Should You Use Amazon's FBA Labeling Service?

Fulfilled by Amazon (FBA) allows marketplace sellers to outsource warehousing and shipping. To differentiate products in Amazon warehouses, sellers must use FNSKU barcodes.

What Is an FNSKU?

An FNSKU barcode identifies individual items belonging to specific sellers. Without FNSKUs, products enter "commingled inventory," risking products that are of inferior quality or possibly counterfeit reaching customers.

FBA Label Service Details

Amazon charges $0.20 per barcoded product to attach labels. Eligible items must be:

• New condition
• Non-media items
• Non-restricted products
• Have scannable manufacturer barcodes

Benefits of Using Amazon's Service

The primary advantage is time savings—sellers can send bulk inventory without individually labeling each unit. This can be particularly valuable for sellers who:

• Handle large volumes of inventory
• Have limited time for labeling operations
• Want to streamline their fulfillment process

Drawbacks to Consider

Cost Impact

For high-volume sellers shipping 2,000 products monthly, costs reach $400 out of your profit each month. Over a year, that's $4,800 in labeling fees alone.

Mislabeling Risk

There's potential for significant losses with misplaced shipments. If Amazon mislabels your products, you could face:

• Lost inventory
• Customer complaints
• Difficulty tracking down misplaced items

Account Suspension Risk

Risks exist from shipping directly to Amazon suppliers without proper verification and quality control of the labeling process.

Alternative Approach: Self-Labeling

Self-labeling with thermal printers offers:

• Significant cost savings - After initial printer investment, labels cost pennies each
• Quality control - You verify each label before shipping
• Flexibility - Print labels on your schedule
• Better inventory management - Catch errors before Amazon receives shipments

The trade-off is requiring more time and effort upfront to establish the workflow.

AZLabels Solution

AZLabels offers a browser extension allowing direct thermal label printing from Seller Central. The free tier supports 100 products monthly, making it easy to start self-labeling without significant upfront costs.

Conclusion

For most sellers, especially those with moderate to high volumes, investing in a thermal printer and self-labeling workflow provides better long-term value than Amazon's FBA Label Service. The cost savings typically justify the additional time investment within the first few months.