The startup Amazon Fulfilment Play-book
INDEX
" What is FBA-
" What are the benefits of using FBA-
" Requirements-
" Documents required by Amazon-
" Difference between personal and business Amazon seller accounts-
" What is a UPC-
" Registering a GS1 barcode-
" GLN-
" ASIN-
" Placement of a barcode-
" What is a non-authentic UPC –
" What happens to your inventory if your listing gets stricken/removed-
" Removal orders
" What is FNSKU–
" Descriptions and Keywords-
" Search engine and listing ranking-
" Criteria for product showcase images-
" Listing options-
" All fees related to fulfillment, storage and sales
" How to evaluate a product-
" How to create a listing-
" How to create a variation-
" How to send inventory to Amazon fulfillment locations-
" Hijackers-
" Recommended shipping & packaging-
" Example of completed listing-
Amazon FBA
What is FBA?
" FBA or "fulfillment by Amazon" is the process of having Amazon take care of the shipping, handling as well as storage of a product that is listed for sale on their platform.
What are the benefits of using FBA?
" Unlimited growth potential
" Ease of selling a product
" No limit to how many products can be listed and handled
" No need to handle stock
" No need to store stock at any other location
" Simple listing/restocking process
Requirements
" Product
" UPC
" Canadian Amazon business/personal seller account
" Professional photos of the product
" Accurate description of the product
" Accurate bullet points
" Product search tags
" Starting capital
Documents required by Amazon
¢ Scanned color copy of both side of a government issued ID
¢ Bank Statement in which;
" Account number and monetary amounts are hidden
" Name on the statement matches the Amazon entity name
What is the difference between a personal/business Amazon seller account?
Amazon offers these two options for two types of sellers. The seller who will sell either a used product or very low volume and the seller who will aim to cycle a lot of inventory every month. The difference in fees between these two accounts is the following. For a personal account, Amazon charges around $1.50 per item sold without a cap for how much they take. On the other hand, business accounts cost $30/month which is a static fee for the month. Business accounts are worthwhile for anyone planning on selling more than 20 items every month along with having a few extra benefits.
What is a UPC?
A Universal Product Code or UPC is a 12-digit numeric unique code that identifies your product (only required when created your own product). Amazon highly recommends and enforces UPCs obtained through GS1. UPCs from GS1 start around $60 and increasing annually depending on the number of items that are to be sold and how many variations they have. UPCs can also be purchased on alternative websites at a significantly cheaper price (Around $10 for a single code and decreasing/code as you purchase more). In both code instances, 1 is required per variation of a product for example; I have 1000 shirts, 250 red, blue, white and black. This would require at least 4 codes + the size variations. Barcodes can then be searched against the barcode database that comprises all barcodes and products giving full descriptions, company information as well as variations of the product or other products provided by said company.
First digit;
0,1,6,7,8; Indicates a manufactured product that is not a drug
2; indicates a material destined for local usage for example in a store or warehouse. Also used when the manufacturer code part is used for weight or price
3 Indicates a drug
4 Indicates a non-food item such as a loyalty card
5 or 9 indicate a manufacturer coupon or discount
Digits 2-6;
Manufacturer code also known as company prefix. This is a 5-digit number used for the identification of the manufacturer company of the product. Code generated by GS1
Digits 7-11
This is the identifier for the product, the product code. It refers to a specific product.
Check digit; final digit
The check digit is a calculated through the sum of even numbered digits (digit in position 0,2,4,6 etc.) added to the sum of odd numbered digits (digit in position 1,3,5,7 etc.). That sum mod 10 to give the final digit
Example of item being scanned or searched on the database
Barcodes can be scanned in many ways.
