What are the Amazon fulfillment models?
For Amazon sellers, running a successful store requires more than just ensuring product quality. Efficient logistics and after-sales service are equally crucial to avoid negative reviews and provide excellent customer service. So, what fulfillment models does Amazon offer? Let's break them down — here are the main logistics models used on Amazon:
FBA (Fulfillment by Amazon)
FBA is a service provided by Amazon that handles storage, picking, packing, shipping, payment processing, and customer service.
Features: Sellers ship their products to Amazon's designated fulfillment centers. When a customer places an order, Amazon handles the delivery directly. FBA provides an efficient logistics solution for sellers and fast, reliable service for customers.
Costs: FBA costs can be complex, including storage fees, fulfillment fees, handling fees, etc. Pricing is calculated based on product size, weight, and storage duration.
Third-Party Overseas Warehouses
These are fulfillment services offered by independent logistics providers who manage storage, picking, packing, and delivery in the destination country.
Features: Sellers store their inventory in third-party warehouses located near their target markets. When an order is placed, the warehouse processes and ships the item. This model offers greater flexibility and control while reducing inventory and operating costs.
Costs: Fees generally include warehousing, handling, and shipping charges. Costs vary depending on warehouse location, service level, and product characteristics.
FBM (Fulfilled by Merchant) / Self-Fulfillment
In this model, the seller ships orders directly to customers from domestic suppliers or their own warehouse.
Features: The seller manages the entire fulfillment process, including picking, packing, shipping, and delivery. This model requires strong logistics capability and involves higher risks and operational costs.
Costs: Costs typically include domestic shipping, international freight, customs duties, and clearance fees. The total cost depends on the shipping method, product type, and destination country.
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