Vendor Flex, a program in which Amazon performs a portion of the vendor’s warehouse owner that is mainly applied to Amazon orders, is one way for brands to obtain an additional level of logistical flexibility with Amazon. The program has piqued the interest of brands looking for new ways to optimize the distribution network, and Amazon appears to be pitching the program to more brands.
The Vendor Flex Program was launched to provide merchants with shipping benefits and better stock control. However, since this program is new, many sellers must know about the Amazon Seller Flex program.
In this article, we will explore what Vendor Flex is and its origin, how to be part of this program, how Vendor Flex works on Amazon and everything else you need to know about Seller Flex on Amazon for your business’s success. We hope that by the end of this article, you will have a better understanding of Seller Flex and how it can help your business reach its full potential. Let’s get started!
Origin Of The Vendor Flex Program On Amazon
The service was first launched in India in 2015, and Amazon has been marketing it in the United States merchants in preparation for a national expansion. Amazon is calling the project Seller Flex. When enrolled in this program, you can store the products in your warehouse and ask Amazon to pick them up and ship them to your customers.
By Launching this program, Amazon gives the sellers more control over inventory and may reduce costs in warehousing. Meanwhile, the sellers can take advantage of Amazon’s fast delivery speed – usually within one to two days.
Here Is How The Amazon Seller Flex Works
- Ship the products from your manufacturers to your warehouse.
- Directly process orders in the seller central.
- Pack goods according to Amazon packaging requirements and guidelines.
- Amazon will collect and deliver packages to customers within 1-2 days.
Benefits of Vendor Flex Amazon Program
- Customers are more likely to trust you now that you have the FBA label, and Amazon Seller Flex allows sellers to manage their inventory and package orders, giving them more control.
- Since every one of their goods is kept in their warehouse, they have better control of their inventory management system or improve inventory management.
- There is no monthly charge for storage from Amazon.
- Amazon receives no goods. It implies that transportation costs are low.
- Amazon handled customer service well.
- Amazon will get you FBA tags that will help you improve your credibility and make it easier to identify merchandise in warehouses across countries.
- Sellers who use Seller Flex will experience customer satisfaction and fast delivery, leading to happier customers.
- If you choose to sell locally, buyers will receive next-day or two-day delivery, making it more appealing for them to purchase your product.
- Amazon provides extensive training to help you streamline your inventory control.
What Else Does Seller Flex Offer?
- Amazon holds Seller Flex to create a broader mix of goods for Prime customers.
- Amazon Flex provides a negotiating tool for better rates with FedEx and UPS, leveraging increased volume and scale.
- Amazon can use Seller Flex to obtain insights into sellers not using FBA by generating data on delivery times and performance.
Sellers enrolled in this program can save shipping costs on logistics, and Seller Flex allows them to lower overhead costs that end up as operating expenses.
Related Source: What is Amazon Seller Flex & Should You Care? | Buy Box Experts
How To Apply For The Seller Flex Program On Amazon?
- Provide all your relevant business information and requirements.
- Send the corresponding documents for the evaluation.
- Review the approval process to install warehouse inventory management software and provide Flex login details.
The registration form can be found on the Amazon Vendor Flex page. Once the vendor Flex registration process is approved, you are now ready to use vendor Flex.
Related Source: Amazon Flex
Amazon Seller Flex Program Qualification
You can only join Seller Flex on Amazon if they send you an invitation since it is an invite-only service that allows sellers to join and participate by invitation. It is fit for all small and medium-sized businesses with multi-channel brands.
Here is the requirements checker helps to determine vendor eligibility:
- Sellers must have up to $0.6 million in monthly sales.
- Must have a track record of successful order processing with Amazon.
- An Amazon seller rating of 90% and above with good customer feedback.
- Must have a clean financial history with a valid business license.
- Sellers should have an active bank account.
- Sellers must be geographically located in specific areas.
- Sellers must have a total of up to 1000 units of merchandise monthly.
How To Log In To Amazon Seller Flex?
Here are the step-by-step process to log in to Amazon Seller Flex Program:
Step 1: First, log in to your Amazon Seller Account.
Step 2: Sellers can access the Seller Flex area of their account after logging in.
Step 3: Sellers can view their orders, sales history, and account information in the central seller tab.
Step 4: Amazon Sellers can manage shipping and fulfillment settings, create accounts, and sell through Amazon Marketplace.
