After understanding how Amazon operates the FBA project, it should be easy to think that this is an asset-heavy project. First of all, the warehouse must have at least 5 physical addresses in different countries, which requires a lot of money for long-term leasing. Then managers, operations personnel and product distribution personnel are needed. Labor costs, especially in developed countries in Europe and the United States, are a huge expense accounting for 50% of the company’s operating costs.
So. If we look at the problem from the perspective of a company, then if a company invests so much money to build a physical project, it will definitely hope that the sellers on its platform will use FBA services, so as to achieve the company’s strategic goals
From cross-border e-commerce From the perspective of competition between platforms, huge investment itself has a natural competitive advantage. The operation after investment brings buyers a high-quality and fast consumption experience, which is an important advantage of cross-border e-commerce platforms. Even first-tier cross-border e-commerce platforms such as AliExpress and Wish eBay do not have such huge investments.
Amazon has a Prime membership system, and Prime members pay an annual fee of US$119 to Amazon. This annual fee was only charged on May 11, 2018. Before that, the annual fee was $99.
The middle class and petty bourgeoisie groups in the United States have high requirements for service, delivery speed, product quality, etc. If the seller ships the goods from China and it takes ten days or half a month to arrive in the United States, then you have been eliminated and your products will not be able to get into the eyes of Prime members.
The results shown are the results of searching for iPhone 6 Plus Case on the mobile app. Click the Filter button on the right side of Prime to directly block self-shipping sellers.
If Amazon sellers want to sell more products, they must display their company’s products to as many overseas buyers as possible, since the priority delivery rights of Prime members have such a great impact on product display , then FBA’s sales and delivery methods should be a must-have for all new sellers, or a must-have within 3 months. Now it should be clear what it means to ship via FBA!