Amazon FBA and Amazon FBM don't know how to choose. Let's see the tips

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

B2b Amazon FBA and Amazon FBM don't know how to choose, let's see the tips

There are usually two kinds of Amazon logistics modes, one is Amazon FBA, and the other is Amazon FBM. Both have their own advantages. Which is more suitable for sellers? Follow Blue Ocean Yiguan to learn about Amazon's logistics model.

When choosing the logistics mode, sellers should first consider their own problems, whether the order quantity is large or small, whether the first journey freight is expensive, and choose the appropriate logistics according to the specific situation.

Amazon FBA

Amazon FBAyesFulfillment by Amazon, FBAIt is Amazon's self operated logistics. Amazon is responsible for all services from picking, packaging, distribution and return. Sellers don't have to worry about it. As a fee based service provided by Amazon to sellers, FBA fees are usually expensive.

Amazon FBM

Amazon FBMIt is the abbreviation of "fulfillment by merchant". It is the self delivery of Amazon sellers. After the seller receives the customer's order, the seller is responsible for picking, packaging, and selecting the express delivery. Selecting the appropriate express delivery and sending it to the buyer, usually in the form of "one by one", also known as "no source mode".

Advantages and disadvantages of Amazon FBA

advantage

1、The FBA delivery mode can save the seller's worry and effort. Instead of worrying about the delivery problem, it is only responsible for the sales volume;

2、Give the seller some priority, such as preempting the gold shopping cart;

3、The timeliness of FBA delivery is good. For example, the goods can be received within 3-5 days in the United States. The user experience is particularly good;

4、It can quickly improve the listing ranking, get more traffic and clicks on the page, and increase the order volume;

5. Priority can be given to distribution, and there is no backlog of seller's funds, facilitating turnover.

Disadvantages:

1、The storage service charge of FBA is generally expensive, as well as the delivery service charge, which is usually charged on a per piece basis. If the size and weight exceed the standard, it will be charged more;

2、The seller needs a large amount of stock and money to send to the FBA warehouse;

3、Cannot provide customs clearance service for the seller's first shipment;

4、If the FBA warehousing work is not in place, it may lead to trouble in the late return procedures.

Advantages and disadvantages of Amazon FBM

advantage:

1、Logistics covers a wide range, and there are many options for express delivery, such as air, sea, or express delivery, which is up to the seller;

2、There is no need to hoard a lot of goods. The seller delivers goods by himself. He basically sends the goods after the next order. There is no need to overstock the goods and no need to spend a lot of money;

3、The seller's profit is usually considerable, basically 30% to 40%;

4、The seller's selection is relatively self owned, with fewer bars and boxes subject to restrictions, and is not limited by the logistics inventory. It is very free.

Disadvantages:

1、Timeliness cannot be guaranteed. Severe weather may affect the speed of shipping. Sometimes the goods will arrive in the buyer's hands, which may even take one month. It is easy for the buyer to give a bad comment;

2、The collection time is relatively slow, usually takes about a month.

Blue Ocean Yiguan reminds all sellers that when choosing the Amazon logistics model, sellers should start from reality and see whether Amazon FBA has more benefits or Amazon FBM has more benefits. They really don't know how to choose. They can refer to their competitors and learn a lot from it.

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