Do you think FBA fees are too high? Here are some ways to reduce FBA costs

Everyone knows that Amazon FBA service has many advantages, but also many disadvantages. The biggest disadvantage is the high storage costs. If the seller’s product sales are not good, resulting in goods piling up in the warehouse, very high storage costs will be incurred.

The FBA first-leg services on the market include direct express delivery, FBA air + delivery, FBA first-leg sea freight, and overseas warehouse transfer. Their prices and delivery times are compared as follows:

Price comparison: overseas warehouse transfer < ocean freight FBA first leg < FBA air + delivery < direct express delivery;

Comparison of delivery time: overseas warehouse transfer < direct express delivery < FBA air + sea delivery < FBA first leg

We should take logistics factors into consideration from the product selection stage. For products of the same value, between large-volume products and small-volume products, sellers should consider small-volume products more, because small-volume products will have lower FBA fees, thus obtaining higher profit margins.

Sellers can refer to the volume of the container and design packaging according to the order quantity. For example, if a carton usually holds 12 pieces, but a container cannot hold them, then a carton can be changed to hold 15 or 20 pieces. Then the size of the carton can be designed according to the size of the inner box of the container, and an optimal packing plan can be studied to achieve an ideal state.

4. Pay attention to abnormal FBA inventory

Reduce economic losses FBA cannot guarantee the safe storage of your products. Some sellers have found that products are occasionally lost or the quantity of goods in stock is inconsistent. Sellers should check the quantity and information of goods in stock in detail. If there is any abnormal inventory, contact customer service in time to inquire and claim, which can reduce economic losses. Related article "To apply for FBA claims from Amazon, these conditions must be met".

Under the premise that the same 500 kg of goods are sent to FBA, the logistics cost of sending them to the same warehouse is 26 yuan/kg, and the logistics cost of sending them to different warehouses is 28 yuan/kg. For the same batch of goods to the same destination, the logistics cost may save 1,000 yuan.

The so-called preferential package is to integrate some products and peripheral products into one package and sell them on the platform. Of course, sellers can also adopt the bundling sales method to sell complementary products together.

If you follow Amazon's rules, sellers can create bundled products on their own. Of course, the prices of these bundled products are generally higher than the prices of individual sales. If you choose a discount package, you can only list it for sale if the product discount package exists in the Amazon catalog. In addition, compared to individual sales, both bundle sales and discount package sales can save a lot of costs!

It is understood that Amazon's small and light logistics plan can help some sellers reduce FBA logistics costs by about 20%. It currently supports applications from sellers on the US and UK sites. Eligible sellers can apply.

Now more and more sellers will try to combine international logistics, overseas warehouses, and FBA. If the product is a "hot item", you can first use international logistics to ship a large number of products abroad, and then put some of them into overseas warehouses and choose FBA for warehousing. When the peak season comes, we can first transfer the goods from overseas warehouses to FBA, shortening the warehousing time of FBA products, or use the FBA door-to-door delivery function to let FBA pick up the goods from the overseas warehouse and deliver them to the buyers.

By gaining a deeper understanding of the various options available with Amazon FBA, sellers can save money and improve efficiency. As Amazon continues to expand its logistics network, the analysis of various options becomes increasingly important. Sellers must be careful not to change their logistics and inventory options in a static manner, but to make changes based on actual conditions.