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What are the privileges of an Amazon VC account? Why can the hype be so expensive?
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03/07/2020
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03/09/2020

FBA Shipping costs are too high? Start from these aspects to reduce FBA costs

03/08/2020
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    FBA Shipping costs are too high? Start from these aspects to reduce FBA costs

    Everyone knows that Amazon FBA service has many advantages, but also has many disadvantages. The biggest disadvantage is the high storage cost. If the seller’s product sales are not good, which leads to the accumulation of goods in the warehouse, it will generate very high storage costs.

    1.Select the right FBA head trip

    FBA head services on the market include direct delivery, FBA air + delivery, FBA maritime headway, and overseas warehouse transfers. Their prices and delivery time are compared as follows:

    Price comparison: overseas warehouse transfers <seaborne FBA head journey <FBA air + send <direct delivery;

    Delivery time comparison: overseas warehouse transfer <direct courier <FBA air + delivery shipping <FBA head journey

    2. Choose carefully

    From the selection process, we should take logistics factors into consideration. For products of equal value, between large-volume products and small-volume products, sellers should give more consideration to small-volume products, because the product size is small, the FBA fee will be lower, thereby obtaining a higher profit margin.

    3. Reasonable delivery and LCL

    The seller can refer to the volume of the container and design the packaging according to the order quantity. For example, a carton usually contains 12 pieces, but if a container cannot fit, it can be changed to a carton containing 15 or 20 pieces. Then according to the size of the inner box of the container, the size of the carton is designed, and an optimal packing scheme is developed to achieve an optimal state.

    4. Pay attention to the abnormal situation of FBA inventory

    Reducing economic losses FBA does not guarantee 100% of your product’s safe storage. Some sellers will find that occasionally there will be product loss and inconsistent quantities. The seller should check the quantity and information of the product’s storage in detail. In case of abnormal stock situation, contact customer service in time for inquiries and claims, which can reduce economic losses.

    5. Avoid the largest degree of separation

    Under the premise that the same 500 kg of goods are sent to FBA, the logistics cost to the same warehouse is 26 yuan / kg, and the logistics cost of separate warehouses to different warehouses is 28 yuan / kg. Cost may save 1,000 yuan.

    6.Use discount packages

    The so-called discount package is to integrate some products and peripheral products into one package and sell them on the platform. Of course, sellers can also use bundled sales methods to sell complementary products together.

    If you follow Amazon’s rules, sellers can create bundled products themselves. Of course, these bundled products are generally priced higher than the price of individual sales. If you choose a discount package, then only if there is a product discount package in the Amazon catalog, you can publish sales. In addition, compared to individual sales, whether it is bundle sales or discount package sales can save a lot of costs!

    7. Amazon light and small logistics plan

    It is understood that Amazon’s light and small logistics plan can help some sellers reduce FBA logistics costs by about 20%. Currently, it supports sellers in the United States and the United Kingdom to apply, and eligible sellers can apply.

    8.Combined operation of multiple logistics

    Now more and more sellers will try the combination of international logistics, overseas warehouse and FBA. If the product is “explosive”, you can first go to international logistics to ship large quantities of products abroad, then partially put them in overseas warehouses, and some choose FBA to enter the warehouse. When the peak season comes, we can first transfer overseas warehouse goods to FBA, shorten the storage time of FBA goods, or use the FBA door-to-door receiving function to allow FBA to pick up goods from overseas warehouses and reach buyers.

    By understanding the various options of Amazon FBA, sellers can save money and increase efficiency. As Amazon continues to expand its logistics network, the analysis of various options becomes more and more important. Sellers should pay attention to the fact that logistics selection and inventory selection cannot be changed in one layer, and must be modified according to actual conditions.

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