For Amazon sellers, there are 3 different shipping methods to choose from, and different options are suitable for different sellers and have their own different advantages and disadvantages.

1. Fulfillment by Amazon (FBA)

This method is to send the product to Amazon's delivery center, where Amazon staff will take over the product and handle all things, including storage, delivery, and picking. It is equivalent to you just taking the order on the platform, and then handing over the transportation needs to Xiangcheng International Logistics. Then Xiangcheng will help you handle all the cumbersome things such as customs clearance and help you deliver the goods to the foreign Amazon warehouse safely, which greatly saves your company Operating costs and time.

FBA benefits

·Because consumers usually prefer next-day or faster delivery speeds, obtaining Prime qualification allows sellers to get more buyers and sales;

· It becomes easier to seize the Buy Box;

· No need to worry about how to store items, develop selection and packaging systems, and do not have to negotiate with the express company how to ship;

·Customer service and returns are also handled by Amazon, so when you start selling online, you can spend this time on other things;

·You can automatically use FBA in Canada, the United States, Europe and Japan, but you can also use FBA to ship internationally, and even orders on non-Amazon platforms can also use FBA.

FBA disadvantages

·The seller must pay a certain fee to complete (including picking, transportation, packaging and processing returns) And monthly storage fees (beware of long-term storage fees). If you are selling larger, heavy or unsalable goods, you are susceptible to storage costs.

·Although you can track inventory and replenish goods, you actually do not have any control over the storage, picking, packaging and transportation methods.

2. Seller Fulfilled Prime (SFP)

Sellers who are eligible to join SFP can store goods in their own warehouses (need to meet certain standards),

Then you can distribute the product to Prime members and get the Prime logo.

SFP benefits

·Sellers can reach Prime customers, and can get more sales and better participate in Buy Box competition with guaranteed delivery.

· Sellers can use their own warehouses, so you can fully control inventory, delivery and packaging, which also means you can save more money paid to Amazon.

·If you want to attract more buyers and sales, using Amazon's Lightning Deals (Limited Time Purchase) is a good choice for SFP sellers.

SFP disadvantages

·Although Amazon will handle other customer service after the order, they will not handle returns. So you are responsible for such expenses, but it may take some time to get reimbursement from Amazon;

·You can choose your own warehouse, but the cost of renting space needs to be borne entirely by you;

·The promise of delivery within two days may be more difficult to reach;

·SFP can only be used in the United States, Britain, Germany and France.

3. Fulfillment by Merchant (FBM)

With this option, you will be responsible for the entire delivery process. This may benefit your business, but it can also be cumbersome, depending on what products you sell and what type of seller you are.

FBM benefits

·You can fully control the inventory storage and fulfillment process. If your performance is good, this can greatly reduce costs;

·Pay lower fees to Amazon;

·If you are a multi-channel seller, taking responsibility for delivery yourself will make it easier for you to stock up and track inventory.

·How you have to package the goods is completely up to you, so you can be creative in this area and further consolidate your brand image.

FBM disadvantages

·Your product will not meet Prime standards, and it may become very difficult to compete for Buy Box;

·Pay attention to the presentation of your product shipping costs. A better way is to include the shipping cost in the product price and promote free shipping, but this is not always feasible. You can provide buyers with several shipping options;

·You may lose buyers due to the long transaction cycle.

to sum up

FBM is more suitable for sellers who sell easily slow-moving, multi-box shipments, personalized or customized products, and do not have strong industry and logistics knowledge. Of course, Xiangcheng International Logistics also has a strong logistics knowledge system. If you want to do any of them, we will fully support you. SFP is more suitable for sellers dealing with multi-channel retailers, or the sales are personalized, perishable, seasonal Of products, sellers with strong industry and logistics knowledge. FBA may be a better choice for sellers who sell light and small items and the product price is relatively cheap.

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