You would never guess that more than 50% Prime members refuse to buy non-FBA goods on Amazon! This amazing data reveals a cross-border e-commerce sellers can not ignore the fact. As an Amazon seller, the choice of FBA or FBM logistics mode may be a critical decision that affects your sales performance.
What is the difference between FBA and FBM? Simply put, FBA is where Amazon stores, packages and delivers your merchandise on your behalf, while FBM is where the seller manages the inventory and is responsible for delivery. This seemingly simple difference has far-reaching business implications.
The advantages of using FBA are obvious, you can completely eliminate the hassle of thinking about shipping costs. Regardless of the size of your store, there are a variety of delivery options available, even including Amazon Prime's free two-day shipping! What's even more amazing is that according to market research, half of Amazon customers don't even consider items from non-FBA sellers. These customers are signing up for Prime not only for fast delivery, but also for a great customer service experience.
But what is the biggest drawback of FBA? Undoubtedly, it's the cost. Amazon charges sellers a monthly warehousing fee, which can significantly erode your profits for lower volume items. An effective solution is to utilize Amazon's Inventory Health Report to monitor inventory status and avoid unnecessary storage fees.
In contrast, the biggest advantage of FBM is that the seller has complete control over the packaging and delivery process to ensure that the goods are safe and undamaged. However, you have to take care of the selection, packaging, shipping and customer service on your own, which can be extremely time-consuming.
Interestingly, many experienced Taiwan cross-border sellers use both FBA and FBM to make the best choice based on different commodity characteristics. If you operate a physical store or multi-platform sales, FBM may be more flexible; while if your business model focuses on fast delivery, FBA is undoubtedly a better choice.
One of the biggest headaches is the return policy, FBA accepts returns unconditionally, while FBM can usually set stricter return conditions. This is one of the reasons why most buyers prefer FBA sellers.
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# Amazon Global Store # Cross-border E-commerce #FBA Logistics # Cross-border Sellers # Taiwan Sellers # E-commerce Entrepreneurs # Amazon Sellers # Cross-border Exporters
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