How Amazon FBA operates
After understanding the seller groups on the Amazon platform and the opportunities and challenges they face, we need to return to the characteristics and advantages of the platform itself. Only by making full use of these advantages and advantages of the platform Features can keep up with the pace of the times.
When talking about the cross-border e-commerce platform Amazon, many people will think of FBA (Fulfillment by Amazon, Amazon Logistics Distribution), but they are not clear about how FBA works. At most, they know that Amazon helps sellers deliver goods. But FBA is much more than that.
FBA is a business provided by Amazon, which mainly includes delivery, warehouse leasing, localization services, payment collection, etc.
1. Delivery on behalf of sellers
As we know, helping sellers deliver goods is just a business of FBA. You register an Amazon account and send a batch of goods to Amazon for self-operation. After the warehouse, your products will have the Prime membership logo, and the platform will give such products more traffic.
Amazon has a large number of Prime members who can enjoy many value-added services, especially free shipping.
Such member logos can gain more product exposure and promotion.
2. Warehouse leasing and localization services
After the seller’s goods are sent to the Amazon warehouse, the platform will allocate the products to different warehouses for storage based on historical sales data. Corresponding rental fees will be charged based on the product storage time.
When the product stored by the seller in the Amazon warehouse is purchased by the buyer, the warehouse staff will make a simple packaging for the product. This packaging is not the packaging of the product, but additional information for the product during delivery. Add a layer of packaging box and mark it with Amazon’s brand logo, and finally deliver it to the buyer by a dedicated delivery person. The delivery personnel here are Amazon’s own staff, not third-party delivery companies. A U.S. buyer received packaging diagrams of the goods.
Of course, Amazon cooperates with the postal service of the local country. The orders in the multi-channel delivery in the backend of the Seller Center are handed over by Amazon to the third-party cooperative company for delivery, and the corresponding delivery fee is paid.
For products that participate in Amazon’s overseas warehouse FBA, the after-sales service after the product is sold is also handled by Amazon. Amazon will provide 7×24 hours telephone service. If there are quality problems with the product, it can provide free door-to-door return and exchange services.
The returned products will still be returned to the seller’s warehouse, and the products that can be sold can be returned to the seller’s warehouse. Secondary sales. This solves the problems of localized distribution and after-sales service for cross-border e-commerce sellers when investing overseas.
3. Payment collection
We can feel the convenience brought by the mobile Internet in China. No matter what we buy, as long as we have a mobile phone, we can solve it, even selling vegetables on the street. The old lady will put a QR code next to her to collect payment. But in the United States, many people still prefer cash on delivery. Amazon will help the seller collect all fees for the product order when it is delivered to the buyer’s address. Amazon will settle the cash received to the seller in the form of digital currency on the platform. , which facilitates cross-border e-commerce sellers to collect payments.
It can be said that if a seller on the Amazon platform uses FBA services, the seller only needs to be responsible for marketing the products on the shelves and generating more orders, and the rest can be handled by Amazon. This model It has created many small and beautiful companies. A company may only have 4-5 people, but its annual turnover can reach more than 10 million US dollars