Think it’s a great idea to begin selling groceries on Amazon? It makes me hungry just to think about it! From a consumer perspective, purchasing groceries on the world’s largest eCommerce platform just makes sense. Amazon guarantees quality, speed of delivery, and product accuracy. But what about from a seller’s perspective? While you make the decision about the potential profitability of selling groceries on Amazon, the experts at Axelligence will help guide you through the steps of opening your virtual grocery store!
Amazon’s Guidelines
From snack food to perishables, we suggest you begin by familiarizing yourself with the “Amazon laws” so you can be in compliance with all aspects. While NEW accounts, typically won’t be able to sell groceries, aged, professional account needs to be in good standing to be approved. Then you may apply to be UNGATED in the grocery category. Good standing means:
- Order Defect Rate of less than 1%
- Cancellation Rate of less than 2.5%
- Late Shipment rate of less than 4%
During the application process, you should be prepared with product invoices – and always remember: Amazon has high standards! If you’re not “reselling food”, are you preparing the food yourself? If the answer is yes, you’ll need to supply proof that your commercial facility adheres to USDA regulations, local ordinances, and zoning laws.
Amazon’s Demands:
- Can you guarantee the freshness of your product?
- Is your product safely and adequately packaged?
- Does the product packaging state the net weight and expiration dates?
- Are all dietary claims/food allergens/ingredients clearly labeled?
- Does the product packaging include the name and address of the packaging company?
If your answers are yes, you’re ready for the next steps!
Pantry versus Perishable versus Meltables
Every consumable item will be labeled with an expiration or best-before date. In fact, when you list a product on Amazon, you will be required to detail those dates. For perishable products (sold by FBA), the shelf-life must be greater than 90 days. But here is where it gets challenging – listing products in the MELTABLE categories.
Meltables / Perishables
Amazon meltable inventory refers to heat-sensitive products that will not be able to withstand summer temperatures.
If you want to sell products in this category, then be aware that they are only accepted at fulfillment centers from October to April. And, as an extra precaution, they must withstand a minimum temperature of 50 degrees and a maximum of 100 degrees Fahrenheit.
Perishables refer to chilled or frozen foods – not available for sellers through FBA. But what if you really want to sell perishable or meltable items all year round? Make sure you have a great cold storage facility and then sell FBM!! (but you’ll still need to go through the ungating process!
Pantry Items
Pantry items include products that are shelf-stable, such as snacks, flour, sugar-dried fruit, biscuits, cereals, and coffee or tea. Each item will still need to have a shelf-life printed on the packaging…here are some of Amazon’s guidelines:
- Chips and other snacks: 90–180 days
- Dried fruit: 180–270 days
- Cereal and granola bars: 180–365 days
- Candy: 540 days
Final word…
As a customer-centric company, Amazon’s primary objective is to provide customers with risk-free products and guarantee items sold on their site are safe for consumers. With the onset of COVID, more and more customers turned to online shopping as their lifeline for purchasing groceries, and the trend continues. Selling groceries on Amazon could bring in HUGE profits! If you’re ready to sell groceries and are looking for an aged Amazon seller account that is ungated for groceries, we’ve got the accounts you’re looking for! Reach out to our team – we’ve got the munchies!
