Approximately 91% of Amazon sellers express satisfaction with the prompt delivery of their products globally. This efficiency is primarily attributed to the FBA (Fulfillment by Amazon) service – a specialized logistics program by Amazon enabling sellers to stock their goods in Amazon warehouses.

What advantages do sellers gain by utilizing FBA? Amazon warehouses are strategically positioned across the globe. Storing your products in these warehouses allows for expedited delivery to customers, emerging as a pivotal factor in fostering customer loyalty.

Furthermore, utilizing FBA presents the opportunity to economize on storage expenses, owing to the absence of external cross-border fees. FBA facilitates payment solely for domestic shipping fees in the countries where the Amazon warehouses housing your products are situated.

FBA Changes in the USA

Amazon has recently implemented alterations to the payment structure for FBA commissions in the United States. These changes will occur in three phases:

1. First Commission Rate: Until January 15, all commissions will be maintained at the rates applicable during the period of October to December 2023.

2. Second Commission Rate: Starting from January 15, 2024, the rates for all products will be sustained as per the previous year, reflecting the period from January to September 2023.

3. Third Commission Rate: The first significant tariff adjustment is scheduled for February 5, 2024. Amazon intends to modify the intervals for categorizing products based on weight:

• For Small Standard Size, products will be categorized by 2 ounces, with the commission calculation commencing at 2 ounces. In 2023, the minimum weight was 4 ounces, and categorization was done in 4 ounces. This change, however, does not apply to clothing.
• For Large Standard Size, the ranking intervals will be 4 ounces for products weighing 1 to 20+ pounds, increasing the number of rates from 9 to 13.
• Amazon is introducing a new size category called Large Bulky, encompassing products weighing 20 to 50 pounds.
• All other products in the Oversize category will retain their current parameters but will now be referred to as Extra-Large.

Accordingly, the fees will undergo changes on February 5:

 Commissions for Regular Products:

• Small Standard Size:  The lowest remains at 3.22, and the highest increases to 3.82. Compared to the period before February 5, the smallest commission remains the same, while the largest commission has increased by 0.05.
• Large Standard Size:  The smallest commission stays the same as in the previous period at 3.86, and the largest commission will increase to 7.25, up by 0.08.
• For All Large Bulky and Extra-Large Products:  The smallest commission remains the same as in the previous period at 9.73, and the largest will increase to 194.95 from 158.49.

 For Clothing:

• Small Standard Size:  The lowest commission is 3.43, and the highest is 4.15.
• Large Standard Size:  The smallest commission remains the same as in the previous period at 4.43, and the largest commission will increase to 7.17.
• For All Large Bulky and Extra-Large Products:  The smallest commission remains the same as in the previous period at 9.73, and the largest will increase to 194.95.

This ranking and commission change are beneficial only to sellers whose products had a lower weight than the maximum weight that Amazon previously ranked. In conclusion, starting February 5, 2024, Small Standard Size and Large Standard Size products will be ranked in smaller intervals (2 and 4 ounces, respectively), resulting in a total of 21 fees instead of 13. This change may reduce fulfillment fees for product owners with weights within the new intervals.

4th Tariff:

The 2nd significant change is scheduled for April 15. Amazon plans to reduce the commissions for Small Standard Size and Large Standard Size products.

This reduction will result in lower commissions for:

 Regular Products:

• Small Standard Size:  A reduction of 15-17 cents. The lowest rate is 3.06 cents, and the highest is 3.65 cents.
• Large Standard Size:  A reduction of 17-33 cents, reaching 3.68 for the smallest rate and 6.92 for the largest.

 For Clothing:

• Small Standard Size:  A reduction of 15-17 cents. The lowest rate is 3.27, and the highest is 3.98.
• Large Standard Size:  A reduction of 17-25 cents, reaching 4.25 at the lowest rate and 6.92 at the highest.

