For Amazon sellers, logistics is a crucial link. To open a store on Amazon, you can either go with FBA, which is Amazon's official logistics distribution, or FBM, which is all other logistics distribution. What we need to understand now is Amazon's third-party logistics.
Third-party logistics refers to a logistics operation and management method in which production and operation enterprises entrust the logistics activities that originally belonged to them to professional logistics service companies in the form of contracts in order to concentrate on their main business. At the same time, they maintain close contact with the logistics companies through information systems to achieve control over the entire logistics process. It does not own goods and does not participate in the buying and selling of goods. Instead, it provides customers with serialized, personalized, and information-based logistics agency services that are bound by contracts and based on alliances.
Take Amazon in the United States as an example:
Amazon's delivery process is outsourced. The domestic part is outsourced to the United States Postal Service and UPS, and the international part is outsourced to CEVA, FedEx, etc. On this basis, we will build a large-scale "logistics center" to concentrate the scattered order demands (not only the information but also the goods), and then connect with large-scale logistics companies such as UPS and Jihua Logistics to give play to the scale effect of coordinated distribution. Third-party sellers on Amazon, whether individual sellers or small and medium-sized enterprises, can deliver goods to the nearest Amazon logistics center, and the fees are calculated based on the space and time occupied. After a customer places an order, Amazon employees will be responsible for order processing, packaging, shipping, third-party delivery, and returns and exchanges, and then charge an order execution fee. The biggest highlight of Amazon Logistics is the use of high technology. From Bezos' garage 20 years ago to today's robot warehouses and drone deliveries, its entire set of e-commerce warehousing and logistics models supported by high technology has always been a demonstration and catch-up target for other e-commerce platforms.
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