How to Label an Amazon FBA Food Shipment

Posted by Damian Roberti on

I had one of my subscribers send me and I promised him that I'd actually would answer it via the video, because I think there's a handful of subscribers that actually have the same question. It's very similar to one that I have gotten before. So I want to go ahead and cover that in actually the question was in regards to using Amazon's FBA service. Okay. And that's the fulfillment by Amazon sending the product really quick to recap what that is sending the product to Amazon, and they put it into a warehouse and then they sell it as far as handling the shipping, the customer service, the packaging, everything on the backside of the transaction. They do that for you. But of course, you know, they will charge you a fee for that.

And it is a little bit higher compared to a seller fulfilled product where you yourself are actually handling the shipping, the customer service and all that. Okay. So the question was actually in regards to a video, I did recently about case packs and individual items. So what I want to do is really quick read it. I have printed up the question really quick. And it really States is I have two cases of products from a manufacturer and he's looking to sell the items individually and not as a case pack, but if he were to send the case pack in, he has two cases of this item. How would you label it? And would it make sense? Was there a pro and a con to shipping it by a case pack or individually? So basically the question is this, is it going to make more sense to send a product to Amazon and sell it by individual units?

Need More Free Resources :

Website Design Services : https://bit.ly/35XnxK4

Food Business Books: https://bit.ly/3kP5oV3

Commercial Food Products: https://bit.ly/325gNsg

Nutritional Labels: https://bit.ly/343tTaZ

Social Media Help https://bit.ly/3k3aRqX

Mobile Food Business: https://bit.ly/2TMo4J6

FREE VIDEOS: https://bit.ly/2HMSx7z

Catering Business: https://bit.ly/35VBGY7

Food Truck Business: https://bit.ly/3kPGYuD

Spice Business: https://bit.ly/34TBR7b

Co Packers: https://bit.ly/381TjIv

Food Business Consulting: https://bit.ly/3kQOZzn

Or would it make sense to keep them all together in a case pack and sell it as one solid case back? Okay. So there's a handful of questions you need to ask kind of yourself on this. Okay. And I'm going to give you those questions. Number one, is it going to make more sense as far as your margins, your profit goes to sell the product individually? So let's say you have 12 items in each of those two boxes. So you have 24 potential transactions right now, those, those transactions, are they going to make you $2, $3, $4 a unit when you sell them individually? Or is this a high ticket item? The question itself actually didn't specify the price point and that's okay. It doesn't have to if it's a very high end item, like let's say if it's a hundred dollars a unit and you have 24 of them now you're talking about it may be beneficial for your bottom line for you to sell it individually.

Check out SBA Website for more info on Registering Your Business

Okay. If it's an item, in my opinion, if it's an item that you're making two to $3 a piece on, and you've got 24 of them and you want to sell them individually I wouldn't go through the trouble. I would just sell them for the case back. Okay. So the first question you got to ask yourself is, am I making per transaction? Okay. If I sold 24 units individually, am I making enough money? Am I making the profit I really want to make, or is it just going to make sense to unload two full cases and maybe sell it for $200 for the case? And then you make a bigger profit because it's only going to be two transactions and you have a better margin. Okay. Selling 24 to individual units is fine, but at the end of the day, you know, if you have to go through anticipating and trying to sell 24 transactions to make $2 a transaction and my book, it's not worth it.

If you're making 20, $30 a unit, you might want to think about doing it individually. So first question is how much money do you really want to make as far as how it's going to be sold individually or by the case, you have to determine that I honestly don't know what you paid for the product. So you got to figure out what's really best for you. Okay. Then the next question was really quick in regards to how to label. Okay. So if you were buying a product that's manufactured and it is already packaged hold on one second. I grabbed him. All right. This is just off my desk. Okay. So let's say it was this item. This is paint. This has nothing to do with food, but if you buy 24 of these, right. And it's pre-made, and it has a bar code already on it, and you want to sell this like this individually, because it has a barcode.

10 Highly Profitable FOod BUsineses to Start From Home 

So you would create your listing without all this information. It's purple paint. It's acrylic the name. And then you'd put that in there. The UPC will be the identifying scan barcode that they will scan. Okay. So when you create your list and you've got to put that on there, so their system knows that this is the item you're selling. You're not selling a case of them. You're selling an individual unit because it's got a barcode. Okay. Now to mix it up a little bit different, like most of our products are items that don't have barcodes initially. Not on every single one of them would you have on some. But what happens is that Amazon can actually generate a bar code for their system and you print up that little label. And I I've done a handful of videos on my channel. You can check them out in regards to how those labels work and what they are.

5 Ways to Sell Food On Linkedin

So it kind of creates a barcode for their system. And that's basically, it would be put on the individual units. Now, if you create the listing and you're selling them by the case, you would put that barcode and that information on the case pack on the outside, not individually. And then you seal the box up and you put the label that I did, I think six, six or seven videos back. If you look at my channel there is a specific video I did about that. There is a specific label that you can, there's a terminology. There's about three or four words that you use it as sold as a case pack, do not open that type of terminology. We'll let the warehouse know that they're not supposed to cut open that box. It's sold by the case. Okay. But you've got to Mark it on the outside because they won't know.

So really, really quick. I hope that answers the question. So they, the really biggest, biggest questions you need to ask yourself is, is the individual unit or case pack the type of margin, the type of profit that you're looking to make. If it is figuring out which one of those two is best for you, when you're labeling it, make sure that you, if you're buying stuff from a manufacturer, is what it sounds like. The question question was, yeah. So if you're buying something from the manufacturer, it's a good likelihood that they probably have a barcode on it. That UPC number is what you need to put in as an identifier for the Amazon warehouse workers to scan that specific barcode. Okay. Yeah. If you don't have one, that's perfectly fine too. Just make sure you specify that when you sent it in yeah. The FBA order and it will generate a bar code for you. So I answered the question really quick six minutes on there. And I'll see you guys on the next video. And again, if you have questions about this question, let me know down below, and I'll answer your question about the question. So I'll see you guys.

 

Listen to "Marketing Food Online Food Entrepreneur" on Spreaker.