Shipping products is a large part of selling on Amazon. Get it wrong, and you could end up spending over the odds getting your products to buyers. This can lead to frustrated shoppers and increased outgoings – not ideal.

By optimizing the shipping process and choosing the right delivery options, you can dramatically cut costs in this area, improving your bottom line and increasing overall revenue. 

The tricky part is knowing where to start. There are tons of different shipping options available, all with their own unique set of pros and cons. The best one for you will depend on the type of products you’re selling, the size and weight of them, and the delivery destination.

What Are Your Packaging Options?

One of the most common questions that crops up is about boxes for shipping. If you’ve ever wondered whether it’s cheaper to use your own box for priority mail or to use a flat rate box, you’re not alone. To help you get to the bottom of it, we’ve created a handy guide that tells you everything you need to know about shipping boxes.

The difference between the two is in the kind of postage you pay for. If you buy Priority Mail Small Flat Rate Box postage, you have to use a Priority Mail Small Flat Rate Box. The boxes are branded with the Priority Mail logo and design. If you don’t buy flat rate postage, you can use whatever kind of packaging you like.

It’s important to note that Priority Mail is just the name of the service class and you can use any box or packaging you choose. In the majority of cases, it actually works out cheaper to use your own packaging instead of a Flat Rate service.

The idea behind the Priority Mail Flat Rate service is that you pay just one fee regardless of the weight of your product or where it’s being shipped to. If it fits into a flat rate-branded box, you can send it.

It sounds simple, but the cost isn’t the only downside.

When you ship with a Flat Rate box, you have to use the Priority Mail Flat Rate service branding. This means you can’t use your own branding which can impact your customers’ experience in a negative way. It’s worth working out whether the minimal savings you might be able to make is worth the trade off of a potentially sub-par buyer experience.

Flat Rate Boxes vs Your Own Box

USPS Priority Mail service provides free shipping boxes for sellers to use. These come at no cost to the user which is a huge benefit when you consider that most boxes elsewhere cost between $0.25-$1 or more.

You can pick up Priority shipping boxes from the post office and they come in a variety of different sizes (we’ll talk more about this later). You can also order them online and have them delivered directly to your door. Again, this is free of charge and great for sellers who don’t live close to a post office.

The range of Priority Mail boxes available allow you to ship based on a fixed amount regardless of the weight of your products. The boxes are free to get your hands on, but will cost you to send them once you have packaged up your items and got them ready for delivery.

This can be particularly beneficial to sellers who regularly ship heavy products.

Here are the sizes of Priority Mail boxes available:

• Small flat rate box
• Medium flat rate box
• Large flat rate box
• Flat rate padded envelopes

Source

As you can see, there are plenty of flat rate options for sellers depending on the size of the products they’re shipping.

Alternatively, you can use your own box to send your packages in. The general difference between the two options is that Priority Shipping flat rate boxes cost more to ship but tend to deliver quicker than your own boxes. It’s up to you to decide whether speed or cost is more important to you, but it will also depend on the size of your items, their weight, and where you’re delivering them to.

It’s worth noting that if your products are under 2.5 pounds, then flat rate fees are often more expensive than shipping non-flat rate.

At Urtasker, our goal is to help you maximize your revenue and optimize your sales processes. So, with that in mind, here are some things you should be aware of:

• Flat rate is often only cheaper in a few situations, namely if you’re using flat rate envelopes or small flat rate boxes. As soon as you size up, the costs dramatically increase and it often works out cheaper to use your own packaging
• Flat rate boxes are delivered at the same speed as all Priority Mail, which tends to be between one and three days if you’re shipping to another US address
• Priority Mail flat rate shipping comes with full tracking, so both you and the recipient can keep an eye on where the package is at all times

Shipping Via Flat Rate Boxes

Now we’ve touched on the differences between the two options, let’s dig a little deeper into the details of using flat rate boxes.

How Much Do Flat Rate Boxes Cost to Ship?

For products that fall into the 1.4 pound range, Priority Mail boxes are often the cheapest way to ship. Like we said before though, this totally depends on the size of the box you use, where the product is being shipped to, and whether the destination is a business or home address.

Prices are mostly based on weight, dimensions, volume, and delivery address, so bear this in mind when researching your options.

Here is a general list of prices for flat rate boxes:

Envelopes are obviously the cheapest option to ship. Letter envelopes, gift card envelopes, window envelopes, and small envelopes all cost $7.15.

Padded envelopes and legal envelopes are a little more expensive, with the former clocking in at $7.75 and the latter at $7.45.

Small boxes cost $7.65, medium boxes are $13.20, large boxes are $18.30 and APO/FPO boxes cost $16.80. Look into the dimensions of each of these boxes to determine which one is the best fit for you and your products and calculate pricing from there.

Here’s how you can optimize the shipping experience:

• For items under one pound – ship via First Class Mail and select a box that keeps the weight limit at or below one pound
• For small items that weigh over one pound – some of the flat rate boxes available can save you money here, particularly small flat rate boxes, flat rate envelopes, and flat rate padded envelopes
• For items that weigh over two pounds – sometimes the Regional Rate (more on this further down) or Flat Rate boxes ship for less than your own box. Regional Rate A rates are very similar to the two pound Priority Mail rate. This means that you can ship in the Regional Rate A box for the same rate. In a similar vein, the Regional Rate B Box ships for pretty much the same price as a four pound Priority Mail box.
• For items that weigh over three pounds – it’s often cheaper to ship via FedEx or UPS depending on the size of the shipping box you need. However, FedEx and UPS both charge based on weight and dimensions and also add a $3-$3.50 fee for products being shipped to a home address
• If you’re shipping 50 Priority Mail packages a month – explore shipping services that allow you to ship via USPS Dimensional Weights

What About Regional Rate Boxes?

