlier, dropshipping allows you to start with minimal upfront costs for inventory. However, factor in supplier costs, Amazon fees, and potential marketing expenses. 

This involves sourcing discounted products from retail stores or online marketplaces and then reselling them on Amazon for a profit. This approach requires upfront capital to purchase inventory, but the profit margins can be higher compared to dropshipping. However, ensure you comply with Amazon’s policies.

Focus on a niche market with limited competition. Start with a small number of products and reinvest profits back into the business to expand your offerings and marketing efforts over time.

If you’re thinking of how to import furniture from Vietnam, then you are investing in renowned, meticulous craftsmanship, employing time-tested techniques and utilizing high-quality, locally sourced materials. 

The best products to import from Vietnam are unique and durable furniture made of acacia wood, bamboo, and rattan pieces that perfectly complement modern and traditional design aesthetics. 

Shipping Furniture from Vietnam to USA Step-by-Step

Importing furniture from Vietnam is a great opportunity for businesses. 

Reaching nearly $8.4 billion in 2023 and accounting for a staggering 82.9% of the country’s total export turnover in wood and wood products, there is an increase in global recognition of Vietnamese craftsmanship and the potential for international businesses.

1. Find a Reliable Vietnamese Supplies

Establish a strong relationship with a reputable furniture manufacturer or exporter. 

Research potential suppliers online, attend trade shows, or consult with industry associations to find qualified vendors. 

Negotiate pricing, quality standards, minimum order quantities (MOQ), and payment terms. 

It’s also important to ask about the supplier’s experience with importing furniture from Vietnam to USA, including their knowledge of US customs regulations and documentation requirements. 

2. Product Classification and HS Code

Identify the Harmonized System (HS) code for your furniture. 

This critical code determines import duties, regulations, and any licensing requirements. The HS code is an internationally standardized system for classifying traded goods. 

It consists of six digits, with the first six digits representing the broader category and subsequent digits providing increasing specificity. 

For example, the HS code for wooden chairs might begin with “44.18” with subsequent digits identifying the specific type of wooden chair (e.g., folding chairs, dining chairs, armchairs). 

Researching the HS code can be done through online resources or by consulting with a customs broker. 

Accurately classifying your furniture and obtaining the correct HS code is essential to avoid delays and unexpected costs during US customs clearance.

3. Contact and Proforma Invoice

Get a hold of a formal contract outlining the agreed-upon terms of sale, including the product description, quantity, unit price, total value, terms (international commerce terms that specify responsibilities of buyer and seller), payment terms, and delivery timeframe. 

The proforma invoice, typically issued by the Vietnamese supplier, details the same information as the sales contract but serves as a preliminary invoice used for various purposes, such as applying for export licenses in Vietnam or obtaining a letter of credit from your bank.  

4. Export Clearance in Vietnam

The Vietnamese exporter will handle obtaining necessary export licenses and phytosanitary certificates (for wood furniture) to comply with Vietnamese regulations. 

Phytosanitary certificates are issued by Vietnamese authorities to certify that the wood furniture is free from pests and diseases, a requirement for importing wood products into the US. 

5. Freight Forwarding and Shipping

Choose a reliable freight forwarder to handle international shipping logistics. Freight forwarders specialize in coordinating the movement of goods between countries, including arranging transportations, customs clearance, and necessary documentation. 

They can advise on the most suitable shipping method (ocean freight, air freight, express freight) and provide quotes based on factors like weight, volume, and destination port. 

6. Import Clearance in the USA

Once your furniture from Vietnam reaches the US port, your freight forwarder, or customs broker you hire, will navigate the US Customs and Border Protection (CBP) clearance procedures. 

This involves submitting required documentation (commercial invoice, bill of lading, packing list, etc.), paying applicable duties and taxes, ensuring the furniture complies with US safety and labeling standards. 

7. Delivery and Inspection

Once cleared by CBP, your furniture will be delivered to your designated warehouse or location, where you may conduct a final inspection to verify the shipment matches the agreed-upon specifications and quality standards. 

VAT and Export Duty Regulations for Shipping Furniture from Vietnam to the USA

Vietnam generally has a Value Added Tax (VAT) on exported goods, but it can be zero-rated depending on the specific furniture type and material. 

Consult with your Vietnamese supplier or a customs broker to determine the application VAT rate. 

Export duties in Vietnam are typically low for furniture, but it’s important to confirm with your supplier for any specific charges. 

Customs Documentation for Exporting Furniture

Shipping from Vietnam to US demands customs documentation: 

  • Commercial Invoice: A detailed breakdown of the furniture, including quantity, unit price, and total value. 
  • Bill of Lading (BOL): A legal document issued by the carrier acknowledging receipt of the cargo for shipment. There are different BOL types:
    • Function: A negotiable BOL acts as a document of title for the goods being shipped. This means whoever possesses the original, endorsed negotiable BOL is considered the legal owner of the furniture. 
    • Implications: Negotiable BOLs are typically used when the payment terms involve a letter of credit. The bank holding the letter of credit will only release payment to the seller once they receive the endorsed original negotiable BOL, ensuring the furniture has been shipped before the buyer pays. 
    • Considerations: Negotiable BOLs offer greater security for the buyer as they guarantee the furniture has been shipped before releasing payment. However, they involve more complex paperwork and processing compared to non-negotiables BOLs. 
  • Packing List: An itemized list of the furniture being shipped, including quantity, description, weight, and dimensions per package. 
  • Certificate of Origin (CO): This document verifies the furniture’s country of origin. It may be required for preferential duty treatment under trade agreements. 

Licensing Requirements for Furniture Exports

Furniture exports from Vietnam typically don’t require specific licensing beyond those obtained by your Vietnamese supplier. 

However, certain restricted wood species may require additional permits. It’s crucial to confirm these details with your supplier and relevant Vietnamese authorities. 

  • Wood Species: Identify the exact wood types used in your furniture. This information should be readily available from your supplier. 
  • Supplier Licenses: Verify that your supplier possesses the necessary licenses for exporting furniture, particularly if dealing with restricted wood species. 
  • Additional Permits: If your furniture uses restricted wood, ask about any additional permits required for export. Your supplier or relevant Vietnamese authorities like VNFOREST can provide guidance. 

