FBA sellers disadvantaged by Amazon Add-on
Glenn is one of Tamebay’s regular commenters and has been contributing to the site for many years. He’s an Amazon seller who uses Fulfilment by Amazon (FBA) and has discovered that some of his products might not be selling quite as quickly as in the past. Today he reveals why that might be:
If you follow the link to the ‘Add-on programme’ page you will see the following message
“Add-on items are low-priced products for sale on Amazon that can be purchased as long as you’re ordering at least £20 of eligible products. Previously, we could only offer these items in multi-pack sizes (which for many customers would be too much of one item). We kicked off the Add-on programme with thousands of new items, and we’re adding more each day. Only items dispatched from Amazon are part of the Add-on Items programme; items dispatched directly from sellers don’t count towards the minimum order amount”.
Clearly Amazon wants to reduce postage costs for these low priced items whilst looking to encourage customers to spend at least £20. For low priced products which are larger than a (Large Letter) this makes perfect sense. But if you are a 3rd party FBA seller selling products which could be posted within the (Large Letter) price range you are seriously disadvantaged, for example when selling a gent’s tie.
Merchants who fulfil their own orders can offer low priced products at a total selling price below a FBA seller. The bench mark for qualifying as an add-on product is currently around £5, although I don’t doubt that this will increase in time.
If a FBA seller offers a product below £5 it will probably be included in the Add-on programme’.
Now using a gent’s tie as an example – Using FBA I previously sold several ties at £4 or less which placed me in a competitive position. If I list the same tie now at £4 any potential customer would need to place an order for at least for £20 or let the product remain in their basket until such time that they make a £20 order.
The real kicker however is that FBA sellers pay storage fees and the ties I used to sell as (low price / fast sale) are now incurring storage fees.
This add-on program has dramatically effected my (low price / fast sale) range of products and whatever Amazon’s intention I and other FBA sellers are disadvantaged by it.