Based on the analysis of the advantages and disadvantages of various logistics models, and the comparison of various data between self-delivery and Amazon delivery models, the platform’s logistics model can be divided into the following six aspects, namely product quality, delivery time, product profit, Inventory consumption capacity, shipment timing and logistics costs.
According to the dependence distribution chart of each influencing factor obtained through platform data analysis, it can be seen that Fulfillment by Amazon (FBA) is highly dependent on product quality, delivery time and inventory consumption capacity. This is because if the quality of FBA products is poor, it is easy to have unsalable products or a large number of returns.
In addition, due to the fast arrival of FBA products, the review update rate of the listing is also higher. Once several negative reviews appear at the same time, the product can easily become a unsaleable product. . In terms of timeliness, local delivery in the United States is basically delivered within 3 days, and some areas also have next-day delivery services. However, once the inventory stays in overseas warehouses for a long time, huge long-term storage costs and depreciation losses will be incurred. On the other hand, self-delivery can stop selling products of poor quality at any time, and the risk is more controllable.
Although self-delivery has strong risk resistance, it is highly dependent on delivery timing and logistics costs. When it is in the off-season, you can choose China Post to reduce logistics costs. When it is in the peak season or during promotional holidays such as “Black Friday” and “Online Shopping”, you can choose China Post (HongKong Post) , Singapore Post or bpost to meet the timeliness requirements. FBA’s logistics costs fluctuate less, and the difference in shipments during off-peak and peak seasons is only the quantity and frequency of stocking.
To sum up, the following logistics model options can be drawn:
1. Start from the characteristics of the product itself.
For high-quality products and high profits, choose the FBA + self-delivery model.
If the product quality is average and the profit is considerable, choose the FBA + self-delivery model (FBA is issued based on the principle of small quantities and multiple times to ensure that overseas warehouses have no shortage of goods); if the profit is average or low, choose the self-delivery model.
If the product quality is poor, there is no need to consider the profit level and choose the self-delivery model.
2. Start from the style.
For the hot-selling products of the season, choose the FBA + self-delivery model (FBA only needs to follow the principle of small quantities and multiple times to ensure that the overseas warehouses are not sold out).
For evergreen products or hot-selling products, choose the FBA + self-delivery model (the number of FBA shipments per shipment can be larger to share the first-haul fee).
For out-of-season products, decisively choose the self-delivery model.
3. Start from product sales performance.
If the sales volume is high and the refund rate is low, choose the FBA + self-delivery model (the number of FBA shipments can be larger each time to share the first-haul fee); if the refund rate is high, choose the self-delivery model.
If the sales volume is medium and the refund rate is not high, choose the FBA + self-delivery model (FBA only needs to ensure that the overseas warehouse stock is not sold out based on the principle of small quantities and multiple times).
If the sales volume is low, there is no need to consider the refund rate, so choose the self-delivery model.
4. Start from data analysis and prediction.
For potential models with large traffic and high conversion rate, choose the FBA self-delivery model (it can be adjusted after a small amount of FBA products are shipped for the first time).
If the traffic is large, the conversion rate is low, product details need to be optimized; if the traffic is low, the conversion rate is high, marketing needs to be carried out.
For sales promotion, temporarily choose the self-delivery mode, and then issue PBA according to the optimization situation.
The traffic is small and the conversion rate is small, so decisively choose the self-delivery model.
The above is based on four perspectives to construct a relatively reasonable logistics model selection plan on the Amazon platform. For cross-border e-commerce sellers, they should first analyze the characteristics of the products they sell and observe the product sales performance. , and finally combine data to predict risks to select an appropriate logistics model. In addition, during off-peak and peak seasons, different logistics methods should be used flexibly to reduce logistics costs and ensure the timeliness of products.