Which is more suitable for the seller than Wal Mart WFS and Amazon FBA

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

Which is more suitable for the seller than Wal Mart WFS and Amazon FBA

Wal-MartandAmazonThese two platforms are striving to become the first choice for online shopping, and the competition between them is very fierce. Launched on AmazonFBAMore than a decade later, Wal Mart launchedWFS, just like playing a game with Amazon.

WhenAmazonLaunched in 2006Fulfillment by Amazon(FBA) service, it uses this new model to change the rules of all sellers, making it the only e-commerce platform that provides such services.

Blue Ocean Yiguan has learned that,In February 2020, Wal Mart launched services similar to FBA:Walmart Fulfillment Services(WFS)。 WFS has many similarities with FBA, providing storage and distribution infrastructure for sellers.

Here are some comparisons between Wal Mart WFS service and Amazon FBA service.

IWFS VS FBA: Registration

1. Anyone can join the FBA program, but WFS has restrictions. Only qualified sellers who meet specific requirements can join the program.

2. Under establishmentWFS AccountThe seller needs to prepare a large number of documents, such as US sales tax ID andEINVerification letter and other documents.

3. Wal Mart prefers experienced sellers to Amazon.

According to Ecomcrew data, in 2020Wal Mart WFS SellerThe number is more than 120000 (124755), and the revenue is 524 billion dollars, higher than Amazon. This is because its business model combines physical stores with digital shopping.

Amazon FBALast year's revenue was 386 billion US dollars, with about 40% of the e-commerce market. Amazon has 1.5 million active sellers, but there is no data showing how many sellers are under the FBA plan.

IIWFS VS FBA: Transport Logistics

1. FBA requires the seller to transport the inventory to multiple distribution centers, whileWal Mart SellerSimply ship inventory to a distribution center.

2. WFS only accepts domestic freight, while FBA accepts international freight.

3. With FBA, the seller can sell products of all sizes, but WFS products are limited in size and weight.

(1)The maximum shipping weight of WFS is 30 pounds and FBA is 150 pounds.

(2)WFS maximum product size 25inchX 20 "x 14", FBA is the longest side 108 "and length+circumference 165".

4. Amazon provides shipping labels for sellers, but WFS does not.

5. FBA provides more logistics options. The seller can use multiple channels, but WFS cannot.

3、 WFS VS FBA: Fees

1. Amazon provides cheaper shipping costs than WFS.WFS feeFrom $3.45, FBA starts at $2.50.

2. Except that Amazon's storage expense in the last quarter is higher than WFS's, the storage expense in other quarters is the same.

(1)First quarter to third quarter: The storage charge of WFS is 0.75 USD/cubic foot/month. FBA standard size products are 0.75 dollars/cubic foot/month, and oversize products are 0.48 dollars/cubic foot/month.

(2)Fourth quarter: WFS stores items for less than 30 days at USD 0.75/cubic foot/month, and items stored for more than 30 days at USD 2.25/cubic foot/month. FBA standard size products are $2.40/cubic foot/month, and oversize products are $1.20/cubic foot/month.

3. Amazon requires sellers to pay a regular monthly fee ($39.99 per month for professional programs) to joinFBA Plan, but WFS does not need it.

Amazon and Wal Mart compete not only in logistics services, but also in many other areas such as fees and profits. However, when deciding which of these two methods is better, don't forget that,The seller can actually use both methods at the same time

According to Blue Ocean Yiguan,Before 2020, many sellers do not choose to sell in Wal Mart because Wal Mart does not provide logistics and warehousing services. However, the introduction of WFS has changed everything. It is also competitive with FBA, but only for specific sellers.

In addition,Wal Mart WFS ServicesOne big disadvantage is that it currently only accepts shipments from the United States. So for now,Amazon FBAStill have more advantages.

(Polly ZhangNew media of cross-border e-commerce - Blue Ocean Yiguan website domain news) connects with high-quality resources of cross-border e-commerce.Wal Mart, CoupangWayfair 、Mercado Libre and other platforms settledBrand copywriting planning, network wide promotion, e-commerce training, incubation and other services, please contact us. No unauthorizedRewriting, reprinting, copying, clipping and editingIn whole or in part.

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