Fulfillment by Amazon http://fba.amazon.co.jp

The main contents 1. Overview 2. Features and benefits 3. Example of Detail page of FBA listings 4. FBA Fee Structure 5. FBA Fee Example 6. How to get started 7. Summary of Fulfillment by Amazon Terms 8. (Reference) Summary of Prohibited Products for FBA 9. FBA Multi Channel Fulfillment (Multi Channel Service)

Strictly Confidential

• Date of Update: Sep. 30th 2015.

• Further reproduction prohibited without permission

• To use Fulfillment by Amazon, you must agree to adhere to the Terms listed on Amazon Services Business Solution Agreement and all applicable guidelines .

• Amazon, Amazon.co.jp, Amazon Prime, Amazon.co.jp Prime logo, Fulfillment by Amazon, FBA, Fulfillment by Amazon logo, Seller Central are trademarks or registered trademarks of Amazon.com, Inc, or its affiliates.

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Overview

You sell it, we ship it. Amazon has created one of the most advanced fulfillment networks in the world, and your business can now benefit from our expertise. With Fulfillment by Amazon (FBA) you store your products in Amazon fulfillment centers in Japan, and we directly pack, ship, and provide shipment related customer service for these products.

With FBA, your products become eligible for Free Regular Shipping and Amazon Prime member benefits, and will be handled by Amazon’s trusted customer service and returns. We handle the details, saving you time, so you can focus on your business. *Multi Channel Fulfillment service, which enables you to fulfill orders from sales channels other than Amazon using the inventory that you have stored in an Amazon fulfillment center, does not apply for these points.

Help Boost Your Sales with Amazon's World-Class Fulfillment

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Features and Benefits

Save time and Grow Your Business With These Benefits

■Competitive Price Sorting Your FBA listings on Amazon get the same treatment that Amazon gets; we sort them on the item price without the cost of shipping, which also gives you an edge when competing for the Buy Box!

■Trusted Customer Service and Returns FBA listings are displayed with the "Fulfillment by Amazon" logo, so customers know that packing, delivery, customer service and returns are all handled by Amazon. *Multi Channel Fulfillment service does not apply for these points.

(1)What is Amazon Prime? Amazon Prime is a membership program that gives customers free unlimited Expedited Shipping and Scheduled Delivery on all eligible purchases for an annual membership fee of 3,900 yen (tax included). As a member, customers won’t have to pay the additional shipping fee of 350 yen (tax included) for Next-day Delivery or 500 yen (tax included) for Same-day Delivery per shipment and there’s no limit on the number of orders they can place.

☑ FREE nationwide shipping for normal delivery ☑ Ability to fulfill orders 24 hours 365 days a week (even on national holidays) ☑ Eligible for Amazon Prime(1)

☑ Customers can have more payment options (Cash on delivery, Convenience store/ATM/Net Banking/e-Money Payment Service) ☑ Enabled for Expedited Shipping and Scheduled Delivery

☑ Amazon picks and packs your products ☑ Amazon can handle gift wrapping and messages to customers for free ☑ Customer service and returns are all handled by Amazon

Increase your sales by having your customers enjoy these benefits

Reducing workload, expanding productivity

■Eligible for FREE Shipping & Amazon Prime Customers love FREE Shipping and Amazon Prime. FBA listings on Amazon feature the same delivery messaging we use for Amazon listings (details explained on p.4)

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Example of Detail Page of FBA listings

Displayed as:

Sold by “Your store name”

Fulfilled by Amazon.co.jp Displayed delivery date

Free Shipping

・ Single Detail Page

・ Offer Listing Page

Product becomes eligible for Amazon Prime Shipping

Displayed as:

Sold by “Your store name”