Import Duties for Furniture from Vietnam

The import duty you pay for furniture entering the USA depends on specific code – the Harmonized Tariff Schedule (HTS) code. 

Why You Need an HS Code To Ship From Vietnam

The HS code plays a pivotal role in ensuring a smooth journey for your import furniture from Vietnam to the US. 

International Classification System

The HS code serves as a globally standardized system for classifying traded goods. This code ensures consistent categorization across different countries, facilitating international trade. 

Customs Clearance Efficiency

When your furniture arrives at a US port, CBP officials rely on the HS code to determine import duties, taxes, and any potential licensing requirements. An accurate HS code expedites the customs clearance process by providing clear information for duty assessment and regulatory compliance. 

Avoiding Delays and Costs

Inaccurate HS codes can lead to significant delays and additional costs during US customs clearance. 

CBP might hold your shipment for reclassification, potentially resulting in missed deadlines and storage fees. Additionally, you might be charged incorrect duty rates, leading to unexpected financial burdens. 

Streamlining the Process

By correctly identifying the HS code for your furniture, you provide CBP with the necessary information to efficiently process your shipment. This results in a faster clearance process, reduced risk of delays, and predictable import costs. 

HS VS. HTS Codes: What Is The Difference?

When you import furnitures from Vietnam, you’ll encounter two seemingly similar codes: the HS code and the HTS code. 

There are key differences to remember: 

  • Universality vs. Specificity: The HS code offers a universal classification system as mentioned above, while the HTS code provides more specific categorization within the US context. 
  • Number of Digits: The HS code typically uses six digits, while the HTS code might have additional digits for further product definition. 
  • Impact on Import Duties: The HTS code directly determines the import duties and taxes applied to your furniture in the USA. 
FeatureHS CodeHTS Code
FunctionStandardized international system for classifying traded goodsUS adaptation of the HS code
Maintained byWorld Customs Organization (WCO)US Customs and Border Protection (CBP)
Structure6 digits6+ digits (first 6 digits typically mirror HS code)
PurposeConsistent classification across bordersMore specific product categorization within the US
BenefitsSimplifies international trade, efficient customs clearanceEnsures accurate duty assessment, avoids delays
HS Code vs HTS Code

A key concept in businesses leveraging fulfillment by Amazon (FBA), is Amazon Fulfillment Center Transfer. 

Optimizing inventory management is essential for efficient order fulfillment and customer satisfaction. 

Burak Yolga states, “This lets you view your available FBA inventory and initiate product transfers, making them accessible to your premium users before stock runs out.”

What is Fulfillment Center (FC) Transfer in Amazon?

An Amazon FC transfer refers to the movement of your FBA inventory between different Amazon fulfillment centers

The primary purpose is to strategically position your products closer to the potential customers, enabling faster delivery times and potentially reducing shipping costs. 

Amazon’s algorithms analyze various factors, such as historical sales data, regional demand patterns, and product availability, to determine when and where to transfer your inventory. 

This process ultimately aims to enhance customer experience and streamline order fulfillment. 

FC Processing vs. FC Transfer

It’s important to distinguish between Amazon FC processing and FC transfer. 

FC Processing meaning signifies that your inventory is undergoing internal checks at Amazon fulfillment centers. This may involve tasks like verifying product condition, labeling, or preparing for shipment. 

During FC processing, your inventory remains within the same fulfillment center. 

In contrast, FC transfer Amazon indicates the movement of your inventory from one fulfillment center to another. 

Distributed Inventory Placement (DIP)

Distributed Inventory Placement is an optional Amazon service that allows sellers to specify preferred fulfillment center locations to their inventory. 

However, DIP is not a guaranteed placement service, and Amazon transfers your inventory based on its own fulfillment network optimization strategies. 

Inventory Placement Service (IPS)

Inventory Placement Service is a paid service offered by Amazon that provides sellers with more control over their inventory placement. 

With IPS, you can request specific fulfillment centers for your inventory, and Amazon will prioritize those locations when possible, subject to availability capacity. 

What Does Reserved Mean on Amazon FBA?

When you view your FBA inventory on Seller Central, you may encounter the term “reserved”. This indicates that your inventory units are designated for specific orders or are undergoing FC Amazon transfer. 

Reserved inventory is not available for immediate sale but will become available once the associated order is fulfilled or the processing/transfer process if complete. 

What Does FC Processing Mean?

As mentioned earlier, FC processing refers to internal handling of your inventory within a single fulfillment center. 

This may involve various tasks like: 

  • Inbound Receiving: Verifying the quantity and condition of your products upon arrival at the fulfillment center. 
  • Inventory Stocking: Storing your products in designated Amazon FC locations within the fulfillment center. 
  • Pick and Pack: Selecting and packing your products for customer orders. 
  • Shipment Preparation: Labeling and preparing your products for outbound shipment.

How Long Does FC Transfer Take on Amazon?

The duration of an FC transfer can vary depending on several factors, including:

Origin and Destination Fulfillment Centers 

The distance between the two fulfillment centers involved in the transfer will impact the time it takes. Transfers between geographically close facilities will naturally be faster compared  to those spanning vast distances.

Transportation Mode 

Amazon may use different transportation methods for FC transfers, but it comes at a higher cost. 

  • Ground Freight: This is the most cost-effective option but also the slowest. Ground transportation relies on trucks and can take several days to complete a transfer. 
  • Air Freight: This method prioritizes speed, using airplanes to move inventory between fulfillment centers. Air freight is significantly faster than ground transportation but comes at a higher cost. 

Overall Network Congestion 

During peak seasons or periods of high demand, Amazon’s fulfillment network may experience increased volume, potentially leading to longer transfer times. 

Peak seasons like holidays or periods of high sales volume can lead to increased congestion within the network. This congestion can impact transfer times as fulfillment centers handle a higher volume of inventory movement. 

