GO reduced a client’s Amazon FBA fees by repackaging an ASIN.
What we’re celebrating:
Reduced our client’s Fulfillment by Amazon (FBA) fees by 53% through a repackaging strategy.
Thanks to the success of this approach, we have been able to implement this tactic across other clients’ portfolios to reduce their fulfillment costs as well.
Overview:
GO worked with a consumables brand who used FBA as their shipping model. Though they loved the convenience of Amazon handling warehouse management and product distribution, they had an item that was becoming unprofitable due to the exorbitant amount of FBA fees they were receiving. GO recognized this and began looking for solutions to reduce those fees. We determined that the best way forward was to rework the product’s packaging so that it came in at a lower FBA fee tier, improving the product’s overall margin.
The Challenges:
The brand’s high FBA fees were causing one of their ASINs to become unprofitable.
The product had a low average selling price in comparison to the charges it incurred.
The Strategy:
Because Amazon charges FBA fees based on dimensions and weight, we worked with the brand to reduce their product’s size by changing it from a 4-pack to a 3-pack. We determined how much the product needed to be altered via Amazon’s FBA cost calculator and estimated what the package specifications would be once we reduced the offering. By updating the brand’s ASIN to come in at a lower size tier, we decreased their FBA fees which enabled them to generate a healthier margin.
The Results:
The impact of this repackaging tactic was swift and substantial. While the value of this product decreased by 25%, we helped the brand reduce their FBA fees by 53%, more than making up for the loss.
We had previously worked with brands on switching their product offerings from a single pack to a multipack and vice versa, but this was the first time we had altered one multipack type to another multipack type. The success of this approach set a precedent for our other clients, giving them the confidence to allow us to implement this tactic across their portfolios to help them minimize their fulfillment costs as well.
Is This Strategy Right for You?
Is your brand dealing with significant FBA charges? Let our team step in and help. Our repackaging strategy is effective and can be tailored to a wide range of brands to meet their specific needs.