Fulfilled by Amazon.co.jp

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FBA Fee Structure

Fee*1 Media*3 Non-media*4 Oversize*5

Zero

Fee*6 Small*5 Standard*5 Small Standard Under

100cm

100-140cm

Over

140cm

Pick & Pack

(per unit) 86 JPY 86 JPY 76 JPY 98 JPY

515

JPY

555

JPY

590

JPY

0

Weight Handling

(per shipment)*2 56 JPY

0-2kg: 78

JPY

+1kg: 6 JPY

163 JPY

0-2kg: 221

JPY

+1kg: 6 JPY

0

Pick & Pack Fee, Weight Handling Fee

*1 Fees above include consumption tax(8% in Japan) *2 The weight in the table is the weight of shipment, and is the sum of weights of all items in a shipment and weight of packaging material. Weight of the packaging material for Small size is 50g and for Standard size is 150g. For Small size, when the weight of shipment exceeds 250g, Standard fee will be applied. For Standard size, the weight is rounded up to the nearest kg. The weight of packaging material has been defined based on average packaging material used for shipping at Amazon. *3 Media: Books, Music, Software, Video games, and Videos (DVD, VHS) *4 Non-Media: Everything other than Media *5 [Small] Smaller than 25x18x2cm AND less than 250g Packing material (50g) will be added and is calculated as a part of the weight. [Standard] Smaller than 45x35x20cm AND less than 9kg Packing material (150g) will be added and is calculated as a part of the weight. [Oversize] Larger than 45x35x20cm OR over 9kg *6 Zero Fee Fulfillment is applied to any Small or Standard size unit with item price over 45,000 JPY Storage Fee

Storage Fee

per month 8.126 JPY/10 cubic cm Monthly charges based on average daily volume.

Small/ Standard Oversize

Removal 51 JPY/unit 103 JPY/unit

Destroy 10 JPY/unit 21 JPY/unit

Removal/Destroy Fee

FBA Fee Structure FBA Fee is calculated from a Pick & Pack fee, Weight Handling Fee and Storage Fee.

FBA Fees Pick & Pack,

Weight Handling Fee Storage Fee = +

( JPY: Japanese Yen )

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FBA Fee Examples

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Category: PC/PC Accessories Price: 4,600 JPY (tax included) Dimensions: 10.8×7×0.2 cm Weight: 10g Rate Schedule: Small Size Non-Media

Storage Fee 0

Pick & Pack (per unit) 76 JPY

Weight Handling (per shipment) 163 JPY

TOTAL 239 JPY

Memory Card Category: Health & Beauty Price: 2,700 JPY (tax included) Dimensions: 7.2×7×4.2cm Weight: 59 g Rate Schedule: Standard Size Non-Media

Storage Fee 2 JPY

Pick & Pack (per unit) 98 JPY

Weight Handling (per shipment) 221 JPY

TOTAL 321 JPY

Hand Cream

Category: Apparel Price: 6,825 JPY (tax included) Dimensions: 28×32×4 cm (folded) Weight: 200g Rate Schedule: Standard Size Non-Media

Storage Fee 12 JPY

Pick & Pack (per unit) 98 JPY

Weight Handling (per shipment) 221 JPY

TOTAL 331 JPY

Blouse Category: Electronics Price: 48,000 JPY (tax included) Dimensions: 16.7×13.3×32.7cm Weight: 1,905g Rate Schedule: Zero Fee

Storage Fee 59 JPY

Pick & Pack (per unit) 0

Weight Handling (per shipment) 0

TOTAL 59 JPY

Camera

Category: DVD Price: 1,700 JPY (tax included) Dimensions: 19×1.5×13cm Weight: 100g Rate Schedule: Small Size Media

Storage Fee 3 JPY

Pick & Pack (per unit) 86 JPY

Weight Handling (per shipment) 56 JPY

TOTAL 145JPY

DVD Category: Book Price: 1,260 JPY (tax included) Dimensions: 9.9×6.3×2.4cm Weight: 178g Rate Schedule: Standard Size Media

Storage Fee 1 JPY

Pick & Pack (per unit) 86 JPY

Weight Handling (per shipment) 78 JPY

TOTAL 165 JPY

Book

( JPY: Japanese Yen )

CONFIDENTIAL 7

Return Processing Fee

The Return Processing Fee apply to customer-returned products sold on Amazon.co.jp in categories for which Amazon offers free return shipping for 30 days of receipt of shipment. This includes the following categories(Watch and Jewelry are not included below):

• Clothing, and fashion accessories • Shoes • Bags and Luggage

Offering free returns to customers in these categories helps build customer trust and encourages purchases. To better reflect our costs, when customers receive free return shipping on products in these categories, the seller will be charged a fee for each unit returned. This fee will be equivalent to the fulfillment fees for an individually shipped unit. The fee will apply to all customer returns in the above categories, except in cases where Amazon takes responsibility for damage or loss of a returned product (for example, lost or broken in transit). *Fees below include consumption tax(8% as of April, 2014). Customer Return Per Unit Fee and Customer Return Weight Based Fee are applied based on the size and the weight of the returned items. *For more details, please refer to Seller Central or help page of Amazon.co.jp.

