How to Make 20K Each Month on Amazon Selling Small & Light
February 21, 2022
What could an extra 20K each month do for you? What if I told you that this can be totally achievable!!! There is an untapped abundance of profit to be made by selling in Amazon’s Small and Light program. Keep reading to learn how to do this, or simply click the video below to watch how.
Most Amazon sellers steer away from selling products that are light if they are listed for under $10. With the vast variety of FBA fees (referral fee, fulfillment fee, storage fee) this can leave little to no room to make a profit. But did you know that there is a way to decrease the amount that you are paying in fees?
What is the Small & Light Program:
Quite simply, this program is a way to decrease shipping prices for Amazon, while also decreasing the fees that you pay per item to Amazon (it’s a win-win!). If you have an item that falls within the qualifications, then you can apply this product to be in the small and light program, rather than the regular FBA program.
To have your item approved for S&L it must meet the following requirements:
- Be in new condition
- Measure 18 x 14 x 8 inches or less
- Priced at $8 or less
- Weighs no more than 3 pounds
- Is not restricted, or FBA prohibited
- Is not an adult product
- Is not temperature sensitive (like chocolate)
If your item checks all of these boxes, then you can go into your Amazon Seller account, pull up the Small & Light product enrollment page, and enter the MSKU (not the ASIN) for your products!
Benefits of the S&L Program:
There are 5 major benefits to using this program:
- Reduce your fulfillment costs- this will help to improve your margins
- FBA Eligibility- Your items will STILL come with all of the FBA program benefits of fulfillment and customer service. Your offers will also compete just as equally against the other FBA offers of this same item that are not in the S&L program. Which means you won’t have to jeopardize your share of the buy-box.
- There is no minimum purchase or add-on item features.
- The products are still Prime eligible for all of the Amazon buyers with Prime accounts.
- Quickly scale your business upward
How it Works:
Let’s say for example you find a 2 lb. item that you want to list for $7 that is non-apparel, and a non-dangerous good. The typical FBA seller will run this item through a profit calculator and the most common fees they will see will total $5.14. Now this doesn’t leave a lot or room to figure in actually sourcing the item and factoring in shipping costs. When all is said and done, this item will show little to no profit at all on most sales calculators.
But this SAME item, enrolled in the Small & Light program, would only incur a total fee amount of $4.21 (rather than $5.14). Now this may not seem like a significant difference, but where there may have been zero profit before, this will give you more wiggle room and now you might see at least $1 profit to be made. If you can source this product for $1 from a wholesale distributor, then that would be an ROI of 100%! Now if this item sells 200 units per month, that is $200 profit that you can make on this one item alone! And because nearly ALL of the other sellers will be seeing this as a non-profitable item, the competition should be low!
Which Profit Calculator Should You be Using?
I mention that most profit calculators (Amazon’s included!) don’t factor in small and light fees, only FBA fees. BUT ProfitGuru’s Profit Calculator is one that actually does!
How to Find Products & Brands to Sell:
From ProfitGuru’s brand tab, you can set advantance filters to find brands that are already selling really well on Amazon, and that have a large variety of products available. Once you have established a wholesale account with a brand or distributor then you can ask for their catalog of products.
Hopefully this catalog will be FILLED with tens of thousands of products. Running each one manually through Amazon, and then through the PG profit calculator would take an eternity! But luckily, you don’t have to go through this tedious and time-consuming process. You can instead pop that catalog right into the Bulk Analysis section in ProfitGuru, and it will very quickly scan each product and let you know which ones are profitable! Some good filters to set are: sales rank less than 100,000 (this will help to filter out products that aren’t selling very well), profit from $1, and ROI from 50%.
Save Prep Time & Minimize Risks:
In most cases amazon allows commingling on these items, so the manufacture barcode is used rather than the FNSKU. Meaning there’s no prep work for you!
Simply receive the order from the supplier, list it in your Amazon account, then send it into the Amazon warehouse! If they don’t require a FNSKU to be put onto the items, then you don’t even need to open the box!
This method is also way less riskier than the regular wholesale model. What happens a lot in the wholesale model is sellers start to compete and drop the prices lower and lower until the item no longer is profitable. With S&L this doesn’t happen as often, and when it does in most cases you can at least break even.
Now go out there, enroll those products into the S&L program, and start tapping into that profit! Happy Sourcing!