If you are an eCommerce seller, you are probably always looking for ways to grow your business and reach customers. As a vast online retailer, Amazon offers a variety of programs designed to help sellers increase their sales and revenue.
As a result, Amazon built an extensive network of fulfillment centers, strategically located worldwide for their customers’ needs, allowing it to quickly and efficiently pick, pack, and ship products to customers. One fulfillment service that Amazon offers is NARF FBA.
This NARF FBA service is designed to help Amazon sellers store and fulfill their inventory from remote locations like Canada, and Mexico, making it easier and more efficient to reach customers in these regions.
In this article, we will cover up-
- What is Amazon NARF?
- Eligibility to enroll in the NARF FBA Program?
- Amazon NARF Program fees procedure
- The Pros and Cons of this program
- Tips for using the Amazon NARF Program
What is Amazon NARF FBA?
Amazon NARF FBA stands for North American Remote Fulfillment by Amazon. It is a program that helps sellers to sell their products on Canada’s and Mexico’s Amazon websites without making any extra storage in those countries. Sellers just need to create one listing for their product because Amazon uses a single global SKU code. This simplifies the process and eliminates the need to create separate listings for each country.
The interesting thing is that as a seller if you have available 100 units for sale in the US marketplace, the same will be automatically available on Amazon Canada and Mexico marketplace for customers shopping. When a customer orders from a Canadian or Mexican site, Amazon will use your US inventory to fulfill the order without any additional storage fees, customs duties, or taxes.
That means, if you’re a US Amazon seller, you can store your products in Amazon’s fulfillment centers in the United States, and Amazon will handle the rest.
Eligibility to enroll in the NARF FBA Program?
To enroll in this program, you need to make sure that you are eligible for this program. Amazon has some requirements for enrolling the products in the Amazon NARF FBA program:
- You need to be a registered Amazon seller with an active Professional selling account.
- You also need to have inventory stored in an Amazon fulfillment center in the United States that is eligible for cross-border fulfillment.
- Your product must be enabled for FBA.
- You must comply with Amazon’s seller policies and requirements, including product and listing guidelines, and meet any necessary tax and legal requirements for selling in Canada and Mexico.
If you are following this criterion then you are now ready to enroll in this program.
Fees of the Amazon NARF Program?
From October 15, 2022 to January 14, 2023, a peak fulfillment fee was applied to Remote Fulfillment with FBA. On January 15, 2023, Remote Fulfillment with FBA fees reverted back to the non-peak period rates. Below, given the peak and non-peak rates for Remote Fulfillment with FBA.
Canada:
- Standard-size products have fulfillment fees ranging from $7.58 to $15.06 per unit during non-peak periods, and $8.09 to $15.86 per unit during peak periods.
- Oversize products have fulfillment fees ranging from $20.26 to $37.92 per unit during non-peak periods, and $22.19 to $39.75 per unit during peak periods.
Mexico:
- Standard-size products have fulfillment fees ranging from $122.87 to $182.67 per unit during non-peak periods, and $130.92 to $196.75 per unit during peak periods.
- Oversize products have fulfillment fees ranging from $270.73 to $617.24 per unit during non-peak periods, and $294.87 to $660.37 per unit during peak periods.
How to Determine the Shipping Weight?
For small standard-size products, the shipping weight is calculated for each product using the unit weight rounded up to the nearest whole ounce.
And for large standard-size and all oversize products, Amazon uses dimensional weight when it is greater than the unit weight. The dimensional weight for oversize products assumes a minimum width and height of 2 inches.
Pros and Cons of the NARF Program?
By using the Amazon NARF program sellers are getting benefits but it has some drawbacks also. Let’s have a look at the pros and cons at a glance.
Pros of Amazon NARF Program:
Easy to Enroll: As a seller, you can enroll or unenroll your product at any time. You just need to enroll the product and then Amazon will take all the responsibilities for it.
No Need to Create Separate Listings: Since sellers use a unified account, their listing information will be duplicated in a foreign marketplace with translation into the local language.
Access to New Markets: By using NARF, you can easily expand your sales to Canada and Mexico without having to deal with the hassle of separate FBA shipments to each country.
Streamlined Inventory Management: With NARF, you only need to manage one pool of inventory in the US, rather than separate inventory for each country.
Cost Effective: In the NARF program you don’t need to ship separately to Canada and Mexico which can save money on storage fees, customs duties, and taxes.
Improved Customer Experience: As Amazon handles the picking, packing, and shipping, as well as providing customer service, your customers in Canada and Mexico will have a consistent and reliable experience.
Cons of Amazon NARF Program:
Additional Fees: There are fees associated with using NARF, such as cross-border fulfillment fees and international referral fees, that you wouldn’t have to pay if you only sold in the US.
Limited Control Over Pricing: Amazon adjusts your US price to account for differences in fees and exchange rates, which means you may have limited control over the pricing in Canada and Mexico.
Shipping Delays: Cross-border shipping can take longer than domestic shipping, which could lead to longer delivery times and potential customer dissatisfaction.
Compliance with International Regulations: Selling internationally can come with its own set of regulations and compliance requirements, which may require additional effort and resources to manage.
Tips for Using the Amazon NARF Program
Understand the Program Requirements: Before enrolling in the NARF program, ensure you understand the eligibility requirements and the fees associated with the program. This will help you make an informed decision about whether the program is right for your business.
Sell High-Quality Products: It’s very important that you provide high-quality products for your customer as your customer can’t judge your product before they buy it. So, to keep your customer’s trust you should maintain the quality product.
Optimize Your Listings: To increase your chances of success on Amazon, it’s important to optimize your product listings. This includes creating compelling product descriptions, using high-quality images, and pricing your products competitively.
Monitor Your Metrics: Keep an eye on your sales metrics, including your inventory levels, fulfillment rates, and customer feedback. This will help you identify areas where you can improve your operations and make adjustments as needed.
Stay Up to Date with Program Changes: Amazon may make changes to the NARF program requirements and fees from time to time. Stay informed by checking the Amazon Seller Central portal regularly and attending relevant webinars or training sessions.
To wrap up, The Amazon NARF program is an excellent opportunity for entrepreneurs looking to grow their businesses and reach new customers. It can help businesses increase sales and profits. By partnering with Simple Fulfillment, entrepreneurs can optimize their fulfillment process and streamline their operations, making their business more efficient overall.
We tried to give you an overall idea about the NARP FBA program. If you have any queries please let us know through the comment box or email us at the following email address: info@ecomclips.com
To know more about Amazon, please check out our other blog. Also, you can check our YouTube videos related to Amazon.
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