How do you cut costs as a seller on Amazon?

With a lot of uncertainties due to the COVID-19 outbreak, cost-cutting has become an important focal point for many business owners. Over the past few weeks, we at Growisto have been exploring avenues to effectively cut costs and for one such client on Amazon, we ended up saving thousands of dollars. Here are some ways you can do that too:

Aim for the right product size - A crucial factor that can add to your FBA fees is the size of the product. There are two things to consider while re-evaluating the fee:

• Packaging - Various size tiers define the respective FBA fulfillment fee in any category. Optimize your packaging to fit the smallest tier possible. Check if changing the orientation of your product in your packaging can help you get into a lower tier. Refer to this link to calculate the FBA fulfillment fee for your products.
• Dimensions - While entering the right dimensions for your products in the system is a prerequisite, in some cases, Amazon may have misrecorded the same leading to higher fees. Track the dimensions recorded by Amazon for all your products periodically. If the dimensions are not right, you are owed a refund. One of our clients in the health and personal care category can back this up!

Choose your product categories wisely - Product categories decide the Amazon referral fee you must pay. For instance, if you sell watches on Amazon, you might want to list your products in the ‘Watches’ category (referral fee: 13%) instead of the ‘Apparel Accessories’ category (referral fee: 17%). Please note that while this is an easy thing to do, do not overlook the category relevance for your products. Refer to this link to get details of the Amazon referral fee for respective product categories.

Take stock of stranded inventory - Stranded inventory on Amazon is a broad term for several problems such as expired listing, suppressed listing, delisting, etc. It can hamper available storage space and incur long term storage fees. Analyze the inventory data periodically and ensure that every product you’ve listed is either in stock, sold, or reimbursed.

Have you figured out any other ways of cutting costs on Amazon? Let's discuss!!