Should You Use Amazon’s FBA Labeling Service?

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What's Amazon FBA Label Service?

Are you planning to launch a product on Amazon Seller? In that case, you must pay attention to product labeling. Many online sellers make the mistake of not prioritizing the product labeling, and later it impacts their sales.

Amazon is among the biggest eCommerce store in the world that sells over 200,000 products every hour. Now you can imagine how rigorous the logistic process of Amazon would be and how serious the product labeling role in it. 

Amazon FBA label has some set guidelines and requirements from Amazon that majority of the Amazon Sellers face difficulty in figuring out, and that’s where Amazon FBA coaching can help them with labeling service. 

What’s Amazon FBA Label Service?

What's Amazon FBA Label Service?

Fulfillment by Amazon is a seller’s program where Amazon takes care of the most logistic functions itself instead of a seller. That includes product storage, packing, and shipping for the product from Amazon’s fulfillment centers. 

The important thing to know is that in Amazon fulfillment centers, there are also the competitors’ products stored along with your products at the same place.

Now you would be thinking about how Amazon differentiates your products from the competitors or other products stored in the same fulfillment center? Here’s your answer, Amazon user-specific barcode technique called fnsku or Fulfillment Network Stock Keeping Unit. 

So, Amazon FBA sellers have the choice to either label their products themselves or use the amazon fba labels service. In order to do that accurately, you need to know about all those essential considerations, pros, and cons of using Amazon FBA Label Service so you can make a wise decision that benefits your business. 

Advantages of Using the FBA Label Service 

One of the main benefits of using Amazon FBA Label Service is time management. Amazon has made this process very efficient and fast to accommodate Amazon FBA sellers.

By using this service, the sellers can directly send their products from the supplier or wholesaler to Amazon warehouse in bulk quantity to Amazon warehouse where the Amazon-qualified staff takes care of labeling against the amazon fba fees.

This saves a lot of time for the seller and money as well, which the seller would rather spend on ordering and keeping the product at his warehouse and sending it out to the Amazon fulfillment center later after labeling. It all takes great time and transportation and rental costs as well. 

Disadvantages of Using the FBA Label Service 

No matter how beneficial the FBA Label Service looks but there are a few cons associated with it as well. And it depends on the seller’s perspective on how he sees things.

Cost of Operation:

There’s an operating cost involved in the Amazon FBA labeling Service. Amazon charges around $0.30/ label.

This may sound very cheap for the high volume seller, but with increasing products, the cost can turn into a big number that can be taken under consideration. For example, for 10,000 products, the FBA label can cost you around $3000 straight.

Misplacement of the Inventory:

There’s always a risk of inventory misplacement during FBA labeling. A small mistake during labeling or in case of mislabeling, the seller can face huge problems. And for the sellers on a tight budget, this might be a very critical consideration.

Suspension of Seller Account: 

Sellers are at possible risk of account suspension if there are any inauthentic items if they opt for Amazon FBA label service. Even if there’s a mistake from the supplier side, Amazon blames the seller and takes action against the seller’s account.

For example, you’ve placed a bulk order from your supplier and sent it to the Amazon fulfillment center directly for the labeling; if there are any inauthentic items, it can cause you a lot of trouble. Amazon account suspension policies are very strict. 

What’s the Alternative? 

What's the Alternative? 

If you don’t want to avail of Amazon FBA label service and still want to use fnsku for your products, then your only left option is to print those labels and attach them to your product by yourself.

This would be time-consuming, but it can boost your profit margins and save you money from the amazon fba fees. In addition to that, you would better control your inventory.

You’ll be able to monitor the excellent quality and deliveries of the product from your supplier before shipping them. That would not only make things easy but provide great peace of mind to you. 

Conclusion:

In the end, it all depends on the sellers and their strategy to whether opt for amazon fba labels service or not. Some sellers prefer this service and look at them as a good logistics management strategy, while others like to keep things in their hand and believes in managing the labeling of the inventory by themselves. 

Read more interesting articles at Mr Business 360

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