What are FBA? 3 common logistics problems in Amazon

What are the more common ways of FBA? The logistics link occupies a large part of the Amazon platform operation process, and it is also a very important link. For Amazon Chinese sellers, choosing a cost-effective logistics has become one of the current pain points. When doing logistics at Amazon, sellers not only need to consider issues such as customs clearance, customs clearance, transportation methods, and transportation time when crossing borders, but also need to consider issues such as freight, delivery speed, breakage rate, and packet loss rate for individual products. Once you do n’t choose a suitable logistics method, not only will you not be able to save logistics costs, but it may also be badly evaluated by buyers, leading to a sharp decline in the exposure, ranking, and conversion rate of listings.

First, the common ways of FBA distribution

There are currently three methods of FBA distribution: Amazon FBA, third-party overseas warehouses, and self-delivery.

1. Amazon FBA shipping

Many Amazon sellers give priority to FBA delivery, not only because FBA logistics has a fast delivery speed, but customers trust it. The most important thing is that Amazon FBA can improve the listing ranking. Amazon will help remove it. Of course, the disadvantage of Amazon FBA is that the overall cost will be high, and the first-trip operation is cumbersome. It also requires sellers to clear customs, and the buyer's return rate is easy to rise, which increases the cost of pressing goods. If the seller is US FBA, the return address only supports the US

2. Third-party overseas warehouses

Compared with Amazon FBA, the cost of third-party overseas warehouses is lower, which can shorten the logistics timeliness and help develop the local market. It should be noted that the inventory pressure of third-party overseas warehouses is large, there is a risk of backlogs, and the management level is also uneven.

3.Self-delivery

The advantage of self-delivery is that it has higher operational flexibility and lower storage costs, which can reduce the cost of pressing goods. However, the exposure and ranking of listing are not as much as Amazon's FBA, and buyers are also more likely to give bad reviews due to logistics. At the same time, since the delivery does not have the Prime logo, it is difficult to attract the attention of Prime members.

Self-delivery is also divided into 3 categories: postal, express and dedicated lines. Although the weight of the postal packet is limited, the price will be cheaper. Although the price of express delivery is high, it can be reached quickly and with high timeliness. As for the dedicated line logistics, it is not only efficient, but also safer, and the praise rate is relatively high. Sellers should choose the self-delivery method that suits them according to the characteristics of the products they sell, the degree of time required by the buyer, the location, the logistics budget, and the off-peak season.

2. What issues might Amazon Fulfilment encounter during Amazon peak season?

All Amazon sellers attach great importance to the Amazon peak season, and sales account for a high proportion of total annual sales. However, when orders follow, logistics also peaks, and problems are most likely to occur at this time. These problems may be encountered by many sellers:

① Delay in customs clearance: Some countries have stricter inspections of goods, and inspection rates will also be higher;

② Delay in package delivery: In the peak season, the number of packages is large, and the logistics channels are easily sold out, and the delay in delivery is more common;

③ Packets are lost, dropped, or delivered incorrectly.

Therefore, in order to avoid encountering these problems during the peak season, the seller needs to prepare the early work of FBA distribution. The goods should be declared as early as possible. The relevant shipping channel information should also be understood in detail, and the market should also pay attention to. Situation, you can consult with the supplier, make an appointment in advance and cooperate with their delivery needs.