8 Ways to Save Money on Amazon Seller Costs
As you can see, the fees for selling on Amazon can add up quickly. That said, you can still minimize your Amazon seller costs and save money with the right strategy in mind. Here’s how:
- Get a Professional Seller Account
If you’re serious about selling on Amazon, it’s better to sign up for the Professional Seller account at $39.99 per month than the free Individual membership. Since it comes with unlimited listings and extra features to help you sell more on the platform, it will save you more money in the long term.
- Choose the Right Product Category
The category you choose for your product will play a significant role in how much you’ll be paying in referral fees. If you’re not careful, you may end up spending more money than you have to.
- Estimate the Right Product Size
Shipping heavy items on Amazon can come at a hefty price. It’s why you want to make sure to estimate your product size every time correctly, so Amazon doesn’t take into account the wrong size of your product and makes you pay more for mass that doesn’t exist.
- Partner Up With a 3PL
Handling shipping manually yourself can be a time-consuming process. One of the best things you can do is outsource your Amazon shipping to a Third-Party Logistics Provider (3PL), which will manage your inventory for you.
- Keep Track of Any Abandoned Inventory
If you’re on Amazon’s FBA program and leave your inventory stranded for far too long, you’ll start getting hit with additional warehousing fees. On top of that, it could also cause you to lose storage space for more products, use amazon tools to identify top-selling products & other details to discover best-performing products, here’s a review ofzonbase&jungle scout pro.
Make sure to take a look at your inventory each quarter to ensure that none of your products are stranded for too long. If an item doesn’t sell within six months, be sure to take it out of your warehouse.
- Invest in Free Packaging Material
A simple way to cut your costs on Amazon is to recycle boxes you already have instead of buying new ones. Not only is it going to save you money from buying new material each time, but it’s also better for mother nature.
- Sell Your Amazon Products in Bundles
You may have noticed that customers may like to buy complementary items to one of your orders. The problem is that Amazon applies referral and shipping fees for each order, which ends up costing you money.
Instead, you can bundle multiple products in one, so Amazon only charges you once for one customer purchase. You may have to pay slightly more in referral and shipping fees due to the size, but it may be less expensive than the combined fees from separate orders.
On top of that, product bundles ensure that customers get the most out of their orders and your brand. A bundle can improve the customer experience by simplifying their purchase decision.
- Negotiate with Your Carriers
If you’re frequently doing business with a carrier (such as FedEx or UPS), you should consider negotiating with them to get the best prices on shipping. For example, ask your carrier if they have any discounts for certain order volumes.