Amazon just announced a newly enhanced and expanded FBA New Selection Program on Seller Central, after positive feedback from sellers on its initial rollout in March 2019.
If you just created a Seller Account not too long ago and are not quite sure how this FBA New Selection Program can benefit you, this article will spell out the basics and explain every detail of the Program to help you get started with your business.
On April 1, 2020, in light of recent events, Amazon decided to give eligible sellers, with new-to-FBA ASINs, access to free monthly storage, removal and returns processing, and a $100-shipping discount on any Amazon-partnered carriers.
FBA New Selection Program Details
The FBA New Selection Program allows sellers to receive incentives when listing new products on the market via the FBA option.
The enhanced Program has also raised the total number of new ASINs (to 500) eligible for benefits for each seller per year and included free return processing in selected product categories (for a limited time only).
You must meet the following criteria in order to be part of the program:
(Note that sellers who participated in the monthly storage and removal fee promotion that closed on March 31, 2020, will automatically be part of the New Selection Program.)
Amazon will then decide if the enrolled seller is eligible for the Program’s fee waivers according to certain terms and conditions.
- Participant sellers have the opportunity to use the fee waivers on 500 new-to-FBA parent ASINs per year. The 500-limit will reset every year on January 1.
- The first 50 units of every new parent ASIN will be free from any monthly storage fees for 90 days once the first unit arrives at a fulfillment center. If a seller wishes to pull out any of the first 50 units within a period of 180 days, no removal fees will be charged.
- Return processing fees of up to 50 units of every parent ASIN under the following product categories will be waived: apparel; jewelry; watches; shoes, handbags, & accessories; and luggage. The returned items should arrive at a fulfillment center within a period of 120 days, starting from the date when the item was first received by the center.
- The first $100 charges on inbound transportation will be waived for new FBA sellers if they choose the Amazon Partnered Carrier program.
To be considered eligible for the Program, sellers should take note of the following:
If a professional seller doesn’t have an existing inventory storage limit, they are qualified to receive benefits from the Program.
Amazon started reviewing the statuses of sellers’ storage limits on April 1, 2020 to check if the requirements for eligibility are met.
Sellers who enrolled after the start of the Program will be assessed by Amazon right after enrollment.
Each quarter, Amazon will review sellers’eligibility.
The following dates are July 1 and October 1, 2020. Then on January 1, April 1, 2021, and so on every year.
If an enrolled seller qualifies for the program, their eligibility will remain active until the following January 1 assessment, regardless of their storage limit status before the assessment.
If a seller still incurs a storage limit for the succeeding January 1 assessment, they could lose their eligibility-
Enrolled sellers who don’t qualify for the program due to a storage limit could qualify on the upcoming quarterly assessment date.
Only if their previous storage limit is resolved.
Sellers who are new to the FBA-ASIN process may qualify for the Program’s free monthly storage, removals, and return processing—if they were eligible before the ASIN arrived at the fulfillment center.
It is possible for Amazon to change or cancel the New Selection Program any time. In case this happens, the company will send a written notice to the seller 30 days prior to the date of Program change or cancellation.
Parent ASINs must follow these requirements to gain eligibility for the Program:
- New to FBA
- Arrived at the fulfillment center not earlier than April 1, 2020
- Product size tier is either small standard-size or large standard-size
- Brand-new condition
- Does not belong to the Media category, i.e. books, DVDs, music (digital format or physical copy), software, video games, video, video game consoles, or video game accessories
- Belongs to the following categories: apparel, jewelry, watches, shoes, handbags & accessories, and luggage (only for free returns processing)
Frequently Asked Questions
Are sellers restricted to sending 50 units or less to fulfillment centers?
Sellers can send as many units as possible, but the fee waivers will only apply to the first 50 units of every qualified ASIN taken in at fulfillment centers.
Is it possible for a seller to remove an eligible ASIN if they exceed the 500 limit of new-to-FBA parent ASINs?
There is no need to remove eligible ASINs because the fee-waivers are only applicable to the first 500 new-to-FBA parent ASINs.
Any subsequent ASINs made after the limit will no longer be eligible.
Keep in mind that the limit resets annually every January 1st.
If the first inbound shipment charge of a new FBA seller does not reach $100, is the discount still applicable to future shipments?
The discount does not apply to a single shipment only.
It can apply to cumulative shipping charges of consecutive shipments until the $100 limit is met.
However, the discount for inbound shipment charges will only take effect if the seller chooses an Amazon-partnered carrier.
What Is FBA?
FBA stands for Fulfillment By Amazon, which is a business model that allows Amazon to assist the seller by taking charge of their products’ storage, shipment, and customer concerns. At the same, the seller can take advantage of Amazon’s wide network and reach out to as many customers around the world as possible.
The process begins by sending your inventory to Amazon’s warehouses, also known as fulfillment centers.
Your products will receive a unique alphanumeric code, also known as Amazon Standard Identification Number, or ASIN, which serves as a tracker to identify all items listed under Amazon’s product catalog.
It is also important to note that a single product can have several variations depending on factors such as color, size, or format, and these can generate different ASINs depending on which product variation you are referring to. Amazon calls such variations as parent-child relationships.
A customer-friendly variation relationship listing allows customers to choose a product with a specific color and size without leaving the product detail page.
Knowing when to use these variations will help customers navigate your product detail page easily and avoid confusion.
What Are Parent Listings?
Another important note is to know the difference between parent listings and child products.
A parent listing is the general name of the product that does not classify any variations in the title. It serves as an umbrella term for the products in it with different variations, and as such are not purchasable by customers.
Child products are items that reflect the variations specified on the parent listing. These are the actual items that customers purchase when they place their orders. Parent listings and child products have their own individual ASINs.
These terminologies serve an important role in the New Selection Program, and learning about these terms is essential to further understand the Program and how you can participate in it.
Amazon certainly went the extra mile to assist sellers during this unfortunate time of crisis, and the New Selection Program is probably the most beneficial of their offers so far.
The terms and conditions of the Program might sound overwhelming to new sellers, but it definitely pays off.
The free monthly storage fee for the first 50 units alone is a great deal, especially if their products have multiple variations.
Amazon is quite tricky to master for a new seller, and this is a convenient way to help them adjust to the system.
The demand for products will only increase day by day as the situation normalizes, and sellers will need all the help they can get to manage incoming orders while maintaining high seller performance.
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