You’ve probably come across Regional Rate Boxes in your shipping research. They work in a similar way to flat rate boxes except there are only three weight tiers and the price is based on how far the package is going.

You can pick up the boxes for free (just like flat rate boxes) and, if your product is being delivered to anywhere in Zone 1-4, this option is usually cheaper than flat rate boxes.

Which Boxes Should You Use?

The best thing you can do is sit down and play around with the shipping calculators provided on each carrier’s websites. While flat rate boxes are free to pick up, they cost to ship, and sometimes this cost is higher than independent carriers even if they charge more for pickup.

We recommend starting with the UPS calculator and the FedEx calculator to get an idea about any savings you can make compared to Priority Mail flat rate boxes.

If you decide to use the Priority Mail service, you’ll need to calculate whether your own boxes are more cost-effective than Flat Rate Boxes or Regional Rate Boxes. Unless you’re sending packages in an envelope, it usually works out cheaper to use your own boxes. This means you can incorporate your own branding and ultimately provide a better customer experience for your buyers.   

At Urtasker, our mission is to help online sellers optimize their systems and their revenue. Shipping plays a huge part in this and choosing the right packaging option can save you a ton on unnecessary costs. Get in touch today to find out how we can help you streamline your sales.

Selling on Amazon comes with its fair share of complexities, particularly when it comes to understanding the array of acronyms that go into listing your products. If you’ve ever felt overwhelmed and confused after seeing terms like SKU, ASIN, FNSKU, and GTIN, you’re not alone.

These acronyms are often used to identify products and are necessary for most sellers on Amazon. SKU is one of the most common acronyms you’ll come across because the vast majority ofsellers use them.

But what exactly are they, how do you create them, and what do they do for your products and brand? This post will tell you everything you need to know.

What Are Amazon SKUs?

SKU stands for “Stock Keeping Unit” and they are unique alphanumeric codes that run no longer than 16 characters and are used to track products for inventory and sales purposes.

Every product that’s sold on Amazon has a unique SKU code so that sellers can get a quick insight into the product that’s being sold and shipped. Usually, a SKU code includes attribution details that helps identify the product in question. This might include codes that refer to the product’s size, color, shape, and style.

It’s kind of like Amazon shorthand. It allows sellers to quickly understand what product is under the spotlight.

What Seller SKUs Help You Do

Now that you know what a SKU is, let’s dive into what they actually help Amazon sellers to do.

There are several helpful benefits of a SKU.

Firstly, they help you obtain product information quickly, especially if your SKUs use codes relating to the product’s physical attributes. SKUs also help sellers understand sales quantities and how many units are still in stock versus how long a product has “sat on the shelf” for.

One of the most significant benefits of SKUs is their ability to help sellers pick, pack, and ship orders as quickly as possible. The alphanumeric codes identify a product at a glance, helping sellers to effectively manage their inventory.

Without SKUs – or without using SKUs effectively – sellers can struggle to manage their inventory and can lose track of items. This can slow down the sales and shipping process and leave a dent in potential revenue. At Urtasker, we understand the importance of using SKUs correctly to reap the rewards they provide, which is why we help our clients optimize product listings for more sales.

An Amazon SKU Example

So what does an Amazon SKU look like in action?

Sellers can create different SKUs for their products based on how they list their inventory and what they’re selling. The building blocks of each seller’s SKUs may differ wildly depending on how they categorize and list their products.

For example, a store that sells shoes can create internal SKUs that help identify each pair based on specific details, like price, brand, size, and color. Blue, size seven Ugg boots in the classic style might have the SKU code UGG-CL-BLU-07, while a red pair might be UGG-CL-RED-07.

It’s up to Amazon sellers how they list their products, and most will come up with a consistent sequence they can use over and over again.

Image by vanitjan on Freepik.com

ASIN vs SKU: What’s the Difference?

If you’re already selling on Amazon or you’ve been looking into it, you’ve probably come across the ASIN acronym too. This is often used in tandem with SKUs, so it can get confusing about what each one is for.

While SKUs are codes for sellers to keep track of their products, ASINs (which stands for Amazon Stock Identifier Numbers) are unique codes for products sent into Amazon’s warehouse.

Basically, an ASIN is Amazon’s version of a SKU and it helps them keep track of merchandise instead of leaving it up to sellers.

Image by stories on Freepik.com

How to Create Seller SKUs on Amazon

At Urtasker, we encourage our clients to create their own SKUs for their products. It makes selling products and managing inventory that much easier. Luckily, creating unique SKU codes is fairly simple. In fact, sellers have two options:

• Create SKU codes manually
• Use a SKU generator or point-of-sale software

How to Create Your Own SKUs

Amazon sellers that choose to create their own SKUs (that is, without the help of a SKU generator) have more control over their codes and what identifiers go into them. If you decide to create your own, you might want to include letters and numbers that represent:

• The product’s supplier or manufacturer
• The type of item (for example, if you’re selling books, you might have the letters BK in there as an identifier)
• The date you sent the products to Amazon’s warehouse
• The condition of your product (for example, if the product is new, you might include the letters NW in your SKU to identify that)
• The number of the product in a batch

How to Use a SKU Generator to Create SKUs

If you don’t want to create your own SKUs, you can use Amazon’s “SKU Generator within WP-Lister”. This can be accessed through the Amazon tools tab on Seller Central.

