Amazon to retire ‘Small and Light’ program from Next Month

Amazon to retire ‘Small and Light’ program from Next Month

Amazon has announced that it will end its Fulfillment by Amazon (FBA) Small and Light program, which offered lower fees for low-price, small, and light products with slower shipping speeds, and replace it with lower standard FBA rates for all products priced below $10. The company informed sellers on its Seller-Central platform that this change will take effect from August 29, 2023. Amazon expects that both sellers and customers will be benefited from faster delivery and lower costs.

The Small and Light program was launched in 2016 to help sellers of small, light products compete on Amazon. The program offered reduced fulfilment costs, which helped sellers pass savings on to their customers. However, Amazon said that the program is no longer necessary, as it has made improvements to its fulfilment network that allow it to offer lower rates for all low-price products.

The company said that it has learned from the feedback of sellers and customers over the last few years, and decided to simplify its fee structure and improve its service quality. The new lower FBA rates for low-price products will be an average of $0.77 less per item than the current FBA rates, and will not be subject to the holiday peak fulfilment fees that will apply from October 15, 2023, through January 14, 2024.

Sellers who have products enrolled in the Small and Light program will have until July 17 to add new products to the program, after which enrollment will close. The products already enrolled in the program will continue to have the Small and Light rates applied until August 29, when the program will end and the new lower FBA rates will apply. Sellers who have products priced below $10 that are not enrolled in the Small and Light program will automatically receive the lower FBA rates from August 29.

According to Amazon, the change will mean that sellers who have products enrolled in Small and Light and priced below $10 will pay about $0.30 more per item than with Small and Light, but their items will now ship with the faster FBA fulfillment speeds. Sellers who have products not enrolled in Small and Light and priced below $10 will pay about $0.77 less per item while continuing to enjoy the fast FBA fulfillment speeds. For items priced above $10, they will automatically have the standard FBA rates and shipping speeds applied.

Amazon said that it understands that changes to programs and fees can affect sellers’ businesses, and advised them to review their product offerings, check their inventory status, and review the FBA rates to assess any changes. The company also said that it is committed to providing sellers with the best tools and services to grow their businesses on Amazon.

The changes to Amazon's fulfillment program are a reflection of the company's continued efforts to improve the shopping experience for its customers. By offering lower rates and faster shipping speeds, Amazon is making it easier and more convenient for customers to buy the products they want and receive at the earliest.

Disclaimer:
Amazon is the registered trademark of the e-commerce brand. 

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