It seems like every week Amazon announces changes to its seller platform. This week is no exception, because, effective April 28, 2022, Amazon updated its Small and Light program. For more information on how this affects your business’s profit margin, please continue reading, then reach out to AVASK Group.
How did Amazon update its Small and Light program?
The online retailer has increased the price threshold for qualified items from $8 to $10. This change allows more of your products to become eligible for the program and receive fulfillment discounts, which can benefit merchants who sell products with lower profit margins as they try to increase profitability.
It should be noted that Amazon has not modified the size and weight qualifications for this category. Those remain as follows:
- Dimensions: 18 inches by 14 inches by 8 inches or less
- Weight: 3 pounds or less
How might this change to the Small and Light program affect Amazon sellers?
Aside from enabling sellers to sell a higher volume of low-cost goods at a faster rate and offer slightly more expensive items, it allows them to adjust their prices, especially in light of Amazon tacking on an additional 5% fuel and inflation surcharge across the board. That likely means that, if the bulk of your business is based on items that meet these conditions, you may see an increase in sales volume and your profit margin. This is money that you could use to enhance existing products, develop new ones and/or grow your business.
Whether you are a new Amazon seller or an existing one, our team can help you guide you through this or any other Amazon-related challenge, so please give us a call today.
Contact Our Team
If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation. We provide Amazon business accounting services to clients in New York and throughout the United States. All Amazon sellers should have an accountant they can trust. If you are looking to expand your business, or even form a new one, do not hesitate to reach out to our knowledgeable team today.