The End of the Small and Light Program: Introducing New FBA Rates for Low-Price Products
For a number of years, Amazon's Small and Light program has provided sellers with the option to enroll low-price, small, and light products to receive lower FBA rates. However, Amazon has recently made a significant decision that will impact sellers: they have announced the end of the Small and Light program in the US. Instead, they will be introducing new FBA rates for all low-price products.
The Small and Light program offered an opportunity for sellers to enroll their products and access lower FBA rates. This came with the trade-off of slower shipping speeds compared to standard FBA. Over the years, this program allowed sellers to offer a wide range of affordable products to customers, while still benefiting from ongoing improvements in speed.
Now, Amazon has learned from this experience and the feedback received. They understand how the lower fees provided by the Small and Light program enabled sellers to expand their low-price selection, and they recognize the value customers place on the continued enhancements in shipping speed. As a result, they have decided to close the US Small and Light program and instead lower the standard FBA rates for all low-price products.
As of August 29, 2023, Amazon will introduce these new FBA rates for all items priced below $10. With the new rates, every seller will have the opportunity to take advantage of lower fees for their low-priced selection, while still ensuring the same fast FBA delivery speeds that customers love. Eligible items will automatically receive these low-price rates and will not be subject to the 2023 holiday peak fulfillment fees, which will apply from October 15, 2023, through January 14, 2024.
To align with these changes, the Small and Light program in the US will be closed on August 29, 2023, when the new low-price FBA rates become effective. Until that date, items enrolled in the Small and Light program will still maintain their Small and Light rates. However, after July 17, new product enrollments into the program will no longer be available.
What does this mean for sellers? The new FBA rates for low-price products will be, on average, $0.77 lower per item compared to the current FBA rates for these products. For sellers who were already enrolled in the Small and Light program and have products priced below $10, this change will result in paying approximately $0.30 more per item compared to Small and Light rates. However, the advantage is that their items will now benefit from faster FBA fulfillment speeds. On the other hand, sellers who were not enrolled in the Small and Light program and have products priced below $10 will enjoy a reduction of about $0.77 per item, all while still experiencing the quick FBA fulfillment speeds they have come to rely on. For items priced above $10, standard FBA rates and shipping speeds will automatically apply.
It is understandable that changes to programs and fees can have an impact on businesses. To help sellers prepare for this transition, Amazon is offering approximately two months before the new lower FBA rates for low-price products take effect and the Small and Light program closes. During this time, it is recommended that sellers review their product offerings, check their inventory status, and review the FBA rates to assess any changes that may be necessary.
Amazon's decision to end the Small and Light program in the US and introduce new FBA rates for low-price products reflects their ongoing commitment to improving services and providing greater opportunities for sellers. By introducing lower fees and maintaining fast fulfillment speeds, Amazon is ensuring a level playing field and empowering sellers to thrive in the competitive marketplace.
Opinions among Amazon sellers regarding the recent changes to the Small and Light program and the introduction of new FBA rates for low-cost items are varied. One seller expresses enthusiasm but remains cautious, believing the fee reduction seems too good to be true. They speculate that Amazon may implement a $10 minimum for Prime free shipping to compensate for the lowered fees. This seller also notes that Amazon had previously increased fees, making them question why the fees are being lowered now.
Another seller shares their negative experience with the Small and Light program, detailing issues such as slow delivery, damaged products, and incorrect items being sent to customers. They claim that until a year or so ago, the program was terrible and led to lost sales. This seller admits that they should have tried the program again, as their sales have increased since dropping it some years ago.
However, there are also sellers who view the changes as positive. One seller highlights the significance of the fee reduction for sellers of low-priced items, stating that it will level the playing field between sellers in the Small and Light program and those using standard FBA. They express regret for dropping the Small and Light program a few years ago and speculate that perhaps the issues with slow shipping have since been resolved. They view this change as a moot point now but believe it will greatly benefit sellers with low-priced products.
More information about the end to Small & Light
For more information on the changes to the Small and Light program and how it will affect your business, visit the official Amazon page here.
Prepare your business for the upcoming changes by familiarizing yourself with the new FBA rates for low-price products. Embrace this opportunity to offer customers a diverse range of affordable products while benefiting from faster delivery speeds. Stay ahead of the game and adapt to the evolving landscape of Amazon selling!