Hello, currently there are three main shipping methods for Amazon, a cross-border e-commerce platform: FBA, third-party overseas warehouses, and self-delivery. Here is a simple comparison.
1. FBA
Advantages: Fast logistics speed, increases customer trust, improves the ranking of listings. If a buyer leaves a negative review due to logistics reasons, Amazon will help remove it.
Disadvantages: The overall cost is slightly higher. The first leg of operations is cumbersome. Customs clearance needs to be done by oneself. The buyer's return rate is easily increased, increasing the cost of inventory pressure. The return address only supports the United States (in the case of doing American FBA).
2. Third-party overseas warehouses
Advantages: Reduces logistics costs, speeds up logistics timeliness, is conducive to developing the local market, and the cost is slightly lower than FBA.
Disadvantages: High inventory pressure and risk of overstock. The management levels of third-party overseas warehouses are uneven.
3. Self-delivery
Advantages: Reduces inventory pressure costs, has less warehousing expenses, and is flexible in operation.
Disadvantages: The exposure and ranking of listings are less than FBA. It is easy to get negative reviews from customers due to logistics reasons. There is no Prime logo, and it is difficult to win the favor of Prime members.
Second, what logistics models are there for Amazon self-delivery?
What channel to choose for self-delivery generally needs to be comprehensively judged according to the characteristics of the sold products (type, value, size, safety), the timeliness requirements and locations of customers, logistics budgets, and off-peak and peak seasons.
Generally speaking, different logistics have different timeliness and different prices. Therefore, for different logistics choices, the methods of controlling costs will also be different. Usually, there are mainly three logistics categories: postal services, express delivery, and special lines. And their characteristics are: small parcels are relatively cheap in price, but the weight limit is relatively large; express delivery has strong timeliness and can arrive quickly, but generally the price is higher; special lines focus on logistics and are generally safer and more efficient with a high rate of praise.
1. Postal parcels.
The network channels of postal parcels cover the whole world and have a wider coverage than other logistics methods. For small and medium-sized sellers on Amazon, a general cross-border e-commerce platform, products under 2 kilograms can use postal small parcels, and products over 2 kilograms can use postal large parcels. Of course, in some cases, EMS or E-packet can also be considered. This article mainly explains postal small parcels.
Postal small parcels are a logistics method jointly launched with the postal system and shipped in the mode of personal parcels. Well-known ones include China Post small parcels, Singapore Post small parcels, Hong Kong Post small parcels, German Post, Dutch Post, Swiss Post, British Royal Mail, Belgian Post, etc. It is cheap in price, convenient for customs clearance, and has no advantage in timeliness. Especially during peak seasons when warehouses are overstocked, your customer service may receive more customer complaints than usual.
Postal small parcels generally have corresponding regulations and regional advantages. For example, China Post small parcels do not support the transportation of products with knives, liquids, and electrical products, while Dutch small parcels do not have similar requirements. For another example, the timeliness of German small parcels to Germany is more stable than that of Hong Kong small parcels.
Small parcels are generally divided into two forms, registered mail and ordinary mail. Registered mail will provide a traceable tracking number. With the tracking number, logistics information can be queried on the network. This service requires an additional registration fee. If it is not registered, basically the package cannot be tracked. In peak seasons (such as Black Friday, Christmas, etc.), the mailing process may take 30-50 days. Even if you are very anxious, you can only query the customs clearance information of Chinese customs. There is nothing else.
Postal small parcels still occupy a huge market at present. The postal service will still be the main logistics method for small and medium-sized sellers for a long time. But it is not very suitable for most Chinese sellers on Amazon because small parcels need to go through multiple links of scanning and transshipment. The probability of lost and damaged packages is relatively high, which may lead to negative reviews from Amazon buyers. If the seller has a relatively strong after-sales team and hopes to save costs, this shipping method can be considered in the initial stage. It also depends on the product type and the destination country. As long as it can be delivered within the time limit specified by Amazon and is acceptable to buyers on the cross-border e-commerce platform Amazon, it's OK.
2. Express delivery channels.
Mainly refer to the four giants of DHL, TNT, FedEx and UPS, as well as SF Express, STO Express, YTO Express, ZTO Express, Yunda Express, etc. Among them, the speed and service of the four giants are impeccable, but the price is also relatively expensive, which is difficult for most merchants to afford. They build their own global networks and provide localized logistics services around the world. They can transport goods to most countries and regions in the world, and real-time logistics tracking information can be obtained on their official websites.
The four giants have their own advantageous fields and regions. DHL is in Europe, TNT is in the Middle East and Eastern Europe, UPS is in North America, and FedEx is in Southeast Asia. The advantageous regions can generally be reached within 2-4 working days.
In addition, express delivery channels also have certain requirements and restrictions on products themselves. Basically, products with electricity, counterfeit brands, and special types cannot be delivered. They are suitable for goods with high value and customers' requirements for timeliness, and goods over 2 kilograms.
3. Special line logistics.
The model of cross-border special line logistics is usually to send a large number of goods to the destination in a centralized manner and reduce costs through economies of scale. It is an independent channel of a courier company for a certain country or region, such as the Middle East, the United States, Russia, etc. The price is lower than commercial express delivery, but the timeliness is also slower. Currently, there are well-known ones such as Chenyun Logistics, etc. Packages can be tracked and charged according to specific routes. Generally, they can arrive within 4-7 working days.