 For Hazmat:

• Small Standard Size:  A reduction of 15-17 cents. The lowest rate is 4.03, and the highest is 4.47.
• Large Standard Size:  A reduction of 17-33 cents, reaching 4.5 for the smallest tariff and 7.38 for the largest.

In conclusion, starting April 15, 2024, sellers of Small Standard Size products may experience a reduction in commissions by 15-17 cents, and Large Standard Size products by 17-33 cents.

Changes to the Monthly Storage Fee

The Monthly Storage Fee, which is the charge for storing products in Amazon warehouses, calculated for each unit separately and debited monthly, is also undergoing changes, but these changes won’t apply universally.

Effective April 1, 2024, the Monthly Storage Fee for Small and Large Standard Size products will undergo a reduction of $0.09 per cubic foot. It’s important to note that this adjustment is applicable exclusively during the off-peak sales period, spanning from January to September.

The revised fee structure is as follows:

• Previous Rate:  $0.87 per cubic foot
• New Rate:  $0.78 per cubic foot

It’s crucial to emphasize that all other storage fees will remain unchanged, ensuring stability in cost structures for various product categories.

Storage Utilization Fee Changes

Commencing April 1, 2024, Amazon will implement modifications to the storage utilization fee, introducing charges for products with a storage utilization index of 22 weeks or more. This marks a reduction from the previous threshold of 26 weeks. Previously, these fees were differentiated based on size and categorized into four tariffs (up to 26 weeks, 26-39, 39 weeks and more, for new sellers). The updated structure will now feature additional tiers (up to 22, 22-28, 28-36, 36-44, 44-52, 52+, for new sellers).

In essence, it can be inferred that this adjustment will result in increased fees for all sellers, and sellers with an index of less than 22 weeks will now be obligated to pay this fee.

Aged Inventory Fee Adjustments

Effective February 15, 2024, Amazon will implement changes to the aged inventory fee for products stored in Amazon’s warehouses for a duration of 271 to 365 days. It is important to note that this adjustment does not impact clothing and accessories, and for inventory with a shorter storage duration, the fees will remain unchanged.

In summary, the commission will experience an increase ranging from $1.65 to $1.7 compared to the previous period until February 15, 2024:

• Term 271-300 days:  Increasing by $1.65, from $3.8 to $5.45.
• Term 301-330 days:  Increasing by $1.7, from $4 to $5.7.
• Term 331-365 days:  Increasing by $1.7, from $4.2 to $5.9.

FBA Removal, Disposal, and Liquidation Order Fee Adjustments

The expansive and financially robust US market beckons entrepreneurs, but anyone harboring dreams of establishing their business here must acquaint themselves with the FDA and its requirements.

The FDA, also known as the Food and Drug Administration, wields authority over the safety of food, drugs, cosmetics, and medical devices within the United States.

While the temptation to turn to Google for FDA registration guidance is strong, the vast expanse of the internet is riddled with inaccuracies and misinformation that can easily bewilder or, even worse, discourage you from venturing into the US market.

With over 5 years of experience, during which we’ve assisted countless clients with FDA registration, we’ve pinpointed three prevailing myths that frequently ensnare entrepreneurs navigating the intricate landscape of the FDA.

Myth #1: FDA Certification of Companies and Products

Let’s clear the air on this common misconception! The FDA doesn’t certify companies or products. As a federal executive agency, its role involves inspecting products and facilities, establishing exacting standards, and strongly encouraging adherence to these standards.

To effectively manage the vast US market, the FDA requires businesses engaged in the production of food and drugs to REGISTER with their database. By doing so, you receive a unique registration number that allows you to import regulated goods into the United States.

While your registration allows the FDA to gain a better understanding of your imported products, it’s crucial to note that there can be significant variations in FDA requirements based on the manufacturer or the specific nature of its product. So, it’s not a one-size-fits-all scenario!

Myth #2: The FDA Registration Agent – A Special Representative?

