Are you confused about Amazon FBA or FBA label service? Well, you’re not alone. Many online business owners want to join the Amazon FBA program but do not have sufficient Amazon fba coaching. However, it’s not that difficult. In the following article, we’ve explained Amazon’s FBA program and FBA labeling service in-depth.
Quick Introduction to Amazon FBA Program:
To conclude the whole program in a few words, it’s a seller’s program in which Amazon pick, pack and ship the orders on behalf of the sellers.
FBA or Fulfillment by Amazon is a service by Amazon that provides a great boost the online sellers, retailers, and third-party sellers by giving them access to the logistic network of Amazon.
Amazon takes care of all the functions like warehousing, customer service, returns, shipping, and refund of the orders in the FBA program and charges amazon fba fees. Anyone can calculate the amount of fee by going on their site and using the Amazon Fba calculator. It’s a very easy process that can help the sellers to calculate their potential profitability and decide whether or not it’s suitable for their business to use the Amazon Fba program.
What’s FBA Label Service?
FBA warehouses consist of millions of products that belong to different individual sellers. In order to differentiate products of one seller from others that are stored in the same FBA Center, Amazon uses special barcodes that are known as fnsku label or Fulfillment Network Stock Keeping Unit.
All the sellers using the FBA program get to decide whether they want to label their product by using Amazon fba labels service or by themselves. So, many people who are not much aware of FBA labels get confused in making a choice that whether they should do it themselves or let Amazon take care of it.
Why Do You Need an FNSKU?
As mentioned above, a fnsku barcode helps Amazon to differentiate one seller’s products from the other sellers. The fnsku barcode is pasted on the products, not on the packaging of the box in which the products are sent. However, when your product reaches Amazon warehouses, they are identified by the FBA box label, which is different from fnsku.
That means the sellers can send their products or inventory to Amazon Fulfillment Centers without fnsku barcodes. All it requires is an FBA box label and manufacturer barcode-like JAN, UPC, etc.
There’s a catch. All the Amazon FBA sellers who only use the manufacturer barcode will turn their inventory into “Commingled Inventory.” Commingled inventory is the process in which Amazon fulfills the order from their fulfillment center that’s closest to the customer.
The catch is that there’s a risk that your customer can receive a low-quality product that belongs to some other seller instead of the product that you individually purchased from your supplier after inspection. Thats why it’s vital to attach a fnsku label to your products.
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What is the FBA Label Service?
As the name suggests, it’s about printing and pasting the fnsku label on the products. Inventory involves in the Amazon FBA program is huge. Now, imagine printing the fnsku labels and putting them on hundred and thousand of your products. This process can be very costly and time-consuming for the sellers.
However, by using the Amazon FBA label service, you can just skip the hassle by paying $0.20 per product. But, there are requirements for using the Amazon FBA label service that include that your products must be in brand new and undamaged condition. All products must have a scannable barcode like UPC, ISBN, etc.
Why Should You Use the FBA Label Service?
There are many advantages of using the Amazon Fba Label service, but the biggest advantage is that it saves a lot of time that you have to spend on printing and putting the barcodes. It’s a lot of unnecessary hassle. It also saves the transportation cost that you have to spend on getting your products delivered to your warehouse and later sent to Amazon warehouse. By using the Amazon label service, you can directly send your bulk inventory from your supplier to Amazon by using the FBA system, where you can track everything.
What are the Drawbacks of Using the FBA Label Service?
As good as the FBA service looks, there are a few downsides that can be critical consideration factors for some FBA sellers.
The cost of using the Amazon FBA label service is $0.20/barcoded label, which is not too much, right? But in reality, it depends on the scalability of your business. For example, how many products your store sells in a month.
If you’re selling 4000 products in a month, the FBA Label Service’s cost will be $800 straight out of your total revenue. Another drawback is that it puts your account at the risk of suspension in case if your supplier mistakenly sends a potentially inauthentic product to Amazon.
Amazon FBA and fba Labels are both great programs that can benefit your Amazon store a lot and should be a part of your selling strategy; however, you should understand both programs and do the maths before making the decision.
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