Having sufficient stock pre-positioned in strategically located fulfillment centers can help minimize the impact of network congestion on FC transfer during peak periods. 

FC Transfer Process: Step-by-Step

Burak, CEO of Forceget logistics explains the step-by-step process of FC Transfers and how they came to be, sharing, “While Amazon checks in your shipment upon arrival at the fulfillment center, they can also begin distributing items to destination locations simultaneously. This process can take approximately 30 days to complete, which is why it might take nearly two months to close the shipment.” 

While Amazon initiates and manages FC transfers, understanding the general process can be beneficial for sellers: 

1. Inventory Analysis

Amazon’s powerful algorithms go into your sales data. 

This includes factors like historical sales figures, current selling trends, and regional demand patterns. Additionally, they analyze your overall inventory levels across all fulfillment centers, to make sure that your stock and inventory is headed into the right destination. 

2. Transfer Decision, Optimization, and Customer Satisfaction

Based on the insights gleaned from the inventory analysis, Amazon makes informed decisions regarding potential FC transfers. 

This involves determining if a transfer is necessary and, if so, selecting the most suitable destination fulfillment center. 

The primary goal at this stage is to optimize your fulfillment strategy. Amazon aims to minimize fulfillment times and ultimately enhance customer satisfaction. Fast delivery times can lead to improved customer experience, potentially translating into higher sales and positive seller feedback. 

3. Transfer Initiation

Amazon initiates the transfer process. This may involve notifying you about the upcoming transfer via Seller Central messages or email. Additionally, they will arrange the transportation of your inventory from the original fulfillment center to the new destination. 

The chosen transportation mode (ground or air freight) will depend on factors like urgency and cost considerations.

Communication is crucial. Being informed about the transfer allows you to proactively manage your inventory levels and customer expectations. 

4. Inventory Movement

Your inventory is physically transported from the original fulfillment center to the new destination. The speed of this stage depends on the chosen transportation mode. 

Ground freight, while more cost-effective, takes longer compared to air freight, which prioritizes speed but comes at a higher cost. 

Understanding the timeframe for the transfer is important. It allows you to adjust your inventory management strategies accordingly. For example, if you anticipate delay due to ground transportation, you might consider increasing your safety stock levels at the destination fulfillment center to avoid stockouts during the transfer period. 

5. Inventory Update

Once your inventory arrives at the new fulfillment center, Amazon meticulously updates your Seller Central inventory levels. 

This ensures accurate information for both you and your customers. The updated inventory reflects the new location of your products, providing transparencies throughout the fulfillment process. 

Up-to-date inventory data is essential for maintaining a smooth fulfillment operation. It allows you to track stock levels across different fulfillment centers and make informed decisions about future inventory allocation. 

This ensures you have sufficient stock available to meet customer demand without overstocking or experiencing stockouts.

Best Practices for Successful FC Transfers

Optimizing FC transfers can significantly enhance your Amazon FBA experience. 

Maintain Balanced Inventory Levels Across Fulfillment Centers

Conduct regular inventory audits to maintain accurate stock levels across all fulfillment centers. 

This helps identify potential discrepancies and ensures you have a clear picture of your available inventory. 

Use sales data and historical trends to forecast future demand. 

By proactively managing inventory levels you can minimize the need for frequent FC transfers, saving on potential transfer costs and disruptions to your fulfillment operation. 

Readily available inventory closer to customers can lead to faster delivery times, enhancing customer satisfaction and potentially boosting repeat business. 

Maintaining balanced inventory levels helps mitigate the risk of stockouts, ensuring you can fulfill customer orders promptly and avoid potential negative feedback or lost sales.

Leverage Seller Central Analytics for Informed Decisions

Make use of your Seller Central Sales data to identify regional variations in demand. By leveraging sales data and trends, you can make informed decisions about inventory allocation, potentially reducing the need for reactive FC transfers and optimiìng fulfillment efficiency. 

Strategically placing inventory closer to high-demand regions can lead to faster delivery times, enhancing customer satisfaction and potentially improving your competitive edge. 

Data-driven insights can help you proactively manage inventory levels to avoid stockouts and the need for emergency FC transfers. 

Explore Third-Party Inventory Management Tools

Look for third-party inventory management tools that seamlessly integrate with your Seller Central account. This ensures smooth data flow and eliminates the need for manual data entry. 

Third-party tools can automate time-consuming tasks like inventory forecasting and replenishment, allowing you to focus on other aspects of your business. 

These tools can help maintain accurate inventory levels across all fulfillment centers, minimizing discrepancies and ensuring informed decision-making about FC transfers. 

By proactively managing inventory levels through automation, you can potentially minimize the need for reactive FC transfers due to sudden stockouts. 

What is Amazon FC Transfer? The Secrets of Reserved, Researching, and Transferring FBA Inventory

Did you know that 90% of consumers say authenticity is important when deciding which brands they like and support (Stackla)? Not only that, but consumers find user-generated content 9.8x more impactful than influencer content when making a purchasing decision.

The value of User Generated Content (UGC) has increased in recent years and plays a crucial role in how a brand is perceived online, how credible it is, and how authentic it is.

And one reason it has become so impactful is because of the emotional connection.

When selling on Amazon, UGC can help people from your audience connect with you, because you showcase real people and their experiences, rather than impersonal marketing messages.

 

Today, intelliRANK will show you what exactly is User-Generated Content  and introduce some Amazon UGC strategies that you can leverage to boost your brand presence.

What is User Generated Content?

The user-generated content (UGC) is created by users of a product or service. This includes any visual material made by customers featuring a brand’s products or services, such as videos and photos.

With consumers becoming savvier and more skeptical about traditional advertising methods, this type of content has become increasingly popular. Rather than relying on a brand’s messaging, consumers want to see real people using and enjoying products. In fact, 93% of marketers agree that customers trust other customers’ content. 

Top 7 benefits of using UGC to promote your Amazon brand

1. Authenticity

Content generated by customers is often perceived as being more authentic and trustworthy than content produced by brands. Your brand becomes more relatable to your target audience when real customers share their experiences.

