A New Era of Profitability: Introducing the Low-Price FBA Program

Amazon is ushering in a new era of seller profitability with the introduction of the Low-Price FBA program. Starting September 26th, this initiative extends its benefits to products priced at £10 in the UK, €11 in Germany, €12 in France, Italy, Spain, and the Netherlands, SEK 140 in Sweden, PLN 55 in Poland, or less (VAT included). This threshold maintains the spirit of the SnL program while amplifying accessibility for sellers of all scales. Imagine offering your customers budget-friendly options while ensuring the rapid FBA delivery that sets your brand apart.

Embrace Evolution or Review Your Products?

Whether the new offer from Amazon is a positive or negative for your business, it will depend on your product mix and the prices you’re selling at. Either way it’s worth crunching the numbers to work out whether this will bring healthier margins. Amazon has a great knack for presenting updates as a positive, but sometimes changes to their programs have consequences for sellers. In the case of SnL change, we would recommend checking the new FBA prices for products within 20% of the upper price.

So what are the pros and cons of this update?

Pros:

• Easy to understand
• More products eligible
• Could open up new product opportunities

Cons:

• May not benefit products priced towards the upper-end of the bracket
• Requires an audit of your Amazon fees

Partnering for Success: Navigating the Shift Together

At Incubeta, we understand that change is an opportunity to excel. As this transformation unfolds, we invite you to join us in a strategic review of your product lineup and inventory status. Dive into the intricacies of the FBA and Low-Price FBA rate cards, ensuring you’re best positioned to harness the full potential of these changes.

Our mission is to equip you with the insights and strategies that will help you thrive in the dynamic realm of Amazon’s Marketplace. The shift from SnL to Low-Price FBA could be the opportunity you need to increase your margin, review your pricing or even launch new products that were previously unaffordable.

If you’re as intrigued as we are about the possibilities that lie ahead, don’t hesitate to reach out. Our team of Amazon experts is here to guide you through this transition, ensuring you’re equipped to seize every opportunity that arises. 

Reach out to our Head of Strategy, Ted Gibson (ted.gibson@incubeta.com) today to learn more!