There are two ways Amazon’s generator picks unique codes for products:

1. SKUs based on the product’s title
2. SKUs based on the product’s attributes and details

Sellers can choose which variant they want to use for their product. Bear in mind that all lowercase SKUs are automatically converted into uppercase.

The Pros and Cons of Amazon-Created SKUs

While automatically generating SKUs through the Amazon tool is quick and easy, it isn’t the best option for everyone.

The Pros of Using Amazon’s SKU Generator

• You can identify product groups and see which ones are performing the best because all SKUs are uniform in the way they are generated
• It’s easy to standardize SKUs for specific products across the board

The Cons of Using Amazon’s SKU Generator

• The SKU codes are likely to be meaningless to you and your staff because you haven’t had any input in how they’re generated
• If you run several different Amazon stores, Amazon will create different SKUs for each one even if the products you’re selling are identical. This can make it difficult to keep track of inventory across stores

Image by jcomp on Freepik.com

Top Tips for Creating and Using SKUs

SKUs can be really helpful for Amazon sellers. They help identify products quickly and make it easy to keep track of inventory. However, if you want to reap the most benefits from them, there are some key things you should do.

Use Each SKU for Only One Product

Don’t confuse yourself and your team by using the same SKUs for multiple different product types. It’s best to use each SKU for just one product or product type, like sunglasses or phone cases or books.

Use the Same SKU For Identical Products

Many Amazon sellers have multiple stores that they sell similar products from. If this is you, make sure you use the same SKU for identical products you sell across each Amazon store. This will help you keep track of your entire inventory, rather than having to constantly add up sales from each individual store.

Keep It Consistent

Once you’ve set up a system for creating your SKUs, make sure you stick to it. For example, if you always add a couple of letters to identify your supplier first in your SKUs, make sure you keep it that way for every item.

Ensure All Employees Are In the Know

Your employees will be up close and personal with your SKUs often. Make sure they know the system well; you can write up a guide if you need to, and make sure your SKU process is easily accessible to everyone who needs it.

Changing a SKU

You might have haphazardly created SKUs for your products as quickly as possible when you set up your store. This isn’t a bad thing. In fact, a lot of sellers do this. However, once you’ve got an established brand, you might decide you want to switch up your SKUs so they fit a more rigid process.

So can you change a SKU after using it for a while?

The simple answer is yes, but it can be a hassle. To do so, you have to delete the product from the Amazon.com catalog and re-submit it with the new SKU you want to use. You should wait at least 24 hours before you add the new SKU. If you’re dead set on deleting SKUs from your inventory and replacing them with new ones, it’s best to upload a delete feed and go from there.

Make Your SKUs Work Harder For You

SKUs are an integral part of running an Amazon business. They help you identify your products quickly and keep a check on how much stock is coming and going from your inventory.

Creating a SKU is simple. You can either put it together yourself by using numbers and letters relating to the physical attributes of a product, or you can use Amazon’s SKU generator to automatically create unique codes.

Whichever way you decide to do it, make sure you’re consistent. This will help you streamline the sales and shipping process. Ensure you keep your staff in the know too – everyone who uses SKUs in your business should understand how they’re created and what each number and letter stands for.

By now, you should have an in-depth understanding of SKUs and their important role in selling on Amazon. Start creating yours today and see how much easier it is to manage your inventory in the coming months.

SKUs are a crucial back-end part of product listings. They make keeping track of your inventory easy and help your team better understand the selling process.

Find out more about how Urtasker can help you optimize your product listings and streamline your selling systems to dramatically increase revenue. Schedule a 30-minute call with our expert team today.

Alt titles: 

• How to Write Amazon Product Dimensions 
• The Best Way to Write Amazon Product Dimensions 

Despite a significant uptick in the number of consumers turning to online shopping, buying products online still comes with its downfalls. Not least the fact that buyers can’t touch or see a product in-person when browsing online. 

Think about it: shopping in a brick-and-mortar store allows customers to handle products, see them up close, and get a feel for their texture and size – all things that are much harder to do when a product can only be seen on screen. 

This means online sellers are having to be really specific when explaining how their products look, and dimensions play a huge part in this. 

Listing product dimensions on Amazon comes with many benefits. Not only do they set clear expectations so that buyers aren’t disappointed, but they also help you stand out against competitors who don’t display accurate dimensions (or any at all, for that matter). 

All of this is to say that product dimensions are a vital part of your Amazon product listings. The question is, is there a right way to write them? 

How Are Amazon Dimensions Listed in Order?

Dimensions are essentially a formula of numbers that provide buyers with a solid understanding of a product’s size. This is especially important for products where size matters, like furniture and accessories that complement another specific item. 

So how do you write this formula?

Amazon dimensions are listed in the standard way for measurements: length x width x height. 

This is the common formula for dimensions for anything on any website, so it makes sense that Amazon follows this.

How to Write Amazon Product Dimensions 

However, it ultimately doesn’t matter what order you list product dimensions in. 

The length doesn’t necessarily have to come first, as long as it’s clear which dimension refers to which part of the product. 

The end result tends to be the same for the shopper. That is, it’s usually easy enough for them to work out which measurement goes where depending on the item that they are buying and its general shape and size. 

