What did Amazon do?
Amazon released program for Sellers that own their brands. Its called SBA Which stands for “Sold by Amazon”
What is SBA (Sold by Amazon)
Allows FBA Brand Owners to sell product “Shipped and sold by Amazon”, which transfers the ownership to Amazon first before going to the customer. The orders are processed as “AMZN CONSIGNMENT”
If your brand is registered (Brand Owner) on Amazon Seller Central then it is possible you will receive an invitation into SBA (Sold by Amazon). SBA is a new offering for brand-registered sellers that lets you reprice dynamically and protect your margin with MGP (Minimum Gross Proceed).
SBA changes sales transaction ownership from your business to Amazon. It requires Brand Registry and items to already be in FBA. Once you are approved for SBA, you must then opt-in each SKU that you want to be part of the program. SBA products are then sold by amazon and show on your transaction record as “AMZN CONSIGNMENT”.
You will be able to monitor sales the same way you do for FBA listings.
Are there additional costs to be SBA?
NO! There are no extra fee’s! Basically SBA is giving sellers the opportunity to be “Shipped and Sold by Amazon”. Amazon then takes on dynamic pricing and considers your gross proceeds when doing the pricing.
Which is Better, SBA or FBA?
FBA is still 100% better.
WHY is FBA Better?
There’s very little benefit to doing SBA, because you’re gaining “Shipped and Sold by Amazon” but losing all pricing flexibility that makes the SellerCentral so valuable in the first place.
Finding More questions than Answers? Need More Help?
If you are finding yourself unsure and need some advice on next steps, Schedule a phone call with us and we would be happy to speak with you and provide actionable feedback to get you started and pointed in the right direction.