Advantages of self-delivery

1. Ensure product packaging and understand product status

2. You can use customized packaging to differentiate yourself from your competitors, and you can include a handwritten thank-you note to the customer in the package.

3. No inventory pressure and storage fees

4. The product selection is relatively wide, and the operation of multiple stores can be replicated

Disadvantages of Fulfillment by Yourself

1. Reduce the chance of winning the Buy Box, and the traffic is relatively small

2. A lot of manpower is needed to handle customer service and returns

3. Long delivery time and high return rate

How to reduce logistics costs by self-delivery

1. Product selection

For products of the same value, small-volume products will have lower logistics costs and higher profit margins, so between large-volume products and small-volume products, sellers should consider small-volume products more.

2. Optimize packaging methods

Sellers can improve the product mix of packaging boxes, the choice of bubble bags, the number of times transparent tape is applied, etc., so that each small package can be at least 20 grams lighter than before. The cost savings will be considerable.

3. Cooperate with logistics agencies to get discounts

Sellers can seek to cooperate with low-cost logistics companies, or they can sign long-term cooperation agreements with logistics companies based on their own sales and orders and enjoy freight discounts. The basic discount is around 10%, and during the off-season, the freight discount may reach 15%.

4. Combination of multiple logistics methods

For example, small products can be shipped by E-Packet or D-Link, while products weighing more than 500g or with E-Packet postage exceeding $100 can be shipped by DHL.

5. Sell products together to reduce the number of shipments

Generally, there are two approaches. One is to sell multiple items of the same product at a discounted price, such as 20% off for 3 items. The other is to sell complementary products, which can be recommended to customers to buy together, such as a curling iron + air cushion comb.

6. Reasonable use of export tax rebates

For sellers of branded products, buyers can provide VAT invoices for the products. In addition, some freight forwarders also have this kind of export tax rebate business. For example, for 3C products, you may only need to pay 5-6% tax to the supplier, but the state will refund 17%. In the short term, it will temporarily increase your procurement costs, but if you have sufficient funds, convenient turnover, and large sales, you will have more benefits in the long run.

How to handle returns

1. What should I do if I have clicked to confirm shipment but the product has not been shipped yet and the buyer has filed a return request?
First, you can contact the buyer and ask him why he wants to return the goods. If the buyer insists on returning the goods, you can refund him directly on the order management page.

2. If I have already clicked to confirm shipment and the product has been shipped, what should I do if the buyer files a return request?
First contact the buyer and ask the specific reason for the return. If the buyer insists on returning the goods, let the buyer refuse to accept it, and then refund the buyer on the order management page. Generally, the refund will be made after the goods are shipped back to the country, but in order to avoid bad reviews and AZ, it is recommended to refund as soon as possible.

If there is an overseas warehouse, you can also allow customers to return the products after receiving them, depending on the results of the negotiation with the customers.

suggestion

Amazon sellers who can make the most of MFN are generally those who already have warehousing and transportation systems. If the seller has a warehouse (or several), employees, and a trusted logistics network, you can consider using MFN to obtain higher profit margins.

References

• 1. FBA or self-delivery, which model is more suitable for you? : Sohu [reference date 2017-05-31T16:00:00.000Z]
• 2. No need to worry! In-depth analysis of FBA delivery and self-delivery mode: Bangyue [reference date 2017-09-11T16:00:00.000Z]