While it helps to write your product’s dimensions out in the standard order of length x width x height, it’s not absolutely mandatory. 

But it does help improve the customer experience, as it means the customer doesn’t have to carry out basic geometry on their own time and it also avoids disappointment if the customer isn’t able to determine which measurement goes with which part of the product. 

You can make the process slicker by adding in the identifier when listing dimensions. 

For example, you can write 10L x 15W x 60H. 

The letters here refer to length, width, and height and directly tell shoppers which measurement they are looking at. 

What Do Amazon’s Product Dimensions Include? 

Product dimensions are listed in the “technical details” section on an Amazon product page, but do these numbers refer to the product on its own or with packaging? 

There’s a common myth that these dimensions involve packaging, but this isn’t strictly true. 

The dimensions listed on a product page should only include the size of the product itself, sans packaging. This is because shoppers really only care about the size of the actual product and not how big the box is going to be that it’s delivered in. 

The packaging dimensions can be listed separately if necessary (although often the size of the packaging isn’t important at all). When filling out the product information through your Amazon seller account, there is a section for “Package Dimensions” where this information goes. 

The Importance of Product Dimensions for Amazon FBA Sellers

While customers don’t necessarily care about the size of the package you store and send their products in, Amazon does – particularly for FBA sellers.

The dimensions of the product in total – that is, including packaging and any add-ons – is used to calculate shelf space fees. Amazon uses this information to charge the right monthly storage fees, shipping fees, and any long term storage fees. 

Amazon groups products based on their size and charges sellers accordingly. For example, small standard-size products (which includes packaging) can measure up to 15” on the longest side, 12” on the median side, and 0.75” on the shortest side. The dimensions increase in structured steps up until the “special oversize” category which is reserved for products that are over 108” in length. 

See the table below for more information: 

Amazon uses these dimensions to set FBA sellers’ fulfillment and monthly storage fees. For example, small products incur a fee of $2.41 per unit per month, while special oversize products are charged at $137.32 per unit per month. 

It’s important to note that the dimensions listed here for sellers includes packaging. They are also used to determine the cost of shipping. 

When creating an FBA product listing, sellers are asked to enter the product dimensions and the packaging dimensions in separate fields. Amazon calculates the overall size to determine the FBA charges. 

The packaging field won’t be shown on the product listings pages though, since it is irrelevant to buyers. 

For example, let’s say a shopper is looking to buy this bathroom cabinet: 

The dimensions read 45 x 45 x 13cm. 

These dimensions are the size of the product as it is without it’s packaging. 

Amazon Product Dimensions From the Buyer’s Perspective

Product descriptions are vital for buyers and they form an important part of the customer experience. If a customer receives a product that isn’t quite what they were expecting, they’re more likely to leave a bad review and not come back, which can have a negative knock on effect in the future. 

There are two key places on a product page where buyers go to find out the dimensions of a product.

Firstly, customers often look in the bulleted features list to find out the dimensions of a product. 

If they don’t find them there, they’ll scroll down to the “Product Information” section and look at the “Technical Details”. 

How and Where to Fill Out Product Dimension Information 

The product dimensions are added when you upload a new product listing to Amazon from your seller central account.

When you click “Add a Product”, you’ll be taken to a form where you can fill out all the essential information about your product and any extra details you think might be useful to buyers. 

It’s in this form that you’ll be asked for both the product dimensions and the packaging dimensions (remember though that the packaging dimensions won’t be displayed on the public product page). 

How to Find the Dimensions of a Product

If you’re thinking about selling a product and want to see what the average size is with your competitors, you can use a tool to do so. This will provide you with the median size of the best-selling examples of that product.

This is also a necessary activity if you are selling via FBA or via a method where you don’t get to see the products before you sell them. 

Tools to Find Amazon Product Dimensions

If the product dimensions are listed on the product details page, you can use a free tool to get this information:

• CamelCamelCamel is an Amazon price tracker tool that serves up price history charts as well as average product dimensions for any products you search for 
• Keepa does a similar thing for free – it creates price chart history and consolidates the most important information about best-selling products, like their dimensions 

Alternatively, you can use a paid tool that has more features. These tools not only track the prices of best-selling products in your chosen categories, but they also provide tons of other information, like product analytics, sales information, most profitable keywords and more. 

Paid tools for finding out product dimensions include:

• Helium 10 – this is a suite of tools designed to help you grow your Amazon store 
• Jungle Scout – this is an all-in-one platform that helps you find top-selling products and research their key metrics
• Viral Launch – this tools helps Amazon sellers source the right products, sell them at the right prices, and optimize their listings
• AMZ Scout – this tool is designed to make Amazon product research quick and easy, allowing sellers to identify and track niches and find the right products to sell 

The Importance of Amazon Product Dimensions 

Amazon product dimensions might seem like a small part of your overall strategy, but they’re vital for maintaining customer expectations and ensuring buyers aren’t disappointed when their product arrives.

The dimensions listed on an Amazon product page don’t have to be in any particular order, but the standard formula is length x width x height. This doesn’t include packaging dimensions, although you will be asked for this information when filling out your product information on Amazon as they use it to calculate FBA fees, like monthly storage costs and shipping prices. 

Listing product dimensions incorrectly can ruin the customer experience, encourage bad reviews, and lose potential lifelong customers. It sounds so simple, but it’s so important to get it right. 

Make sure you upload the right product dimensions and display them in the places where customers look for them – the bulleted feature list and in the “technical details” section of the product information chart.