Let’s debunk another myth! Contrary to popular belief, a registration agent isn’t an official representative of the FDA. In fact, anyone residing in the US can step into this role.

The FDA mandates that foreign companies appoint a US resident as their registration agent. This individual’s duty is to serve as a communication bridge between the importer and the FDA. Importantly, they don’t need to be affiliated with an FDA support agency, dispelling the notion of “special representation.”

The registration agent’s responsibilities include establishing contact with relevant parties, coordinating inspections for the importer, and ensuring the seamless transmission of necessary documents to meet FDA requirements.

If you have a US resident at your disposal, the FDA registration process can be streamlined. However, should you require a registration agent, we’re here to offer recommendations.

Myth #3: Bypassing the FDA – A False Notion

Let’s address another common misconception: the idea that you can outsmart the FDA. This notion is far from the truth!

The FDA maintains a watchful eye over the domain of food, drugs, cosmetics, and medical devices. Depending on the nature of the product, the FDA employs several stringent control methods:

Customs Vigilance: This involves a thorough examination of products, including checking for Prior Notice (a notification of Goods Arrival in the USA), confirming the manufacturer’s registration in the FDA database, scrutinizing labels, evaluating product ingredients for safety, and verifying that the product possesses FDA marketing authorization.

On-Site Inspections: The FDA conducts inspections at the points of sale and storage facilities.

Post-Consumer Complaint Inspections: If a consumer raises concerns, the FDA investigates.

In any scenario, the FDA wields the authority to remove or recall products, even going so far as to send them back to their country of origin. Hence, when a seller peddles products with prohibited ingredients or lacking proper licenses, it’s merely a matter of time before it faces consequences.

The cost of the financial and reputational fallout for a brand caught in this web of non-compliance can be far greater than if they had proactively tested their products and met the FDA’s requirements. Remember, compliance is the key to success in the market. Shortcuts simply don’t pay off in the long run!

Conclusion

For any aspiring entrepreneurs eyeing to tap the vast US market, here’s a crucial principle to incorporate into your business strategy: If your export portfolio includes food, drugs, cosmetics, or medical devices, gearing up for FDA registration is likely to be a part of your playbook. Attempting to sidestep this requirement can spell serious trouble, especially on the financial front.

FDA registration isn’t merely an entry point into the US market; it also functions as a badge of product quality and a trust-boosting tool for consumers.

A crucial prerequisite for FDA registration is the appointment of a US resident registration agent. Should you encounter difficulties in securing such an agent, don’t worry! We stand ready to provide our expertise and suggest reliable agents who can fulfill this role.

Navigating the FDA registration process is not a daunting endeavor when you have the right guidance. Get in touch with us, and we’ll guide you through the process, ensuring you secure your registration number with the Food and Drug Administration effortlessly! Your journey into the US market awaits.

Account Registration and Verification

• Data verification is critical in the registration process, often requiring documentation to support the provided information. However, this step can be time-consuming and can often be complex.
• Amazon may reject a registration, even if all submitted documents meet their requirements. For more information on account verification, please refer to our article: https://disqover.agency/yak-zareyestruvatisya-i-prodavati-na-amazon-instrukciya/ .
• Sometimes, a rejection seems arbitrary, necessitating a thorough investigation as to what the underlying cause is.
• During the video verification process, unexpected questions about your business may arise.
• Securing utility bill information and an official address card can be challenging, particularly if your company lacks access to an official address or does not operate from one. Meeting these requirements with the correct documentation can be extremely complicated.

We often hear the following: “I have a unique product and want to sell it on Amazon. I’m sure it will sell well”. However, after an analysis, it becomes quite clear that the product is not interesting to consumers. To avoid similar situations and mistakes, it is essential to carefully analyze the marketplace and identify the proper niche in which you can start. The Disqover team has been helping sellers launch products on Amazon for nearly 5 years, and now it’s time to share the knowledge we’ve accumulated! In this article, we will discuss the best selling products on Amazon, the niches that are worth considering, and how to identify your “perfect” niche.