They can be searched through an app on a
Smartphone, a physical scanner or through
User input. There is no difference in the result
Using any method over another
Registering with GS1
Registering with GS1 is pretty straight forward;
¢ Subscribe to the service that answers to all your needs according the number of UPC codes required
¢ Fill in the general information required; Full name, Email address, Phone number Job title, company name, job functions, address, country, province, city, postal code, billing address. Select (a) sector(s) (Multiple choice; Foodservice, grocery, public, general merchandise and hardline or healthcare/pharmaceutical). Indicate which associations your organization is a member of (multiple choice). Indicate; if you plan on selling a product, if you need barcode, if you have a company prefix, if you wish to share product information with retailers, if you are a retailer/distributor looking to receive product information from trading partners. Select organization type (Option 1; manufacturer, Option 2; Broker/distributor/supplier/wholesaler). Enter the number of barcodes that you need. Leave "GLN" field empty. Enter your annual gross revenue bracket (in CAD)
¢ Assign UPC by obtaining your GS1 prefix assigned by GS1 Global office. The company prefix will automatically be registered to the business location address assigned in during the subscription process. Next, you need to decide on a printing method. In this step, select static barcode. After that, select principal scanning environment, in FBA that means choosing a barcode for retail and point-of sale. Then, choose a barcode size and color. Place barcode
GLN
For amazon, no GLN is required. A GLN is a Global Location Number. This number is essentially used to keep track of the location of your products. It is required when selling from your own warehouses. 1 GLN code is required per location of business. (Office, warehouse and other sites (if any) where the product gets prepared or processed)
ASIN
ASIN stands for Amazon standard identification number. This number is assigned by Amazon with no user input to your product once it is listed.
Placement of a barcode
Placement of a barcode is very important so GS1 guides as followed;
" Barcode must not be crumpled or folded round a corner.
" Place barcode on a flat surface and never round a corner, over a join, perforation seam or similar
" Each package must only have one barcode
" If possible, place the barcode at least 8mm and at most 100mm from any edge of the package
" Avoid placing barcodes at the bottom of the package
What is a Non-authentic code
Non-authentic codes are purchased very inexpensively on a selection of websites like Ebay. Usually, these codes work for Amazon. However, it is very limiting if you plan on expanding passed Amazon. Even at that, Amazon will occasionally verify the validity of some UPC codes. If they notice that the information doesn't add up (it never does with these codes), the listing will be stricken and removed from active listings. Instead, they are placed in archives where the seller has two options. Option 1: Fix the UPC and relist. This causes the listing to lose all priority resulting in a plummet in ranking. Option 2: Place a removal order
What happens to your inventory if your listing gets stricken or removed?
Listing can NEVER be completely removed or deleted. Never the less, it can be removed from the search results. When this happens, the product can be re-listed or a removal order can be placed. Your items are located within the warehouse through the F.N.S.K.U.
What is a removal order and how does it work?
A removal order is placed when a seller wants to recuperate his inventory from the Amazon warehouse. For this process, Amazon charges a fee (usually around $0.60 per item) to be shipped back to the seller or where ever the seller needs it to go.
What is F.N.S.K.U.?
The Fulfillment Network Stock Keeping Unit or FNSKU is an Amazon product identifier for products fulfilled by Amazon. This code is uniquely used by Amazon. An FNSKU is required to be registered and labeled on your product before being able to send it to an Amazon storage and fulfillment center. If the FNSKU field is left blanc when listing of your product, Amazon will generate one for you. This code needs to be placed on every single item that is shipped to an Amazon fulfillment center. The FNSKU must cover every single barcode on the product and/or box. To find your FNSKU barcode go to your seller central > inventory > select item > select the drop down beside the product > Select print item labels. After the labels are acquired, they must cover all UPC or other barcodes on the product before shipping to Amazon fulfillment center.
FNSKU is not to be confused with SKU or UPC. It is its own type of barcode much like the UPC. An SKU is used within a merchant warehouse as a code that be referred to in a catalog. A UPC can be scanned and recognized anywhere. On the other hand, FNSKU is solely an Amazon identifier. It is composed of 4 parts: The barcode, human readable code, Title and description and condition.
As seen in the example;
Descriptions and keywords
By far, the most important parts of a listing are the keywords and the product description.
