What is Amazon Seller Flex? Advantages & Disadvantages | Big Faction
 

What is Amazon Seller flex?

Amazon seller flex is a program launched by Amazon for all sellers on Amazon. This allows you to keep your inventory in your warehouse while making your inventory prime eligible.

Amazon Seller Flex was introduced to provide sellers with better inventory control and seamless shipping benefits. An online retailer recently reported that this service also has negative consequences. And if not treated seriously, it can have a serious impact on your business. This is definitely new and there are many sellers who are still unaware of this vendor flex service and there are some who are aware of the concept but cannot take advantage of it.

Amazon seller flex

How to Apply for Seller Flex?

According to Amazon, you cannot apply for Seller Flex. This is an invitation-only program. Amazon has some hidden criteria based on which they will send an invitation email to eligible sellers.

However, there are no official guidelines for applying to Vendor Flex. Below are the criteria we’ve found to help you find Vendor Flex.

Note: Below criteria are based on our experience with Amazon India sellers

  •  1: Your monthly sales should be > 6 Lakh ( 0.6 Million ) per month
  •  2: Seller Rating Should be 90% or above
  •  3: Your monthly units should be close to 1000.

Please note that we are not 100% sure even if you satisfy all the above criteria you may not get invited.

Another way to get Seller Flex is to contact the Flex Managers of existing Amazon seller flex sellers. Since this vendor has contacts with their Flex Managers, they can ask them to check if you are eligible and if found eligible you will receive an email from them.

Requirements to Start a Sellerflex Site

As per Amazon guidelines, below are the requirements to start a fully functional site.

Below are the materials that you would need to start an Amazon seller flex site.

  • A Barcode Scanner (1 or more) to scan barcode labels
  • An A4 laser printer ( this normally you already have if you are selling on Amazon) for printing invoices
  • A Shipping Label printer (Model: TSC DA 310)
  • A Gift Label printer ( Model: TSC TE 244)
  • A UPS Inverter for power backup
  • Amazon prime packing material. This you need to buy from amazon recommended sellers only
  • Racks or bins as per your product range and order volumes

Advantages of Amazon Seller flex

Increased Sales:- The Amazon Prime tag is given to all products that are either in the FBA or are enrolled under the Easy Ship Prime program or the Self Ship Prime program. As per our observation Prime products can increase your sales tremendously as compared to Easy Ship or Self Ship. All your products will get a Prime tag in Amazon seller flex, customers will be able to see exact delivery times and Prime will be able to pay for a day or two of shipping. This can increase your sales as your products are now getting the same benefits as FBA products.

In-house Inventory will be Prime Eligible:- Unlike FBA, you don’t have to send your inventory to the Amazon warehouse to be eligible for the prime tag or Amazon Fulfilled tag.

Zero monthly Storage Fees:- Since you won’t be shipping your inventory to an Amazon warehouse, you’ll need to pay zero storage costs. You can use your existing warehouse for storage. If you sell products weighing more than 1-5 KG, you will see huge cost savings on monthly storage charges.

Zero Removal Fees:- In FBA, if you want to have your unfinished inventory removed, you’ll also need to pay a removal fee. At Seller Flex you will receive your return orders on a daily basis, so you have to pay zero additional removal charges

Zero Pick Fees:- Since the product is with you and you are responsible for selecting and packing your products, you are not required to pay a picking fee to Amazon. Amazon charges ₹5 per order, which is a direct savings of ₹5,000 per month if you get 1,000 orders per month.

Less Packing Fees:- For FBA, Amazon used to charge ₹5 per order as a packing fee. And most of the time Amazon didn’t use any packing material on your product. This fee will also be your savings. For 1000 orders, direct savings of ₹5,000 per month.

Zero Warehouse Shipping Fees:- In FBA, the seller sends the product to the FBA warehouse which can charge ₹5 per KG to ₹15 per KG. If your products are bulky then the cost associated with this was very high. You will save this cost in Seller Flex.

Same staff as Easy Ship:- Vendor Flex is akin to an easy ship in terms of daily operation. You receive an order, pack the order, and dispatch. Although the steps are different, the same workers can perform daily tasks.

Zero warehouse storage limits:- In FBA, each warehouse has certain storage limits for each vendor. You cannot exceed those limits. This becomes a bottleneck during the holiday season when sales are always at high levels. Since there is a storage limit, you will not be able to exceed your limit.

