Amazon is adding new restrictions to its Small and Light program that it offers to FBA sellers.
The new restrictions for Small and Light items: they will be required to weigh 10 oz or less and be priced at $7 or less.
That compares to the current restrictions, which are as follows: “Only products in new condition that measure 16 x 9 x 4 inches or less, weigh 15 oz or less, and are priced at $15 or less are eligible for Small and Light.”
It seems Amazon is willing to see prices of items priced between $7 – $15 increase (since sellers will have higher costs).
The FBA Small and Light program is designed to help reduce the cost of fulfilling orders for small and lightweight FBA inventory under a certain price (see this blog post describing the program when it launched in 2015). Small and Light products are Prime-eligible with standard shipping for Prime customers (3 to 5 business days) and free shipping for non-Prime customers (6 to 8 business days).
The new eligibility criteria take effect on July 26, 2019. Note that any item enrolled before July 26 will remain under the Small and Light fee structure through January 26, 2020, as long as the price remains less than or equal to $15. Starting January 27, 2020, all items exceeding 10 oz or $7 will be converted to standard FBA and subject to FBA fulfillment fees.
Interestingly, Amazon subsidizes volume discounts for certain Small and Light products (those that are priced $5 or under and belong to the Consumables category are eligible for a 5% price discount if a customer orders two or more units of the same item). FBA covers the cost of the discount.