If you've been selling a product for over half a year, it's reasonable to assume that you might not be paying much attention to one of the most critical aspects of your business, especially in the financial aspect – the packaging size.
We tend to receive the packaging dimensions provided by our suppliers, calculate our selling price, and profit, taking into account the fees charged by Amazon. But did you know that by reducing your packaging size, even just by 1-2 cm, you can reduce your FBA costs by up to $2 per unit? This savings adds directly to your profit or can be allocated to increase your advertising budget.
Now, since it's likely that the Chinese suppliers are still on holiday, and you might not be entering production in the coming weeks, it's an excellent time to rethink your packaging and minimize its dimensions as much as possible.
Amazon has six different storage and FBA fee levels. You can find them at the following link:
https://sellercentral.amazon.com/gp/help/external/GG5KW835AHDJCH8W I've seen many cases lately where it was relatively easy to reduce the product's packaging through different folding techniques or by using cardboard packaging instead of soft packaging, saving the seller between $1 to $2 in storage and FBA fees.
Yes, it may sound like a small amount, but if you multiply it by the annual quantity of units you sell, it can amount to a clean profit of thousands to tens of thousands of dollars.
Have a great weekend!
