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Amazon freight forwarding has three common modes, including Amazon FBA, third-party overseas warehouses, self-delivery.
The full name of FBA is Fullfillment By Amazon. The Chinese translation of FBA is Amazon freight forwarding, which is the agent delivery service provided by Amazon, including warehousing, goods picking, packaging, distribution, payment collection, customer service and return processing and other one-stop logistics services. As long as the seller sends the goods to amazon warehouse, as long as the buyer places an order, Amazon warehouse will automatically help you pack and deliver the goods. Chinese JINGdong Mall is imitating amazon's logistics mode.
Advantages:
Improve sales, reduce costs, save worry and effort.
Improve the visibility and ranking of your store.
The delivery time is faster and the user experience is better.
All bad reviews caused by logistics can be deleted.
Disadvantages:
High stocking costs.
If the product cannot be sold, high storage costs are required.
There is no control over the storage, picking, packaging and transportation methods.
With Amazon's unconditional return service, the buyer's return rate is likely to rise, thereby increasing the cost of suppressing goods.
Sellers build overseas warehouses by themselves or cooperate with Amazon 3PL warehouses (pay corresponding warehouse usage fees), and directly ship from overseas warehouses after receiving orders. After-sales customer service returns and other tasks need to be done by themselves. (Also a kind of self-delivery)
It is another supplement based on Amazon FBA logistics, because FBA logistics cannot be comprehensive. Due to various reasons such as geographic location and product cost, logistics service providers or sellers need to establish independent logistics services in their sales areas.
Advantages:
Amazon 3PL warehouses, compared with Amazon FBA, have lower costs and effectively increase the profit of a single product.
The unique centralized transportation mode greatly reduces the cost of logistics management.
At the same time, its supply chain is very stable, which can shorten the logistics timeliness and facilitate the development of the local market.
Disadvantages:
Due to the centralized transportation mode, the inventory pressure is high, the risk rate of inventory backlog has risen sharply, and the management cost is low. There are many imbalances in transportation management.
Note: The overseas warehouse model is more suitable for dealing with multi-channel retailers, or selling personalized, perishable, seasonal products, and sellers with strong industry and logistics knowledge.
Self-delivery means that the seller directly delivers goods from domestic suppliers or warehouses to foreign customers after receiving the customer's order, that is, the seller is responsible for a series of activities such as warehousing, sorting, packaging, delivery, and customer service.
Advantages:
The input cost is flexible, there is no need to stock up a lot, and the investment is small. You can freely choose logistics carriers and distribution method planning, and control costs yourself.
Warehousing costs are also relatively low, which can reduce the cost of loading goods, reduce the risk rate, and increase your capital turnover rate at the same time;
The selection of products is wide, and the selection of products is not restricted by the FBA product policy, and can be more flexibly selected to obtain more sales.
You can be more proactive in operation, and you can use your unique delivery service to enhance the user experience and further consolidate your brand image, such as thank you emails and small gifts.
Disadvantages:
Products will not meet Prime standards, competition for Buy Box may become very difficult, Amazon prefers FBA sellers.
Sellers may cause bad reviews or disputes due to imperfect logistics channel services.
The exposure and ranking of self-shipped listings is not as much as that given by Amazon FBA
Supplement: Self-delivery is also divided into 3 categories: postal, express and special line.
Although the weight of postal parcels is limited, the price will be cheaper;
Although the price of express delivery is high, it can arrive quickly and has a strong timeliness;
As for the dedicated line logistics, it is not only efficient, but also safer, and the favorable rate is also relatively high.
Sellers should choose the delivery method that suits them according to the characteristics of the products they sell, the buyer's degree of timeliness requirements, location, logistics budget, and low and peak seasons.