Top sellers  and selling niches in 2023

On Amazon, you can find and buy almost anything, but over the past two years, three categories of products have consistently appeared on top:

1. Home and Kitchen
2. Beauty and Personal Care
3. Clothing, Shoes, and Jewelry

While these categories are the most popular, they are also the most competitive. To be successful, you need to find a narrow but unoccupied niche where there is unmet demand. Below we outline 8 promising selling niches in the USA and Europe and our recommendations on how to stand out among thousands of competitors!

1. Pet supplies: The pet care market has increased from $216 billion in 2020 to $232 billion in 2022 and is expected to continue growing. Now is the perfect time to introduce something new to the market and offer unique solutions for pet owners. It could be innovative tools for removing dog hair, hi-tech collars, or new materials for cat litter boxes. However, be aware that non-US residents cannot import and sell antibacterial products that are manufactured outside of the US. Therefore, carefully check the product’s composition and the country’s legislation before entering the market!

1. Baby care: The baby category has great potential and various untouched niches that are still being developed. We recommend finding alternatives and modifications to everyday products, for instance, reusable diapers as an alternative to disposable ones. By the way, there is still high demand for eco-friendly products, so it’s worth paying attention to this segment. Remember though that this niche requires a Children’s Product Certificate (CPC) in the US.

1. Gaming: Since the Covid-19 pandemic, there has been a significant increase in demand for gaming products. Best selling items in the past year include gaming headsets for PC, Xbox One, Nintendo Switch, and PlayStation. However, these categories may have restrictions from trademark owners, so we recommend finding narrower niches and unique gaming accessories. For example, our team has worked with an unusual product – gaming gloves that assist in maintaining muscle tension, enabling gamers to extend their playing sessions.

1. Home gym: According to Statista, the revenue in the fitness niche was $21.9 bmillion in 2022. Home workouts remain popular, even though quarantines have ended, so you should consider products for CrossFit, especially pre-packaged sets or bundles that include all the essentials for sports activities. Amazon customers value convenience.

1. Beauty and personal care: It may seem that there are no niches left in this oversaturated category, but we’ve identified a few for you! Beard care and eye care products, for example. How can you stand out? Attract customers through exclusive product formulas, options for comprehensive care, or multitasking products.

1. Vegan supplements: This is a new but successful adaptation of dietary supplements and vegan products. We have had a success story in launching adapted vegan products, so we can confidently say that there is hidden potential in this niche. Best selling items include plant-based protein powder, vegan collagen, Omega-3, and probiotics. Note that this category requires COA certification in the USA and GFSI certification or valid HACCP certificate(s) in Europe.

1. Zero waste products. This is also a relatively recent trend with a new range of successfully adapted goods. Therefore, by adapting your products to this niche, you can effectively target and reach your desired audience! Best selling items include reusable makeup removers, bamboo cotton swabs, shoppers and bags made from organic mesh, bamboo toothbrushes, compostable bags, and beeswax wraps.

1. Home office. A lot of people continue to work remotely even after the Covid-19 pandemic, so this niche remains relevant. Best selling items: laptop stands, ergonomic chairs, desk LED lamps. We recommend searching for ideas on how to improve the shortcomings of your competitors’ products. Make a lamp last longer or a chair more comfortable.

How to identify the “perfect” niche for selling on Amazon?

