Reducing a client’s Amazon FBA Item Stickering fees through MFG barcodes
What we’re celebrating:
In just 2 months, GO saved our client $149K in FBA Item Stickering fees following a cost-savings proposal that instructed them to use their already existing MFG barcodes.
GO reduced the brand’s FBA costs by $4K in our very first shipment with them.
Overview:
GO was engaging with a prospective client who had historically been spending $200K annually on FBA Item Stickering fees. Their 3PL did not have the capacity to do individual labeling, and since their previous agency never explained to them that there were other options, the client simply conceded to the idea that they had to continuously pay Amazon 0.55 cents/unit to label all the inbound items.
Our GO operations team developed a proposal that showed them these costs weren’t necessary and that utilizing their already existing MFG barcodes would help them slash those fees. Once we won the brand’s business and implemented our recommended tactic, we were able to reduce the client’s FBA costs considerably.
The Challenges:
The client was unaware of and required education on the steps needed to mitigate the FBA fees.
The brand’s previous agency did not provide the individual attention necessary to identify and explain the potential cost savings.
The labeling of incoming units before placing them in inventory at Amazon fulfillment centers caused weeks-long delays in the receiving process.
The Strategy:
During the pitch process, our team wanted to wow this brand and win its business by identifying ways to help them save money. Our operations department began pulling reports to discover potential cost savings, and we noticed they were paying exorbitant and avoidable fees for Amazon labeling in 2022.
We then presented our findings to the brand’s operations team, demonstrating that they had been spending $200K annually on FBA Item Stickering and that those costs could be curtailed by using their existing MFG barcode. The goal was to illustrate that making this simple change could relieve the brand of unnecessary charges and allow them to reallocate those dollars towards areas of the business where they could be more impactful.
The Results:
As soon as we won the business, our team had our hands on the keyboard and began implementing our cost-reduction plan. Once all their ASINs had been converted to the MFG barcode, the brand saw immediate progress:
GO reduced the brand’s FBA costs by $4K in our very first shipment with them.
In just 2 months, we’ve saved the brand $149K in FBA Item Stickering fees.
Are you struggling with FBA costs?
Handling FBA fees can be confusing if you don’t have the right information available to you. Our GO operations team is ready to be the resource that can guide you toward effective cost savings. Connect with us today.