The Impact of Amazon Add-On Items on Sellers

Amazon’s add-on item policy is a double-edged sword for sellers.

While it helps Amazon avoid losing money on shipping low-cost items individually, it can significantly impact sales for sellers with products categorized as add-on items

This blog will examine Amazon’s add-on item policy and its impact on sellers, providing practical solutions to help sellers tackle the challenges of this program.

What are Amazon Add-On Items?

Amazon add-on items are inexpensive and lightweight products that can only be purchased if the total order of the cart reaches $25.

These items are typically marked by a blue “Add-On” stamp and include products like office supplies, personal care items, and groceries.

However, the algorithm determining which products become add-on items is not transparent, making it difficult for sellers to predict which products will be affected.

Negative Impact of Amazon Add-On Items on Sellers

The negative impacts of being categorized as an add-on product far outweigh the positive benefits. Sellers may experience customer frustration and loss of sales due to the $25 minimum order requirement, inventory management challenges due to volatile sales, and higher fulfillment requirements due to additional packaging and labor costs.

Are there advantages to Amazon Add-On Items?

Despite its challenges, the Add-On policy has some advantages. For Amazon, it boosts profitability by encouraging larger orders. For sellers, the label can increase visibility as buyers search for additional small items to reach the $25 threshold, potentially increasing the average order value.

Additionally, some sellers might see improved customer lifetime value for frequently purchased products. There is also an environmental benefit, as the policy helps reduce the carbon footprint associated with shipping multiple small orders.

Tips to Help Sellers Get Rid of the Add-On Badge

Sellers can take several steps to eliminate the add-on badge, including increasing the price of their products, switching to FBM (Fulfillment by Merchant) to handle fulfillment themselves, using Alexa to bypass the Amazon add-on label, and diversifying their product offerings.

Conclusion

Amazon’s add-on item policy can significantly impact sales for sellers with products categorized as add-on items.

However, by understanding the policy and implementing practical solutions, sellers can mitigate the negative impact and even boost their average order value.

Ultimately, the key is to stay informed and adapt to the changing e-commerce landscape.

Check out the complete blog here to learn more about the specific strategies you can implement to get rid of the