Effective zero commission with "5% referral fee" and "5% fee rebate"

I received "900,000 yen" from Amazon

This time, I will talk about two measures implemented by Amazon:

✅5% Referral Fee (750 yen or less)
✅5% FBA Fee Rebate (FBA New Selection Program).

Puu has utilized this "New Selection Program" and has actually received a rebate of over "900,000 yen" from Amazon so far.

As you can see, these are quite shocking measures, so

"I know that. Is this old news?"

Some people might think that, but there are actually "pitfalls" to watch out for in each, so let's make sure we understand the details!

[Puu's Trivia]
By the way, you can check the program rebate amount on the following page after logging into Seller Central:
⇒https://sellercentral-japan.amazon.com/fulfillment-by-amazon/new-selection/dashboard

The story of the "5% referral fee"

So,
first of all, the story of the 5% referral fee, this is very simple.

I will transcribe the text exactly as it appears in Amazon's terms below.

"For all items priced at 750 yen or less per item, the referral fee will be reduced to 5% (minimum fee 30 yen)."
(Excluding books, music, DVDs, videos, PC software, video games, and Amazon device accessories)

In other words,

"For sales prices of 750 yen or less, the fee is 5% (up to 38 yen)!"

That is what it means. (Actually, it is up to 41 yen because consumption tax is applied)

By the way, when using FBA for Amazon sales,

・Small size shipping fee : 222 yen
・Standard 1 size shipping fee : 252 yen
(Refer to fulfillment fees for 1,000 yen or less)

therefore, a purchase price of 457 yen or less is in the profit zone.
(750 yen - 41 yen - 252 yen = 457 yen)

Even though there is a restriction of 750 yen or less, being able to use the Amazon platform with a 5% referral fee, and 222 yen shipping fee (or 252 yen) is quite cheap.

And there is a way to make these excessively low fees even more free.

[Puu's Trivia]
By the way, by using this 5% measure, you can also drive out ignorant sellers currently selling at 800 yen by selling at 750 yen. *Selling at 750 yen (5% fee) is more profitable than selling at 800 yen (15% fee). (Be careful of price wars.)

The story of "5% FBA fee rebate"

Next is the story of getting a 5% FBA fee rebate. For this, you use something called the "
FBA New Selection Program".

What is the "FBA New Selection Program"?

In a nutshell, the FBA New Selection Program is,

"If you list new items on FBA, we'll give you free storage and a 5% FBA fee rebate!"

It's a program that says that. It's simple.

However, there are a few conditions, so you need to be careful.
In particular, if you forget the following settings, you won't get the rebate, so be very careful!

Join the FBA New Selection Program!

Yes, this program. Actually...

If you don't "declare your participation", you won't receive the rebate!

I have four Amazon seller accounts, but for the account where I sell my own catalog products, I had been participating in this program for a long time, so I carelessly forgot to declare participation for this one...

Recently, for the account where I started selling my own catalog products, I
had not participated!

When I was writing this note article, I thought, wait... and when I checked, I got the
disappointing result like this...

No way... is this Rakuten's campaign entry system?

Since this only has benefits,everyone should definitely participate!

But it's too late to complain, so if you haven't registered yet, make sure todeclare your participationvia the following link.It's a simple one-click process..

✅ Register for the FBA New Selection Program
⇒https://sellercentral-japan.amazon.com/help/hub/reference/GA5UP4JBW7BSFYKH?ref_=sc_fba_waiverp_optin

"Eligible Products" for the FBA New Selection Program

Next are the eligible products.
The Amazon terms state various things, but in short,

"Products newly registered, ornewly listed on FBA products"
(including self-fulfilled only ⇒ FBA listed)

are eligible.

<Conditions and benefits for eligible products> *Excerpt from Amazon terms
✅ List a parent ASIN as "first-time FBA"
✅ "Average 5% fee" will berefunded (rebate)"
✅ "Monthly storage fees" and "Removal/disposal fees" will bewaived"
✅ Existing FBA sellers must "register for the FBA New Selection Program" to participate

*Fornew sellers, automatic enrollment in the program occurs if the first shipping plan is created within 90 days of the first listing of a purchasable ASIN
*"Parent ASIN": An ASIN used to set relationships between child products when there are multiple child ASINs in a variation product, which cannot be purchased

"Ineligible Products" for the FBA New Selection Program

Also, please note that there are "ineligible products" for this FBA New Selection Program.

