As Amazon sellers all know, logistics costs account for the bulk. Today, platform policies change from time to time. Compared with a few years ago, logistics costs have risen.
Amazon sellers should choose a reasonable delivery method to reduce unnecessary troubles, effectively reduce costs, and improve single product profits.
How to choose Amazon's shipping method?
Amazon's common shipping methods
In my country, the delivery methods commonly used by Amazon sellers include FBA, self-delivery and overseas warehouses, each of which has its own characteristics.
The full name in English is Fulfillment by Amazon, which is Amazon's logistics service . It refers to Amazon's open platform for third-party sellers, incorporating sellers' inventory into Amazon's global logistics network, charging corresponding service fees, and providing services such as warehousing, picking, packaging, and terminal delivery.
The FBA service covers the entire Amazon sales chain, and the logistics and delivery speed is very fast, which is beneficial to the sellers to improve the Amazon store ranking and exposure, bringing a large number of orders, and the sellers are more worry-free.
The full name in English is Fulfillment by Merchant, which means that the seller only uses Amazon as a sales channel, and the seller is responsible for the warehousing, picking, packaging, distribution, after-sales and other processes of the goods . After the buyer places an order, the goods will be delivered to them by international express, special line, postal service, etc.
Using FBM for delivery, the goods do not need to be stored overseas, there is no inventory pressure, and the cost of warehousing is lower, so the profit of a single product is higher. Sellers can customize the packaging of goods, provide after-sales service directly, and shorten the distance with buyers.
It means that the seller stores the goods in the overseas warehouse , and the overseas warehouse provides services such as warehousing, picking, packing, and distribution. When Amazon has an order, the seller can push the order to the overseas warehouse, and the warehouse will deliver the goods on demand according to the seller's instructions, or serve as a transit warehouse to replenish the FBA in time.
Overseas warehouse service fees are lower than FBA. Sellers can stock up to overseas warehouses in the destination country in advance, and replenish them to FBA in time to avoid the problem of warehouse bursting in peak seasons and ensure logistics timeliness. Overseas warehouses generally have cooperative distribution platforms, which can help sales if the products are unsalable.
How to choose the Amazon shipping method?
Choosing the right shipping method can reduce capital and time costs. Amazon sellers can refer to multiple dimensions, make comprehensive judgments, and choose the shipping method that suits them.
Generally speaking, the cost of the same batch of goods: FBA > overseas warehouse > FBM , it is recommended that Amazon sellers choose according to their own capital operation.
Amazon FBA has many types and high prices, including order allocation, storage, relocation, return processing, etc.;
Compared with FBA, there are fewer types of charges for overseas warehouses, and the price is also lower;
FBM sellers directly deliver goods from domestic warehouses to buyers without additional overseas storage fees.
Different product types require different shipping methods .
The price of Amazon FBA is expensive. In order to ensure the gross profit of the product, it is more suitable for products with good quality and high profit per product;
Compared with FBA, the overseas warehouse price is lower, and it is more suitable for products with large volume and weight and high sales volume that need to be stocked in advance;
FBM, on the other hand, does not require overseas storage fees, and is more suitable for products with large volume and weight, seasonality, and low profit per product.
Generally speaking, from placing an order to the arrival of the goods to the terminal buyer, the logistics speed is: FBA < overseas warehouse < FBM.
FBA sellers stock up on Amazon warehouses in advance. After buyers place orders, the platform will quickly deliver goods from the nearest warehouse, with extremely fast timeliness;
Overseas warehouse sellers prepare goods in advance to the destination country, order information is synchronized with overseas warehouses, overseas warehouses can deliver goods on behalf of them, or replenish goods to FBA in time, and the timeliness is faster;
After the FBM seller receives the order, the goods are packaged from the domestic warehouse, shipped from the warehouse, and then shipped across the border. The timeliness is very slow.
FBA is suitable for Amazon sellers with abundant funds, good product quality, high profit per product, and abundant funds;
FBM , suitable for Amazon sellers with large product volume and weight, or with seasonality, low single product profit, and less capital;
Overseas warehouses are suitable for FBA sellers who need overseas warehouses as transit warehouses for timely replenishment, or Amazon sellers with rich experience, sufficient funds, and large and heavy products.