2. Cost-Effective 

Creating your own content, such as photos or videos, can be expensive. Customer-generated content, however, is free. In this way, you reduce the cost of content production while still generating valuable promotional materials.

3. Builds Trust

Consumers trust other consumers more than they trust brands. User-generated content helps to build trust by showcasing real people using and enjoying a brand’s products.

build trust through user generated content

4. Increased Engagement

UGC can boost engagement on your social media channels and website. By featuring their content, you increase the chances of customers interacting with your brand through comments, likes, and shares.

5. Unique Perspectives

UGC marketing offers diverse perspectives and experiences related to your products or services. Using this method, you can cater to a broader audience and attract new customers by giving them a better idea of what your brand is all about.

6. Community Building

By encouraging user created content, you can create a sense of community around your brand. Customers will become loyal and dedicated to your brand if you value their opinions and voices.

7. Feedback and Improvement

User-generated content can be a valuable source of feedback. When you monitor what customers say about your products or services, you can identify areas for improvement and resolve issues quickly, ultimately enhancing your brand’s image.

5 Amazon UGC Strategies to Boost Your Brand Presence

When planning to rely on user-generated content to promote your brand, here are 5 crucial things to consider: 

1. What emotion do you want your audience to feel?

Based on your objective, you can invoke different emotions with precise content. Your brand may want people to feel trusted by showing long-term customers using your products happily.

emotions in UGC strategy

Perhaps you’d like them to feel like they belong to an exclusive community by showing them the benefits your customers enjoy. Pick an emotion before choosing an image to leverage on your website, social media or Amazon posts.

2. What type of customers do you want to attract?

Showcase a wide range of perspectives, backgrounds, and experiences to attract the right customers.

Consider experimenting with more user-generated content and see what works for you. By showing variety in your content, your chances of reaching the right customer for you increase.

3. Is your content relevant?

Make sure that your content is relevant to the audience by reflecting the interests, and preferences of the customers. Is your content worth people’s time? Does it show the benefits of your product and people’s experience with it?

4. Is it entertaining?

Brands that entertain people are more memorable than those who do not. That is why you should focus on customer generated content which features unique, creative, or humorous perspectives.

entertaining ugc

5. Does it show unique insights that only customers may know?

You’d be surprised how creative people can get with your product. Your potential customers may become interested in a product just based on the unique insights you show them from existing customers.

So make sure you show something different from the general information available online.

Now that you know what to keep in mind when leveraging UGC, let’s see where you can use it for maximum results.

Where to share user-generated content?

1. Amazon Posts

The Amazon Posts feature allows brand-registered sellers to share product-related content and original lifestyle images through a similar “feed” to social media. 

amazon posts

Customers can scroll through your feed and click straight through to product detail pages. 

So, not only will your audience learn how to use your products, but they will also discover your brand story as they browse. Another amazing benefit is that you meet people on Amazon who are ready to buy.

2. Social Media Platforms

Whether it’s a customer review or a photo of your product in action, sharing this content on your social media pages can increase your brand’s social proof and credibility.

For example, let’s say a client replied to an email from you with a testimonial. What can you do with it?

👉 Create a template in Canva and add a testimonial screenshot. Then share it on social media.

👉 Or, you can copy-paste the text and use it in the post description, mentioning it’s a testimonial from a happy client.

3. Email Marketing

For example, a client sends you a photo of them trying out the product. You can add that photo to your email and share the story behind it. 

Including photos taken by your customers in your newsletters can increase open and click-through rates, as well as build trust with your subscribers. This will eventually lead to more sales.

4. Website and Blog Section

For example, a client creates a video using your product. This video can be used in your product description or blog post. Just by adding that video on your website, you can improve your customers’ experience, increase conversions and consolidate social proof.

5. Paid Advertising

Including customer photos or videos in your ads, like with Amazon ppc ads, can increase engagement and make them more relatable to your target audience.

You can use videos of your customers, written testimonials and even photos of your clients (just make sure you get their permission before using this content in marketing). 

5 methods to encourage customers to send you UGC

Based on what we tested and found effective, here are 5 ways to consistently receive content from your audience:

1. Ask For Feedback From Users

If you want to know what your customers think about your brand or product, ask them to leave you a review. One easy way to do this is by emailing them after a purchase, and asking for feedback. 

ask for reviews ugc

In most cases, clients will be glad to share their experiences with you and other potential clients.

2. Launch a Contest on Instagram

People who buy a product from you and post a picture of it on social media can enter a contest to win a prize. This activity not only increases visibility, reach, and engagement, but also positively impacts sales. 

Be sure to clearly state the rules and how participants can participate in the contest.

3. Offer Your Customers a Reward

Providing your audience with a discount, gift, or reward for their time will help you build a stronger relationship with your audience. 

Developing bonds with your audience won’t cost you much. In no time, your fans will be talking about your brand online without incentives – because they are loyal.

4. Create a Compelling Challenge

Find ways to integrate free challenges for your customers. This gives you the ability to curate potential content for your marketing channels, as well as engage audiences in new ways.

online challenge ugc

And that’s not all. If your challenge is truly exciting for consumers, it even stands a chance to become viral, further increasing brand awareness and retention.

5. Offer a Free Product in Exchange for Authentic Images and Videos

The best people to promote your product are those who are passionate about it. Offering a free product and asking them to take photos and videos in exchange for unique content will help you generate unique user-generated content, besides that, you can discover more about what can be improved by offering them the chance to test your product.

All it costs you is to give away a product. In exchange, you get content you can use in each campaign, and it helps your brand stand out from the crowd. 

Leverage the Power of Customer Generated Content in Your Amazon Business

Today, UGC content is much more than a passing trend. Since people are looking for genuine connections and experiences, it taps into the emotional intentions behind purchasing decisions.

Rethinking your marketing strategy and focusing on user-generated content can have a huge impact on your numbers if you want to attract more clients, engage them, win their trust, and convert them into loyal customers.

If you want to leverage UGC in your marketing strategy, check out intelliRANK’s Exclusive User-Generated Content Services.

