Comprehensive analysis of Amazon FBA’s own sales and delivery strategies

As a cross-border e-commerce seller, when operating on the Amazon Fulfillment by Amazon (FBA) platform, you may face a variety of strategic choices, including selling by yourself and using FBA to ship. This article aims to comprehensively discuss the pros and cons of these two strategies and help sellers make more informed decisions.

The pros and cons of selling by yourself

Profit

• Price control: By following their own sales, sellers can independently set the price strategy of their products to maintain a high profit margin.
• Brand Protection: Selling by yourself can help prevent other sellers from selling low-quality or counterfeit products, protecting the brand image and consumer experience.
• Inventory Management: Sellers can better manage their inventory to ensure a stable supply of products.
• Data collection: Directly obtain sales data and consumer feedback, which is beneficial to product improvement and market analysis.

Disadvantages

• Competitive pressure: May lead to competition with other sellers, including price wars and fragmentation of sales.
• Resource Constraints: Requires additional time and effort to manage and promote the product.
• Sales channel restrictions: May restrict product sales in other channels.
• Legal Compliance: Comply with Amazon’s policies and regulations to ensure operational compliance.

Advantages and disadvantages of using FBA to ship goods

Advantages

• Increased traffic and sales: Products shipped by FBA gain more exposure, which helps improve rankings.
• Improved store security: Goods are stored in Amazon warehouses to reduce operational risks.
• Cost Savings: Reduce labor and packaging costs. FBA first-leg costs are lower than postal parcel and other logistics costs.
• Fewer competitors: Some sellers still choose to ship by themselves, and sellers using FBA have relatively few competitors.
• High selling prices and considerable profits: Products shipped by FBA are usually sold at a higher price, and the profit after deducting costs is better than self-shipping.
• High buyer satisfaction: Amazon’s logistics system ensures fast delivery and high buyer satisfaction.
• Facilitated processing of negative reviews: Negative reviews caused by FBA logistics issues can be applied for removal.

Disadvantages

• High storage costs: Long-term storage costs, especially, can eat into profits.
• Random distribution of warehouses leads to increased freight costs: This may cause FBA first-leg freight to exceed expectations.
• Increase in refund rate and defective products: Improper after-sales handling may lead to an increase in return rate.
• Complicated inventory processing: When products are removed or deleted, it is more troublesome to process FBA inventory.

Conclusion

Whether you choose to sell by yourself or use FBA to ship, you need to weigh the pros and cons. Sellers should develop strategies that suit them based on their product characteristics, brand competitiveness and market demand. At the same time, only by complying with Amazon platform regulations and continuously optimizing products and services can we stand out in the fierce market competition.