A detailed explanation of Amazon’s value-added logistics services and their differences from traditional logistics

As one of the world’s largest e-commerce platforms, Amazon’s logistics service system is not only large but also efficient, providing strong support for many sellers. Amazon’s value-added logistics services cover many aspects, from increasing convenience to speeding up response, aiming to improve user experience while reducing operating costs.

Overview of value-added logistics services

Amazon’s logistics value-added services are various derivative business activities provided based on customer needs on the basis of completing necessary basic logistics tasks. Such services include but are not limited to:

• Services that increase convenience: such as 24-hour operation, automatic ordering, information transfer, full tracking, etc.
• Services to speed up response: By optimizing the distribution center and logistics center network, designing circulation channels suitable for buyers, reducing logistics links and simplifying the logistics process.
• Cost reduction services: Improve logistics efficiency and effectiveness by finding solutions that can reduce logistics costs.
• Extended services: covering product improvement, sales improvement, site improvement, customer relationship improvement and maintenance, etc.

The difference between Amazon logistics and traditional logistics

Product declaration

In traditional logistics, some sellers may lower the unit price of goods declared in order to save costs, which may lead to a series of business risks. In contrast, the Amazon FBA system does not allow such behavior and requires sellers to provide accurate declared unit prices to ensure the safety and stability of operations.

Import suppliers

Under the traditional logistics model, goods usually need to arrive at the destination port through conventional logistics channels before being declared for customs entry. For Amazon logistics services, this process can be simplified by delivering goods directly to Amazon warehouses.

Feature comparison

• Traditional logistics services: Only provide transportation services. The services are relatively passive and rely on manpower. They lack unified service standards and mainly focus on point-to-point or one-to-one services.
• Amazon value-added services: Put customer interests first, focus on improving order volume and product production efficiency, and emphasize the importance of time management.

Conclusion

The continuous development of Amazon’s logistics value-added services is closely related to the fierce competition in its logistics environment. By providing a variety of value-added services, Amazon not only meets the needs of buyers, but also helps sellers stand out in a highly competitive market. At the same time, compared with traditional logistics, Amazon’s logistics system is more modern, flexible and efficient, and is more suitable for the needs of the current e-commerce environment. For novice sellers, understanding these differences can help make a more appropriate choice.

The above content is compiled from various reference documents, aiming to comprehensively demonstrate Amazon’s value-added logistics services and their differences from traditional logistics.