Website: https://www.intelliRANK.info

Email: [email protected]

In 2024, Amazon is making changes to its Fulfillment by Amazon FBA fees structure. 

These changes impact various fees, like inbound placement fees, FBA fulfillment fees, FBA storage fees, and FBA removal fees. 

New programs and fee structures are also being introduced, such as the FBA new selection program. 

 

Amazon FBA Inventory Inbounding and Placement Fees 2024

The Amazon FBA inbound shipping cost and placement fees cover receiving and storing your products at Amazon fulfillment centers. 

Expect adjustments to both standard and oversize fees. 

Additional tiers include:

  • Standard-Sized: This category remains, encompassing most commonly stored products. 
  • Large Bulky: This new tier is designed for products with larger dimensions than standard-sized but not quite as substantial as the previous “Oversized” category. 
  • Extra Large:This tier absorbs products previously categorized as “Oversized”.

Please note, that these are estimates and may vary: 

Product SizeDiscounted Service (Multiple Locations)Discounted Service (Single Location)Premium Service
Standard-sized$0.27 per unit (average)$0.13 per unit (average)~$0.54 per unit (average)
Large Bulky-sized$1.58 per unit (average)$0.79 per unit (average)~$1.08 per unit (average)
Amazon FBA Inventory Inbounding and Placement Fees 2024

Amazon FBA Fulfillment Fees 2024

Fulfillment FBA fees cover packing, packing, and shipping your products to customers. The fee structure is revised with new tiers based on product size and weight. 

Product SizeWeight (in pounds)Previous Fee (average)New Fee (average)
Standard-sizedLess than 1 lb~$2.35~$2.15
Standard-sized1 lb to 2 lb~$3.10~$2.90
Standard-sizedOver 2 lbVaries by weightVaries by weight
Large Bulky-sizedVaries by size and weight~$4.70~$4.09
Amazon FBA Fulfillment Fees 2024

Inventory and FBA Monthly Storage Fees 2024

FBA storage fees are charged for storing your products in Amazon fulfillment centers. Previously, Amazon categorized product sizes as “Standard-Sized” and “Oversized”. 

The introduction of new tiers aims to create a more accurate cost structure based on the actual space your products occupy. 

This could potentially benefit sellers of smaller items within the  “Standard-Sized” category, who might see a decrease in storage fees compared to the previous system. 

Storage Fee TypePrevious Fee (per cubic foot)New Fee (per cubic foot)Applies To
Monthly Non-Peak (Jan-Sept)Standard-sized: ~$0.63Standard-sized: ~$0.54Standard-sized inventory in storage during non-peak months (January-September)
Monthly Peak (Oct-Dec)All Sizes~$2.40All inventory in storage during peak months (October-December)
Low-Inventory Level Fee (NEW)N/A~$1.00Standard-sized inventory in storage for more than one year
Storage Surcharges (Increased)N/AVariesInventory exceeding historical sales trends
Long Term Storage Fees (Unchanged)~$1.40 per cubic foot/month~$1.40 per cubic foot/monthInventory in storage for more than 12 months
Inventory and FBA Monthly Storage Fees 2024

Amazon FBA Inventory Removal, Disposal, and Liquidation Fees 2024 

FBA removal fees apply if you want Amazon to remove, dispose of, or liquidate your inventory. Amazon FBA Return Processing Fee 2024. 

FBA Removal Fees

These fees apply when you request Amazon to remove your inventory from their fulfillment centers. The cost is determined by the product size and weight – if larger and heavier, then there would be higher removal fees. 

Amazon removal fees may differ slightly depending on the reason for removal (e.g., returning unsold inventory, transferring to another fulfillment center). 

Costs can be affected by the final destination of your removed inventory. 

FBA Disposal Fees

Similar to removal fees, larger and heavier items typically result in higher Amazon disposal fees. 

The chosen FBA disposal fee methods (recycling, landfill) can have overall implications.

FBA Liquidation Fees

Liquidation allows you to sell off unwanted inventory through Amazon for a percentage of the selling price. The fees associated with this service include: 

Liquidation Referral Fee (15%): A commission Amazon takes on the sale price of liquidated items. 

Liquidation Processing Fee: A base fee charged per item liquidated.

Removal/Disposal/Liquidation MethodFee DescriptionRange (per unit)
Removal to an Amazon fulfillment center (FC)Fee for removing your product from an Amazon warehouse and shipping it to a designated location~$0.50 – ~$5.00
Disposal by AmazonFee for Amazon to dispose of your product~$0.80 – ~$10.00
Liquidation by AmazonFee for Amazon to sell your product for you through a liquidation service15% – 50% of the selling price
Amazon FBA Inventory Removal, Disposal, and Liquidation Fees 2024 

New Seller Central Ships in Product Packaging (SIPP) Cost Saving Program 2024

SIPP (Ships in Own Container) is a new program offered by Amazon that allows sellers to potentially reduce fulfillment cost by using their own packaging for certain products that meet Amazon’s specific guidelines. 

Products enrolled in SIPP may qualify for reduced Amazon fulfillment fees compared to standard FBA fulfillment fee. 

SIPP also allows you to showcase your own branding on the product packaging delivery to customers. 

Part of their Amazon Frustration-Free Packaging Initiative, SIPP offers eligible SKUs in the program discounts ranging from $0.04 to $1.32 per unit, based on size and weight. 

This translates to potential savings on your fulfillment fees. 

Apparel Amazon FBA Fees 2024

CategoryStandard Return Processing Fee (estimated)Applies To
Most Categories50% of Fulfillment FeeReturns where seller is not responsible
Apparel & Shoes (Before June 1, 2024)50% of Fulfillment FeeAll Returns
All Categories (After June 1, 2024)50% of Fulfillment Fee (To be confirmed)Returns where seller is not responsible for products with high return rates in that category
Apparel Amazon FBA Fees 2024

Amazon FBA New Selection Program 2024

While specifics are still under wraps, here’s an expanded look at the Amazon FBA New Selection Program for Amazon 2024, focusing on potential benefits and strategies for sellers: 

Potential Benefits

The primary benefit seems to be the opportunity to decrease storage costs associated with FBA fulfillment. This could significantly impact sellers, especially those with large or seasonal inventories. 

