In-depth analysis of Amazon logistics and FBA logistics models

Amazon (AZ) has outstanding performance in multiple fields of IT, logistics and retail. Its “Amazon-style customer experience” business model is customer-centric and emphasizes low prices, rich product selections and convenient purchases. Core user experience. Amazon implements strict platform governance, focusing on combating dishonest behaviors such as tax fraud, infringement, and fraudulent sales. Its expanding logistics network is reshaping the business environment and posing disruptive challenges to the retail industry. Among these challenges, the Amazon Prime membership system is particularly significant. Although the annual membership fee cannot cover all logistics costs, the highly sticky service allows the expansion of sales to effectively dilute costs.

In financial reports, Amazon’s logistics costs have been considered a “super black hole”, increasing faster than logistics revenue, although the logistics costs per order have declined year by year. Data shows that the Amazon platform provides more than 400 million products, and its domestic e-commerce order fulfillment costs are between 10% and 15%. The total transaction volume (GMV) of third-party sellers has exceeded self-operated products, and more than 90% of them SKUs come from fulfillment services shipped by sellers to Amazon.

In the field of cross-border e-commerce, Amazon has built a seamless cross-border import logistics system. This system relies on strong resource integration and full traceability to quickly support intelligent shipment, efficient customs clearance and distribution of cross-border orders. . The cross-border cloud warehouse, transportation network and system capabilities covered provide high-quality order fulfillment services for global sellers, covering 14 major international sites and 125 operation centers. Amazon’s huge business volume gives it strong bargaining power and its continuous pursuit of low costs. Its ability to deliver six to seven billion parcels per day has strengthened its self-built express network for sea and land shipping logistics, not only making up for its own shortcomings, but also maximizing resource integration, establishing its leading position as a global logistics platform, and achieving end-to-end Comprehensive logistics service system.

At the same time, the FBA (Fulfillment by Amazon) logistics model on the Amazon platform provides sellers with another efficient cross-border logistics solution. In this model, the seller sends the goods directly to the Amazon warehouse, and Amazon is responsible for the subsequent logistics and delivery waiting. FBA’s logistics process mainly includes the following steps:

1. The seller packages and delivers the goods to cross-border logistics;
2. Cross-border logistics transports the goods to the customs of the importing country through the customs of the exporting country and temporarily stores them in the Amazon FBA warehouse;
3. Buyers place orders on the Amazon platform;
4. Amazon FBA warehouse obtains order information;
5. FBA warehouse delivers sold goods to buyers.

Such a logistics operation model improves transaction efficiency and reduces delivery pressure for sellers, allowing them to focus on sales rather than logistics. Through FBA, Amazon not only creates value for sellers, but also further consolidates its dominant position in the global e-commerce market.