For those who often trade on the Amazon platform, Amazon FBA must be familiar to them. So what is Amazon FBA? Why can Amazon FBA change the e-commerce landscape? Today's article will reveal the answers to these questions for you.

FBA is Fulfillment by Amazon, which means that Amazon opens its platform to third-party sellers, incorporates their inventory into Amazon's global logistics network, and provides them with picking, packaging and terminal delivery services, and Amazon charges service fees. Amazon introduced the FBA service in 2007. The main purpose of FBA is to improve Amazon's user experience and increase stickiness, rather than an important source of financial income.

According to data from Amazon's annual report, by 2023, 86% of sellers use Fulfillment by Amazon (FBA), while 37% of Amazon sellers use Fulfillment by Merchant (FBM). Data does not lie. Behind these data, it reflects a phenomenon that FBA is becoming more and more popular among Amazon sellers. Why does this happen?

FBA has the following advantages:

1. Shorter logistics time and better customer experience. Amazon is responsible for picking, packing and delivery, and the delivery time is relatively fast. In most cases, the delivery time is much faster than the seller's own delivery, which can also reduce negative reviews caused by logistics problems.

2. You can delete negative reviews caused by logistics. When there are problems with products delivered by Amazon, such as delivery delays, product damage, etc., customers can directly contact Amazon to solve them, which will not affect the seller's store evaluation. Therefore, sellers can avoid the impact of negative reviews due to logistics problems.

3. It can save operating costs. Amazon provides a complete logistics system and customer service support, so sellers do not need to invest a lot of time and manpower to deal with after-sales and logistics issues, and can reduce investment in these areas, thereby saving operating costs.

4. You can have a shopping cart faster. Products using FBA can have a shopping cart faster, which also means more traffic and sales opportunities.

5. It can improve the security of the store. Amazon has more guarantees and support for sellers using FBA, and it can also improve the credibility and security of the store.

However, FBA also has some disadvantages:

1. Storage fees need to be paid. Using FBA requires storage fees, which vary from country to country, but are generally higher than domestic storage fees.

2. Relatively high costs. In addition to storage fees, Amazon also charges certain service fees and delivery fees, so the cost of using FBA is relatively high.

3. High return rate. Because Amazon's return policy and buyer protection policy are relatively sound, the return rate of products that support FBA is generally higher.

In summary, for sellers, choosing which logistics model is more suitable depends on their own conditions and needs. If you have completed product research in advance and are sure that there is no problem with product selection, and your budget is relatively sufficient, FBA is a wise choice.

If you have any questions about international logistics, you can contact Forest Leopard International Logistics and we will do our best to solve your problems. Since its inception, Forest Leopard International Logistics has been committed to providing one-stop international freight forwarding solutions for small and medium-sized enterprises. Our business scope covers cargo procurement, cargo inspection, customs documentation, transportation arrangements, bonded storage, etc. We look forward to becoming your trusted partner.