Customer Return (Pick & Pack)

Customer Return (Weight Handling)

Small 76 JPY

Standard 98 JPY

Oversize Under 100 cm 100 – 140 cm Over 140 cm

515 JPY 555 JPY 590 JPY

Small 163 JPY

Standard 0-2kg: 221 JPY

+1kg: 6 JPY

Oversize 0 JPY

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How to get started

1. Sign up with “Selling on Amazon(Amazon.co.jp)” *If you already have a selling account with Amazon(Amazon.co.jp), please refer to step 2. Preparation required in advance:

• Bank account: For the supported currencies, please refer to “Amazon Currency Converter™ for Sellers (ACCS)” in the following link;

https://services.amazon.co.jp/services/out-of-country/selling-on-amazon.html

• Appropriate customer service in fluent Japanese: Amazon Customer Service will guide customers on your shipments and returns, but questions on product itself needs to be handled by sellers.

• Return address in Japan: Amazon(Amazon.co.jp) is currently unable to return Fulfillment by Amazon inventory to an address outside of Japan nor support pick-up options for sellers at our fulfillment centers. If you wish to have the inventory returned to you, you must supply a return address in Japan.

2. Sign up with “Fulfillment by Amazon” *A sales representative will provide you with the details on how to sign up . 3. Ship your products to our fulfillment centers in Japan

Important directions that must be followed (Shipments that do not meet requirements below cannot be received at our fulfillment centers):

• Importer and Consignee: If you choose to send products directly to our fulfillment centers from outside of Japan, please note that Amazon cannot serve as an ‘importer of record’. You will need to arrange for an importer of record in Japan.

• Freight terms: Shipments must be sent under “Delivery Duty Paid destination (DDP)” with all relevant import duties and other taxes paid. Amazon will not be responsible for any import duties, taxes, collect freight or miscellaneous charges associated with importation into Japan.

• Carriers to FBA FCs: UPS, FedEx, DHL, Nippon Express, Yamato Transport, SGX, Seino. *If you are using carriers other than above, your carrier needs to schedule a delivery appointment through Carrier Appointment Request Portal (CARP) in advance. For the details of shipments to Amazon Fulfillment Center, please refer to Help (https://sellercentral.amazon.co.jp/gp/help/help.html/ref=pt_200280270_cont_200141510?ie=UTF8&itemID=200280270&language=en_JP).

*Please note that Amazon.co.jp can never be an importer.

• Sticker Labels: Products must be labeled with sticker labels individually. Please print out the sticker labels by going through the shipment creation process on Seller Central.

• Bulk container may not be used for shipping.

• In case of pallet shipments: Please notify your sales representative at least 1 week in advance before making the shipment.

After receipt at our fulfillment centers, products will be admitted and inspected. After this is complete, your products will become available for sale on Amazon(Amazon.co.jp) through FBA!

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Summary of Fulfillment by Amazon Terms

(※The Fulfillment Agreement supersedes this summary)

Providing information to Amazon • You will be asked to provide package/product information such as the package/product size, weight,

and barcode data.

Shipping your products to our fulfillment centers in Japan • Amazon will provide storage services as described in the agreement for FBA once we confirm receipt of

delivery. • Products must have appropriate product labels • Products must have appropriate invoice. Importer who own custom clearance should be written down

in invoice. Please note Amazon cannot be the importer for your product and may refuse to receive FBA products.

• Products may not be accepted if there are defects, damages, or the label is missing. In such case we may ask you within 90 days to advise what to do with such products.

Storage • Please refer to the entire FBA agreement for details on how product loss/damages is handled.

Customer Returns • You will be responsible for and will accept and process returns and provide refunds in accordance with

the FBA agreement. • We receive and process returns for any FBA products. Products which may be resold will be returned as

sellable inventory. • Returned goods which are deemed unsellable by fulfillment centers will be counted as unsellable

inventory.

Product Returns • You may request for return of your products from our fulfillment center, however we only deliver your

products to Japan address.

Customer Service • As a FBA seller, you have the responsibility to communicate customers clearly that you abide by

Amazon’s shipping and return policies.

Term and Termination • The term of this Agreement will start on the date of your completed registration for the Service(s),and

is valid until terminated by us or you . • In case of termination of your selling on Amazon service , Fulfillment by Amazon service is terminated

automatically

For more detailed information • http://www.amazon.co.jp/gp/seller/fba/fulfillment-by-amazon.html

＊Please note these are a summary of the terms and you need to review the full agreement before registration. Amazon reserves the right to change these terms.