Urtasker has long been known as a trusted, valuable, full-service marketing agency. Offering a keen eye on revenue growth in many marketplaces, including Amazon and Walmart online, businesses gravitate to Urtasker as a trusted partner in their expansion and sustainability efforts. However, COVID-19 has changed the landscape for many businesses and now more than ever having the strength of a professional, seasoned, and global marketing team is proving critical to the survival of small and medium business alike.

Urtasker believes that uniting to survive this pandemic in a concerted effort will take time, dedication, as well as, generosity. We are all in this together and together we will not only survive, but rather, thrive.

Beyond the Words, there is Action

Urtasker has made the commitment to offer free brand analysis to any business that desires actionable recommendations on how they can grow and build in this unique economic landscape.

Omer Riaz, CEO of Urtasker said, “It has always been our mission to support businesses and ensure they have guidance and experience to lead them to success. There has never been a more critical time to set aside any hurdles which stand in the way of supporting businesses. Offering a free consultation allows us to give actionable guidance to business owners that they can implement immediately to make an impact.”

This noble cause has piqued the interest of media and dawned the wire of notable and credible sources, spanning from MarketWatch to Digital Journal, Yahoo Finance, and more.

We invite you to explore the press links below and help us to propagate our cause and free brand analysis. There is no obligation, just a sincere desire to help businesses succeed.

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Getting products to buyers is a vital part of the Amazon selling process. To do this, you’ll need to decide how you’re going to send products to customers. There are plenty of options out there, but the main question you’ll find yourself asking is whether you should send products via first class mail or via priority mail. 

You might be wondering what the difference is between the two or whether choosing the wrong one will affect your business. 

We lay it all out in this piece.

The New USPS Initiative 

First things first, we should point out that USPS has recently made some changes to its services. They will be standardizing mail delivery times and leaving more undelivered items behind to go out the following day. 

The new initiative will push mail sorting to the afternoon so that letter carriers can start on their morning routes earlier. At 2pm, they’ll return to their post offices to sort new items for the next day. This could push package deliveries out by a day depending on the time they arrive in the sorting office. 

This will be trialled for a period of 30-60 days and will only be picked up by city carriers, but it’s worth bearing it in mind as you read the rest of this post as it is likely to have an effect on customers that use its package delivery services regularly. 

Image by pch.vector on Freepik.com

First Class Vs Priority Mail: The Differences 

From the outside, first class and priority mail look pretty similar. They are both a step up from second class deliveries, but they each have unique features that bring different benefits.

Most importantly, first class and priority mail differ based on weight, size, shape, and the delivery timeframe for your packages. These are the most common elements you should take into account when deciding what kind of service to go for. 

First class mail is predominantly used to ship parcels that are 3.5 ounces or less. This means it’s mostly used for sending letters, thick envelopes, and lightweight packages that are of a standard size. 

It’s an affordable way to send smaller, lighter items quickly and efficiently. 

Priority mail on the other hand is often used to send packages weighing up to 70lbs. It’s prioritized first before standard mail, hence its name, and is the favored way to send large parcels and packages. In fact, these types of packages are almost always delivered using priority mail, while smaller packages that don’t exceed the 3.5 ounce limit are usually always sent via first class mail. 

If your parcels weigh less than 3.5 ounces, they should always be sent first class since it’s often faster than priority and costs less. 

Maximum Dimensions

As package size is one of the most important factors when considering which USPS mail service to go for, let’s take a closer look at the company’s sizing guide. 

The maximum dimensions of packages sent via first class mail can be 108” in combined length and girth – this is where the longest side is the “length” and the circumference of the parcel’s thickest section is the “girth”. The maximum weight of a package being delivered by first class mail is 15.99 oz.

Priority mail packages can again have a maximum dimension of 108” in combined length and girth, however the maximum weight is considerably more at 70 lbs. 

Find out more about dimensions here. 

Insurance Policies 

One of the biggest differences between the two services is that first class mail doesn’t have a default insurance policy like priority mail. So, in instances where a package is lost or damaged on delivery via first class, the sender isn’t covered. But with priority mail, they are. 

However, you can add insurance coverage onto your first class mail deliveries for an additional fee. 

Priority mail, on the other hand, comes with an insurance policy attached. This covers up to $100 for domestic coverage and $200 for international coverage.

Keep the products that you’ll be shipping in mind here because, while some products are light in weight, they may benefit from the insurance policy that’s included with priority mail. For example, watches almost always weigh less that 1 lb, which means they can be shipped at an affordable price through the first class service, but priority mail offers up to $200 worth of coverage depending on where the watch is being shipped which will cover if the package is lost or damaged. 

First Class Vs Priority Mail: Delivery Times

Delivery times are important if you’re selling goods via Amazon. You don’t want to over promise to customers and leave them disappointed when their products don’t arrive when you said they would. 

Both priority mail and first class mail tend to arrive between one and three days if they are shipped to a domestic address. If you’re shipping products abroad, priority mail can be the best option because it considerably cuts down the shipping time that is associated with standard shipping. 

First class international delivery times vary depending on the destination you’re sending your products to. Priority mail is often a better fit for international packages. This is because it tends to be faster, taking around six to ten business days if you’re shipping to one of the 180 countries that are listed on the USPS site. 

It’s worth bearing in mind that neither first class nor priority mail can guarantee a delivery date for international mail, so promising customers their items will arrive in a specific time frame isn’t always possible. 

