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Navigating Commingled Inventory vs. Amazon Barcodes

When it comes to managing inventory on Amazon, sellers are faced with a crucial decision: whether to use commingled inventory or Amazon barcodes for their product listings. This choice can significantly impact the efficiency of order fulfillment, inventory tracking, and overall customer satisfaction.

What is Commingled Inventory?

The commingled inventory option allows sellers to send products to Amazon’s fulfillment centers without the need for individual Amazon barcodes. This method lets Amazon pool identical products into the same bin, regardless of the seller.

The products are tracked using the manufacturer’s barcode, such as UPC (Universal Product Code), EAN (European Article Number), or ISBN (International Standard Book Number).

Pros

  1. Efficiency in Fulfillment
    Commingled inventory allows items to be shipped from the closest inventory to the customer, potentially reducing delivery times. When a customer orders a product from Seller A, they might receive the same product from Seller B if it’s geographically closer.
  2. Reduced Operational Costs
    Sellers save on overhead costs because they don’t need to individually label each product. Labor and material costs associated with labeling are minimized.
  3. Simplified Inventory Management
    Commingling eliminates the need to track each item separately. Also, sellers can manage inventory without worrying about individual labels.

Cons

  1. Risk of Counterfeit Products
    Commingled items can include authentic products mixed with counterfeit ones. This poses a risk of customer dissatisfaction and potential account suspension.
  2. Lack of Control
    Sellers have less control over the exact item the customer receives. Variations in product quality may lead to issues.
  3. Potential for Negative Feedback
    If a customer receives a defective or counterfeit product from the commingled pool, the seller may receive unjust negative feedback.

What are Amazon Barcodes?

Amazon sellers often hear the two acronyms: ASIN and FNSKU. These two barcodes are critical identifiers for Amazon listings. Let’s define each and their uses.

ASIN

ASIN stands for Amazon Standard Identification Number. It’s a 10-character alphanumeric code assigned to each product listed on Amazon. ASINs help catalog and index products, making them easily searchable for customers. Like UPC, this code identifies products but not the seller.

FNSKU

FNSKU, or Fulfillment Network Stock Keeping Unit, is an Amazon-specific identifier used by sellers who utilize Amazon’s Fulfillment by Amazon (FBA) service. The FNSKU is unique to each seller’s inventory and is used to track items within Amazon’s fulfillment centers. It ensures that when a customer orders a product, the correct seller’s inventory is picked, packed, and shipped. This is particularly important when multiple sellers offer the same product; the FNSKU distinguishes each seller’s stock.

Why FNSKU Over ASIN?

Prep centers, like Stock and Ship, prefer FNSKUs because it allows them to ensure that the products they handle and send to Amazon’s fulfillment centers are accurately tracked and attributed to the correct seller. Here are the pros and cons of using FNSKU:

Pros

  1. Increased Control Over Inventory
    Each product is labeled with a unique barcode (FNSKU), allowing precise tracking. Sellers can ensure customers receive the correct item from their specific inventory.
  2. Quality Assurance
    Labeling individual items maintains the seller’s reputation. Only vetted products reach customers, enhancing trust.
  3. Protection Against Counterfeits
    Protection Against Counterfeits Unique barcodes prevent the mixing of authentic and counterfeit goods. This safeguards both the seller and the customer.

Cons

  1. Higher Costs
    Labeling each product incurs additional costs (time, labor, materials). Balancing cost-effectiveness is crucial.
  2. Complex Inventory Management
    Sellers must handle each item separately. Managing inventory becomes more intricate due to individual tracking.
  3. Potential for Fulfillment Delays
    Precision requires attention to detail. Incorrectly applied labels can lead to delays as Amazon sorts out inventory.

Final Thoughts

The decision between commingled inventory and Amazon barcodes hinges on a seller’s priorities. If speed and efficiency are paramount and the risks of commingling are understood and acceptable, then the commingled inventory option may be the right choice.

As a reputable prep center, Stock and Ship takes pride in ensuring the quality and accuracy of all products processed through our facility. Thus, we only work with sellers who use FNSKU codes. These unique identifiers streamline reputation protection and enhance quality control.

If you are in search of reliable 3PL services, partnering with a seasoned Prep Center is a strategic move. Stock and Ship is a top-tier option, providing extensive expertise and a customized suite of services to optimize your e-commerce operations.

Feel free to reach out to us for further details on our services and how we can collaborate to drive sustainable growth for your business.