Amazon FBA Program: New Selection Guide

Would you believe it if I told you that you could run your business on Amazon and sell goods for free? Probably not. However, the thing is that it’s true. The Amazon platform now provides free removals, free storage, and free return operations, with a few exceptions. For new items and for a limited time only. Let’s delve deeper and investigate the Amazon FBA new selection program carefully. 

What Is FBA New Selection Program? 

Fulfillment by Amazon is a solution known to help AMZ merchants streamline their selling processes. As a merchant, if you’re registered for FBA, the marketplace holds your stock in their warehouses, picks, packages, handles orders, manages returns, and even provides client service. 

It allows you to concentrate all your attention on your business’s sales and advertising.

Of course, AMZ is great if you’re a merchant looking to grow customer reach while making your goods eligible for Prime Shipping. However, the FBA New Selection Program is intended to simplify selling new items through Fulfillment by Amazon. 

It’s ideal for new merchants and existing merchants with new products to add to the Prime catalog (we will dive more into this in the requirements section below). 

What Are the Advantages of the FBA New Selection Program?

The New Amazon Selection Program is developed to help sellers make product launches more cost-effective and straightforward. Thus, it will encourage companies to introduce new items to the platform and allow merchants to try out the FBA program without investing additional money immediately. 

If you are new to FBA, you must know that it’s a great service that provides merchants access to the platform’s widespread storage facilities and fulfillment network. With Fulfillment by Amazon, users can offer better customer service and enhance their profits by outsourcing regular fulfillment tasks. The Amazon operators will pick, store, pack, and deliver your products and deal with the returns and customer service processing for you. 

Although it’s an incredible opportunity, fees can add up very fast — mainly when your inventory stays in storage for a while. 

Here’s where the Amazon FBA New Selection Program enters in. Below we provide a comprehensive list of benefits you can get:

No new ASIN limit

As soon as you join the Amazon selection program, you will be able to use the fee removal advantages for an unlimited number of parent ASINs that you launch that are new to FBA. It means that even when you create 100 new goods a month, they will all be eligible for this program. 

Free removals and monthly storage for units of each eligible standard size ASINs 

You won’t need to pay monthly storage fees for your first 50 units of every newly created parent ASIN for 90 days after receiving your first one at an Amazon fulfillment center. Sellers can remove each of those units within 180 days after receipt of the first inventory receipt without any removal fees. 

Each inventory unit sent after those first 50 ones will be subject to regular fees on Amazon. 

Free removals and storage for oversize ASINs

Similarly, there are no monthly storage charges for your first 30 units of every newly launched parent ASIN within 90 days after your first unit is received at a fulfillment center. In addition, sellers can remove each of those 30 units six months after receipt of the first inventory receipt without any removal fees. 

Each inventory unit sent after those first 30 ones will be subject to regular fees on Amazon. 

Extra pros for apparel and shoes

Such products have no monthly storage charges for the first 100 units of every new parent ASIN of standard size for four months after the first one is delivered to the fulfillment center. In addition, sellers can withdraw any of those units within six months after receipt of the first inventory without any removal fees. 

Amazon will offer free return processing for 20 units of every parent ASIN of standard size. Returned products must be delivered to the fulfillment center six months after the first date when the inventory was received. One must deliver returned products to the fulfillment center six months after the first inventory-received date.

$200 bonus in sponsored ads promotional clicks

(for new Fulfillment by Amazon sellers only)

In case you are new to the FBA program, and you are going to register in the program, it will offer a $200 bonus in sponsored advertising, promotional clicks, and free ad campaign creation. Sellers will get their first $100 once they enroll and start a campaign without the end date for their FBA ASIN. Then, they will receive their second $100 part when they advertise their ASIN for at least a month. Items shouldn’t be newly created on FBA to benefit from this offer. Besides, all the unused promo clicks will expire a month after they have been applied.

$100 discount on product shipping 

(for new Fulfillment by Amazon sellers only)

If you are new to the FBA program and are going to enroll in the Amazon Selection program, the platform will waive your first $100 in commission for partnered carrier shipping. Such a discount is applicable not only for newly launched products.

One of the most significant advantages here is that you can launch as many new-to-FBA goods as you wish! The marketplace used to set limitations on this program to only 500 items (that is still a significant number). So in case your brand is introducing new ASINs every month, it’s an efficient way to launch them to the Amazon market and try out your sales.

What Are the Terms and Conditions of Amazon FBA New Selection Program? 

To benefit from the New Selection solution benefits, merchants must have a Professional profile with an inventory performance index score of more than 400. Your profile should meet specific inventory, performance, and profitability metrics.

Apart from the minimum IPI score, only merchants with no storage limit (typically new merchants that have been active for less than half a year or with an IPI of 400 and above) are eligible for commission waivers through this program.

Suitable standard-size ASINS must meet the following criteria

• Be new to Fulfillment by Amazon (FBA)
• Be of a standard size or oversize. It includes large, medium or small oversize (except for a special oversize)
• Not be a used or media product. 
• Be received at a fulfillment center after the launch of the Amazon selection program (April 1, 2021)
• Eligible items don’t include new child items created under a particular parent ASIN already present on FBA. Besides, you can’t register new items launched by bundling different or the same ASINs existing on FBA.

Potential Disadvantages of Amazon’s FBA New Selection Program

The platform reserves its right to “cancel or change the Program at any moment by giving you 30 days prior written notice.”

If Amazon decides to end your participation in this program, you will have a 30-day grace period before being charged the regular referral, storage, and FBA expenses.

Not a problem when you have 50 per unit of each parent ASIN. Nonetheless, it can become a headache when you decide to remove all of your stock from FBA.

How Can I Enroll in the FBA Selection Program? 

Participating in the FBA new selection program is very simple for users with a professional seller account. However, if you don’t have one, you will need to upgrade your profile to benefit from everything the program offers. 

For that, visit the Amazon FBA New Selection page and click on the “Enroll now” button.

Well done! The pros will automatically take effect if your goods meet the program’s requirements.

Why Wait? Use the Amazon Seller’s Program Today!

To sum up, this program is very beneficial if you are a private label seller or a particular brand. The waived removal and FBA storage fees provide a low-risk way to try out stocking a new item at fulfillment centers on Amazon. Besides, saving costs on fees helps you focus more on advertising and building your brand’s reputation.

Nevertheless, don’t forget about delivering top-notch customer service and collecting customer feedback. Well, it’s a tedious task, but it does pay off.

Luckily, there is SageMailer that can do all this work for you. Register for our 30-day free trial and see it with your own eyes.