Amazon FBA Label Service

For Amazon sellers who use Amazon FBA Label Service, the question of labeling inventory can be a time-consuming hassle. Each item needs a unique Amazon barcode (FNSKU) to be tracked and fulfilled. But what if you could skip the tedious task of printing and applying labels yourself?

Enter the Amazon FBA Label Service. This service lets Amazon handle the labeling for you. It sounds like a dream come true, right? Well, hold on a minute. While it’s convenient, it’s not a one-size-fits-all solution. This blog post will explore the FBA Label Service, its pros and cons, and alternative options to help you decide what’s best for your business.

What is the FBA Label Service?

The FBA Label Service is a service offered by Amazon for sellers who use Fulfillment by Amazon (FBA). It essentially lets Amazon take care of labeling your products for you. When you send inventory to Amazon’s fulfillment centers for FBA, you can choose to have them apply the barcode labels (FNSKUs) to your products instead of doing it yourself.

What Is an FNSKU, and Why Do I Need One?

An FNSKU (Fulfillment Network Stock Keeping Unit) is like a unique fingerprint for your product in Amazon’s FBA system. You need one because it allows Amazon to track your inventory, pick it for orders, and ship it out. It’s like a behind-the-scenes code that keeps things running smoothly.

Types of barcodes used in Amazon’s Fulfillment by Amazon (FBA) program:

Barcode Type Description Role in FBA
Manufacturer Barcode (UPC, EAN, ISBN) Standardized barcodes are used for most products * Preferred: If your product already has one, Amazon can use it to identify and track your inventory.
Amazon Barcode (FNSKU) Unique identifier used by Amazon for FBA * Essential: Used to track your inventory within Amazon’s fulfillment centers, even if your product has a manufacturer barcode.

Pros and Cons of the Amazon FBA Label Service:

The Amazon FBA Label Service offers convenience for sellers who use Fulfillment by Amazon (FBA), but it comes with both advantages and disadvantages. Here’s a breakdown of the pros and cons to help you decide if it’s the right choice for you:

Pros:

Saves Time:

The biggest advantage is the time saved by not having to print and apply FNSKU labels yourself. This can be a significant benefit for sellers with a large volume of inventory.

Simplified Shipping:

As long as your products have a single, scannable manufacturer barcode (UPC, EAN, etc.), you can send your inventory to Amazon in bulk. They’ll handle generating and applying the FNSKU labels.

Potentially faster processing:

Your products might become available for sale on Amazon quicker since you don’t need to label them yourself first.

Cons:

Cost:

There’s a per-item fee (currently $0.55 per item) for Amazon to label your products. This can significantly eat into your profits, especially for high-volume sellers or low-priced items.

Loss of Control:

You give up some control over the labeling process. There’s a small chance of mislabeling, which could lead to delays or fulfillment issues with your orders.

Limited Labeling Options:

The service only applies to basic FNSKU barcodes. If you want additional labels with your branding or specific information, you’ll need to handle that yourself.

Ineligible Inventory:

Not all products qualify for the service. Restricted items, those without a scannable barcode, or used items in certain categories won’t be labeled by Amazon.

What size labels are for FBA?

Amazon has specific requirements for the size of labels used with their FBA service:

  • Minimum dimensions:

    1 inch (2.5 cm) in height and 2 inches (5.1 cm) in width.

  • Maximum dimensions:

    2 inches (5.1 cm) in height and 3 inches (7.6 cm) in width.

So, any size between 1″ x 2″ and 2″ x 3″ is acceptable.

How does it work?

Before you ship:

  1. Product Eligibility:

    Ensure your products meet the criteria (new, non-media, non-restricted, with a single scannable barcode like UPC, EAN, etc.).

  2. Enable the service (optional):

    In your Seller Central settings, you can activate the FBA Label Service by default or choose on a per-shipment basis.

  3. Prepare Shipment:

    Pack your inventory together (separate from items you’ll label yourself).

At the Amazon Fulfillment Center:

  1. Receiving and scanning:

    When your shipment arrives, Amazon will scan the box label to identify it as yours.

  2. Label Application:

    Amazon will use the product information you provided to generate FNSKU labels. These labels are then applied to each eligible item in your shipment.

  3. Inventory Tracking:

    Once labeled, your products are scanned into Amazon’s inventory system, ready for order fulfillment.

There are two main aspects to consider for eligibility with the Amazon FBA Label Service:

Product Eligibility:

  • Condition:

    Your products must be in new condition, according to Amazon’s FBA guidelines. Used items might not be eligible for labeling, depending on the category.

  • Product Type:

    There are no restrictions on media (books, DVDs, etc.) or non-media items.

  • Restrictions:

    Products cannot be prohibited, restricted, or high-value according to Amazon’s FBA guidelines. These might have special labeling requirements not handled by the service.

  • Barcode:

    A single, scannable barcode (UPC, EAN, JAN, or ISBN) is mandatory on each product. This barcode acts as a reference for Amazon to identify the item and generate the unique FNSKU label.

Seller Opt-In:

  • You can choose to activate the FBA Label Service by default for all your shipments or enable it on a per-shipment basis in your Seller Central account. This allows you some flexibility in deciding which products to use the service for.

The main alternatives to the Amazon FBA Label Service are:

  • Self-Labeling:

    You purchase barcode labels and a thermal printer to apply FNSKU barcodes yourself. This is cost-effective but time-consuming.

  • Third-Party Labeling Services:

    These companies handle labeling and potentially other fulfillment aspects for a fee, offering convenience but potentially costing more than self-labeling.

The Final Verdict

The FBA Label Service can be a valuable tool, but it’s not a magic bullet. Carefully consider your budget, inventory volume, and labeling complexity before deciding. By weighing the convenience against the cost, you can determine if the FBA Label Service is the right time-saving trick for your Amazon business.

FAQS

Who should consider the FBA Label Service?

  • New Sellers:

    With a limited number of products, the time saved can outweigh the cost.

  • Sellers with Complex Labeling Needs:

    Products with intricate labeling requirements might benefit from letting Amazon handle it.

  • Sellers Who Want to Save Time:

    If time is a precious resource, the convenience of the service can be valuable.

How do I know if the FBA Label Service is right for me?

  • Budget:

    Can you comfortably absorb the per-item fee?

  • Inventory Volume:

    How much time would self-labeling take for your inventory size?

  • Labeling Needs:

    Do you require custom branding or additional information on your labels?

  • Product Value:

    Is the potential for mislabeling a significant concern for expensive items?

What happens if I don’t use the FBA Label Service?

  • Your products must still have a single scannable manufacturer barcode (UPC, EAN, etc.) before sending them to Amazon.
  • Amazon may require you to divide your shipment so that items requiring labeling can be processed separately.

Conclusion

Saves time and costs money.

This service simplifies labeling but has a per-item fee.

Right for You If:

  • new seller with limited products
  • Complex labeling needs
  • I need to save time

Other Articles

6 Years in Business: A Milestone and a Springboard

A life insurance company sells a term insurance policy

 

By Steve

Leave a Reply

Your email address will not be published. Required fields are marked *