The advantages of the FBM logistics model mainly include low inventory pressure, multiple delivery channel options and low logistics costs.
(1) Low inventory pressure
In the FBM logistics model, the inventory of goods is in the hands of the seller. Sellers manage their own inventory, which can control the inventory in time, speed up inventory turnover, reduce capital occupation, and reduce inventory pressure. Therefore, the FBM logistics model is a low-risk cross-border logistics model, which is very suitable for small and medium-sized sellers who have just joined the Amazon platform.
(2) Multiple delivery channel options
Currently, there are many companies engaged in cross-border logistics and transportation in the cross-border e-commerce field for sellers to choose from. Therefore, when using the FBM logistics model, sellers can choose the most suitable delivery channel according to the characteristics of their products and the needs of buyers. For example, logistics A has a fast delivery time but a higher price, while logistics B has a lower price but a slower delivery time. If the buyer does not require it, the seller can use logistics B to reduce operating costs; if the buyer has requirements for logistics time, then the seller can switch to logistics A at any time to ensure logistics time.
(3) Low logistics costs
Under the FBM logistics model, sellers can choose their own cross-border logistics channels. Therefore, in terms of logistics costs, sellers can reduce the relevant costs in the process of transporting goods by negotiating with logistics channels.
2. Disadvantages of the FBM logistics model
The disadvantages of the FBM logistics model mainly include high labor costs and poor logistics timeliness.
(1) High labor costs
When using the FBM logistics model, sellers need to arrange relevant personnel to handle the packaging, delivery, logistics services and returns of goods, so a lot of manpower is required.
(2) Poor logistics timeliness
Under the FBM logistics model, although sellers have many logistics channels to choose from, the logistics timeliness is not controllable, and the general timeliness is 5 to 15 working days. If the delivery is not timely or the logistics is too slow, it may cause buyers to complain or return the goods, causing losses to the store.
After understanding the advantages and disadvantages of the FBM logistics model, sellers can judge whether the logistics model is suitable for them based on their own business conditions and make a choice.