Keywords are the terms that are used to direct consumers to your product. You can use up to 100 keywords to guide traffic to your listing. Sellers are ranked on every keyword individually. Also, to help with ranking on each keyword, Amazon provides a pay per click advertisement service that allows the top spots to be auctioned off to the highest bidders (for every keyword).
The product description, however, is the first thing, beside the images and price of the item in question, that customers see and compare with your competitors making the description extremely important. The product description is composed of two parts, the standard description and the bullet points. It is very important to create very compelling bullet points because more often than not, consumers tend to base their decisions off of them.
Search engine and listing ranking
Search engines direct traffic to listings according to searches by the user. Once the user inputs a search term, the search engines break it up into keywords that are then matched up against keywords listed on products. Listings are then classified by ranking. Keywords are often auctioned (price/click). This would put your listing at the very top of the first page. However, the goal for a successful listing is to rank on as many keywords as possible to get as much exposer as possible.
For example; listing a white board
Keywords; Boards, board, writing, writing board, white board, (dimensions of the board) white board, ect.
Criteria for product showcase images
" Products must fill at least 85% of the image. Images must show only the product that is for sale, with few or no props and with no logos, watermarks, or inset images. Images may only contain text that is a part of the product.
" Main images must have a pure white background, must be a photo (not a drawing), and must not contain excluded accessories.
" Images must be at least 1000 pixels on the longest side and at least 500 pixels on the shortest side to be zoom-able.
" Images must not exceed 10000 pixels on the longest side.
" JPEG is the preferred image format, but you also may use TIFF and GIF files.
Listing option;
¢ List an entirely new product by either branding it or having an entirely new product
¢ Just like anyone else, you have the option to list your product if you find the same product already listed.
What fees should be calculated?
Amazon charges 15% of sales price
PLUS
Amazon fulfillment and storage fees
The following are estimates provided by Amazon;
Fulfillment fees
Standard size;
" Small* (1lb or less) – $2.41 / per item
" Large* (1 or less) -$3.19 / per item
" Large (1 – 2lb) – $4.71 / per item
" Large (2lb or more) – $4.71 + $0.38/lb after the first 2lb / per item
Over size;
" Small* – $8.13 + $0.38/lb after the first 2lb / per item
" Medium* – $9.44 + $0.38/lb after the first 2lb / per item
" Large* – $73.18 + $0.79/lb after the first 90lb / per item
" Special* – $137.32 + $0.91/lb after the first 90lb / per item
Storage fees
Standard-size (Average $1.07/per cubic foot)
¢ January-September $0.64/ per cubic foot
¢ October-December $2.35/ per cubic foot
Oversize (Average $0.61/per cubic foot)
¢ January-September $0.43/ per cubic foot
¢ October-December $1.15/ per cubic foot
Specifications (*)
Small standard size
¢ 12 Oz or less
¢ Longest side 15" or less
¢ Shortest side 0.75" or less
¢ Median side 12" or less
Large standard size
¢ Max 20lb
¢ Longest side 18" or less
¢ Shortest side 8" or less
¢ Median side 14" or less
Small oversize
¢ Max 70lb
¢ Longest side 60" or less
¢ Longest side + girth = 130" or less
¢ Median side 30" or less
Medium oversized
¢ 150lb or less
¢ Longest side 108"
¢ Longest side + girth = 130" or less
Large oversize
¢ 150 lb or less
¢ Longest side 108"
¢ Longest side + girth = 165" or less
Special oversize
¢ Over 150lb
¢ Longer than 108" on the longest side
¢ Longest side + girth = over 165"
Note:
¢ These are estimates and are subject to change
¢ After 6 months of storage rates increase to $11/per cubic foot
¢ After a year of storage rates increase to $22/per cubic foot
How to evaluate a product
When searching for a product to list, watch out for the follow;
1. Sales for that item are in the 200 and above for the top 10 or 12
¢ This shows that people are actually buying these products regularly
2. Under 75 reviews
¢ The top 7 of 12 sellers should not have over 75 reviews because consumers will flock to them
3. Product should be sold for $15-$50
¢ Don't have to think too much before buying in that range
4. Do not attempt to compete with brands
¢ No one will purchase your product if you're competing with brand like Nike or UnderArmor who already have an establish household name.