We’ve developed a checklist to help you find that perfect niche to start with:

1. High demand: Choose products that have the potential to generate at least 10 sales per day and have a minimum of 50,000 monthly search queries on Amazon.
2. Low competition, preferably less than 1,000 competitors. The fewer the competitors, the greater the chance of ranking highly in search results and becoming a bestseller in your niche.
3. Medium price range. The optimal price range for products on Amazon is $10-$50, although this can vary depending on the niche.
4. Repeat purchase potential.
5. High product margin. This increases the ability to actively promote your products and achieve higher sales. You can calculate margins using this link: https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US.
6. Understanding consumer frustrations, revealed through an analysis of competitors’ reviews and market research.
7. Absence of existing cheaper alternatives that already satisfy consumer needs.
8. A limited number of reviews among competitors, ideally below 2,000. Reviews directly impact the decision to purchase a product.
9. A limited number of recognizable brands in the niche or absence of a dominant market player.
10. No additional requirements for product delivery to Amazon warehouses, sales launch (certification), or customs clearance.

It can be challenging to predict whether a product is suitable for starting a business on Amazon. To do so, you need to analyze demand and competitors, calculate unit economics, and prepare a P&L forecast. The Disqover team can assist you at each of these stages! Over the past 5 years, we have analyzed nearly 100 niches and provided business recommendations for the successful adaptation and launch of various products, including categories such as food and water, toys, gels and polishes, and more.

Fill out the form below and our manager will give you a free consultation on launching your product on the marketplace or increasing sales for your existing products on Amazon.

Good businesses are thinking about how to prevent the post-holiday decline in Amazon sales. Great ones are already working on a brand growth strategy for 2023. Our calendar of key dates will help you do this.

The calendar will help you make an inventory forecast for FBA. If you plan your warehouses according to the event calendar, you will avoid overstocking during a sales downturn and shortages during a rush. For example, you won’t experience any logistical delays related to the Chinese New Year.

When developing our market strategy for 2023, we are faced with the question: “When and how much to send goods to FBA so that the consumer receives them on time?” Looking for an answer, you should focus on seasonality, as well as specific trends related to your brand, target audience, and assortment. Let’s consider some points.

Seasonality and trends
How to make money on Amazon steadily? You should constantly monitor trends and customer preferences. For example, spring increases the demand for sports and outdoor goods, hiking equipment, and gardening items. On the other hand, in the winter months, gifts, home furnishings, board games, winter sports equipment, etc. are in demand.

Planning in advance
The fourth quarter of the year can be the most fertile time for Amazon sales. It’s important to track when consumers start their holiday shopping. Sometimes this season can start not after Halloween and Black Friday, but in early October. You should take advantage of the increase in traffic in time, even if you don’t have any gift items. After all, there are those who will come just on holiday shopping.

Prime Day on Amazon
Prime Day is a series of holidays when the platform organizes sales. Usually, they take place in summer, but last year Amazon unexpectedly organized such an event in the fall. Now there is every reason to believe that this year, it will also be two separate events. And although the exact date will be announced shortly before the event, you should start preparing for it by studying strategies to profit from the platform traffic increase and exclusive Prime discounts. It’s important to focus on inventory forecasting, keyword research, optimizing your product catalog, and advertising effectiveness.

Important!
There is a certain algorithm that you should follow if you are preparing for sales on a specific day (holiday, event, themed sales) to make it work best. We have collected some top timelines tips. But remember that the situation may be different for you, depending on your product and delivery options:

12 weeks before — finalize the assortment for a specific date:

• review previous sales figures and identify flagships
• explore the possibilities of creating bundles
• create a sales plan and, accordingly, the number of goods to be delivered
• consider using Amazon Warehousing & Distribution
• add the Buy with Prime button to the website, if available

 8 weeks before — send the goods to Amazon:

• add inserts to the product packaging along with the supply
• sell off old stock on FBA
• analyze marketing and advertising strategies
• improve your pricing strategy

4 weeks before — optimize listings:

• titles should be changed in accordance with seasonal keywords
• photos of goods should be of high quality
• if possible, add a video about the product
• indicate the main characteristics of the product
• post answers to recurring customer questions
• track customer feedback
• determine the strategy and goals for promotion for the next period

 3 weeks before — create coupons and start sharing promotions:

• implement the Amazon Ads strategy and make adjustments based on the data on the advertising effectiveness  in the process
• write several posts through Amazon Posts
• send promotions via email with Amazon Manage Your Customer Engagement
• assign a separate person to handle customer inquiries

In addition, we recommend that you look after FBA storage limits. They are updated quarterly based on your Inventory Performance Index (IPI). Amazon determines it on its own but provides an opportunity to track it regularly.

