Amazon FBA New Selection Update
27 Mar 2024
Amazon has enhanced the incentives within its FBA New Selection programme to encourage sellers to list products that are new to the FBA fulfilment programme, streamlining the process for sellers.
Sales Rebate
Amazon will maintain an average 10% rebate on sales for qualifying new-to-FBA parent products, now extending to include rebates for eligible non-branded selections. This rebate is applicable to up to 50 units for eligible non-standard sized items and up to 100 units for eligible standard-size items, lasting for 120 days from the initial inventory received date.
Benefits
Amazon has implemented several changes for all eligible non-standard sized products. Storage, liquidation, and rebate benefits are now applicable to up to 50 units per parent ASIN, a notable increase from the previous limit of 30 units per parent ASIN, excluding apparel and shoes products.
Storage and rebate benefits now span up to 120 days per parent ASIN from the first inventory received date, compared to the prior duration of 90 days per parent ASIN, excluding apparel and shoes products.
Reduced IPI Score
Amazon has lowered the required Inventory Performance Index (IPI) score for programme eligibility to 300 or higher, down from the previous threshold of 400 or higher. If you have not yet received an IPI score, you can still enrol in the program to access its benefits.
Future Discounts
Amazon is considering the introduction of a discount on Vine enrolment fees later in the year.
What does this mean for sellers?
Amazon’s New FBA Selection Update will give brands more reason to use Amazon’s fulfilment programme due to the increases in rebates per ASIN and increase in days from 90 to 120. You will still have to weigh up the overall costs to see if it is beneficial compared to using your own fulfilment method.
With Amazon also lowering the required IPI score, you no longer need to have an amazing score to make use of FBA, but it would be recommended that if you are a new brand and want to make use of FBA, send in a small amount of inventory to test your product’s sales volume on Amazon.
Amazon has enhanced the incentives within its FBA New Selection programme to encourage sellers to list products that are new to the FBA fulfilment programme, streamlining the process for sellers.
Sales Rebate
Amazon will maintain an average 10% rebate on sales for qualifying new-to-FBA parent products, now extending to include rebates for eligible non-branded selections. This rebate is applicable to up to 50 units for eligible non-standard sized items and up to 100 units for eligible standard-size items, lasting for 120 days from the initial inventory received date.
Benefits
Amazon has implemented several changes for all eligible non-standard sized products. Storage, liquidation, and rebate benefits are now applicable to up to 50 units per parent ASIN, a notable increase from the previous limit of 30 units per parent ASIN, excluding apparel and shoes products.
Storage and rebate benefits now span up to 120 days per parent ASIN from the first inventory received date, compared to the prior duration of 90 days per parent ASIN, excluding apparel and shoes products.
Reduced IPI Score
Amazon has lowered the required Inventory Performance Index (IPI) score for programme eligibility to 300 or higher, down from the previous threshold of 400 or higher. If you have not yet received an IPI score, you can still enrol in the program to access its benefits.
Future Discounts
Amazon is considering the introduction of a discount on Vine enrolment fees later in the year.
What does this mean for sellers?
Amazon’s New FBA Selection Update will give brands more reason to use Amazon’s fulfilment programme due to the increases in rebates per ASIN and increase in days from 90 to 120. You will still have to weigh up the overall costs to see if it is beneficial compared to using your own fulfilment method.
With Amazon also lowering the required IPI score, you no longer need to have an amazing score to make use of FBA, but it would be recommended that if you are a new brand and want to make use of FBA, send in a small amount of inventory to test your product’s sales volume on Amazon.
Amazon has enhanced the incentives within its FBA New Selection programme to encourage sellers to list products that are new to the FBA fulfilment programme, streamlining the process for sellers.
Sales Rebate
Amazon will maintain an average 10% rebate on sales for qualifying new-to-FBA parent products, now extending to include rebates for eligible non-branded selections. This rebate is applicable to up to 50 units for eligible non-standard sized items and up to 100 units for eligible standard-size items, lasting for 120 days from the initial inventory received date.
Benefits
Amazon has implemented several changes for all eligible non-standard sized products. Storage, liquidation, and rebate benefits are now applicable to up to 50 units per parent ASIN, a notable increase from the previous limit of 30 units per parent ASIN, excluding apparel and shoes products.
Storage and rebate benefits now span up to 120 days per parent ASIN from the first inventory received date, compared to the prior duration of 90 days per parent ASIN, excluding apparel and shoes products.
Reduced IPI Score
Amazon has lowered the required Inventory Performance Index (IPI) score for programme eligibility to 300 or higher, down from the previous threshold of 400 or higher. If you have not yet received an IPI score, you can still enrol in the program to access its benefits.
Future Discounts
Amazon is considering the introduction of a discount on Vine enrolment fees later in the year.
What does this mean for sellers?
Amazon’s New FBA Selection Update will give brands more reason to use Amazon’s fulfilment programme due to the increases in rebates per ASIN and increase in days from 90 to 120. You will still have to weigh up the overall costs to see if it is beneficial compared to using your own fulfilment method.
With Amazon also lowering the required IPI score, you no longer need to have an amazing score to make use of FBA, but it would be recommended that if you are a new brand and want to make use of FBA, send in a small amount of inventory to test your product’s sales volume on Amazon.