This chapter introduces Amazon’s three major logistics models for sellers, and elaborates on the advantages and disadvantages and characteristics of each logistics form. Sellers can choose the appropriate logistics model based on their own situation.
1. What is FBA
FBA is the abbreviation of Fulfillment By Amazon, which is a service that Amazon completes the shipment. Sellers who use FBA to ship goods need to first create a shipping plan in the background of the seller center, and send the goods to Amazon’s overseas warehouse according to the shipping plan generated by the system, and Amazon will provide warehousing services; sellers sell these products through the Amazon platform. When customers place an order, the Amazon warehouse center will automatically provide goods sorting, packaging, delivery, collection, customer service and after-sales processing and other related services. Amazon charges corresponding order processing fees, sorting and packaging fees, and weighing and processing fees for each order.
2. Advantages of FBA
More and more sellers are using the FBA model, and FBA must have its advantages. This section elaborates on its advantages in detail. Sellers should be aware of this when choosing the FBA model.
Amazon’s store tilt
If the merchant’s product is shipped by FBA, then the product can get higher traffic, which is very helpful for the promotion of the first batch of new products. Generally speaking, if the product adopts the FBA delivery mode, it will have more sales than the self-delivery mode.
Reduction of operating costs
If the merchant adopts FBA delivery, the number of packing and delivery personnel is reduced compared to self-delivery, thereby reducing labor costs. In addition, the logistics cost of using FBA to ship in batches to the US overseas warehouse is lower on average than that of self-delivery.