Reducing Feeds for Amazon Sellers

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M2A Solutions

Every sale counts. During these turbulent times, companies need to make sure they not only maintain their sales, but increase them. If you are a company or distributor that sells to Amazon, you need to make s++++++ure the charges for Amazon’s Fulfillment (FBA) fees are accurate. Many companies do not pay attention to overcharges or inventory discrepancies and as a result can be hit hard by FBA related fees. At M2A Solutions, we make sure that companies are getting the maximum amount of cost savings and performing regular tasks in order to negate any disparities with Amazon.

FBA Fulfillment Audit

Amazon charges a FBA Fulfillment fee on every unit sold. According to Amazon, the FBA Fulfillment Fee is a “flat fee per unit, based on the size and weight of the product.” The FBA Fulfillment Fee can be estimated based on the dimensions and weight of a product. However, there can be a huge margin of error between what you calculated and what Amazon records. Due to these discrepancies, sellers can be overcharged by the FBA Fulfillment Fee on EACH unit that is sold on Amazon. To ensure that sellers don’t lose funds, a FBA Fulfillment Audit can be conducted. M2A performs a quarterly report that not only identifies these FBA Fulfillment discrepancies, but can obtain reimbursement for all past overcharges. This can be a HUGE cost savings opportunity for sellers.

Reconciling Inventory

Daily, there are millions of units transported and stocked throughout Amazon’s Fulfillment Centers. When you are dealing with this vast volume of units, it is impossible for Amazon to compute their inventory correctly 100% of the time. When shipments arrive with missing units, there is an automatic discrepancy in inventory. When you reconcile units sent. versus what was received by Amazon, there is a potential of receiving reimbursements valued for thousands of dollars. M2A conducts a weekly inventory reconciliation in order to identify any and all discrepancies and collect reimbursement.

Storage Fee Audit

If you pay Amazon to store your products, you essentially pay Amazon rent: they are your landlord. These storage fees are calculated by daily average volume (cubic feet) of space that is taken up in their Fulfillment Centers. As stated before, Amazon’s measurements and calculations are sometimes inaccurate, so it is paramount to make sure you check your storage fees and volumes monthly. Product weights and dimensions and daily average volume can fluctuate, so it is important to have audits conducted frequently in order to identify discrepancies and be reimbursed for overcharges.

Amazon’s FBA New Selection Program

According to Amazon, there are new options for sellers to obtain cost savings. New-to-FBA products can enroll in these waivers:

  • Monthly Storage: No monthly storage fees charged for the first 50 units of each new Parent ASIN for 90 days after the first unit is received at an Amazon FC
  • Free Removals: Free removals for first 50 units within 180 days after the first inventory-received date
  • Free Returns Processing: Return processing fees waived for up to 50 units per Parent ASIN for returns received at Amazon FCs within 120 days of the first inventory-received date. Limited to products in the following categories only: Apparel; Shoes, Handbags & Accessories; Jewelry; Luggage; and Watches
  • $100 Inbound Transportation Charge Discount (new FBA Sellers only): First $100 in inbound transportation charges through the Amazon Partnered Carrier program waived

Increase profit, Connect with us

At M2A, we support FBA sellers and their businesses. By identifying discrepancies, performing audits regularly, and assisting in the enrollment of selected FBA programs, you will increase your business profitability. The fees incurred by Amazon do not have to be lost dollars, M2A will help you reclaim lost funds, add revenue, and take control of your business.