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(Reference) Summary of Prohibited Products for FBA

1. Products that do not comply with applicable Japanese laws and regulations

2. Products that can not be stored at room temperature

3. All Food and beverages (including Products that include eatable items)

4. Products with expiration dates

5. Animals and plants

6. Products that do not comply with Washington Convention(CITES) like elephant ivory

7. Hazardous materials and chemicals prohibited by aircraft method and fire laws

• Products using gas - Spray products • Flammable materials – Products using alcohol, organic solvents, Fire work • Products include hydrogen peroxide – Hair color, Bleach • Products include mercury(Hg) – thermometer, Mercury lamp • Large size products using permanent magnet – Speaker set • Poisonous material - Agricultural chemical • Corrosive material – Car / Bike battery • Radioactive material

8. Products that require notification to and permits from relevant ministries for sales under applicable laws and regulations (below is example.)

• Medical Devices • Medicines, Medical products • Medicines which only pharmaceutical chemists are able to sell (Type 1, Type 2) • Medical products that need Sales Managers • Liquor • Tobacco • Cash voucher (gift cards, calling cards, stamps and admission tickets to events etc.)

9. An Excluded Product, or is otherwise prohibited by the Program Policies

10. Products subject to a product recall or cannot be lawfully sold and distributed in Japan

CONFIDENTIAL 11

FBA Multi Channel Fulfillment

So Easy! Advantages of using FBA Multi Channel Fulfillment

What is FBA Multi Channel Fulfillment? FBA Multi Channel Fulfilment is a logistic service where Amazon will store, pack, and ship your products that you sell outside Amazon (e.g. your own website, internet shopping mall etc.) on your behalf. There is no complicated initial setup or fixed charge. It’s done simply by just sending a shipping request through Amazon’s gratis service, product management tool (Seller Central), so it is highly recommended for sellers who have more than one channel to sell their items.

Advantages of using FBA Multi Channel Fulfillment ● We’ll ship 24 hours, 365 days. You can choose when and how to use it, considering distribution quantities of busy peak periods and low seasons. ● Copes with “Same-Day Expedited Shipping”, and “Expedited Shipping”; ensuring fast delivery. ● Copes with Cash on Delivery (COD); will offer payment options according to the customers’ needs. ● We’ll ship out in a plain cardboard box (no Amazon logo). (Only available at Odawara, Kawagoe, Kawajima, and Daito Fulfillment Centers) ● The service is available from 1 product, 1 piece. There are no fixed fees or system use fees; we charge only for the actual service. ● Storage fee is charged on a pro-rate basis for the used space, so the cost is very efficient.

How It Works (Image) FBA Multi Channel Fulfillment flow is very simple. You deliver your products to Amazon Fulfillment Centers in advance, and then you simply send a shipping request from Seller Central, a flat file or API, when you need to have it shipped.

Your Own Website, Internet Shopping Mall, etc. （Channels Other than Amazon） Seller Customer

Pack and Ship the Product

Order Receive Order

Simple Shipping Request through Seller Central

FBA Multi Channel Fulfillment

• Secure operation under Amazon-quality Fulfillment Network

• Collective management of inventory sold through multi-channels

• Will promptly cope with return requests; sending back your products at your convenience.

Shipping Request

Amazon

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Using the FBA Multi Channel Service

※ When using the FBA Multi Channel Service, please register your products, take the necessary procedures for FBA Delivery, and deliver your products to Amazon Fulfillment Centers in advance. When the procedure is unclear, please contact Seller Support. ① Please select the product that will be using FBA Multi Channel Service. From the “Inventory” tab, select “FBA Inventory”, and open the “FBA Inventory” page. Select the item using FBA Multi Channel Service in the inventory list and put in a check in the left side box.

② Create FBA Service Multi Channel Service Request Then from the pull down menu, select “Create FBA Multi Channel Service Request”. Click “GO” and move on to the next step.

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③ FBA Multi Channel Service Order / Request In the “FBA Multi Channel Service Order / Request” screen, please enter the necessary information, such as, ① Shipping Address, ② Order (Request) Number, ③ Information to be Printed on the Shipping Slip, and then select the item to be shipped. Click “Continue” and double-check the information, then confirm the order

●Convenient Optional Service: “Cash on Delivery” and “Expedited Shipping” If you wish to use “Expedited Shipping” or “Cash on Delivery”, please follow the steps below.