Selection into the program might translate to better product placement within Amazon search results or dedicated sections, potentially leading to higher sales. 

The program’s criteria might incentivize sellers to optimize inventory levels and product performance, leading to a more efficient and profitable business. 

Possible Selection Criteria (Based on Industry Speculation)

Factors like sell-through rate, inventory turnover and stockouts could potentially influence selection. Maintaining healthy stock levels and ensuring products sell well can be critical. 

Positive customer reviews and high ratings may be considered for program inclusion. Focusing on product quality and customer satisfaction can be beneficial. 

Efficient use of storage space, timely fulfillment, and proactive inventory management could be looked upon favorably. Implementing best practices for inventory control can be key. 

The program might prioritize new products entering the FBA system, encouraging sellers to explore new offerings. 

Timeline for new Amazon Fees in 2024

This table provides a clear and concise overview of the key implementation dates for the major Amazon FBA fee changes scheduled for 2024. 

Please note that all dates are subjected to change, and it’s recommended to refer to the latest information on Amazon Seller Central for the most up-to-date details.

DateFee ChangeDescription
February 5, 2024Size Tier Adjustments & SIPP Program LaunchThe existing “Oversized” category is replaced with “Large Bulky” and “Extra Large” for better product categorization. The Ships in Product Packaging (SIPP) program becomes available to all FBA sellers, allowing potential reductions in fulfillment fees for qualified products using their own packaging
March 1, 2024Inbound Placement Service FeeA new fee is introduced for inbound shipments to Amazon fulfillment centers. Sellers can choose between a premium service with a single location delivery (potentially incurring a fee) or a standard service with multi-location delivery (potentially incurring a lower or no fee).
April 1, 2024Low-Level Inventory Fee & Storage Fee ReductionA new fee is implemented for standard-sized inventory that has been in storage for more than a year, encouraging sellers to manage inventory levels effectively. Non-peak monthly storage fees for standard-sized products are reduced by $0.09 per cubic foot.
April 15, 2024FBA Fulfillment Fee ReductionFulfillment fees for standard-sized and large bulky products are reduced on average.
June 1, 2024 (Possible)High Return Rate Fee for ReturnsA potential new fee is implemented for products in categories with high return rates. This fee would apply to returns where the seller is not responsible. (Confirmation and details of this fee are pending from Amazon.)
Timeline for new Amazon Fees 2024

Frequently Asked Questions on Amazon FBA Fee Changes for 2024

In order to optimize your selling strategy, understanding the new Amazon FBA fee structure for 2024 is important. 

What is the Inbounding and Placement fee?

The Inbound Placement Service Fee, introduced on March 1st, 2024, applied to standard-sized and large bulky-sized products entering Amazon fulfillment centers. 

This fee essentially reflects the cost of distributing your inventory within their network. 

  • Premium Service: You choose a single location for your inventory to be delivered. This option might work for a higher inbound placement service fee. 
  • Standard Service: You opt for Amazon to distribute your inventory across multiple fulfillment centers. This service offers a potentially lower fee or even no fee at all. 

What is the Low-Inventory-Level fee? 

The Low-Inventory-Level fee, to be implemented on April 1, 2024, will act as a nudge to manage your inventory effectively, This fee applies to standard-sized inventory that has been in storage for more than a year. 

How does Amazon calculate the FBA Storage utilization surcharge?

The specifics of how Amazon calculates the FBA Storage Utilization Surcharge haven’t been fully disclosed yet. However, we know it’s a fee that might be adjusted based on how efficiently you use the storage space in your inventory. 

Amazon likely considers factors like product dimensions, stacking efficiency, and empty space within your allocated storage area. 

Regularly reviewing your inventory levels and removing slow-moving or inactive products can positively impact your storage utilization score (potentially reducing the surcharge). 

Are FBA Fulfillment Fees increasing in 2024? 

Amazon plans to decrease fulfillment fees for standard-sized and large bulky products on average, effective April 15th, 2024. 

How do I enroll in the Ships in Product Packaging (SIPP) program? 

While not a new fee, the Ships in Product Packaging (SIPP) program offers potential cost savings for sellers. 

As of February 5th, 2024, the program is open to all FBA sellers. Products must meet strict packaging guidelines set by Amazon FBA size limits, weight, durability, and labeling requirements. 

If your products qualify, you might see a reduction in Amazon FBA cost compared to standard FBA options.

Temu, a mobile-first marketplace launched in 2021, has garnered significant attention that left businesses thinking about how to sell on Temu? 

Temu has captured the attention of businesses seeking new avenues for growth. 

Temu’s mobile app has seen significant adoption, particularly in the United States. As of July 2023, Temu surpassed 30 million downloads, with over 40% originating from the US market. 

Burak Yolga, the founder of Forceget stated, “Temu became popular in the United States after the Super Bowl. Temu.com has been downloaded more than 50 million times within a week, and this popularity still continues.”

 

What is Temu?

Temu.com is a mobile-first online marketplace, a prominent Chinese e-commerce platform, offering a wide range of competitively priced merchandise across various categories. 

Primarily for value-conscious consumers in North America, especially the United States. These consumers prioritize affordability and are attracted to Temu’s focus on offering products at lower price points. 

“Temu is growing very rapidly, expected to invest 30 million dollars in their ads. What they do is ship directly from China to the United States” says Burak.

Who Owns Temu?

Temu com website is owned by Pinduoduo, a prominent Chinese agricultural ecommerce platform known for its social commerce features and focus on value-driven products.

Pinduoduo’s success in the Chinese market, particularly its innovative approach to gamified shopping and group buying, has fueled Temu’s rapid expansion. 

How to Sell on Temu?

Burak says, “You can save money from the export fees. Basically,Chinese factories can get almost 15-18% tax refund from the government of China when they export the product but because their import price is below $ 800 in the United States they don’t pay a lot of tax or duties.”