How to manage Amazon's delivery?
There are many delivery methods for Amazon products, involving processes such as warehousing, replenishment, and logistics. In addition, sellers often have business layouts in multiple overseas sites, which is extremely difficult to manage.
Leading Star ERP integrates FBA delivery, overseas warehouse stocking, self-delivery management, warehousing management, logistics management, replenishment and other links, focusing on solving the problem of Amazon sellers' delivery .
Get through Amazon FBA, shipping is more convenient
To use FBA to ship, you need to fill in the shipment on Amazon, connect to the supply chain procurement, generate a delivery order offline, and contact the logistics head for delivery. The process is complicated .
Linkstar ERP opens up the interface with Amazon FBA, synchronizes shipment information with Amazon, connects FBA delivery processes such as procurement and logistics, and provides an overview of the delivery situation in Linkstar. In addition, it supports multiple delivery scenarios to directly generate delivery orders, making FBA delivery more convenient and faster .
Efficient management of overseas warehouses, more accurate replenishment
The overseas warehouse stocking process is complicated . The seller needs to make an appointment for delivery to the warehouse on the service provider's OMS system before contacting the logistics to stock up the goods to the overseas warehouse. The goods are managed by a third party, and it is difficult to manage the inventory inflow and outflow.
Leading Star ERP has opened up 50+ overseas warehouses, and supports efficient management of overseas warehouse stocking processes . The circulation status of stocking, packing, delivery, and receipt is clear at a glance. In addition, data such as inventory and cost of overseas warehouses are provided to facilitate subsequent accurate replenishment.
Closed-loop self-delivery process, more efficient order management
FBM sellers need to be responsible for order management, packaging, warehousing, cross-border delivery, after-sales, etc. If a step is wrong, it will affect the business. However, because the process lacks a closed loop, it is difficult to detect problems in time.
Leading Star ERP supports Amazon's multi-site FBM order management, and opens up the data chain of each link to close the FBM process . It supports order merging and splitting, collecting and picking by order, and flexibly arranging delivery. Real-time synchronization of inbound and outbound data online, saying goodbye to mistakes.
Manage warehousing in an orderly manner and solve inventory problems
Many Amazon sellers will use a variety of ways to deliver goods, involving warehouses including self-built warehouses, FBA warehouses, and overseas warehouses. There are too many third parties to connect with, and monitoring positions and inventory is a problem , and sometimes you don’t know about lost goods.
Leadstar ERP helps sellers manage self-built warehouses, FBA warehouses, and overseas warehouses in an orderly manner, online orderly, planning, distribution, use, and adjustment of goods storage positions, and efficient management of goods. In addition, the inbound and outbound situation is recorded in real time. If there is an abnormal automatic inventory profit and loss, the data will be automatically summarized to control the real inventory and avoid loss of goods.
Unified logistics management, one-click efficient order placement
Amazon sellers are the first to transport , and there are often many cooperative suppliers, which involve a lot of address information, which is difficult to manage systematically . In addition, the logistics cost of each order is different, and the allocation of financial freight is also a problem.
Linkstar ERP has opened up the API interface with 100+ logistics providers. Amazon sellers can place orders for logistics in the system, manage logistics providers, addresses, delivery status and other information in Linkstar, and deliver goods efficiently . You can also customize the template to apportion the first-way freight, which is convenient for cost calculation.
Provide replenishment advice, say goodbye to the risk of backlog and out of stock
Timely replenishment and delivery of goods to buyers as soon as possible can improve the competitiveness of Amazon sellers. However, if the replenishment is improper, it will cause inventory backlog and increase storage costs , or the out of stock cannot be shipped in time, which is criticized by buyers.
Linkstar ERP is connected with local warehouse, FBA warehouse, and overseas warehouse data, supports multi-site replenishment needs, and provides replenishment suggestions for sellers , including recommended purchases and shipments. Help sellers to replenish scientifically and say goodbye to overstocking and out-of-stock risks.
The management systems of vertical Amazon, such as Leadstar ERP, can improve the management ability of sellers' delivery and other processes, and have been selected by 100,000+ cross-border e-commerce enterprises.