Image by jcomp on Freepik.com 

First Class Vs Priority Mail: Services Charges 

You’re probably wondering how much it costs to send packages via both first class and priority mail. There’s actually no set pricing structure and prices for both services vary dramatically depending on the size and weight of the item you’re shipping and where you’re shipping it to. As a general rule, shipping via priority mail tends to cost about $3 more per package. 

To figure out how much each individual package will cost to send, you can use the helpful USPS domestic calculator if you’re delivering to a US address, or the international calculator to work out prices for sending your packages abroad. 

Prices are based on the size, weight, and delivery address of your product, but once you start to get a feel for the pricing structure, it gets easier to predict how much delivery will cost – particularly on your best-selling items. 

Choosing the Right USPS Service

Your choice of priority mail or first class mail will depend entirely on the products you’re selling and where you’re shipping them to. Smaller, lighter items are best sent through first class mail because it’s more affordable, but if you’re selling small high-ticket products that fit into the maximum dimensions for first class, it’s worth opting for priority mail to claim the insurance that’s automatically included. 

Take some time to play around with the domestic and the international calculator to see which option might be best for you in terms of price and delivery terms, especially if you’re going to be sending packages in bulk. 

First Class Mail Vs Priority Mail: FAQs

What’s the difference between USPS priority mail and USPS first class?

The main difference is in the size of the packages that can be delivered via each service. First class mail is limited to smaller packages that weigh less than 3.5 ounces, while priority mail can include packages that weigh up to 70 lbs. The other difference is that priority mail comes with insurance coverage if a product gets lost or damaged during delivery. This is particularly useful if you’re sending high-ticket items. 

Is priority mail faster than first class mail?

The delivery times of both services depends on where you’re sending your packages. Domestic deliveries are much quicker for both, as are international deliveries. 

Domestic mail sent via first class mail usually takes between two and three days to arrive depending on the delivery address, while domestic mail sent via USPS’ priority service can take between one and three days. 

For international deliveries, first class mail has no guarantee or estimate, while priority mail usually takes between six and ten days to arrive. 

Is first class mail considered priority mail? 

First class mail is considered a priority mail over other standard mail services. However priority mail is an extension of first class mail that includes weightier packages. Packages sent through both services are prioritized, it purely depends on the weight of your products and whether you want to take advantage of the built-in insurance that comes with priority mail. 

Both Services Have Their Benefits

To wrap up, priority mail is often the most affordable way to send packages. This is because it comes with free package tracking, a one to three day delivery time frame, and $100 of built-in insurance. There is a much higher weight limit on products sent through this service and it is treated as a priority by the USPS. 

First class mail is often the preferred way to send lighter items, like cards, thick envelopes, and letters that weigh less than 3.5 oz. This service is predominantly used for personal correspondence, but it can and definitely is used to ship smaller, lighter packages. 

Use the USPS’ calculators to determine which method is best for sending your products depending on their size, weight, and value. 

Urtasker has long been regarded as experts in aiding sellers on Amazon to thrive, expand their revenues and propel their businesses. Our team of marketing experts has always been dedicated to the success of our clients and when COVID-19 dramatically changed the face of online commerce, and retail commerce alike, we rose to the challenge.

Thankfully, our clients were not the only ones to notice. Recently, major media outlets such as NBC affiliates, FOX news and others covered our PR to provide awareness to our efforts.

When Amazon issued a letter to sellers informing them that shipments for nonessential products fulfilled by their FBA (fulfillment by Amazon) services were stopped, third party sellers were immediately impacted. It was then that Urtasker clients sought and found stability from the creative, strategic, and methodical full marketing services that Urtasker offers.

Read the full news at any one of the below media links.  Urtasker stands ready to assist our clients under any economic condition, stable, turbulent or unprecedented.

• NBC Affiliate
• Fox Affiliate
• Hawaiian Telcom
• Mediacom Today
• Synacor
• Armstrong
• Sparklight
• Metrocast
• Century Link  
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And more.. Ready to see what Urtasker can do for you? Get in touch today and schedule a free 30 minute consultation

Amazon reviews are a highly trusted source of feedback from other customers.

Not only do they provide social proof for your store, but they are one of the key factors taken into account in Amazon’s search listings. The more positive reviews you have, the higher your product is positioned.

Developing a proper shipping strategy will help you to balance price, speed, and reliability and delight your customers. Putting some effort into understanding your various options for sending products can help you stand out as an E-commerce merchant and keep your customers coming back.

Selling on Amazon has changed dramatically this year. 

Not only have selling fees taken a sharp upward climb, but there’s also the coronavirus pandemic to contend with. A surge in online shopping has led to disrupted supply chains, huge delivery delays, and unhappy sellers. 

At first, Amazon paused shipping for non-essential items, leaving sellers high and dry with no way to get their goods to paying customers. This meant that an increasing number of FBA sellers turned to 3PL warehouses to ship their goods, and the trend seems to have stuck, adding an extra cost to the already rising price of selling via Amazon’s FBA program. 

Understanding the outgoings of your business is vital for growth, pricing strategies, and stock management. 

A lot of Amazon FBA sellers consider the COGs their only expense and consider the leftover money profit. But with fees (however small) lurking around most corners, costs can start adding up. All of a sudden, your business isn’t as profitable as you first thought. 
A lot goes on behind the scenes so, if you’re wondering what the real costs are for FBA sellers, from storage and shipping to monthly fees, here’s a helpful guide.

The Basic Fees for FBA Sellers

Before shipping, storage, and other fees are taken into account, Amazon FBA sellers have to pay standard FBA costs and referral fees.