This is also written in various ways in the Amazon terms, but in short,

"Used" and "Media" items are not allowed

.

<Excluded products> *Excerpt from Amazon terms
・"Used" products
・"Media category" products (Books, DVDs, Music, PC Software & Computers/Peripherals, Video Games, Videos, Video Game Consoles, Video Game Accessories)
・Among "
Unbranded items", items that are "Seller-fulfilled (self-shipped)" and have "5 or fewer sales per week" are excluded if they are "first-time FBA listings".

[Puu's Trivia]
The final condition for excluded products (unbranded items) is a bit confusing, but it seems that if you are doing a "slow-selling self-shipped product" on an "unbranded catalog" and doing a "first-time piggyback FBA listing", it is excluded.

...Why?

Details of the 'FBA New Selection Program'

Simply put, this program is

"a program where you receive a rebate for your first FBA listing"

but there are also other things, such as:

・Storage fees ⇒ "Storage/Return fees" free
・Rebate rate ⇒ "Average 5%"
・Rebate method ⇒ Rebate via "FBA fees"
・Quantity ⇒ Mainly up to "100 items"
・Period ⇒ Mainly "120 days"

Since there are detailed conditions, I will list them below.

<Details of the FBA New Selection Program>

① [Average 5% rebate] on sales of eligible ASINs

- Receive a "5% average rebate" monthly on sales of the parent ASIN
- Calculated based on the product category, taking into account the referral fee charged, providing a "0% to 12% rebate"
- Rebates are applied to "FBA fees" in the month following the month they were earned
- Parent ASINs that are "brand registered" and are being sold via FBA for the first time
- Parent ASINs that are "non-branded" and are being sold via FBA for the first time
- Applies to "up to 100 units" for standard-size products over 120 days
- Applies to "up to 50 units" for non-standard-size products over 120 days

② Small/Standard size: [Inventory storage fees] and [Free removal/disposal fees]

- "120 days" of "inventory storage fees" are free for up to "100 units" per parent ASIN, starting from when the first unit of a parent ASIN sold via FBA for the first time is received at the fulfillment center
- Furthermore, for the eligible "100 units", "removal/disposal fees" are also free for "180 days" from the date the first inventory is received
* Self-shipping only => FBA also eligible

③ Large/Oversize: [Inventory storage fees] and [Free removal/disposal fees]

- "120 days" of "inventory storage fees" are free for up to "50 units" per parent ASIN, starting from when the first unit of a parent ASIN sold via FBA for the first time is received at the fulfillment center
- Furthermore, for the eligible "50 units", "removal/disposal fees" are also free for "180 days" from the date the first inventory is received
* Self-shipping only => FBA also eligible

④ Eligibility

- Register for the "FBA New Selection Program"
- "Professional seller"
- "Inventory Performance Index" is "300 or higher"
(If 300 or lower, it is not applicable only for that period)

..., that is all.

Yes...,
it's starting to get tedious, isn't it? I feel the same way.

Anyway, the last thing I want to say is that there are no particular disadvantages, so

everyone, let's participate in the "FBA New Selection Program"!!

That is all.

[Effectively zero commission] New catalogs under 750 yen

What I introduced this time are two Amazon initiatives.

✅5% sales commission (750 yen or less)
✅5% FBA commission rebate (Participate in the FBA New Selection Program)

What I want to say here is,

"New catalogs for 750 yen or less(including unbranded items)"

will have effectively zero commission!

That is what it means.

For small new catalog items, it is effectively zero commission with a 222 yen shipping fee.

This is basically

Amazon saying, "Go ahead and create lots of new catalogs!"

It is as if they are telling us that.

There is a possibility of receiving 900,000 yen from Amazon with these two measures. Those of us

practicing private label catalog sales should actively use them!