Follow these steps to start selling on Temu:

Step 1. Create an Account

Head over to Temu’s website and click on “Become a Seller.” Fill in your name, email address, password, and phone number. 

Verify your account using the code sent to your phone and access your Temu seller dashboard.

Step 2. Set Up Your Store

Once your account is set up, it’s time to customize your online store. Make it visually appealing by adding a logo or banner and writing a store description that highlights what makes your offerings unique. 

A well-designed store creates a positive first impression and sets the stage for successful selling.

Step 3: Complete Your Seller Profile

Building trust with potential buyers is crucial. Complete your seller profile by providing essential information:

  • Shop Name: Choose a unique and catchy name for your Temu shop.
  • Description: Write a compelling and concise description of what you plan to sell.
  • Profile Picture: Upload a professional logo or a high-quality photo representing your shop.
  • Payment Account: Provide your payment account details for seamless processing of your earnings.
  • Return Address: Ensure buyers have a valid return address, adding a layer of trust.
  • Tax Information: Input your tax ID number and business tax status for compliance.

Step 4: List Your Products

  • Prepare Product Information: Craft an attractive title and description, select the relevant category, and gather high-quality images, pricing, inventory, and shipping details.
  • Log into Your Seller Dashboard: Access your dashboard to start the listing process.
  • Add Product Details: Enter all prepared information, including product name, description, category, pricing, inventory, and dimensions.
  • Upload Images and Videos: Showcase your products with high-quality visuals.
  • Optimize for Search: Use relevant keywords for improved visibility in search results.
  • Accurate product representation and optimization increase your chances of attracting potential buyers.

Step 5: Optimize Your Listings

To stand out on Temu, focus on optimizing your product listings:

  • Relevant Keywords: Conduct thorough keyword research and seamlessly integrate them into titles, descriptions, and tags.
  • High-Quality Images: Invest in professional photography for clear and appealing product visuals.
  • Competitive Pricing: Research and set competitive prices to attract Temu shoppers who love a good deal.

By paying attention to these details, you enhance your product listings for increased visibility and, ultimately, more sales.

Step 6: Promote Your Products

  • Marketing Tools: Utilize Temu’s built-in tools for featured product promotions and targeted advertising.
  • Relevant Keywords for Visibility: Use popular search terms in your listings for increased visibility.
  • Social Media Sharing: Share your products on platforms like Facebook, Instagram, and Twitter to reach a broader audience.
  • Affiliate Program: Explore Temu’s affiliate program to tap into additional promotional avenues.

Where is Temu Shipped from?

When it comes to where Temu is shipped from, the majority are shipped directly from warehouses located in mainland China. 

This allows Temu to leverage a vast network of manufacturers and suppliers, contributing to their competitive pricing strategy.   

How to Ship from Temu?

As a seller for Temu, you are not directly responsible for fulfilling customer orders. 

“When it comes to the marketing strategy they’re planning to spend almost $3 billion in the United States to market their products. They want more people to download this product and they’re going to be the most aggressive when it comes to pricing”, according to Burak. 

Temu manages the entire fulfillment process, including warehousing, picking, packing, and shipping products to customers in North America. 

  • Warehousing: Temu manages a network of warehouses located in mainland China. Your products are stored securely in these facilities until customer orders are place. 
  • Order Processing: Once a customer places an order on Temu, Their system automatically transmits the order details to the appropriate warehouse. 
  • Picking and Packing: Temu’s fulfillment staff efficiently pick, pack, and prepare your products for shipment based on customer orders. 
  • Shipping: Temu uses reliable shipping carriers to deliver your products directly to customers in North America. They likely negotiate bulk shipping rates with carriers, potentially leading to cost savings compared to individual seller accounts.

How Long Does Shipping Take from Temu?

Temu’s standard shipping time frame typically ranges from 10 to 12 business days. 

However, Temu express shipping options might be available depending on the product category and seller location within China. 

Based on customer needs, you’ll have Temu shipping cost adjusted. 

  • Standard Shipping: This is considered to be the most economical option, with typical Temu shipping time ranging from 7 to 15 business days. 
  • Expedited Shipping: For customers willing to pay a premium, Temu express shipping time is a suitable option for those hoping for faster delivery time depending on the product category and seller location within China. 

“The disadvantages are, you don’t know the quality of the product. If you’re a buyer, you need to wait 10-12 days versus Amazon prime or other websites. Future prediction is Temu is going to keep their prices very low, but then these factories who ship directly from China to the US, they will be selling their best selling items to the fulfillment centers, that Temu is eventually going to start and then they’ll start shipping their products locally. Their delivery time will be little shorter, but then the prices might be higher.” 

Can I Buy From Temu and Sell on Amazon?

While Temu offers a centralized fulfillment model, as an Amazon seller, you would have more flexibility through FBA and self-fulfillment options.  

FeatureTemuAmazon
Fulfillment ModelCentralized fulfillment managed by TemuFBA (optional) or self-fulfillment by seller
WarehousingTemu manages warehouses in ChinaSeller utilizes FBA warehouses or 3PL warehouses
Picking & PackingTemu handles picking and packingSeller fulfills these tasks for FBA or self-fulfillment
ShippingTemu negotiates shipping rates with carriersSeller chooses and pays for shipping carriers
Shipping CostPotentially lower due to bulk negotiation by TemuVaries depending on seller’s chosen carrier and service
Shipping TimeTypically 7-15 business days (standard shipping)Varies depending on FBA

Temu vs Amazon

Temu vs Amazon are two e-commerce giants vying for market share, but they cater to different audiences and operate under distinct business models. 

Deciding between these platforms depends on whether you’re a consumer seeking the best deals or a business looking to expand your reach. 

Target Audience

Temu: Primarily targets value-conscious consumers in North America, specifically the United States. These consumers prioritize affordability and are attracted to Temu’s competitive pricing structure. 

Amazon: Caters to a broader audience with a wider range of income levels. While Amazon offers competitive prices on many products, it also features premium brands and higher-priced items. 

