What Are Fulfillment Credits?

Fulfillment credits are a form of reserve fund designed to pay for the Cost of Goods Sold (COGS) for products purchased from either your store or sales channels like Amazon, Walmart, and eBay. They function as a prepaid inventory purchasing system that ensures the seamless operation of your sales channels by covering the upfront cost of inventory acquisition.

Paid Advertising Channels - Facebook, TikTok, Instagram, and Google Ads

The minimum requirement for funding your fulfillment credits is $100.00 for the paid sales channels. For example, if you're operating across three different paid sales channels - Facebook, TikTok, and Google - you will only need to fund a minimum total of $100 in fulfillment. This minimum ensures that there are sufficient funds to cover the cost of goods as sales occur.

Organic Sales Channels - Amazon, Walmart, and eBay

The organic sales channels require $100.00 per product, to ensure that we have enough products reserved for your listing(s). Typically, the minimum of $100 will reserve anywhere from 12-40 units depending on the COGs. You are more than welcome to fund more, however, this is our minimum.

Prime Sales Channel

The Prime sales channel has its own separate and unique minimum requirements for funding fulfillment credits. We require 100 units of each chosen product, as the products will be sent to Amazon's warehouse to be fulfilled through Prime. It's crucial to ensure you understand and meet these minimum requirements to successfully utilize the Prime sales channel.

Auto-Replenishment of Fulfillment Credits

To ensure that your sales operations run smoothly and uninterrupted, all fulfillment credits are automatically replenished when the threshold drops to 25% or lower. This mechanism ensures that you never run out of inventory, thereby maintaining your listings and preventing stockouts that can negatively impact your sales and reputation.

Fulfillment Credits and Sales Channels

Fulfillment credits play a vital role in securing inventory for your selected products across various sales channels like Amazon, Walmart, and eBay. Because of this, we often recommend funding more than the minimum required $100 in fulfillment credits, in alignment with the types of products you choose to list.

To illustrate, if product XYZ has a COGS of $5.57, the $100 in fulfillment credits allocated for the Amazon sales channel will secure about 17 units of Product XYZ. If these 17 units sell out, we may temporarily have to delist your product on that sales channel until the inventory is replenished. Hence, it's generally advisable to fund more than the minimum required amount in fulfillment credits to ensure your listings remain active and profitable.

In conclusion, a well-funded fulfillment credit account can help you avoid temporary delisting and keep your sales channels active. It allows for better planning, inventory management, and overall improved sales performance across all channels. Fulfillment credits represent an investment in your business's successful operation, ultimately enhancing your profitability and growth.