No FBA Appointments:- In an FBA, you need to make an appointment before you can send your inventory to the FC. With SellerFlex Since the inventory is in your warehouse, you don’t need an appointment.

Disadvantages of Amazon Seller Flex

Amazon seller flex is a really great initiative by Amazon. It makes sense to use seller flex for every seller. But with great power come great responsibility.

Below are some of the Disadvantages with seller flex.

Additional Manpower:- If you are a person with only one staff then you will find vendor flex to be very demanding of manpower. Since there are many activities that you need to do from in-bounding inventory to checking returns in Flex and filing claims on a daily basis to removing inventory from Flex. For this manpower is needed. Depending on the number of your orders you will need manpower.

Daily Claims Follow-up:- Since you will be getting returns on daily basis and will be filing claims for damages. You would need daily follow-up with seller support.

Warehouse Space:-  In seller flex, the inventory is available in your warehouse. If you are buying additional warehouse space then it will not be much beneficial.

Additional Fees:- In Vendor Flex, a new fee called “Technology Fee” is introduced. The technology fee is currently charged at ₹10 per order. So if you get 1000 orders per month then it comes to ₹10,000 per month.

Increased IT Cost:- You need to buy 2 extra shipping label printers, 1 UPS inverter, more packing material for all your orders. Two internet connections, one primary and the other backup.

Cost of setting up an Amazon Seller flex Site

There are many benefits to start a seller flex when compared to FBA or Easy ship program. In this section, we will see the cost to start and operate a seller flex site.

One time cost of Amazon seller flex:-

  • Shipping Label Printer: TSC DA 310 printer cost: ₹ 16000
  • Gift Printer: TSC TE 244, cost: ₹9000
  • Gift Ribbon: ₹ 500
  • Laser Printer: Every seller have this, if you don’t have then add a cost of ₹10,000
  • UPS: Any UPS for power backup, cost: ₹2000
  • Racks or Bins: Average cost of this would be ₹5,000

So, the total one time cost of running a seller flex comes to around ₹42,500

Recurring Cost of Amazon Seller Flex:-

E-commerce executive: E-commerce executive can increase salary from ₹15000 to ₹30000. Consider ₹20,000 average salary.

Packing Staff: You will need at least one packing staff, but depending on your daily orders, you may need more packing staff. The average salary of packing staff is ₹10,000 per person.

Work/Office Space: Depending on the products you sell you will need an area for office and packing. The cost of space depends on the location of your office. The cost in metro cities is much higher as compared to non-metro cities. The average cost of the place is ₹25,000. will be.

Packing Material: Your quote for packing material will vary depending on the number of orders you receive per month. An average we think would be ₹10,000 per month, given that you receive 1000 orders per month and the packing cost per order is ₹10

The Average Recurring cost per month would be around ₹65,000

So from above, we can see that running Seller Flex will be a costly task and if you are not earning more than ₹1 Lakh per month on Amazon, then starting Seller Flex can be a very bad idea.

Keep the above points in mind before enrolling in Seller Flex.

Conclusion

Seller flex can be very good or very bad for the seller. Before making your decision, you need to see what products you are selling, how they are in demand, their weight, and other things.

At AMZ India Profit we have developed various tools that can help you along your Amazon journey.

Read More – How to Reinstate Amazon Seller Account?

FAQ:

1. How does Amazon seller flex work?

Amazon seller flex is the best program designed for amazon sellers and it is implemented in sharing inventory management, shipping, and warehousing.

2. What is the meaning of seller SKU?

SKU means Stock Keeping Unit.

3. What is Amazon vendor Flex?

It is a program designed for Amazon Sellers.

4. How to get seller flex?

Amazon sellers can apply for the seller flex program with their Business Details.

5. How to apply for Amazon seller flex?

The seller can apply to the seller flex program by logging into their amazon seller central dashboard.

6. What is amazon seller flex?

Amazon Seller Flex program is designed for sellers who can maximize their sales with Fast Shipping and Order Processing.

 

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2nd Floor, SLV Complex, Next to RK Apt Block, 3, Thambu Chetty Palya Main Rd, Hoysala Nagar, Ramamurthy Nagar, Bengaluru, Karnataka 560016
OUR LOCATIONSWhere to find us?
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GET IN TOUCHBig Faction Social links
Taking seamless key performance indicators offline to maximise the long tail.

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