The Benefits of Amazon's FBA Labeling Service to Simplify Your Fulfillment Process

If you’re an Amazon seller, product labeling might seem like a minor task, but it’s a crucial step in ensuring your inventory is processed correctly and shipped to the right customers.

Amazon’s FBA Labeling Service offers a convenient solution, especially for sellers using Amazon’s Fulfillment by Amazon (FBA) program.

In this article, we’ll explore the pros and cons of using Amazon’s FBA Labeling Service and help you decide whether it’s the best option for your business.

What Is Amazon’s FBA Labeling Service?

The Fulfilled by Amazon (FBA) service allows sellers to outsource logistics to Amazon, including warehousing, picking, packing, and shipping. However, to ensure that products are correctly identified and not mixed with others in the warehouse, Amazon uses a specific barcode called the Fulfillment Network Stock Keeping Unit (FNSKU).

This unique FNSKU code is required for all products stored in Amazon’s fulfillment centers, and Amazon offers an FBA Labeling Service to simplify the labeling process for sellers.

For a small fee, Amazon will apply the FNSKU label to each product, saving sellers time and effort. But is this service right for you?

What’s on an Amazon FBA Label?

Each FBA label contains the following important components:

• FNSKU (Fulfillment Network Stock Keeping Unit) – This is unique to each product and ensures that your items aren’t mixed with other sellers' stock.
• Product Name – The name of your product as it appears on Amazon.
• Product Condition – Whether the item is new, used, etc.

While it may seem redundant to add another label when your product already has a manufacturer’s barcode, using the manufacturer’s label alone can lead to commingling issues, where your stock is mixed with similar products from other sellers, causing potential problems with counterfeits and quality control.

Amazon FBA Labeling Service: How It Works

If you don’t want to print and apply FNSKU labels yourself, Amazon’s FBA Labeling Service can handle this for you at a cost of $0.30 per item.

To be eligible for this service, your products must meet these conditions:

• Must be in new condition.
• Must not be restricted, high-value, or prohibited items.
• Must have a single scannable barcode (GCID, UPC, EAN, JAN, or ISBN).

If your products meet these requirements, Amazon will apply the necessary labels as part of their FBA process.

Benefits of Using the Amazon FBA Labeling Service

The main benefit of using Amazon’s FBA Labeling Service is time-saving. For sellers with large inventories, manually labeling each item can be a tedious process. By outsourcing this task to Amazon, sellers can streamline their operations and focus on more important aspects of their business, like marketing and customer service.

Key Benefits:

• Time Efficiency: No need to label products yourself.
• Reduced Errors: Avoid mistakes that can occur with manual labeling.
• Simplified Process: Products can be sent directly to Amazon, and they’ll take care of the rest.

Downsides of Using the Amazon FBA Labeling Service

Despite the convenience, there are a few downsides to consider:

1. Cost:
   At $0.30 per label, the fees can add up quickly, especially for high-volume sellers. For example, labeling 1,000 products per month would cost $300. While this may seem small, it’s important to factor it into your operational costs.

2. Potential for Mislabeling:
   As with any third-party service, there’s always a risk of mislabeling. This can cause problems with inventory management and customer satisfaction, especially if mislabeled items are sent to the wrong customers.

3. Risk of Account Suspension:
   If you’re shipping products directly to Amazon from a supplier, there’s a potential risk of account suspension if the items are found to be inauthentic or incorrectly labeled.

Should You Label Your Own Products?

If you prefer more control over your inventory or want to save on labeling fees, you have the option to label your products yourself. This gives you more oversight and can help you reduce costs, especially for large orders.

Advantages of Self-Labeling:

• Cost Savings: You avoid the per-label fee by handling the labeling in-house.
• Greater Control: By labeling your own products, you reduce the risk of mislabeling or sending incorrect items.

On the downside, self-labeling can be time-consuming and may require additional equipment, such as barcode printers and labeling software. It’s best suited for sellers who want more hands-on control over their logistics.

How to Decide: Amazon FBA Labeling Service vs. Self-Labeling

When deciding whether to use Amazon’s FBA Labeling Service or label your products yourself, consider the volume of products you sell, the cost of the service, and the time you’re willing to invest in labeling.

For small-scale sellers or those with a tight budget, self-labeling may be the better option. For larger operations or sellers who want to focus on other areas of their business, Amazon’s FBA Labeling Service offers a time-saving solution.

How Sellers Launch Can Help You

Whether you choose to use Amazon’s FBA Labeling Service or label your products yourself, Sellers Launch can help you streamline your operations and optimize your Amazon business. Our team of experts can guide you through logistics, labeling, and much more.

If you need assistance with your labeling strategy or any aspect of your Amazon business, reach out to us at Sellers Launch. We’re here to help you succeed.

Final Thoughts

Labeling may not be the most glamorous part of selling on Amazon, but it’s crucial to ensure your products are processed correctly and shipped to the right customers. Amazon’s FBA Labeling Service offers a convenient option for sellers who want to save time, but for some, self-labeling might be the more cost-effective route.

Need help deciding? Contact Sellers Launch today, and let’s discuss the best approach for your Amazon business.