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As Amazon continues to grow, so does the cost of doing business. For many, rising fees and tricky internal processes can be a major barrier to launching new products and expanding their catalogs.
However, the Amazon FBA New Selection Program offers a solution to help sellers mitigate some of these financial pressures. This program is designed to offset initial costs like storage, removal, and return processing fees, making it easier for sellers to introduce new products and stay competitive amid Amazon fees.
Despite the somewhat confusing name, this program isn’t just for new sellers; it is open to any Professional Seller who has a New-to-FBA ASIN. Whether you’re an established seller or just starting, understanding how this program works can help you launch new products more effectively and with fewer upfront costs.
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What is the Amazon FBA New Selection Program?
The Amazon FBA New Selection Program is designed to encourage sellers to add new products to the marketplace by offering fee waivers and other perks. This initiative helps sellers reduce the risks and costs typically associated with launching a new product.
Whether you’re looking to add new items to your catalog or transitioning products from other platforms like Shopify or Etsy, this program aims to make the process smoother and more cost-effective.
When you enroll in the program, you’ll receive benefits like waived monthly storage fees, free removal fees, and free return processing for eligible New-to-FBA ASINs. Essentially, it offers sellers the chance to test new products with fewer financial hurdles, allowing them to gauge demand and optimize their Amazon listings without worrying about high costs upfront.
Who Qualifies for the Amazon FBA New Selection Program?
How to Check Which ASINs are Eligible for Amazon FBA New Selection?
Find out which products are eligible for the Amazon FBA New Selection Program using three methods.
- Go to the Seller Central > FBA New Selection dashboard > Click on “View active enrolled ASINs” to check which ASINs are eligible.
- Use Amazon’s ASIN search tool. Amazon provides a product search tool to help you find which products are eligible for the program.
- Access a table of links in Seller Central to find and select a specific marketplace. Next, verify if a product is new to FBA by using its product identifier, such as ASIN, EAN, or UPC.
Product search tool page by country:
Products eligible for the program include:
- Apparel
- Shoes
- Handbags
- Accessories
- Jewelry
- Luggage
- Watches
Note: ASINs in Media and used item categories are not currently eligible.
How Does the Amazon FBA New Selection Program Work?
To get started, you need to enroll in the program through your Seller Central account. Once enrolled, you can submit your new-to-FBA ASINs for approval. The key is to complete this process before the inventory is received at an Amazon fulfillment center to ensure eligibility.
Once approved, the perks kick in. These include:
- Free Monthly Storage: Monthly storage fee waived for a certain period of time for a specified quantity of eligible parent ASINs. The rebate will be applied to fulfillment fees and is only applicable to sellers who have completed Amazon Brand Registry.
- Free removals (Japan, Canada, Mexico, Singapore, and Australia only): Removal fees for the first 50 units of each parent ASIN will be waived within 180 days.
- Free Returns Processing (US and EU/UK only): Within six months of receiving the first item, the first 20 units of each parent ASIN will be exempt from return processing fees. Starting June 1, 2024, Amazon will waive return processing fees for non-clothing and non-footwear products, while clothing and footwear will still qualify for this benefit.
- Sales Rebate: Amazon offers a rebate on the first few units sold within a set period after launching a new product, which can help improve initial profit margins. This incentive may help ease the financial burden of new product launches, giving sellers a better opportunity to start profiting early in the product’s lifecycle.
- Discount on Amazon Partnered carrier shipping (Canada and Mexico stores only): Sellers in Canada will have their first CA$135 (or 2,200 Mexican pesos for MX) in Amazon-partnered carrier shipping charges waived after enrollment in FBA New Selection.
- Global Enrollment: Sellers only need to enroll once, and the program’s benefits automatically apply to all active Amazon stores they manage.
- Amazon Vine Enrollment Fee Discounts: Starting in September 2024, sellers can receive a 25% discount on the Amazon Vine program, which invites trusted reviewers to provide feedback on new products.
These perks make the program a smart option for sellers who want to test the waters with new products without worrying about the typical costs that come with expanding their inventory.
Summary of Program Benefits for US, Canada, & EU Sellers
Click here to view the full list of program benefits for each available Amazon store.
How the FBA New Selection Program Cuts Storage and Removal Costs
Scenario: Suppose you’re selling a 1 lb standard-size footwear.
- Your first shipment includes 160 units.
