FBA advantages: 1) Improve Listing ranking, help sellers become featured sellers and grab shopping carts, improve transaction rate and sales volume. 2) Self-built warehouse delivery time fast, unconditionally delete the logistics of the mediFBA advantages:
1) Improve Listing ranking, help sellers become featured sellers and grab shopping carts, improve transaction rate and sales volume.
2) Self-built warehouse delivery time fast, unconditionally delete the logistics of the medium and bad comments, to maintain a good store index.
3) When there is a problem or question about the product, Amazon provides 7*24 hours professional customer service.
4) For standard sizes, products costing more than $300 are exempt from all FBA charges. For example, for small items of high value, Amazon Logistics does not charge additional logistics delivery fees.
FBA disavantages:
1) The seller needs to prepare the goods to the warehouse designated by Amazon in advance. Amazon is not responsible for customs clearance and solving the problems of the first journey. The seller needs to prepare the goods to the warehouse designated by Amazon in advance by express, air, rail and sea.
2) High comprehensive cost. Compared with the accumulation of all related costs of spontaneous cargo and overseas warehouse, the cost of FBA is higher. Because the seller needs to pay Amazon logistics warehousing and a series of related costs.
3) Poor flexibility. Besides, due to the difference in time difference and working habits, the efficiency of replying and dealing with problems is not very high. FBA can only be used by sellers on Amazon platform, and it is the default warehouse division in the background. The products of sellers will be distributed to different warehouses, and sellers can only send them to different warehouses respectively, which increases the cost.
4) Label problems affect delivery. If the goods are delivered to the FBA warehouse, they need to be labeled by Amazon. After Amazon receives the goods, they can be scanned and put on the shelves, sorted and delivered. If the product label is wrong or damaged, the product cannot be put on the shelf.
5) Refunds and exchanges are handled in favor of customers. Amazon supports unconditional return and exchange for customers, but FBA warehouse will not conduct any identification on the returned products. Even if the returned products have no quality problems, Amazon will not put the products on the shelves again. If the product is returned, either destroyed or returned to the seller, Amazon will charge an additional fee.
6) Strict commodity restrictions and packaging requirements. Amazon has strict product restrictions and packaging requirements for FBA products. Those within the limits of Amazon or whose packaging does not meet the requirements of Amazon will be rejected and withdrawn by Amazon.
Delivery advantages of overseas warehouse:
1) The overseas warehouse can provide the seller with one-stop services such as customs clearance, tax payment and delivery to the warehouse. Just like FBA, overseas warehouse needs to prepare goods for overseas warehouse in advance.
2) Lower warehousing and logistics costs. Overseas warehouse can also provide goods warehousing, sorting, packaging, delivery of one-stop services, the comprehensive cost is much lower than FBA.
3) Compared with FBA, it is much more flexible. The third party overseas warehouse is generally in cooperation with domestic logistics providers, overseas warehouses are stationed by Chinese, communication and processing is convenient and quick. Overseas warehouse has no platform restriction. No matter which platform is sold, overseas warehouse can be used.
4) Overseas transit. The overseas warehouse can also be used as an overseas transit warehouse. Especially in the peak season, when some sellers are out of stock on the Amazon platform, if the overseas warehouse has the goods, they can directly transfer them from the overseas warehouse to the FBA warehouse to save the time of domestic delivery and replenish the inventory in time.
5) As for the returned or replaced products, if there is no quality problem, the overseas warehouse can replace the label or re-package them and put them on the shelves for sale again to reduce the loss.
6) The restrictions and packaging requirements of products are not so strict. Compared with FBA, the third-party overseas warehouse has less strict restrictions and packaging on products. Moreover, if the outer container is damaged, the overseas warehouse can help to change the container.
Disadvantages of overseas warehouse:
1. Overseas warehouse service providers cannot provide a platform for the seller's products or increase the explosiveness on the platform as Amazon does. The seller needs to do the promotion inside and outside the website to increase the performance of the store.
2. The overseas warehouse may not be able to provide after-sale and complaint service for the neutral and negative comments caused by the use of overseas warehouse. Even if it is provided, it may not be able to successfully eliminate the neutral and negative comments left by customers.
Advantages of MFN（Merchant Fulfillment Network） :
1) Controlled inventory, small inventory capital occupation and high capital turnover rate. The inventory of spontaneous goods mode is in the hands of the seller, and the seller manages the inventory by himself, which can control the inventory in time, speed up the inventory turnover, reduce the capital occupation, controllable inventory risk, flexible, and less inventory pressure.
2) More options of delivery channels, more flexible operation. Sellers spontaneous goods, can choose more channels, spontaneous goods channels have international small package (including surface mail, registered), international special line small package, international express, sea transportation and other ways. The seller can choose the most suitable delivery channel according to the characteristics of their products and the needs of customers, control the logistics cost, and meet the needs of customers.
Disadvantages of MFN （Merchant Fulfillment Network）:
1. The seller has to deal with packaging, transportation, customer service and return by himself, which makes the seller have to spend a lot of time and manpower on it.
2. Although there are many options for spontaneous goods, the time limit is not very controllable. If the goods are delivered in a timely manner or the logistics is too slow, the customer's negative comments cannot be eliminated. At the same time, consumers are also inclined to buy products under FBA logistics, so the use of spontaneous goods may have a certain impact on store sales.
No matter choosing FBA, spontaneous goods or third-party overseas warehouse, they all have their own advantages and disadvantages. Each seller can choose to use according to their actual situation. For large volume of goods sellers, you can choose the combination of FBA warehouse and overseas warehouse.
2021.7.18
