What is FBA Onsite? FBA Onsite Review

The FBA Onsite program allows sellers to add Amazon's software and logistics system to their own warehouses. Amazon uses the seller's warehouse to store goods and sends professionals to help sellers sort out the warehouse layout and package handling process. These sellers can directly use Amazon's own FedEx and UPS accounts for goods delivery, and the freight discount can be up to 85%.

About FBA Onsite

The core point of the FBA Onsite project is to use Amazon's software system and on-site management model. Amazon will give you higher discounts on terminal logistics distribution, reduce costs, and at the same time have traffic support equivalent to Amazon's self-operated FBA distribution PRIME.

How to participate

Currently, the program is being tested by invite-only sellers. The program started in late 2017 with less than 50 sellers invited. It is planned to be rolled out to more markets in 2018.

Features

1. Two-day delivery service can still be provided to members.

2. The warehouse management system is simple and fast.

3. Set up instant and free inventory receipt and removal.

4. Integrate previous FBA-specific programs, such as the Small and Light Program and Subscribe & Save.

5. Simplify the return process.

6. Prime service is available for dangerous goods inventory.

7. Flexible same-day delivery service agreement.

effect

For Amazon

1. The core of the platform is high-quality buyers with payment ability and loyalty. Providing more high-quality services to high-quality buyers is the focus of the platform.

2. This can effectively alleviate the pressure of competitors' increasingly flexible and differentiated logistics services.

3. This is an important step in Amazon’s new retail in the online and offline cloud system.

4. This can meet the development needs of Amazon's "next generation trade chain" strategy.

For sellers

1. Enjoy lower logistics and delivery rates, saving up to 85%.

2. Save the FBA first-mile fee for shipping to Amazon warehouse.

3. Save on FBA storage fees and long-term storage fees which are higher than those of general warehouses.

4. Enjoy efficient 2-day delivery service at a lower delivery rate.

5. Removal and receipt of inventory is more flexible and cheaper.

6. There is no need to wait for replenishment and re-listing as with FBA.

7. The returns will be received by the Amazon warehouse and then sent back to the seller's warehouse. They will not be redistributed to the buyer.

8. Higher-dimensional competitive barriers.

For seller-type service providers, a deeper cooperative relationship with the platform, and even future integration at the capital level, can provide them with obvious yellow jacket-style endorsement both internally and externally. Various hidden and unknown resources or support are urgently needed by many fast-growing service-oriented sellers, not to mention the various tangible and intangible ceilings or talent advantages that are lacking when operating locally.

risk

1. Your warehouse is not your warehouse.

Once connected to the "FBA Onsite" program, sellers must make major changes to their existing warehouse logistics systems, including personnel management, software and hardware systems, to meet the requirements of Amazon's "FBA Onsite" program. The warehouse logistics system must be readjusted or even completely rebuilt.

2. Your partner is not your partner.

As an absolute monopolist, Amazon has overwhelming price negotiation qualifications with local terminal delivery service providers, not to mention the self-operated delivery service it promotes, which has already put tremendous pressure on UPS\FEDEX, etc. When sellers turn their high-quality orders to Amazon's discount channel, their bargaining power will naturally be weak, which means they will have to be tied to Amazon's "FBA Onsite" ship.

3. Your company is not your company.

When sellers connect to "FBA Onsite" and gradually inject high-quality resources into the system, Amazon remotely controls the sellers through the collection and release of discount fees and the system's on-site management and scoring strategies. Sellers will become irreplaceable in their dependence on terminal delivery costs.

significance

1. FBA capacity expansion at zero cost.

2. Cloud-based FBA warehouse.

3. Unlimited Prime-eligible product choices: Sellers can just place their products in their own warehouses and qualify for Prime without having to ship them through FBA.

4. There is no need to wait for approval from Amazon warehouses before entering the warehouse, so the products can be replenished and put on the shelves faster, and there are no long-term storage fees.

5. Some products that cannot be sent to FBA can also participate in Amazon's programs, such as Subscribe and Save.

6. Customer service and returns processing are more proactive.

history

In October 2017, Amazon began testing a project called Seller Flex, in which Amazon supervises the delivery of goods by third-party sellers. The project has been tested in India and the West Coast of the United States. At the end of January 2018, the project was officially upgraded to Amazon's "FBA Onsite" project.