For Prime members, the most important service is FBA’s free 2-day delivery. Logistics delivery time has always been a pain point that Amazon sellers find difficult to solve. It often takes 14 to 21 days for self-delivery to reach buyers. Too long delivery time will cause buyers to lose their desire to buy, or apply for a refund during the order delivery process. For cross-border sellers, establishing overseas warehouses is the best solution, but this model is not suitable for small sellers and is prone to management and other problems.
Amazon’s FBA model is different from a simple overseas public warehouse. It can provide efficient, economical and accurate inventory and distribution services. If FBA is used, Amazon will help sellers handle all logistics services including warehousing, packaging, delivery, collection, customer service and returns and exchanges. FBA can guarantee 2-day delivery in most cases, which ensures that sellers have enough time to operate the operation end, and do not need to be busy with daily delivery and handling a large number of customer services, thereby reducing the seller’s labor costs.
In recent years, FBA’s storage fees and delivery fees have also increased year by year, and the assessment of sellers’ inventory performance scores has also risen, but even so, the FBA model is still the only choice for sellers to improve their performance. According to the FBA profit calculator provided by Amazon, assuming an average monthly sales of 60 orders, orders will increase threefold after FBA. Even if various expenses increase, the seller’s revenue can increase from the original $1,380 to $6,000, and the net profit will increase from $520 to $1,694. Therefore, using FBA can greatly increase the sales of the link, improve inventory turnover, and ultimately obtain higher profits.