FBA New Selection Program: How Does It Work?

As one of the world’s largest eCommerce platforms, Amazon keeps its prevalence by, among other aspects, introducing new services and features that make millions of merchants and clients happy. One such service is the FBA New Selection Program started in 2020. 

It offers merchants free storage, removal, and a free returning process for a specific period. In addition, it means that merchants can sell new goods using FBA absolutely for free!

Keep reading to find out what the Amazon Selection program is all about and how merchants can benefit from it to grow sales and increase revenue with AMZ.

What Is FBA New Selection Program? 

The Amazon Selection Program is a no-risk solution from the marketplace to encourage merchants to use the platform and send in new goods. If your product is new to AMZ, it can get the following advantages:

• No monthly storage commissions for up to 50 items for 90 days
• Ability to remove any of the 50 items for free within 180 days
• Free returns processing for goods in these categories: Shoes, Apparel, Handbags & Accessories, Luggage, Watches, and Jewelry.

You can store your goods for free for up to 3 months. Realistically, the money benefits of the selection program per item are nearly $100 per SKU. But still, it is better than nothing.

If you are a new merchant, you will get up to $100 as free partner carrier delivery credits (to send the merchandise into AMZ).

What Are the Pros of the Amazon FBA New Selection Program?

In this section, we will walk you through the main perks of the FBA program. These benefits will simplify your seller experience and help you to get market exposure.

Merchants get a cost-effective selling experience. 

It’s free to enroll in without any registration fees. You may try it even when you have never heard about AMZ FBA earlier. You do not need to pay any fees merchants usually pay to access the platform. This program is open to new merchants and those who already use FBA. If you do not know the program, you are welcome to test it out and save on the commissions users usually pay. If you use AMZ FBA and wish to sell new products under new ASINs, the New Selection Program is also open to you.

Free returns for certain categories. 

The New Selection solution also provides free returns for the below five categories:

• Apparel
• Watches
• Luggage
• Jewelry
• Shoes, Accessories & Handbags 

The platform will waive return processing commissions for up to 50 units of each parent ASIN. The goods returned must be obtained at Amazon’s fulfillment center within four months. These products returned must be received at a fulfillment center within four months of the first inventory-received date.

Sellers aren’t limited in the number of new parent-ASINs they can create. 

It opens up extensive opportunities to move a brand products line. It’s incredibly tempting when you haven’t previously operated on AMZ marketplaces and are only attempting to win the piece of the pie on the platform.

No monthly storage and removal commissions for standard-size products.

The platform won’t charge monthly storage commissions for the first 50 units of every new item (parent ASIN) for three months after receiving the first unit at one of the AMZ fulfilment centers. Next, merchants can easily remove the first 50 units in 6 months with no removal commissions.

No monthly storage and removal commissions for oversize products.

The platform won’t charge monthly storage commissions for the first 30 units of every new item (parent ASIN) for three months after receiving the first unit at one of the AMZ fulfilment centers. Next, merchants can easily remove the first 30 units in 6 months with no removal commissions.

Additional bonuses for goods in the Shoes and Apparel categories.

The platform won’t charge monthly storage commissions for the first 1000 units of every new item (parent ASIN) for the first three months after receiving the first unit at one of the AMZ fulfilment centers. Next, merchants can easily remove the first 100 units in 6 months with no removal commissions. What’s more, AMZ will process the return of the first 20 standard-size products at no charge. Nonetheless, inventory should be returned within six months of the first product arrival date to the platform’s warehouse.

New FBA merchants receive a deposit for Sponsored Ads promo clicks.

If you are new to the FBA selection program, you will get $100 when launching Sponsored Ads. You must only use FBA products for this. But, they don’t need to be new Amazon ASINs. Unused promo clicks will expire 30 days after their application. 

Sellers get a delivery discount. 

The platform will waive your first $100 on delivery if you’re a new FBA merchant. This amount may cover shipping commissions when using AMZ Partnered Carriers.

All the advantages above assure that each new merchant performs confidently. It also removes the fear of financial risks in Amazon’s business. If you wish to avail of these opportunities, you need to be eligible for the solution to enroll. Let’s check what the eligibility requirements are.

FBA Program Eligibility Requirements

You need to be a Professional merchant to participate in the program and hold an Inventory Performance Index (IPI) score of more than 400. If you are a new Professional merchant or do not have your IPI score yet, you can still join and get the benefits. However, in this case, you should keep your eligibility updated daily, depending on your score. Merchants remain applicable until the next assessment on April 1, even if their IPI score alters before then. If your IPI score is below 400 on that date, you will be removed from the FBA program.

If you have enrolled but are not eligible due to your low IPI score, you will become eligible if it raises to more than 400 on the following daily assessment.

Enrolled merchants must keep an eligible status to get the solution’s benefits before shipping their new-to-FBA ASINs to the platform’s fulfillment center. These items will qualify for the free removal, monthly storage, and return processing perks of this program.

If you are an AMZ merchant keen to grow your business, don’t forget to check out SellerSonar’s all-in-one listing monitoring tool tailored to protect and advance your Amazon business. Try our 90-day free trial.

Eligible ASINs should fit the criteria below:

• New to Amazon FBA
• A parent ASIN is not previously enrolled in the FBA program
• Be standard size or oversize, including large, medium, and small oversize (except for special oversize)
• Not a used or media product
• Received at any Amazon fulfillment center after the selections program start date of April 1, 2021

Eligible products don’t include new child ASINs made under a parent ASIN already enrolled in FBA. You also cannot enroll new listings made by bundling different or the same existing Amazon ASINs.

How to Participate in the Amazon FBA New Selection Program? 

To join the New Selection Program, you must have a Professional plan. If you’re using the Individual subscription, upgrade your selling account. After you have done that, the rest is pretty simple. Log in to your AMZ Seller Central profile and proceed to the FBA new selection page. Follow the enrollment steps given, and once done, the platform will assess your profile and decide whether you qualify for this solution.

Amazon Selection Program: Final Thoughts

The AMZ selection program comes with a bunch of benefits. However, the enrolled merchants must maintain the eligibility status before sending their ASINs to the platform’s fulfillment centers. The new-to-FBA products will be qualified for removals, returns processing, and monthly storage benefits. Enrolling in the FBA program is a great way for those selling on the marketplace to boost sales and make their product listings rank higher. It also helps sellers cut costs on storage expenses that come with using the AMZ platform.

Find out more about the program before you step in, and ensure that you comply with the guidelines described by the AMZ marketplace. In this way, you will get all the benefits from the countless opportunities and boost your brand to new heights.

Wish to learn more about how you can enhance your Amazon business? Register for SageMailer’s 30-day trial! Put your feedback management on autopilot and let your sales soar!