FBM vs. FBA---Why Should You Choose FBM Amazon?

(2021年04月09日)

https://www.jctrans.net/

The advantages of FBA shipments are clear, but they are also faced with the state of continuously pressing goods, resulting in a very heavy operating pressure on sellers; in fact, MFN have also been found in some middle and large seller accounts.

Sellers on the Amazon platform, especially small and medium-sized sellers, generally think that Amazon must use the FBA delivery channel; Amazon’s various policies are also guiding sellers to do FBA, because this can maximize the benefits of the platform.

The advantages of FBA shipments are clear, but they are also faced with the state of continuously pressing goods, resulting in a very heavy operating pressure on sellers; in fact, MFN have also been found in some middle and large seller accounts. The cargo team and the platform have always allowed sellers to ship goods by themselves, and logistics is the key.

First, what should to be noted when do MFN?

I. Late order delivery rate
 
The late order delivery rate refers to the proportion of the number of orders that have not been confirmed to be shipped before the estimated delivery date in the statistical period of all self-delivered orders in the same period. The order late delivery rate should be less than 4%.
 
How to reduce the late order delivery rate?
 
Reasonable estimate of delivery preparation time.

In the indicator of order late delivery rate, where is the estimated delivery date? In fact, it is determined according to the date the buyer placed the order and the delivery preparation time of the product. The multiple early warning mechanism of the ERP system can be used to reduce the probability of late delivery and out of stock; if the stocking time is indeed insufficient, the delivery preparation time can be extended by editing the product attributes.

II.Effective tracking rate of orders
 
The effective tracking rate of orders refers to the percentage of orders for which sellers can provide valid tracking codes and can find tracking information on the Amazon website in the statistical period, accounting for all self-delivered orders in the same period; this is very simple, it must be on the Amazon platform The logistics information can be found; so when choosing the logistics channel and logistics provider for self-delivery, you must choose the Amazon platform approved. When filling in the logistics tracking number on the Amazon platform, you must set the corresponding logistics provider and the correct logistics tracking number.
 
III. Cancellation rate before delivery

The pre-delivery cancellation rate refers to the percentage of orders cancelled by sellers before confirming delivery in the same period of all self-delivery orders during the statistical period. Taking the United States as an example, the pre-delivery cancellation rate should be less than 2.5%.
 
If none of the above indicators meet the standards, or one or some of them do not meet the standards, there is a risk that listing will be reviewed or the store will be frozen; if the seller encounters these situations, specific improvement measures should be taken to address specific issues. For example, it is necessary to deal with bad reviews and return orders in time, and respond to customers in a timely manner. The purpose is to prevent customers from leaving bad reviews.

Second, How many channels of MFN?

Which channel to choose for MFN is generally judged based on the characteristics of the products sold (type, value, size, safety), the customer's timeliness requirements, location, logistics budget, and low and peak seasons.

I.Postal parcel
The online channels of postal parcels are spread all over the world, and the coverage is wider than other logistics methods. For general cross-border e-commerce platform Amazon small and medium-sized sellers, products under 2 kilograms can choose postal parcels, and products above 2 kilograms can use postal large parcels Of course, EMS can also be considered in some cases.
 
II.Express channel
Mainly refers to the four giants of DHL, TNT, FedEx and UPS, as well as SF Express, Four Links, etc. The speed and service of the four giants are impeccable, but the prices are also expensive, which is difficult for ordinary merchants to bear. They have built their own global network to carry out localized logistics services around the world, can deliver goods to most countries and regions in the world, and can get real-time logistics tracking information on the official website.
 
III.Dedicated logistics
The mode of cross-border dedicated line logistics is usually to concentrate large quantities of goods to the destination and reduce costs through scale effects. It is an independent channel for express companies in a certain country or region, such as Europe, the Middle East, the United States, and Russia.

Third,Advantages of MFN

MFN is to choose the express logistics line for goods processing, so the advantage of it is appropriately simple and clear. Since MFN has three ways, each has its own characteristics, so Merchants can select according to their needs, so that they can send goods reasonably, and then reduce inventory pressure, and the operation is also quick.
Fourth,Disadvantages of MFN

The disadvantage of MFN is also significant for cross-border e-commerce. The choice of self-delivery will result in low product rankings, and even the exposure rate is so low that it is difficult for users to know, and the cost is not very low. So MFN are selected according to their own conditions.

Summary
If your online-store has specific fans and don't care about rankings, you can choose MFN. The convenient method is still the choice of most cross-border e-commerce companies.

Established in 2003, JCtrans Logistics Network is a forwarder directory network. Since founded, JCtrans relies on e-commerce and online public platform to provide global networking services for freight forwarders and other logistical service providers, by means of network marketing promotion, transaction, settlement platform, financial protection, credit system, logistics solution, green logistics and other diversified services.

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