How to rationally use the two logistics methods of FBA and overseas warehouses
To be a cross-border e-commerce business, what is indispensable is the product inventory. On the Amazon platform, there are FBA warehouses and third-party overseas warehouses to choose from, and the overseas warehouses that everyone was not familiar with before are now gradually becoming popular. In many cases, merchants will also make use of third-party overseas warehouses and FBA warehousing according to their own products, so as to improve the shopping experience of buyers and also increase the product sales of their stores. So, do e-commerce sellers know the advantages and disadvantages of third-party overseas warehousing and Amazon FBA warehouse?
Using third-party overseas warehousing is the same as Amazon’s FBA warehouse:
1. Both require sellers to stock up in advance, and both have good warehousing management experience, so there is no need for sellers to worry about warehousing and distribution issues.
2. Both can shorten the delivery time, improve customer satisfaction, and help store sales growth.
3. Sellers are required to ship in batches, and the delivery method generally chooses air, express, and sea, which can effectively avoid logistics peaks.
4. Can provide return and exchange service for buyers. Haituotong’s overseas warehousing can also provide services such as warehouse transfer, re-printing or substitute labeling, product testing, sub-boxing, customs duty payment, insurance and other services.
5. Regardless of whether you choose a third-party overseas warehouse or Amazon FBA warehouse, the seller needs to pay warehouse rental fees, logistics fees and other fees every month;
6. The product is out of the seller’s control, but both are provided with customer service to let the seller know the stock situation.
What are the advantages and disadvantages of third-party overseas warehousing and Amazon FBA warehouse:
Advantages of third-party overseas warehousing for sellers:
1. Time is shortened and efficiency is improved;
2. Reduce logistics costs and customs clearance costs;
3. Increase the profit of the product;
4. Achieve a large number of small-scale orders and increase transaction volume;
5. Efficiently manage goods and process orders quickly;
6. Improve product rate, form brand effect, scale effect, and improve product competition rate;
7. Upgrade the traditional trade model to overseas warehouse trade, shorten the trade process and reduce the entire trade risk.
Advantages of third-party overseas warehousing for buyers:
1. A large number of suppliers to choose from;
2. The commodities are abundant and the quality is fully guaranteed;
3. It is convenient to see the goods, and purchase flexibly and freely, reducing the risk of unsalable inventory;
4. Reduce the company’s investment and reduce operating costs;
5. Shorten the time for receiving and returning goods.
Advantages of Amazon FBA warehouse:
1. Improve Listing ranking, help sellers become featured sellers and grab shopping carts, improve customer trust and increase sales;
2. Years of rich logistics experience, warehouses all over the world, intelligent management;
3. The delivery time is super fast (most of the warehouses are close to the airport);
4. Amazon professional customer service;
5. Erase the negative review disputes caused by logistics.
Disadvantages of Amazon FBA warehouse:
1. Generally speaking, the cost is slightly higher than that of domestic delivery, but it also depends on the weight of the product;
2. Poor flexibility (a common shortcoming of all overseas warehouses, but other third-party overseas warehouses can still have dedicated Chinese customer service to deal with some problems, but FBA can only communicate with customers in English, and the reply by email will not be communicated to the third party. The three-party overseas warehousing customer service is so timely);
3. If the preliminary work is not done well, the problem of label scanning will affect the warehousing of goods, or even fail to enter the warehouse.