FBA Cost

This is a monthly fee – kind of like a subscription cost – that sellers might need to pay through the FBA program. It’s free for a personal seller account, but this will incur a $1 flat fee for every product sold. 

If you sell more than 40 products a month, it’s worth upgrading to the professional seller account. This is $39.99 a month but doesn’t require the $1 flat fee for each product.

Referral Fee

On top of this Amazon also takes a cut of revenue (it does this for non-FBA sellers, too). Usually this is around 15%, plus a $3 fee to handle and ship the product.

Your referral fee will fluctuate depending on what category your products fall into – some are far more costly than others. For example, Amazon device accessories have a 45% referral fee, gift cards have a 20% fee, and groceries have an 8% referral fee. Most other categories fall somewhere between 12% and 15%.

FBA Hidden Fees: Other Costs to Consider

Once the basic fees are out of the way, there are several other costs involved in selling via Amazon’s FBA program.

1. Weight of Product

Amazon ships products through its FBA program, which is great because you don’t have to sort out the logistics. You can put everything in Amazon’s hands and they sort it all out for you.

It costs to ship items, so understandably Amazon puts some of those costs back onto the seller. And, because it costs more to ship large, heavy items, the shipping fees are higher for weightier and larger products.

Amazon rounds up the weight of a product, so you’ll usually end up paying a little more than the real weight of the product. In 2020, this fee is going up by as much as 10%.

2. Storage Fees

Sellers that use the FBA program ship their products to Amazon’s warehouses. From there, Amazon deals with the rest.

This means that Amazon charges a fee for storing products in their warehouses – and rightly so. For the most part, there is a flat fee depending on the size of your product. The thing to note is that the price changes at different times of the year.

From January to September, standard sized items incur a storage fee of $0.75 per cubic foot and oversized items are $0.48 per cubic foot. From October to December, standard sized items cost $2.40 per cubic foot to store and oversized items cost $1.20 per cubic foot.

3. Long Term Storage Fees

If your products don’t sell, you might find yourself paying long term storage fees. For items that are in fulfillment centers for between 181 and 365 days, there is a monthly cost of $3.45 per cubic foot. For items in fulfillment centers for over 365 days, you’ll be charged a monthly fee of $6.90 per cubic foot.

4. Shipping Goods to Amazon’s Warehouses

There are many benefits of using Amazon’s FBA program. You simply ship your goods to them and they handle everything from there. But, as you probably know by now, it costs to ship products.

Amazon has a number of warehouses dotted around and they usually ask you to ship your products to several different warehouses. The costs can really add up.

As a general rule, it tends to cost around $3-4 per empty box and then between $0.20 and $0.50 per pound depending on where your items are being shipped to.

One way to keep costs down at this point is to ship your first batch of products to one warehouse, your next to another, and so on. As long as your products arrive in every warehouse Amazon needs them in at some point, you should be fine.

5. Returns

No one likes to talk about returns, but here we are.

One of the reasons Amazon is so popular with shoppers is because it’s incredibly easy to return goods. This is great for the buyer, but not so much for the seller.

As a result, the return rates on products can be quite high. When a product is returned, you don’t get the FBA fee or referral fee back, which means you tend to end up out of pocket. A lot of Amazon FBA sellers forget to factor in this cost and it can come as a nasty surprise when the cost of returns keeps on adding up and adding up over time.

6. Overheads

Aside from the FBA fees, there’s also the costs of running a business in general. These are often known as overheads and can be listed as expenses. However, they should always be taken into account when you’re calculating your true profit.

Overheads might include costs like:

• Product photographs and copy – especially if you get these done professionally (this can range anywhere from $50 for a low-budget service to thousands of dollars for a high-quality professional service)
• Seller permits (often you won’t need these as most products sold on Amazon aren’t Federally regulated and are consumer products that don’t need government approval. However, if you’re selling something that is regulated, you’ll need to look into permits both nationally and locally)
• Product liability insurance and general business insurance (product liability insurance spans a range of prices, depending on how many units you sell and what they are. The average cost of product liability insurance for low-risk products is $0.25 per each $100 in revenue)
• Trademarks (obtaining a national trademark typically costs around $300-$400 for each class of products you want to protect)
• Any staff or contractor costs (this cost will vary hugely depending on how many staff you have, how often they work, and what roles they’re taking on. A seller with one part-time member of staff will pay far less than one with two full-time members of staff)

These can add up if you don’t keep a close eye on them. For example, a professional photo shoot for your new product line might help you sell more products overall, but make sure you factor the cost into your per-product profit.

7. Intermediate Warehouse Costs

Sometimes, you might want to send your products to a processing center to undergo quality control testing before they are sent on to Amazon’s warehouses.

This means you’ll need somewhere to store them in the interim. Which, again, incurs costs. The costs here will vary depending on where you decide to store your goods and how long you’re storing them for before shipping to Amazon’s warehouses.

8. 3PL Companies

Amazon is now allowing non-essential items to be delivered in an acceptable time frame after pausing the process for a while at the start of the coronavirus outbreak.

However, many Amazon FBA sellers are organizing their own shipping anyway via third-party logistics companies. This gives them more control over how and when their products are shipped, but it does cost to do so.

The fees here will vary depending on the 3PL company you choose, but as a general rule, going to a third-party works out to be more expensive than having Amazon ship your products directly.

