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How to choose Amazon FBA or overseas warehouse

Amazon and overseas warehouse are not contradictory、 on the contrary、 they can complement each other.

Amazon FBA has advantages in order fulfillment、 inventory and distribution. However、 compared with the third-party overseas warehouse、 FBA's storage cost is much higher. It is quite troublesome to return goods and clear up. In addition、 the first transportation cost in the peak season will rise a lot、 and in the peak season、 it will give you problems such as limited inventory and inability to put in the warehouse at one time. While many sellers use FBA as their sales warehouse、 they will choose a reliable third-party overseas warehouse as their secondary replenishment warehouse and return processing warehouse. The overseas warehouse will unpack、 temporarily store or directly send full containers to FBA after receiving the goods.

Cross-border e-commerce to rent overseas warehouses or by own

Advantages of self built overseas warehouse: it can improve the delivery speed of products

Save logistics costs、 control the return and exchange of goods and after-sales service、 control the storage、 avoid the problem of warehouse explosion and logistics warehouse arrangement. It should be noted that the start-up capital of the self built overseas warehouse is relatively high in the early stage、 and the problems that need to be managed in different places and the risks that need to be borne are relatively high. If there are funds and goods in the early stage、 we can consider building our own overseas warehouse.

Advantages of third-party overseas warehouse: time-saving、 labor-saving and worry free

The cost is relatively low. Professional teaching can also save logistics costs. It has the advantage of centralized processing. There is no difference between off-season and peak season. Personnel management and control is simple. There are UPS or FEDEX accounts for centralized shipment at the end. The price must be much cheaper than that of individual overseas warehouses.

What kind of products are suitable for FBA

Which products are suitable for FBA? Is it big or small? Is it expensive or cheap? The products with the following characteristics are suitable for FBA.

1. Products with excellent quality and performance. Such products will not be returned or replaced generally、 which can greatly reduce the loss of sellers.

2. Small size、 high profit products. The product is small in size、 easy to transport and can save costs. However、 it should be noted that the product price should not be set too low. Because the delivery by FBA will incur relevant handling fees and various transaction costs. If the product price is too low、 the profit will also decrease. It is suggested that the price of FBA products should be more than 5~6 dollars.

In general、 FBA is suitable for small and medium-sized sellers of products with excellent quality、 small size and high profits. The advantages of other products are not obvious.