If You Join the FBA New Selection Program
- Storage Fees: The first 100 units will enjoy free storage for 120 days.some text
- The remaining 60 units will incur storage fees for 120 days. Assuming each unit takes up 0.5 cubic feet (for a 1 lb footwear), the storage fee is calculated as follows:
- Storage for 60 units = 60 units × 0.5 cubic feet × $0.78/cubic ft (off peak rate)
= $23.40 for 120 days.
- Removal Fees: You get free removals for the first 100 units within 180 days.some text
- If you need to remove the remaining 60 units, the fee would be:
- Removal fees for 60 units = 60 units × $1.53
= $91.80.
Total Cost with Amazon FBA New Selection Program
- Storage Fees: $23.40
- Removal Fees: $91.80
- Total: $115.20
If You Do Not Join the Amazon FBA New Selection Program
- Storage Fees: All 160 units will be charged storage fees for 120 days.some text
- Storage for 160 units = 160 units × 0.5 cubic feet × $0.78
= $62.40 for 120 days.
- Storage for 160 units = 160 units × 0.5 cubic feet × $0.78
- Removal Fees: If Sammy needs to remove all 160 units, the removal fee would be:some text
- Removal fees for 160 units = 160 units × $1.53
= $244.80.
- Removal fees for 160 units = 160 units × $1.53
Total Cost without Amazon FBA New Selection Program
- Storage Fees: $62.40
- Removal Fees: $244.80
- Total: $307.20
Savings from Joining the Amazon FBA New Selection Program
By joining the FBA New Selection Program, you save:
- $62.40 in storage fees for the first 100 units
- $153.00 in removal fees for the first 100 units
Total Savings: $192.00
Drawbacks of the Program
While the Amazon FBA New Selection Program offers many advantages, it does have a few downsides.
- Limited Product Eligibility: Not all product categories qualify for the FBA New Selection Program, excluding sellers in categories like Media or used items from enjoying the benefits.
- IPI Score Requirement: Sellers need a minimum IPI score of 400 to participate, which could be a challenge for new sellers without an established score.
- Temporary Fee Waivers: While Amazon waives several fees initially, standard FBA fees apply after 120 days, so sellers should prepare for higher costs once the fee waivers expire.
How to Enroll in the FBA New Selection Program
- Register as a Professional Seller > FBA New Selection Program > Click on a store name (US, UK, Japan, etc.) > Click “Enroll Now.”
- If you list your first buyable ASIN on or after March 1, 2024, and create your first FBA shipment within 90 days, you will automatically be enrolled in the FBA New Selection Program—no manual registration needed.
- Add a new product to Amazon and send it to an Amazon fulfillment center. Ensure you select Fulfillment by Amazon when listing the item, or switch from seller fulfilled to FBA to take full advantage of the program’s benefits.
- Complete Brand Registry to enjoy sales rebates.
- Once you’re enrolled, Amazon will verify your eligibility for the program. Discounts are then automatically applied to qualifying products according to the program’s specific terms and conditions.
How Can Carbon6 Help?
Navigating the FBA New Selection Program and optimizing your product launches can be tricky, but Carbon6 tools can simplify the process:
- SoStocked: This inventory management tool helps you manage stock levels, ensuring that you don’t run into issues with overstocking or understocking your newly launched products.
- SellerAssist By Carbon6: SellerAssist offers a comprehensive suite of features, namely catalog management, Brand Registry setup, Amazon Vine enrollment, and more, designed to help you efficiently navigate the brand registration process on Amazon, allowing for quick enrollment of eligible products in the FBA New Selection Program.
By leveraging Carbon6’s suite of tools, you can streamline your processes, maximize your savings, and boost your product visibility and sales.
Maximizing the FBA New Selection Program
The Amazon FBA New Selection program is a fantastic opportunity for you to expand your product lines while minimizing financial risk. To make the most of this program, you should:
- Plan Early: Ensure that you enroll in the program before your inventory reaches Amazon’s fulfillment centers.
- Optimize Inventory Management: Use tools like SoStocked to keep track of stock levels and avoid overstocking or running out of inventory during your 120-day fee waiver period.
- Leverage Amazon Vine program: With discounted rates for Vine registration, using this program can help build early product reviews and increase visibility.
Following these strategies and utilizing tools like Carbon6 allow you to capitalize on the benefits of the FBA New Selection Program, setting the stage for successful product launches on Amazon.