9. Amazon Getting it Wrong

At the end of the day, no company is perfect, and a company as big as Amazon is bound to make a mistake or two at some point. Unfortunately, this can end up costing you. They have been known to lose shipments (in fact, this happens quite often), lose products in the warehouse, fail to ship on time, and damage goods in transit.

These are things you can’t account for in your fees calculation, but it’s good to have them in mind as a buffer just in case.

The last thing you want is to go into the red because of something out of your control.

10. PPC and Advertising Costs

If you want to get eyeballs on your products, there’s a good chance you’re going to have to splash out on some advertising. The competition on Amazon is high, so every little helps when it comes to your marketing strategy.

Amazon has an in-built PPC or Sponsored Products feature that lets you target specific keywords related to your products to attract more buyers. These can be a great way to boost exposure on your products and get more sales, but they cost money to run.

The costs here will vary considerably depending on the keywords you choose to target (some come with a higher price tag than others), the audience you want to reach, and how much money you can afford to pump into them.

The key is to keep your advertising costs below the cost of your products.

For example, if you’re selling a $25 product on Amazon and we use the typical Amazon conversion rate of 10%, that means that for every 10 people who click through onto your product, one of them will make a purchase.

This means you want your ads for this specific product to cost no more than $25 per 10 click throughs – and actually, you want the cost to be far lower than that if you want to make a profit of any kind.

It’s worth taking other advertising costs into consideration here too. You can market your products on Facebook, via Google PPC campaigns, YouTube ads, Instagram ads, and various other ways. Determine which methods will work best with your products and go from there.

11. Manufacturing Costs

Manufacturing is likely to be a big cost for FBA sellers, but again this will depend on the kind of items you’re selling. Not only do you have to produce a glut of products to get you up and running, you’ll also need to consider the costs of ongoing production.

First of all, you’ll need to find a manufacturer that produces the quality of product you want to sell. Sites like Alibaba can connect you up with affordable manufacturers, but even to order a sample you’ll have to pay out (this is usually around $100 per sample, but it’s worth it for finding the right, reliable producer).

Once you’ve chosen your manufacturer, you’ll need to bulk order for your inventory. This works out cheaper than buying each product individually when a customer makes a purchase.

On average, products sold via the Amazon FBA program cost around $20 and can often be manufactured for less than $5 each.

12. Inspection Costs

You might decide to get your products inspected before they leave the factory to ensure they’re of the highest possible quality. This isn’t mandatory, but it means you can have peace of mind that you’re selling a great product.

There are two options here:

1. You can hire an inspection service which costs around $300 (this is a static cost and doesn’t change regardless of the size of the order you want inspected)
2. You can ask your supplier to run a self-inspection and then get them to send you a full report. They can then ship you a finished sample, which costs around the same of a usual sample ($100)

13. Damaged and Lost Reimbursement

Amazon runs a Lost and Damaged Reimbursement Policy to reimburse sellers who have had a product lost or damaged either in the fulfillment center or by the designated carrier.

The issue to bear in mind with this is that you won’t always get the full amount of your product returned back to you.

Instead, Amazon take into account:

• Your sales history
• The average FBA selling price of the product on Amazon
• The sales history of the specific ASIN

They will then grant you a refund based on this information. While you’ll get some money back, it’s worth noting that it’s usually not the full amount you paid out. For example, the reimbursement cost won’t include the FBA fees you already paid out for the product.

14. Early Reviewer Program

The Early Reviewer Program is a great way to promote your products by getting reviews for them. It lets you submit one of your product SKUs to be promoted by Amazon for review by a specific, pre-chosen (and pre-vetted) reviewer.

Taking part in this program costs $60 per SKU.

Again, it isn’t mandatory, but it can really give your products a boost in the listings. The payment isn’t taken until you get at least one review, so you don’t lose any money if the reviewer doesn’t uphold their part of the deal.

15. Lightning Deals

Lightning Deals give you a chance to run flash discounts on your products and get more sales. Amazon charges a flat fee to run a lightning deal. This is usually $150, but it can vary depending on the week you’re running it and if that clashes with any major selling holidays.

You’ll be charged the fee for every Lightning Deal you run.

To qualify, you have to be a Professional Seller, have a sales history, and have more than a 3-star seller rating.

Amazon also requires that you give at least a 15% discount on products included in Lightning Deals, so be sure to work out how much profit that leaves you with after you take all the other fees into account.

Amazon’s FBA Fee Calculator

If the thought of trying to work out all these costs on your own is overwhelming, you’re not alone.

Luckily, Amazon has an FBA calculator that helps sellers compare the costs of using the FBA program and FBM (fulfilled by the merchant) option. It also allows you to simply calculate the fees that go into selling via the FBA program.

Here’s an example of Amazon’s FBA calculator in action.

As you can see, the two columns let you compare the costs of Amazon fulfillment and your own fulfillment. It takes into account the costs of shipping and any basic FBA fees to work out how much profit you’re likely to get from each method.

It’s Important to Know Your Costs

2020 will be an interesting year for Amazon sellers. Fees are set to increase by quite a large margin, and the coronavirus pandemic has forced sellers to switch up their strategies.

But knowing (and, more importantly, understanding) the true costs of selling via Amazon’s FBA program is vital for figuring out the bottom line of your business, increasing profits, and long term growth.

Did you know that small businesses account for 99.9% of all United States businesses? It’s true. The vast majority of markets are made up of the little guys. Mom and pop shops, artisans, and teams of close-knit startups are all essential, contributing drivers of the economy.