For Amazon sellers, you should have one clear understanding of three principal parties: logistics forwarders, Amazon FBA , other third party oversea warehouses.
Under such kind of condition, you can develop your business platform to higher, farther.
For Amazon Sellers, if you don’t have your own enterprise or product, prefer to choose one third party logistics freight forwarder to offer service from initial order booking, delivery cargo from China to oversea buyer at high timeliness based on lowest logistics cost.
Under fierce competition on a global Amazon platform, oversea buyer chooses optimum logistics solution based on high efficiency, if your cargo transit rhythm is very long、loose and slow, they may reject to select you as optimum logistics service provider.
Custom choose logistics service provider based on consideration on two hand: delivery transit time is just one import hand; logistics cost is another import hand.
Normally, just for the Amazon seller as freshman entering international trade prefer to choose the delivery mode from China to oversea buyer directly.
Full name for FBA is fulfillment by Amazon, which is called Amazon logistics. It offers service by Amazon including warehouse, sorting, packaging, delivery, payment collection, custom clearance and return to deal as one stop integrative logistics service provider.
Here we discuss the advantages and disadvantages for using FBA.
Advantages:
1. Help Amazon seller to become one excellent seller and grab the shopping cart, enhance trust from their client, improve sales target;
2. Professional custom service with 24 hours online available;
3. High timeliness for delivery based on fast moving efficiency（most Amazon warehouse is located nearer with airport）
4. Rich experiences at logistics, warehouse all over the world, intelligent management system globally;
5. Avoid disputes caused by poor performance from traditional logistics service agency;
6. Service covering import customs clearance, reducing risk for customs clearance. Choice to use FBA headway will help oversea client complete the customs clearance smoothly, to prevent the goods was forced back to the high refund costs.
7. Lower cost: head of domestic FBA shipping logistics process service designed for B2C cross-border E-commerce business sellers, compared with the traditional LCL service, can save more cost for the consumer based on smaller cargo loading volume and lower rate level.
Disadvantages:
1. User interface for website is not very friendly.
2. Poor flexibility for emergency problem solving.
3. Problem for scanning label will affect good entering warehouse, even into the library
Other third party Oversea warehouses
Overseas Third Party warehousing services are supported by global foreign trading platform and independent logistic service provider to offer one stop management service including storage, sorting, packaging, delivery for Amazon seller to realize their sales target.
Good Sellers kept their own goods at third party oversea local warehouses, once the buyer releases order booking. Third party warehouses will make a response at first time, arrange sorting, packaging and local delivery at high efficiency.
Here we analyzing the advantages and disadvantages for such kind of third party oversea warehouses.
Advantages:
1. Low logistics cost:
Cargo is delivered from third party oversea warehouse to goods buyer, overall logistic cost is lower than delivering goods from China to overseas final client directly;
2. High timeliness for delivery efficiency.
After initial delivery from the port of loading, exporting and importing custom clearance is finalized through Amazon headway transportation, client has no worries about importing custom clearance for their goods, just waiting for order booking, arranging delivery at real time.
3. Better experience for warehouse management:
Professional experts offer service to client from order booking to delivering goods across integrative network. Order tracking is more convenient based on automated batch order processing.Currently EBAY order can be automated networking.
4. Clear inventory management system to show sales and inventory amount automatically, also the overall cost for every order is very obvious at a glance.
5. Free ERM warehouse management platform, once customer click mouse using computer, Professional team will process order booking and oversea warehousing for you at real time.
6. High efficiency to handle return product automatically, sometimes goods may be returned by the customer to the shipper directly due to various reasons, goods will be returned to oversea warehousing directly, to avoid more costly generated from custom clearance at home and abroad.Save more time.
7. Conquering overseas markets using the lowest investment and shortest time, to accumulate more resource and energy to expand your own target market, expand your business scope, gradually set foot on the road to be one successful businessman.
Disadvantages:
1.Invisible cargo. Because all of your inventory is on the other side of the earth, if you wish to see your own inventory at third party oversea warehouse on one morning.
It may be inappropriate for your choosing such kind of service.
To a certain extent, We shall win the customer’s heart by gaining their trust, confidence and loyalty to our services, in order to reach and exceed customer satisfaction.
At inital step, we advise customer to deliver small amount of goods to overseas warehouse, testing the service and feeling firstly.
2.Warehousing cost.
You should calculate the overall cost based on delivery mode you choosing firstly, compared with cost utilizing oversea Amazon FBA warehouse.
Especially for the storage cost for your goods during off-seasons. If your order booking volume is insignificant, no real advantage in terms of profits, then you are not suitable to choose oversea third party warehouses.
Logistics cost should be one key reason for your consideration. We suggest you choose oversea third party warehouses during high sales seasons.
3.Nature of goods to sell.
Normally, oversea third party warehouse requests you a certain amount of inventory to be sold.
If the production line is planned based on forecast request from your customer, unavailable to offer goods in advance, it is not suitable for you to choose oversea third party warehousing mode.
We suggest you design a number of independent goods for your customer to choose.
four、Prime Member:
Consumers on the Amazon platform, in general, there are two types: Prime members and Non Prime members. Only for members on Amazon platform can enjoy free service from FBA.
Freight will be higher for non member than stardard member.. Only 40% of the country’s registered users are an Amazon Prime member. For the balanced 60% non primary member registered for Amazon in USA, we suggest choosing a service using other third party overseas warehouse.
To some extent, overseas warehouse and FBA are very similar. Both services include storage, sorting, packaging, delivery service.
But there are a few difference between the two, like transportation, for goods delivered from China to oversea, oversea warehouse can help customs do custom declaration, transportation, warehousing service.
FBA can only offer service after cargo arriving at FBA warehouse.
Regarding return goods, oversea warehouse will check, do inexpensive test for returned goods, if no problem for quality, returned can be replaced for selling for secondary hand.
Nevertheless, for FBA, after accepting returned goods, never check the goods status, good or bad, only handle goods under bad condition to return goods from client to shipper.
Both FBA and other third party oversea warehouses have close relationship with logistics forwarder. Because at initial step, customer requests to deliver goods from China to their warehouse location then arranges following operation after goods entering the warehouse.
Goods should be delivered to oversea warehouse firstly through logistics forwarder. These three parties have a very close relationship.
If delivered goods are a great selling product, volume to deliver to oversea through logistics forwarder will be large, placing inventory entering FBA or other third party overseas warehouse. There will be more reliable choice for the consumer to choose during sales seasons.
First Choice, selling goods can be directly moving into FBA from other third party oversea warehouse,
Secondary Choice, to minimize the transit time for goods delivery. You can also choose FBA service to transport goods from other third party warehouses to ultimate consumer directly.
If you wanna to win in ferocious competition, these three import logistics partners are key elements involved to help your enterprise won as king.
Shenzhen Forest International Freight Forwarding specializes in foreign Amazon FBA headway as one-stop transport service provider. Global network covers all oversea Amazon warehouses.
If You are one client, no need to register account at overseas, just a phone call or an e-mail, we can transport the goods to the Amazon warehouse for you at fast timeliness babsed on lowest cost and reliable service.
