FBA is the abbreviation of Fulfillment by Amazon. "Fulfilled by Amazon" refers to the shipping service provided by Amazon warehouse. It refers to the one-stop logistics service provided by Amazon, including warehousing, picking and packaging, delivery, collection, customer service and return processing. Amazon FBA is somewhat similar to JD.com in China. Whether it is JD.com’s own operation or not, all products are shipped by JD.com Logistics.
What are the advantages and disadvantages of FBA?
FBA Advantages
The advantages of using Amazon Logistics include (but are not limited to):
Free Shipping on eligible orders that qualify for Amazon Prime: Amazon customers love free shipping and Amazon Prime, and both of these shipping options are available for your Amazon products.
Competitive pricing: Because your products qualify for free shipping through Amazon Prime, your FBA listings on Amazon will be sorted by product price excluding shipping costs. Trusted Customer Service and Returns: Amazon Fulfilled products display the “Fulfilled by Amazon” logo, so buyers know that packaging, delivery, customer service, and returns will all be handled by Amazon.
Trusted Customer Service and Returns: Amazon Fulfilled products display the “Fulfilled by Amazon” logo, so buyers know that packaging, delivery, customer service, and returns will all be handled by Amazon.
Fulfilling orders from other channels: Fulfillment by Amazon can use the inventory you store in Amazon fulfillment centers to fulfill orders from other sales channels. You will manage your inventory through a simple online user interface and can instruct us to return a stock at any time.
FBA Disadvantages
Disadvantages of using Amazon Logistics include (but are not limited to):
Higher costs: Generally speaking, the costs are higher than direct domestic delivery, but it also depends on the weight and size of the product (especially FBA delivery from third-party platforms). It is generally more suitable for products with small size, light weight and high price.
High requirements for warehousing: Compared with direct delivery, there is one more step - the FBA first leg, which involves issues such as tax declaration, customs clearance, and special label printing, which are not within the scope of Amazon's services. With more links, new problems may arise, resulting in the inability of goods to enter the FBA warehouse; at the same time, if the preliminary work is not done well, problems with label scanning will affect the entry of goods into the warehouse, or even prevent them from entering the warehouse.
Poor flexibility: There are certain difficulties in communicating with the FBA warehouse. You can only communicate with the customer service in English, and the reply via email will not be as timely as that of the customer service of the third-party overseas warehouse.
Inconvenience in returns and exchanges: FBA return addresses only support the United States (if you are doing FBA on a US site), which can easily cause problems in subsequent goods processing.
The above is some knowledge about FBA. If you want to learn more, please continue to pay attention!
