UAE DDP, What disadvantages does UAE FBA logistics have compared to Amazon's direct logistics?
Restrictions on Special Goods: UAE FBA logistics also imposes certain limitations on the transportation of specific types of goods. For instance, items that are flammable, explosive, perishable, or otherwise hazardous may face shipping restrictions. Sellers need to familiarize themselves with the relevant regulations beforehand to avoid unnecessary complications.
Relatively High Overall Logistics Costs: Generally, the comprehensive logistics costs are higher compared to domestic shipping. However, this depends heavily on product weight. FBA is typically more suitable for compact, lightweight items with a slightly higher market value. If an item is bulky but lightweight, the head-leg of FBA shipping will be calculated based on volumetric weight, leading to extremely expensive costs – potentially even 1-2 times the product's cost price.
Lower Pricing, Smaller Profit Margins: While UAE FBA logistics pricing is relatively low, this also means its profit margins are narrower. For price-sensitive sellers, it might not be the optimal choice.
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