There are currently three main ways for Amazon to ship goods: FBA, third-party overseas warehouses, and self-delivery. Here is a simple comparison.
1. FBA
Advantages: fast logistics, increase customer trust, improve product rankings, and if you receive bad reviews from buyers due to logistics reasons, Amazon will help remove them.
Disadvantages: The overall cost is slightly higher, the first leg operation is cumbersome, and you need to clear customs yourself. The buyer’s return rate is easy to increase, which increases the cost of goods pressure. The return address only supports the United States (when sending to the United States FBA).
2. Third-party overseas warehouse
Advantages: Reduce logistics costs, speed up logistics, and help develop local markets. The cost is slightly lower than that of FBA.
Disadvantages: High inventory pressure, backlog risk, and uneven management levels of third-party overseas warehouses.
3. Self-delivery
Advantages: Reduce the cost of goods pressure, low storage costs, and flexibility in operation.
Disadvantages: Product exposure and ranking are less than those using FBA, and it is easy to get bad reviews from customers due to logistics reasons. Without the Prime logo, it is difficult to win the favor of Prime members.