Minimum Quantity vs. Small Quantity
Minimums. Sometimes it’s like a bad word uttered during a pause at a dinner party.
Profit Gopher does not have or require you to have a minimum unit quantity when you send your products to us. Some people may be a little confused by what this means, so allow us to explain.
Minimum vs Small
A minimum quantity means that if you send below a set number of units, a company would refuse your business. You would be turned away at the door and asked to returned with at least 25, 50, 100, or whatever the minimum quantity threshold is set for. This of course would bar a lot of newcomers in the Amazon space, and would force others to make possibly costly decisions when they do not have the experience necessary to know what products to sell in the beginning our their FBA journey.
A small quantity threshold means that if you have send in less than a set number of products, a company will not turn your business away, but there may be a fee or some other disclaimer attached to that action.
Profit Gopher employs the use of small quantities because we never want to turn a customer away who is just getting started in this business. We were once small fries at one point in time, and we know that not being able to clear a minimum quantity bar can be very discouraging (you can see more info on our small quantity pricing here).
Having said that, here’s where we want to be helpful to any seller.
Economies of Scale
Here’s the thing: when you ship items to Amazon and you don’t have enough quantities of those items, Amazon will split up your shipment to go to 2, 3, 4 or more fulfillment centers. Even if the items are light, the lowest shipment pricing we’ve seen is around $4 for partnered carriers. However, even at those price points, those prices add up, and can kill your margins.
The BEST way to save money on shipping is to send via freight. It’s sometimes slower, but the cost savings can’t be beat! Next to that, the best way to reduce your shipping costs (and consequently, your per item shipping costs) is to ship more items together. It helps you SAVE money in the long run, which also means you MAKE more money.
Questions? Comments? Let us know below!