If you are using SNL to save cost for your small and non-bulky products, you will need to rethink your strategy if it is really worth the extra quids you are making?

What is small and light programme ?

If you are selling on Amazon then you must be aware of the SNL program launched by Amazon and their managers will convince you that if you are selling low value or non-bulky items then you must start using their SNL program for extra savings that can go up to 50% on the FBA fees. Basically, it provides you the same FBA benefit at a much lower price.

As you can see in the above image, the SNL fee can be as low as £0.60 in UK & €1 in the EU. If you calculate it correctly, it will save you thousands each month in shipping cost as most SNL items sell in 1000s like cables or chargers.

So What’s the cache here ?

On its face, it may look very tempting to use SNL immediately and switch from FBA. However, you will need to take a break and relax before you make such a hasty move. Let me guide you on why it will be a disaster for your product!

If you check the above Image carefully you can differentiate between the FBA and SNL fulfillment provided by Amazon, Don’t get me wrong but this is the least worse example I have found as I don’t want to scare you!

1. You can immedaitely see that delivery time in SNL is 19 Aug while on FBA its next day
2. Prime customer doesnt care much about price difference if its around £2-£3 range but if they are getting the delivery faster then thats all that matters.
3. Longer Delivery time will immediately start impacting your daily orders, you will realise this impact only after you start to lose your organic ranking.
4. No Amount of PPC will help you recover your position as customer will generally go for the rival who offers next day

How can i use SNL effectively ?

This is very important to have SNL in your strategy and you can actually use it to your advantage, For example, if you have one FBA and one SNL offer on your listing, There are still around 20% of traffic on Amazon who doesn’t have Amazon Prime account and they will buy the SNL from your listing as its cheaper to buy compared to FBA.

Conclusion

Do not ever use SNL only on your listing and always use SNL in conjunction with FBA and keep your SNL price slightly higher so it won’t win the buy box, Remember if your SNL wins the buy box then customers will see the longer delivery time and this will hurt your sales.