The disadvantages of the FBA logistics model are mainly reflected in three aspects: high fees, high capital occupation and slow problem handling.
(1) High fees
Because the FBA logistics model used by sellers is an Amazon service, it means that sellers need to pay relevant service fees to the Amazon platform. The various fees in the Amazon FBA logistics model vary according to the country, site and time. Here we only show the names and standards of some fees for sellers. Sellers can learn about them through official channels when using this logistics model.
(2) High capital occupation
Because sellers who use the FBA logistics model to ship goods need to prepare a large number of goods and place them in Amazon’s warehouses, once the FBA logistics model is used, sellers will face the problem of capital occupation, which increases the risk of sellers operating stores. For example, when a large number of sellers’ goods are in the FBA warehouse, if the account is restricted and the goods cannot be sold, then the seller will not only be unable to sell the goods, but also need to pay a large amount of storage fees.
(3) Slow problem handling
When using the FBA logistics model for delivery, the return of goods is handled by the Amazon platform, so sellers cannot check the buyer’s return status in time and then discover and solve related problems.
By understanding the advantages and disadvantages of the FBA logistics model, sellers can know that due to the existence of problems such as excessive fees and excessive capital occupation, sellers with small, light and short turnover time products are more suitable for using the FBA logistics model.