Requirements To Start Amazon Seller Flex
These guidelines outline the specific requirements for the sellers and warehouse owners so they will be accepted into the program.
The following requirements fall under this category:
- Two computers with a minimum of Windows 7 OS and 2 gigabytes of RAM
- Two barcode scanners
- Uninterrupted Power Supply (UPS), Inverter, or any power backup
- Two stable internet connections
- Three printers – one shipping label printer, one gift printer, and one PDF invoice file printer
- Prime packing supplies, which the company provides.
The following requirements fall under this category:
- Minimum of six employees operating the warehouse
- A labeled system of organizing products and merchandise
- A packing station area
- Parking space for transport vehicles.
Amazon Seller Flex Program Drawbacks
Despite its attractive perks, the Amazon Flex Program has some downsides to using it. As a result, sellers should consider the program’s drawbacks before signing up, as it may only be compatible with some businesses.
Your Seller Access Is Restricted
Aside from the stringent requirements for joining the Amazon Seller Flex program, it is only appropriate for sellers who deal in either expensive products or a wide range of products. As a result, if you sell low-cost items or have a limited product line, this program may not benefit you.
The Cost of Operations Is Expensive
Sellers Flex program requires additional costs, such as equipment, warehousing, and staff, which may be even more expensive than using the Fulfillment By Amazon (FBA) service.
You must meet high-selling operation standards to stay on the Amazon Flex program.
You Only Have Specific Locations To Sell From
Amazon Seller Flex has limited availability, so sellers outside specific locations should check if it is available.
If you sell a product with your brand on Amazon and have a limited number of SKUs, this program may be for someone else since it needs more management of resources.
Is There An Amazon Seller Flex App?
You can manage your Seller Flex business using this Amazon Seller Flex App on your mobile phone. In this app version, you can receive inventory, remove inventory, create and activate picklists, and access picklist details. In addition, they will gradually enable other warehouse operations through the mobile app in their upcoming version.
What Products Are Best Suited For The Seller Flex Program?
With its pros and cons, the Seller Flex program may only be a perfect fit for some Amazon sellers. However, you may consider this program if you sell one of the products listed below.
- Slow-moving products: These products will incur additional fees as they are stored for a long time in the FBA warehouse. You can choose the Seller Flex program for this type of product.
- Since the items are stored in your warehouse. It also applies to seasonal products.
- Oversized products: Products that are huge, heavy, and delivered in bulk require additional storage costs in the FBA warehouse. Sellers can use the Seller Flex Program to reduce additional costs for these types of products.
Seller Flex is an innovative program from Amazon offering a more flexible way for sellers to manage their inventory and fulfill their orders. Instead of sending all the items to Amazon’s fulfillment center, those warehouse owners can store the products themselves and ask Amazon to pick up and ship the products to their customers. It helps these sellers save costs on warehousing and increase delivery speed.
However, the Seller Flex program also has plenty of drawbacks. For instance, this is an invite-only program, and Amazon can select only those who meet high sales standards. They should also know that running one’s warehouse can be expensive, and therefore, they should carefully calculate the profit margin before signing up for the program.
With adequate planning, businesses can gain a foothold in Amazon’s competitive market and reap the program’s rewards.
Frequently Asked Question
Q: Does it charge to enroll in the program?
A: No. But Amazon has strict standards, and you must meet specific requirements to get selected. After being invited, you must prepare all the hardware for this program, including two computers, two barcode scanners, two stable internet connections, three printers, and so forth.
Q: Who is eligible to apply for Seller Flex on Amazon?
A: Sellers must have an invitation from Amazon to join the program rather than apply for it. To meet the requirement, they must have up to $0.6 million worth of sales monthly, an Amazon seller rating of 90% and above with good customer feedback, and a total of up to 1000 units of merchandise monthly.
Q: How does Amazon Seller Flex work?
A: The Amazon Seller Flex program is a new program that allows Amazon sellers to use Amazon’s delivery network to deliver their orders. This program differs from Amazon’s fulfillment program, in which Amazon sellers store and ship their products to Amazon’s warehouses. Then the Amazon delivery team picks up the items and ships them to the customers.
Q: Is there an Amazon Seller Flex App?
A: You can manage your Seller Flex business using this Amazon Seller Flex App on your mobile phone. In this app version, you can receive inventory, remove inventory, create and activate picklists, and access picklist details. In addition, they will gradually enable other warehouse operations through the mobile app in their upcoming version.