Currently, there are two shipping modes on the Amazon platform: FBA and MFN. FBA involves Amazon handling the logistics and delivery, where you simply need to ship your goods to Amazon's warehouse. MFN, on the other hand, is a self-fulfillment model, which is further divided into two methods: overseas warehouse shipping and domestic small package shipping.
Different sellers may opt for either scenario depending on their stage or product category. For new stores with a small volume, choosing domestic small packages for direct shipment is recommended. Although this increases logistics costs, it helps avoid the pressure of inventory funding, reduces Amazon's inventory costs, and lowers the risk of unsold stock.
Established stores with high traffic volume or larger inventory can opt for overseas warehouse shipping. Although it requires more time for inventory funding, it significantly reduces logistics costs. This option is suitable for many traditional B2B clients transitioning to new models.
Generally, self-fulfilled logistics tend to be more cost-effective, yet why are many sellers reluctant to opt for it? Currently, less than 10% of Amazon orders are self-fulfilled, and one significant reason is that self-fulfillment doesn't contribute to traffic.
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Amazon itself is an e-commerce platform that ranks products based on traffic, so many sellers prefer to opt for the more expensive Amazon FBA (Fulfillment by Amazon) service and still ship their goods to Amazon's warehouses.
Currently, cross-border logistics methods for Amazon on the market are categorized into three types: small parcels, air freight, and sea freight.
Small packages are handled through express delivery services, such as EYBao, UPS Red and Blue Bills, FedEx, DHL, TNT, and others.
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