Do you want to deal with all the stages of the sale and finally establish supply processes? Don’t hesitate to contact us! Our team of analysts will identify and solve all the problems in the supply chain, as well as track trends and reduce shortages that spoil the sales line. Do not hesitate and take steps to success today.

The harvest from the holiday sales of the fourth quarter is over. The results from Black Friday, Cyber Monday, and Christmas sales have come in, which means it’s time to plan for a successful start to 2023. To keep the momentum going and get your year off to a good start, we’ve compiled five tips for selling on Amazon.

1. Use Q4 profits to get off to a good start in Q1

If you did everything right, your earnings on Amazon in the fourth quarter were the highest of 2022. It’s tempting to put the money you’ve earned in a savings account, but it’s better to reinvest the profits into marketing in the first quarter so that you will get higher sales in the long run.

There will be buyers who are waiting for the post-holiday sales, and those who are willing to start the year with regular shopping, and don’t forget about those who want to use those Amazon gift cards they were given for Christmas or New Year. Being ready for these sales will allow you to significantly reduce the post-holiday slump and get ahead of your competitors in the first quarter.

2. Be prepared with a range of goods for the holidays of 2023

Be prepared for the following dates when you can raise your conversion: Valentine’s Day (February 14), International Women’s Day (March 8), and Easter (April 16).

How to prepare:

• Make your Brand Store easy to navigate. Divide products into tabs-categories, and add those that are most relevant now to the main page.
• Choose relevant keywords so that the Amazon advertising works well.
• If the product allows, change the images in action and add infographics relevant to the holidays. For example, for Valentine’s Day, you can add an image of your gift being given to a significant other.

You have time to prepare and get ahead of the competition.

Read also: Top 5 mistakes in PPC work on Amazon that drain your budget

3. Extend discounts

There are two things you should keep in mind when selling on Аmazon in the first quarter:

• Many buyers are still suffering from Christmas shopping fever. It will take time before they cool down.
• Many buyers will receive Amazon gift cards and start using them.

This is why discounts should not be stopped right after the winter holidays.

TIP. Increase your income with related products. Some products in a set sell better on Аmazon. For example, if you have winter gloves and scarves that aren’t selling well individually, start selling them as a bundle on Amazon.

Bundles on Amazon consist of several individual products, each of which can be identified by a unique ASIN/UPC. A pre-packaged set of products identified by a single ASIN/UPC is not considered a bundle.

4. Increase your assortment

Don’t give away your products on Amazon just relying on sales, because bargain hunters are just one category of buyers. Instead, diversify your assortment – add items that will be popular on Amazon all year round. Create a line of items with high margins and low turnover, as well as high-turnover products with low margins. This will balance your sales and create a better selection for customers.

Read also: Cancellation of referral commission on Amazon EU and UK: the most frequent questions of Ukrainian entrepreneurs

5. Meet the demands of your customers

For example, one of the most common resolutions at the beginning of the year is to start training again and take care of one’s fitness. Therefore, the first quarter is the perfect time to sell products in this category. If you have the opportunity to do it – go ahead. The range is wide – from exercise equipment and fitness accessories to sportswear and food.

The main thing is to take advantage of the trend to lose weight. Even if you sell sugar-free candies or hair elastic bands – show in your photos how a girl who does sports uses your product.

In conclusion.

In order for your year to start off with good results, you need to prepare a strategy in advance and think about the desires of your customers. They are always ready to buy from you, but only if you accurately predict what they need. To set up an Amazon store, increase your Amazon business rating, make money and grow sales on Amazon, or just get Amazon seller help on another issue, leave a request and we will contact you!