Product Selection

Temu: Offers a wide variety of competitively priced products across various categories, with a focus on sourcing from China. 

Amazon: Boasts a much more extensive product selection, encompassing both established brands and private label products alongside items directly sold by Amazon itself. 

Seller Options

Temu: Operates a selective seller onboarding process. Businesses can apply through an existing Pinduoduo seller account or directly on Temu’s website. Specific criteria for direct applications are not publicly disclosed. 

Amazon offers two main options for sellers: 

  • Fulfillment by Amazon (FB): Sellers can leverage Amazon’s vast network of warehouses for storage, picking, packing, and shipping. Amazon FBA fees would depend on your products, as well as how fast you’d like your products to ship. 
  • Fulfillment: Offers sellers more control over fulfillment processes but requires them to manage logistics themselves. 

Fulfillment Model

Temu: Manages the entire process from product storage in China to delivery to customers in North America. 

Amazon provides sellers with more flexibility. 

  • FBA: Strealines fulfillment for sellers but comes with additional Amazon FBA fees.
  • Self-Fulfillment: Offers sellers more control over fulfillment processes but requires them to manage logistics themselves. 

Pricing

Temu: Temu sales vs Amazon for its aggressive pricing strategy, offering many products at highly competitive prices due to its focus on Chinese manufacturers. Temu often offers free or subsidized shipping, further enhancing its value proposition for cost-conscious consumers. 

Amazon:Offers a wider range of pricing points depending on the product, brand, and seller. While Amazon features competitive prices on many items, it also caters to premium brands and higher-priced goods. 

Dropshipping

Temu: Prohibits sellers from purchasing products on Temu for resale on other platforms like dropshipping to Amazon. This practice disrupts Temu’s fulfillment model and potentially violates intellectual property rights. 

Amazon: Generally allows dropshipping, but sellers are responsible for ensuring they comply with Amazon’s policies and any potential trademark or copyright infringements. 

If you’re a business with established sourcing relationships in China and want a cost-effective, centralized fulfillment model, Temu could be worth exploring. 

Watch Burak Yolga’s detailed video on “How to Sell on Temu” for further details!

T

Understanding Amazon reimbursements and the FBA reimbursements is crucial for maximizing your bottom line as an FBA seller. 

For businesses leveraging Fulfillment by Amazon (FBA), maximizing profitability hinges on minimizing losses. Fortunately, Amazon’s FBA program offers reimbursement options for sellers who encounter issues with their inventory. 

 

 

What are Amazon Refunds for FBA Sellers?

Amazon FBA reimbursements are essentially refunds issued by Amazon to compensate sellers for financial losses incurred due to issues with their inventory while it’s stored or fulfilled by Amazon. 

As an Amazon seller reimbursement, you must entrust Amazon with your inventory’s storage, fulfillment, and customer service. 

Different Types of Amazon FBA Reimbursement

The Amazon FBA reimbursement program covers various financial losses through Amazon reimbursement service. 

  • Lost Inventory: Amazon FBA lost inventory includes instances where your inventory arrives at an Amazon fulfillment center but is misplaced or disappears within the facility. 
  • Damaged Inventory: Customer damaged FBA returns inventory can become damaged during storage or fulfillment due to various factors. Amazon reimbursement policy is applied for the value of the damaged items. 
  • Incorrect Fees: Occasionally, technical errors or miscalculations may lead to incorrect fees for your seller account. You can request Amazon FBA reimbursement for these discrepancies. 
  • Customer Returns: Amazon FBA returns occur in some cases where a customer returns an item that Amazon deems unsellable due to damage not caused by the customer, you may be eligible for an Amazon FBA refund. 

Types of Amazon FBA Lost Inventory Claims

Lost inventory claims within the FBA program fall under two categories: 

Reconciliation Discrepancies

These discrepancies occurred after Amazon conducted a routine inventory check within their fulfillment centers. The check aims to ensure accuracy in their system and may reveal inconsistencies between your inventory records and Amazon’s count. 

  • Receiving Errors: Human error or technical issues might lead to an inaccurate initial count of your incoming inventory during the receiving process. 
  • Storage and Handling Misplacements: Products can be misplaced within the fulfillment center, leading to a temporary discrepancy until located. 
  • System Glitches: While uncommon, technical glitches in Amazon’s inventory management system occasionally lead to discrepancies. 

Removal Order Discrepancies

These discrepancies arise when you request the removal of a specific number of units from an FBA fulfillment center, but the number received upon removal differs. 

  • Picking Errors: During removal, fulfillment center workers might accidentally pick and ship an incorrect quantity. 
  • Packing Errors: Discrepancies can occur during the packing stage if the wrong number of units are placed in the removal shipment. 
  • Shipping Discrepancies: Occasionally, discrepancies can be traced back to issues during the shipping process with a carrier. 

How to File an Amazon Reimbursement Claim

To file a claim for an FBA reimbursement, follow these steps: 

1. Gather Documentation

Compile relevant documentation like purchase Amazon receipt for reimbursement, removal order confirmations, and product pictures (if applicable). 

2. Access Seller Central

Log in to your Seller Central account and navigate to the “Reports” section. 

3. Locate the “FBA Inventory Adjustments” Report

This report will display discrepancies in your inventory. Identify the discrepancy you wish to claim FBA reimbursement service. 

4. File the Claim

Click the “File a claim” button associated with the chosen discrepancy. Provide clear and concise details about the issue and upload any supporting documentation. 

Amazon Reimbursement Policy

Amazon has specific timeframes for filing claims. Review their policy to ensure you submit your claim within the allowable window. 

Not all lost or damaged inventory qualifies for reimbursement. Familiarize yourself with Amazon’s FBA reimbursement policy to understand the eligibility criteria for each type of claim. 

Having substantial supporting documentation significantly increases the chance of a successful claim. 

Maximizing Your Reimbursements

Regularly reconcile your inventory records with Amazon’s system to identify potential discrepancies. 

Maintain meticulous inventory records, including purchase receipts and removal order confirmations. 

Clearly and concisely explain the issue in your claim and provide all necessary documentation.