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#106 - FBA Turns Into an Auction, new Return-Shipping Fee Policy, and more

Guy witha troley at Amazon fulfilment center
Hi, there! Thanks for checking out the #106 issue of FBA Monthly, we hope our news and tips can make your morning routine a little more enjoyable. Follow us on Twitter to stay updated.

Hot News

Amazon is turning its Fulfillment by Amazon (FBA) service into an auction, where sellers can bid for extra capacity beyond inventory limits set by Amazon. It is launching overhauled capacity limits starting March 1st, 2023.


How do you decide what to sell? How do you know what consumers are buying during this time of year? How much inventory should you purchase? We’ll answer all of those questions and more in this article, so keep on reading. You can also check out this month’s top-trending products on Amazon for even more information!


Amazon sellers will be responsible for paying for overage costs on returns beginning Saturday, January 14th. According to the new policy, if a shipping carrier assesses a correction charge on a customer return, sellers must now pay it. The policy applies to seller-fulfilled orders, not FBA.


Good to Know

Innovation and disruption have been hallmarks of Amazon’s business model since the beginning. Some of the retail giant’s latest tools and technologies demonstrate its continued efforts to influence the buying experience.


Amazon has blinked again this month: since last summer, the seemingly unstoppable e-commerce behemoth has taken more and more steps to rein in costs.These moves include shuttering warehouses or postponing their development, to offering space in them to third-party sellers and lift on its freighter fleet to others.


Launched in April, Amazon’s Buy with Prime service — which grants merchants the ability to offer customers perks like free and two-day shipping through Amazon’s fulfillment network — had the looks of a game changer for e-commerce. Now it appears the new offering is ready to change the game.


Amazon changed the way it notified sellers of order cancellation requests last year. However, the company confirmed months after the rollout that some cancellation notifications were slipping through the cracks, and it appears the problem persists in the New Year.


On November 10, 2022, Gap Inc. announced that it was partnering with Amazon Fashion. This is partially a result of a challenge facing many retailers: financial concerns that have been amplified by the current world economy.


The drop ship transaction results in an alteration of the contract liabilities associated with the physical fulfillment process wherein the e-seller’s risk of loss and delivery liabilities are transferred to the manufacturer or supplier.


Analysts say it could take years for Amazon to recover from overbuilding, as unused warehouses weigh on cash flow. But challenges breed innovation, and it could be a catalyst for Amazon to build new services using its excess capacity.


The e-commerce giant won't stop pointing out that it's only 1% of global retail -- but advocates say that's sleight of hand. By almost any measure, Amazon is big. It's valued at around $900 billion, even after a recent global slip in retail.


Having a hard time getting your online small business off the ground? A little instruction from an experienced professional can be a big help when it comes to getting started, and you don't have to go to a pricey business school or lecture to get it.


“Collaborating with Amazon Fashion brings Rent the Runway incredible brand awareness,” said Jenn Hyman, Rent the Runway co-founder and CEO. “We believe strategic relationships like this can ignite a new engine of growth for our business. They also showcase demand for our products beyond our community and allow more customers to experience exclusive data-driven fashion from our top design partners.”


Tips and Tricks

If you’re worried that you’ve missed the e-commerce boat, don’t worry. It’s just getting moving. While several ecommerce companies like eBay, Shopify, Walmart, and Etsy can make selling products online easy, in my experience, the best way to make money online is with Amazon.


Product pricing listed in the Amazon marketplace today is not necessarily the same as yesterday — or even the prices ten minutes ago. Since costs on AMZ can fluctuate significantly, you need to watch the product price history to spot the right time to purchase.


Did you know that anyone can sell products on Amazon.com? What a time to be alive! Whether you are a Fortune 500 company or a single-member operation selling products out of your apartment, you have a chance to reach millions of customers on Amazon.


Ali has an experience of total 5 years in the Amazon Selling business. In this time period, he has not just created fortune for himself but others too. Ali Lokhandwala mentors many aspiring Amazon Sellers.


Following the rise of short-form video on platforms like TikTok, Instagram, and YouTube, Amazon has launched Amazon Inspire, a TikTok-style short-form video and image feed built into the Amazon shopping app.


9-Figure Amazon seller and business icon Kodi King is using his expertise to aid others with their eCommerce goals. With experience in business all over the world, he brings skills and knowledge that are unmatched in the eCommerce industry.


Amazon has over 6 million sellers selling more than 160 million products globally — and the number of sellers grows daily. The majority of those sellers, however, spend fewer than 40 hours per week selling on Amazon. And while some sellers have other jobs, others earn income from their Amazon businesses alone.



In this episode, Bradley shares some information that you haven’t heard about before and takes a deep dive into the state of search volume data from Amazon, Helium 10, and other tools.