Navigating New Amazon Seller Central and FBA Guidelines

Amazon Prime Day, one of the most significant events of the year for eCommerce sellers, is officially confirmed to make its return on October 13-14^th.

Back in 2019, Prime Day sales hit a whopping $7.16 billion, an increase from $4.19 billion in 2018 and it’s expected that 2020’s holiday season will be busier than ever. Earlier this year, Amazon mentioned, that part of their new strategy, they’ll be ramping up their fulfillment capacity with 33 new U.S. fulfillment centers and will also implement new storage limits for merchants. All this indicates why planning ahead is crucial in order to make the most out of Prime Day and scale your business.

As Prime Day quickly approaches, now’s the time to get your store ready for success. In addition, there are three basic changes in Amazon Seller Central that will be relevant for this year’s Prime Day.

Here’s what to know.

1. IPI minimum threshold – Practicing smart inventory management is vital to your business’ success. As a seller, you’ll never want to find yourself out of stock, especially during high-demand periods. Recently, Amazon has changed their IPI minimum threshold requirement to 500 from 350, meaning it will be critical to ensure you don’t have any additional inventory or stockouts. Furthermore, you’ll need to act and keep your product sell-throughs relevant, as well as stranded inventory current. If you’re looking to improve your score, you can simply monitor your IPI in your inventory Performance Dashboard.
2. Quantity limits – Amazon has also made changes to the number of units per ASIN that can be placed in FBA storage during peak selling periods. Whether your IPI score is above or below 500, you’ll still be subject to ASIN quantity limits which will be individually determined for each ASIN separately, based on its previous sales velocity performance.
3. Free removals promotion – Fortunately for sellers, Amazon recently announced a removals promotion to help sellers remove slow-moving inventory and improve their IPI scores, for free. However, Amazon did mention that the free removal promotion is for limited time only but did not specify exactly when the offer would expire.

Locating the Right Service Providers

Ensuring a smooth transition from FBA to FBM will likely require the help of service providers. Here are a few who we’d recommend.

•  – Deliverr offers a fast fulfillment solution for Amazon FBM, Walmart, Wish and more.
•  – FlowSpace offers nationwide 1-2 day shipping with full marketplaces integrations on Amazon, Walmart and Shopify.
•  – AMFlat Logistics provides a variety of solutions for Amazon FBA sellers, including warehousing, storage, dropshipments and fulfillment.
•  – AMSFulfillment provides eCommerce fulfillment for mid-size businesses ($5 million – $20 million).
•  – Swan Fulfillment provides multi-channel, FBA, FBM and kit creation for SMBs.
•  – Fulfillment.com specializes in smaller items (health & beauty and household goods) and offers global fulfillment in the US, Mexico, Canada, the Netherlands and the UK.
• – ShipBob is a fulfillment provider with tech-enabled 3PL and FBM capabilities. They are ideal for sellers working with less than 200 SKUs.
• FLEXE – FLEXE offers a distribution solution to help FBA sellers with fast-moving goods store longer for less and replenish inventory faster, as well as access to a nationwide network of eCommerce fulfillment services. 

European-Based Service Providers

• – Huboo is a fulfillment solution with no integration fees, no goods in fees, no monthly management fees, clear pricing, simple integration for Amazon and eBay, quick and easy start up and a portfolio of carriers for UK and international shipping. For non-UK companies, a UK VAT number is required to enable Huboo to open an account and trade. Currently, Huboo is offering Payoneer account holders two months of free storage, a three-month free subscription and fast-tracked onboarding.
•   – Cubyn is a fulfillment company offering low cost fast and reliable deliveries, and simple and central monitoring. Currently, Cubyn is offering Payoneer users free storage on necessities, such as pharmaceuticals, telecommunications and food, until June 21^st.
• – Bezos.ai is a fulfillment as a service platform, offering one of the biggest fulfillment networks in the UK and a wide variety of services, including storage, pick and pack, delivery and returns. Currently, Bezos.ai is offering Payoneer users 30 days of free storage and no pick and pack fees.
• – Global Ecommerce Experts is an eCommerce management solution offering a variety of services, including returns, labelling, pick and pack, and storage. They also can support sellers for a short period of time while they wait to convert their SKUs back to FBA. All new clients coming through the Payoneer network are eligible to have their £150 initial set up fee waved when they email sales@globalecommexperts.com with the title PAYONEER/GEE.
• – Regional Express is a freight forwarder and international courier service specializing in Amazon fulfillment and shipping. Given the temporary Amazon FBA restrictions, Regional Express can hold goods for Payoneer users in their warehouse at preferential rates while sellers are unable to create shipments with Amazon.

Global Service Providers with Pay with Payoneer Integration*

You may use your Payoneer balance to pay to the below companies through an established integration in their platforms

• – Winit is an integrated supply-chain solutions provider, offering international transportation, customs clearance, order fulfillment, inventory management, RMA handling, label replacement, repacking, cross-docking and dropshipping.
• – Elogistic is an eCommerce logistics provider, offering standard fulfillment services, return handling, first-leg service, as well as other value-added services, including relabeling, repacking, and photographing.
• – 4PX is a cross-border eCommerce solutions provider, offering warehousing quality inspection, goods on shelves, inventory management, receiving orders, order sorting, order review, multi-channel delivery and returns.
•  – BirdSystem is a logistics provider, offering returns services and FBA warehouse transfers.

Making the Switch from FBA to FBM

For any seller affected by Amazon’s new regulations, making the switch from FBA to FBM is simple and can be done by following the steps below:

1. Log into Seller Central and select Manage FBA Inventory from the Inventory drop-down menu.
2. Locate the SKUs that need to be switched, open the drop-down menu next to each item and select Change to Fulfilled by Merchant.
3. Once you’re redirected to the Convert to ‘Fulfilled by Merchant’ page, simply click the Convert
4. Conversions to FBM are typically made within 24-hours.

Despite requiring more work to store your inventory and ensure it is fulfilled properly, FBM does have several advantages over the FBA model, including:

• Cost effectiveness – While FBA provides a degree of security when it comes to fulfilling your orders, Amazon fees mean it isn’t always cost effective. Using cheaper 3^rd party storage and shipping providers can end up saving you money in the long run.
• Control – FBM allows you to manage your inventory and shipping as you see fit, instead of having to follow Amazon policies.
• Consistency – Managing inventory and fulfillment on your own ensures that you’ll be unaffected by sudden changes to Amazon policies.

Payoneer is here to support your business! Please reach out to your Payoneer account manager if you have any questions or concerns regarding Amazon’s new policies or the service providers outlined here.

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