The advantage of the Amazon FBA model is that the delivery time is shorter. No matter where your warehouse is, buyers can receive the goods quickly after placing an order. The good thing is that they do not need to carry out their own warehouse management, as there are professionals and automated equipment for packaging, management, and shipment. The disadvantage is that reservations are made based on the volume used. As long as it cannot be loaded, you need to pay more. There will be no cost reduction for the extra space.
If you use FBA shipping, the delivery time is faster, and there are ordinary ships and express ships. Before the epidemic, ordinary ships would be slower, and it would take about 25 days to reach the United States. Another type is express ships, such as the well-known Matson Express and Zim Express. It takes 11-13 days to reach the US port. If it is an FBA warehouse around the west coast of the United States, the goods will be quickly delivered to the Amazon warehouse after arriving at the port.
FBA shipping can be divided into shipping plus shipping (sea shipping + express delivery) and shipping plus card (sea shipping + truck delivery). When the goods arrive at the port, you can choose express delivery or truck delivery according to your needs. The key difference between express delivery and truck delivery is that the truck can deliver the goods directly to the selected Amazon warehouse, without waiting for express delivery, and the delivery time will be faster. But the situation is different now. The epidemic has broken out again, there is a shortage of containers, and the port has insufficient manpower and transportation capacity, which has led to logistics paralysis, and the timeliness has become longer and longer, which is very unstable.
Timeliness, timeliness is the development essence of every Amazon FBA freight forwarder. Especially under the influence of the current environment, timeliness is particularly critical. There is a mutually reinforcing relationship between timeliness and shipment volume. If the shipment volume is sufficient, you can obtain a more stable shipping space. Only with stable first-leg shipping resources can you maintain long-term timeliness in the off-peak and peak seasons. Likewise, stable delivery time can impress more and more Amazon sellers. During the peak season, timeliness needs to be determined based on specific circumstances. In many ports in the United States, temporary port congestion and other specific situations will inevitably occur every peak season, and customers need to understand this.
CZL International Logistics has been focusing on China-US shipping for 15 years and has 6 years of experience in Amazon FBA first-leg transportation. We can provide you with services such as Matsun Express and Evergreen Express. Matsun Express arrives at the port in 11 days and delivers to your door in the United States in 15-18 days. We can provide double clearance and tax-inclusive delivery to your door without you having to worry about it. We can provide you with one-stop service to help you save logistics costs and time. If you need to know more and more detailed freight rates, please consult the official customer service.
FBA logistics distribution fees can be said to be a very important link in the sales stage, involving key aspects such as product pricing and profitability.
As mentioned above, Amazon's FBA policy is constantly adjusted, and the charging standards are not fixed. At the beginning of this year, we also received a notification from Amazon about adjusting FBA shipping fees in the background of the Amazon FBA cost calculator.
1) Shipping costs for standard-sized items with a net weight of less than 10 ounces will remain the same. However, Amazon will slightly increase the logistics and distribution costs of other size sub-products to reflect changes in distribution and logistics costs. When calculating the volume and weight of large items, a minimum width and height of 2 inches is used, so it is consistent with the calculation of packaging costs.
A separate distribution fee is imposed on hazardous materials, including flammable or pressurized aerosol materials and hazardous materials containing lithium batteries. 2) Starting from September 2019, the cost structure of "order savings" will be simplified. It will be able to offer a unit discount of 5% or 10% for every new item that sellers add to the program.
FBA fees include order processing fees, pickup and packaging fees, weighing and loading and unloading fees, warehousing fees and other non-standard services. 1) FBA fee = execution fee + monthly warehousing fee + warehousing inventory placement service fee 2) Execution fee = order processing fee + sorting and packaging fee + weighing processing fee. Amazon has two types of storage fees: monthly storage fees and long-term storage fees.
1) Monthly storage fee = (Quantity of goods requiring 6-month long-term storage fee) Quantity)×(Quantity of commodity units)×(Long-term storage fee per cubic meter for the same period)
Amazon FBA and (commission) programs are effective ways to increase Amazon sales by improving customer service and reach.
