FBA, which is Fulfillment by Amazon, means that the sellers send the products sold on Amazon to the local warehouse directly.When the customer places an order, the Amazon system completes the delivery automatically.
Overseas warehouses refer to storage facilities established overseas. Cross-border e-commerce enterprises export goods to overseas warehouses in batches according to the general trade method. When the order placed, the goods are delivered to consumers.
The advantages of overseas warehouses
Faster deliver speed. It reduces order response time by 50-70% compared with delivering from China effectively. Also, it can improve user experience and reduce product turnaround time greatly.
Lower logistics costs. By centralized delivery to overseas warehouses, the cost of delivery can be reduced 30-50% by the United States local express.
Convenient adjustment of FBA inventory. For sellers, the overseas warehouse is a buffer warehouse for Amazon FBA, which is convenient for flexible adjustment of FBA inventory.
The shortcomings of overseas warehouses
Paying storage fees. When using overseas warehouses, you need to pay a certain fee, which is usually charged on a daily basis. And the storage costs in different countries are also different, the seller needs to calculate the cost.
Stock. The precondition for storing in an overseas warehouse is that the seller needs to have a certain amount of stock,which means that it needs to be stocked in advance, which will bring the risk of slow sales. And it is not suitable for sellers selling special customized products.
Inconvenient capital turnover. Due to bulk stocking to overseas warehouses, the funds for stocking, logistics and warehousing caused and other large-scale capital investment could lead to capital chain faults easily.
The seller's warehouse management data monitoring requirements are high. Seller need to monitor the goods in and out and the detailed data of the shelve and off shelve, otherwise it will easily lead to loss of goods or no matching data. Some Amazon sellers responded that the number of stocks and the actual number of goods sold could not match. Since this situation can occur in Amazon, which has a complete system of warehouse management, and third-party overseas warehouses cannot guarantee no problem.
The differences between them
FBA does not provide customs clearance services
Some overseas warehouses provide customs clearance services, and some also include tax payment and delivery to warehouses.
Requirements of warehouseing products
FBA does not provide assembly services and require the seller to put the outer box label and product label before entering the warehouse. If the product label is found damaged, it will be returning to be trimmed.
Overseas warehouses will provide services for sorting out and assembling products before they are put on shelves.
Amazon supports the unconditional return of buyers, FBA warehouse will not carry out any appraisal of the returned products, and will not charge any fees from the buyer. Even if there is no quality problem with the returned product, Amazon will not sell the product to the another buyer again.
As for overseas warehouses, if the product returned is not a quality problem, it can be repackaged by the seller and then sold again.
Amazon FBA warehouse has a certain degree of restrictions on the size, weight and category of the products, so the selection is biased towards small, high-quality, good quality products
Overseas warehouses, the scope of selection is wider than the FBA warehouse. This means products that can enter the Amazon FBA warehouse must be able to enter third-party overseas warehouses, but products that can enter third-party overseas warehouses may not enter the Amazon FBA warehouse.