Using “Cash on Delivery (COD)”: In the above FBA Multi Channel Service Order / Request screen, after entering all necessary information, you will see the screen as on the right. Select “Cash on Delivery” in ⑤ Optional Service, then enter “Product Total”, “COD Handling Fee”, “Other Fee”, then in ⑥ Order click “Confirm Order”, and process the order. (Handling Fee for Cash On Delivery is 315 yen / order)

Using “Expedited Shipping”: In the above FBA Multi Channel Service Order / Request screen, after entering all necessary information, you will see the screen as below. Select “Expedited Shipping” in ⑦ Selecting Shipping Speed. (Selection will only show available shipping method.)

⑤

⑥

⑦

① ② ③

④

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FBA Multi Channel Service Fees

*1 The above charges include consumption tax. A single shipping request may divide into multiple shipments. In such case, a shipping weight fee will apply for each shipment.

*2 When various product genre (i.e. media, non-media, large product) is mixed into one shipment, the highest fee will apply.

*3 A single shipping request may divide into multiple shipments. In such case, a shipping fee will apply for each shipment

*4 Packing material weight for FBA Multi Channel Service will be calculated as 10% of the total weight. When the shipping weight exceeds 250g for a small packet, the fee charged will be that of a normal packet.

*5 Shipping Agent Fee for FBA Multi Channel Service will be based on product size.

FBA Multi Channel Service Handling Fee *1

Shipping Agent Fee

Media Products Non-Media Products Large Products High-Priced

Products Small Standard Small Standard Under 100cm

100-140cm

Over 140cm

Pick & Pack （Per Item）

￥82 ￥82 ￥134 ￥134 ￥257

As on the Left *2*3*4*5

Weight Handling (Per Shipment)

Standard Shipping ￥216 ￥319 ￥288 ￥396 ¥430 ¥453 ¥500

Expedited Shipping ￥350 ￥411 ￥391 ￥437 ¥460 ¥483 ¥530

Example of Fees：When 1 mobile phone case is sent out in Normal Shipping （package size：16×９×1.5cm／30g） ・If the same item is sent out as an Expedited Shipping: Weight Handling fee is 391JPY, total shipping fee is 525 JPY.

Example of Fees：When 2 digital cameras are sent out in Normal Shipping （package size：20×15×10cm／300g） ・When multiple items are sent to a same address, shipping fee will be charged per shipping. In the table, shipping fee per item is 659JPY÷2＝329.5 JPY

FBA Multi Channel Service Fee example ①

Pick & Pack 134 JPY (Non-media, small size) 1 item 134 JPY

Weight Handling 288 JPY (Small size, normal delivery) 1 shipment 288 JPY

Total shipping fee 422 JPY

FBA Multi Channel Service Fee example ②

Pick & Pack 134 JPY (Non-media, standard size) 2 items 268 JPY

Weight Handling 391 JPY (Standard size, normal delivery) 1 shipment 391 JPY

Total shipping fee 659 JPY

Storage Fee Storage fees (8126JPY/1 cubic meter) are charged for all Units stored based on

calendar month and your daily average volume

CONFIDENTIAL 15

What I Want To Know! FBA Multi Channel Service FAQ

Question ①： “When I request for shipping through FBA Multi Channel Service, what kind of package will it be in?” Answer：You can request for a plain no-Amazon-logo cardboard box. On the carrier’s shipping label, your shop name will be printed. And you can also print any message you wish on the shipping slip, so the consumer will not be confused.

Question ②： “Do I separate the stock for Amazon and other shops when I deliver my products? Will the inventory be managed separately?” Answer: No, the inventory will be managed together. Please estimate the volume of orders and deliver appropriate amount of stocks. The inventory will not be separate in the management tool either. Inventory Storage Fee will be charged accordingly.

Question ③： “At which point can I check the tracking number? Where can I check it?” Answer: A tracking number is given at shipment, and is notified in the shipment notice e-mail. It can also be confirmed in the shipping information in the details of the order management screen and all- order report in the Seller Central.

Question ④： “When the consumer returns the product, how are the returning fees handled?” Answer: The returning fee for FBA Multi Channel Service is charged to the consumer. Please advise the consumer to pay for the return fee at their end. If they must return and charge shipping collect, please tell the consumer to send it back to the seller.

Images of Packing Materials, Shipping Labels and Shipping Slips