Each service has associated fees that Amazon sellers need to track to understand when and how they update, and how they affect pricing. For your convenience, this article summarizes most of the cost changes from 2019 to 2020.
Amazon FBA Delivery Fee Changes The following changes to FBA delivery fees have been introduced, effective February 19, 2019. Delivery fees have increased. FBA shipping costs increase slightly for specific sizes and weights. The cost increase reflects changes in current distribution and transportation costs.
The affected sizes and weights include ● Small 10 to 16 ounces (Small Standard 10 to 16 ounces) ● Large 10 to 16 ounces (Large Standard 10 to 16 ounces) ● Large 1 to 2 pounds (Large Standard 1 to 2 pounds) ● Large 2 to 3 pounds (Large Standard 2 to 3 pounds) ● Large 3 to 20 pounds (Large Standard 3 to 20 pounds) ● Small (Very Small) ● (Medium Extra Large) ● Large (Large) Dimensional billing weight algorithm update Amazon has updated the calculation method for extra-large product size, billing, and weight. Now, when calculating the size and weight of oversized items, the minimum width and height is 2 inches. This is to match the current packaging costs.
FBA Dangerous Goods Distribution Fee Updates There is now a separate distribution fee for distribution through the FDA Dangerous Goods program to account for necessary special treatment. In addition, lithium batteries and products containing (or sold with) lithium batteries will be charged an additional per-unit fee of 0.11 cents on top of the normal fulfillment cost. Simplify & Save (Subscribe & Save Program) Amazon has simplified the fee structure for the Subscribe & Save program.
Starting from September 2019, every time you add a new product, you can get a fixed discount from 5% to 10%. This applies to all product categories currently eligible for the & Save program. Food and Beverage Administration Storage Fee Changes Most changes to storage costs in 2019 provide sellers with more favorable long-term storage plans.
The new regulations that took effect on February 15, 2019 are as follows: Extending the free long-term storage period: Amazon will no longer charge long-term storage fees for goods stored in logistics centers for 181 to 365 days. Products stored for more than 365 days will still be charged a long-term storage fee. Reduce minimum long-term storage costs.
The minimum unit price for inventory stored for more than 365 days is now reduced from $0.50 to $0.15. Updated Hazardous Materials Storage Fees Units sold under the FDA’s hazardous materials program have a separate monthly inventory storage cost structure. This is to cover the additional costs of special handling and storage of hazardous materials.
Amazon Commission Changes Amazon’s commission structure is very favorable to sellers. But these latest changes double that value, further reduce the cost of some products, and make it easier for sellers to sell their products.
Amazon FBA is the abbreviation of by in English, that is, the seller delivers the goods to the Amazon warehouse. If the product sells, Amazon will ship it to you.
This is the method most Amazon sellers often use, and Amazon encourages sellers to use it. Of course, Amazon will charge warehouse rental and postage fees.
The Chinese name is Amazon Distribution Service and the English name is by. In addition to the role of online retailers, a typical example of Amazon highlighting the platform function is the launch of FBA (Amazon Logistics (by) service) in 2007, that is, Amazon opens its platform to third-party sellers, incorporates their inventory into the Amazon global logistics network, and provides them with pick-up, packaging and terminal delivery services, and Amazon charges a service fee.
FBA (by) means that sellers send product inventory sold on Amazon directly to Amazon’s local market warehouse. When a customer places an order, the Amazon system automatically completes subsequent shipments.
To use Amazon's logistics service, sellers need to send goods to Amazon's overseas warehouses, and in most cases, sellers need to clear the package. Secondly, Amazon will charge the seller two fees, one is the commission Salesfee, which is approximately 15%-26% of the value of the product, and the other is the FBA warehousing fee. For Amazon users in China, Amazon FBA includes two costs, one is the cost of shipping locally to the FBA warehouse, and the other is the cost of shipping from the FBA warehouse to the service provider's warehouse.
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