The North American Remote Fulfillment (NARF) program on Amazon is an initiative that enables sellers to reach customers in Canada and Mexico without the need for separate inventory storage and fulfillment in those countries. This blog post will delve into the key features, benefits, and considerations of the NARF program, offering insights for sellers looking to expand their business internationally.
Key points about the North American Remote Fulfilment program:
- Quick Market Testing: NARF facilitates rapid market testing without the requirement of sending inventory to another country, enabling sellers to gauge demand before scaling operations.
- Inventory Display: Sellers can showcase their U.S. Fulfillment by Amazon (FBA) inventory on Amazon’s Canadian and Mexican marketplaces.
- Prime Eligibility: Products enrolled in NARF are eligible for Prime shipping, allowing sellers to attract more customers and potentially increase sales.
- Streamlined Logistics: Amazon handles export logistics, customer inquiries, refunds, and returns for NARF-fulfilled orders, reducing sellers’ operational burden.
- Cost-Effectiveness: Consolidating operations in one location eliminates the need for separate storage and fulfillment in Canada and Mexico, saving sellers time and money.
Pros of North American Remote Fulfilment on Amazon:
Expanded market reach: Sellers can sell their products to customers in Canada and Mexico without the need to send inventory to those countries. This allows sellers to tap into new markets and reach a broader customer base.
Prime eligibility: Products enrolled in the NARF program are eligible for Prime shipping, which offers free shipping to Prime customers in Mexico and Canada. This can attract more customers and increase sales.
Simplified logistics: Amazon takes care of export logistics, customer inquiries, refunds, and returns for orders fulfilled through NARF. This reduces the burden on sellers and allows them to focus on other aspects of their business.
Cost-effective: Using NARF eliminates the need for separate inventory storage and fulfillment in Canada and Mexico. This can save sellers time and money by consolidating their operations in one location.
Quick market testing: NARF allows sellers to test new marketplaces quickly without the need to send inventory to another country. This enables sellers to assess the demand and viability of selling in Canada and Mexico before committing to larger-scale operations.
Cons of North American Remote Fulfillment on Amazon:
Higher fulfillment fees: Fulfillment fees for NARF may be higher due to the cost of shipping products internationally. Sellers should consider the impact on their profit margins when using this program.
Import duties and taxes: Customers are responsible for any applicable import duties and taxes on the items they order. This can potentially increase the overall cost for customers, which may affect sales.
Limited to North America: While NARF allows sellers to expand into Canada and Mexico, it is limited to the North American region. Sellers looking to expand into other international markets would need to explore alternate fulfillment options.
Tax considerations: While sellers do not need to file taxes in Mexico or Canada when using NARF, they should still be aware of any tax obligations in their home country and consult with tax professionals if necessary.
Steps to Enroll in NARF:
Ensure you have a professional Amazon seller account: You must have a professional seller account (not an individual account) to be eligible for NARF enrolment.
Go to the Remote Fulfillment with FBA page: In Seller Central, navigate to the Remote Fulfillment with FBA page. This page provides an overview of how the program works and links to the fees and policies.
Review Amazon’s policies and fees: Take the time to thoroughly read and understand Amazon’s policies and fees associated with the NARF program This will ensure that you are aware of the costs and requirements.
Choose the marketplaces: On the enrolment page, you will be prompted to select the marketplaces where you want to add offers, which in this case would be Canada and Mexico
Complete the enrolment process: Follow the prompts and provide any necessary information to complete the enrolment process.
Conclusion
The North American Remote Fulfillment (NARF) program on Amazon offers an appealing opportunity for sellers to expand their business into Canada and Mexico seamlessly. By leveraging NARF, sellers can access new markets, benefit from Prime eligibility, simplify logistics, reduce costs, and conduct quick market tests.
However, it is crucial to consider potential higher fulfillment fees, import duties and taxes, and the program’s current regional limitations. Prospective sellers should review Amazon’s policies and fees associated with NARF before enrolling to ensure they are well-informed about the costs and requirements. Overall, NARF provides a convenient and efficient pathway for sellers to broaden their customer base and explore international opportunities in North America.
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