This article serves as a guide to understanding and configuring shipping settings on Amazon. It delves into the importance of adhering to Amazon's policies, setting up shipping templates, and understanding key performance indicators. By following the steps outlined, you can ensure a seamless selling experience on Amazon.
Setting up Shipping on Amazon
When selling on Amazon, understanding and adhering to their shipping policies is crucial for a successful business. Amazon automatically sets default shipping rates based on industry standards for each product category, and it is generally recommended to use these defaults. However, you have the flexibility to customize your shipping profiles through your Seller Central Dashboard. To do so, navigate to Settings → Shipping Settings.
After creating your Amazon US seller account, you need to set up your shipping options. Amazon offers two main shipping choices: per-item-based shipping and free shipping. We recommend experimenting with both options to determine the best fit for your business and your customers' needs.
We suggest experimenting with the different shipping options to find what works best for you and your customers. Please keep in mind that Two-Day and One-Day Delivery options are currently not supported by Gelato.
Creating a Shipping Template
Shipping templates allow for customized shipping rates based on your products and business needs. Follow these steps to create a new shipping template:
Step 1: Update Your Default Shipping Address
Log into your Amazon account. Click the gear icon in the upper right corner, and select Shipping Settings. In the “General Shipping Settings” tab, update your default shipping address to either your personal or business address.
Step 2: Set Up a New Shipping Template
Go to the Shipping Templates tab and click Create New Shipping Template on the left side. You can create up to 20 different shipping templates on Amazon.
Step 3: Name Your Shipping Template
Give your template a descriptive name that clearly indicates the shipping type, making it easy to identify later. For example, you could name it “Standard Shipping Dimona Tee T-shirt”. Choose the Per Item rate model for this example.
Step 4: Configure Standard Shipping Rates
Amazon automatically includes a Standard shipping option with a non-editable transit time. This option cannot be removed. Amazon's shipping rates consist of two components: a per-order shipping fee and a weight-based/per-item fee. For Gelato products, you'll need to use both a per-order and per-item fee. Here’s how:
Refer to the Shipping and Delivery Rates page on Gelato to find our shipping rates. Make a note of the fees for the first item and each additional item.
To ensure you don't overcharge for the first item, subtract the additional item fee from the first item fee. The resulting amount is your per-order fee. Input this value in the per-order fee field.
Example: Standard shipping for a Classic Womens Crewneck T-shirt costs $4.66 for the first item and $1.84 for additional items. Set your shipping prices as follows:Per-order flat fee: $4.66 - $1.84 = $2.82
Per-item fee: $1.84
In the section below, select “Item” from the dropdown menu and enter the additional item cost as your per-item fee.
Apply these same prices for Hawaii, Alaska, and Puerto Rico.
The Standard shipping option is added by default by Amazon. The transit time cannot be edited, and the option can’t be removed.
Step 5: Add Expedited Shipping
Include an Expedited shipping option. This is particularly useful for areas where orders can be delivered faster than the 14-28 day transit time of Standard shipping, such as within the mainland US.
For Expedited shipping, set the transit time to “3-5 days”. Use the same rates as your Standard shipping and select “Item” from the dropdown menu.
Step 6: Disable Two-Day Delivery
Uncheck the box next to the Two-Day Delivery option to remove it, as Gelato does not currently support Two-Day or One-Day delivery.
Once you've completed these steps, click Save. Your newly created shipping templates will be available for selection when publishing your products on Gelato.
With your shipping settings configured, you can move on to the next step: requesting a GTIN/UPC exemption from Amazon.
Maintaining a Healthy Account
Amazon places a high emphasis on customer satisfaction and enforces strict performance standards for sellers. Failing to meet these standards can result in warnings, penalties, or even account suspension. To maintain a healthy account, focus on fulfilling orders promptly and providing excellent customer service.
Preventing Late Shipments
To avoid penalties related to late shipments, Gelato automatically sets the production time for products sold on Amazon to 6 days. This timeframe represents the average time it takes to fulfill an order. By consistently shipping your orders within this timeframe, you can avoid late shipment penalties.
Monitoring Account Health
Regularly review your store's performance metrics in the Account Health section within Seller Central. This section provides valuable insights into your performance, allowing you to proactively address potential issues and maintain a positive standing with Amazon.