How to create a listing for an item or product
1. Have your product along with professional pictures of it ready
2. Access your Amazon seller central – www.sellercentral.amazon.ca
3. Hover over the "Inventory" option on the bar at the top of the page, select "Manage FBA inventory".
4. Click "add product"
5. Under the search bar, select "Create a new product listing"
6. Select the category your product falls under.
7. Enter Vital info such as Product ID (UPC), Title, brand, manufacture, Manufacture part number (Create one yourself).
8. Set your price, seller FNSKU ( if you do not, one will be assigned automatically), quantity & condition
9. Add the professional pictures to the "image" tab
10. Add a product description & bullet points (more appealing with HTML coding)
11. Add keywords *Very important* for search results
12. Create shipping plan for FBA
13. Ship product to amazon warehouse
How to create a variation of a product
¢ Navigate to "add product" page (Seller central > inventory > add product)
¢ Select variation tab
¢ Select the type of variation: For example, size or color.
¢ Enter a FNSKU and UPC to identify each product
¢ Select condition, price and quantity
¢ Follow the steps in "How to create a listing for an item or product"
How to ship product to Amazon warehouse
¢ Create your Amazon listing
¢ Access your Amazon seller central – www.sellercentral.amazon.ca
¢ Under "inventory" on the bar at the top of the page, select manage
¢ Click the product you wish to send to the warehouse
¢ Under the "action" tab drop down menu, select "send/replenish inventory"
¢ Select "create a shipping plan" or "use an existing shipping plan" depending on whether or not you've shipped before.
¢ Fill in the information required; Product dimensions and how many pieces you're sending (Number of cases and units per case)
¢ Choose whether to print labels yourself or have Amazon do it for you for a fee of around $0.20 ea
¢ Get the shipment information (what warehouse(s) to send to and how many pieces to send each one) Automatically given after completion of the previous step
¢ Approve the shipment(s)
¢ Select a carrier, format of shipment (boxes or pallets) and indicate box/pallet weight and dimension. (Amazon recommends UPS and deeply discounts shipping fees when shipping with them)
¢ Calculate shipping and accept shipping charge
¢ Print box label(s)
¢ Put the label on the ready box
¢ Ship
Note:
" Every product must be labelled with FNSKU
" Printing label provided by Amazon includes all the information they need therefor there is no need to put FNSKU
Hijackers
What is a hijacker?
Someone who lists their product under yours at a competitive price to sway potential customers to purchase their product rather than yours (Only with the exact same product)
What can be done about hijackers?
Absolutely nothing (unless they're selling a product that is not the exact same as yours)
If a product that is not identical to yours is listed on your listing, you can contact Amazon by calling 1-877-586-3230 or via e-mail and have theirs removed
What can be done to avoid hijackers?
Private label your product
Add an accessory; Competitors would not be able to list without acquiring the accessory as it would no longer qualify as the same product
Recommended shipping & packaging
" Create custom packaging; Amazon workers ship the product the same way they're delivered. (If they receive without packaging its shipped without packaging)
" Make sure all products have a clear FNSKU barcode covering (if any) all barcodes
" Make sure nothing is loose in the box as it can get damaged therefor changing the condition of the product during transit
" Amazon provided label contains all the information needed. All that's left to do is stick the label on the box
" The label is to be placed on the top of the box without having the label on the seam (blue label on the box below)
Completed listing
Very important;
" Enticing title
" Large images
" Multiple images
" Competitive prices
" Compelling bullet points
The description on this listing
Is a lot of writing that basically
Elaborates on the bullet points.
In other words, its blabla but necessary
And helpful to some customer who look
For specifics and base their decisions
Off the description matching their needs