When choosing FBA, sellers only need to send products to Amazon FBA warehouses, and a series of logistics services such as warehousing, picking, delivery, customer service, and return and exchange processing will be provided by Amazon. As for buyers, FBA has professional customer service, irregular free shipping promotions, and convenient return and exchange services, which greatly shortens the delivery time, thus bringing a better shopping experience. Therefore, most buyers will also consider choosing products shipped by FBA.
From the seller’s perspective, the benefits that FBA brings to sellers are very attractive. On the one hand, the services included in FBA transfer logistics problems from the sellers themselves very well. FBA sellers do not have to bear logistics services such as goods warehousing, sorting, packaging and delivery, and even do not have to bear negative feedback from customers about logistics services. On the other hand, the direct benefits brought by FBA include more traffic and exposure, higher conversion rates from Prime users, and reduced sellers’ time costs and delivery pressure.
At the same time, FBA also has its limitations and thresholds. For example, sellers need to pay storage fees and FBA head-mile fees at their own expense every month, and FBA also has a high return and exchange rate. FBA sellers have transferred the rights of logistics and after-sales service and lost control. When returns and exchanges occur, they can only be returned to the local FBA warehouse, and the returned goods cannot be identified. Most of the losses caused will also be borne by the seller.