Daily Archives: October 13, 2022

FBA: What is it?

Amazon logistics(FBA) stands for “Fulfillment by Amazon.” This means that sellers send goods to the Amazon fulfillment center in groups, and Amazon helps the sellers store them. When the goods are sold, Amazon sorts the orders, packages them, ships them, and delivers them. Customer services like buyer consultation and returns help sellers save a lot of time, money, and materials.

Amazon FBA Fees

Storage Fees

“Average daily volume” (in cubic feet) is used to calculate storage fees. Fees for storing inventory are usually charged every month. Items that are kept in Amazon fulfillment centers for more than 365 days have to pay extra fees. Overage fees are imposed for inventory that needs more room.

Fulfillment Fees

FBA charges fulfillment fees per item, based on its size and weight. First, you have to figure out the size segment (standard size or large, etc.).

Other FBA fees

In addition to the basic fees, there may be fees for some other things that you do when you use FBA. There are usually three kinds of extra fees: removal order fees, return processing fees, and fees for services that were not planned.

What are FBM and MFN?

Fulfillment by sellers, also known as FBM or MFN (which stands for Fulfillment by Merchants or Merchant Fulfillment Network), is when the seller ships the orders they sell on Amazon themselves. The seller is responsible for a number of tasks, such as managing inventory, packaging, shipping, customer service, etc.

FBM/MFN: Common ways to ship

There are four common ways for FBM/MFN sellers to send packages: postal parcels, international express delivery, internationality special line (dedicated line logistics), and Overseas warehouse delivery.

Postal Parcel

A postal parcel is an item that is properly wrapped and can be sent through the mail. It is a type of mail. Post offices are all over the place, and postal parcels use self-managed postal routes as well as railways, roads, waterways, air travel, and other means of transportation to get to their destinations. This means that they can meet the needs of the public to deliver things, especially small and random things. An air parcel is a package that needs to be sent by airplane for all or part of its international postal journey. Express parcels are small, light packages that don’t weigh more than a certain amount and are sent with a letter as a priority. They are delivered in the same way as letters and don’t weigh more than a certain amount.

International Express

International Express is the business of sending packages and moving goods between two or more countries (or regions). Most of the time, once the express arrives in the country of destination, it needs to be shipped again in the country of destination before it can be delivered to the buyer. Logistics carriers like DHL, UPS, FedEx, etc. are often used.

International Special Lines

The logistics line channel to a certain country is called a “international line.” International special lines often use the sea, the air, and the rails to get from one place to another. We usually mean the international special line when we talk about the British special line, the American special line, the German special line, etc.

Overseas Warehouse Delivery

Overseas warehouse delivery means sending goods in batches from a warehouse in one country to a warehouse in another country. Once the buyer places an order, the goods will be sent directly from the overseas warehouse.

What is a Product/item code?

Global Trade Item Numbers (GTINs), which are also called commodity numbers, are a unique set of codes that are used to identify goods. People also often call these codes “barcodes.” Every item that is sold must have its own number.

If you sell shirts in three different sizes, each size will have its own item number.

But some products can get out of having a Product Number (GTIN). If the item does not have a barcode or an item number that can be scanned, you can ask for an exemption. If a product is not approved for an exemption, the product code must be entered in the product code field. When adding items to Amazon’s catalog, the Universal Product Code is the most common product code (UPC).

Where the product code can be found

On the package or cover of the product, the product code is either above or below the barcode.

If a product doesn’t have a product code, where can I get one?

You can ask the manufacturer for the product code. If you made the product yourself, GS1 will sell you a product number (GTIN).

Amazon uses the GS1 database to make sure that item codes are real. Instead of buying the product code from a third-party product code seller, it is best to buy the product code directly from GS1. Can go to http://www.gs1.org/ to find out more about how to buy GS1 product codes.

How to ask for an exemption from the commodity code

Before starting to apply for an exemption from the commodity code, check to see if the following information is ready:

• name of product
• 2 to 9 pictures that show the product and packaging from all sides. The following must be true about these pictures:
• The brand name on the product or packaging in the photo must be the same as the name you put in when you applied.

• Photos must be real and show the product and packaging from all sides. The best way to take this kind of picture is to hold the item and its packaging in your hand or put it on a table.

• Branding that stays on the product or packaging for good.

• Barcodes that have been approved by GS1 must not be on products or packaging.

Application Process

When you click “Apply for a UPC exemption,” you’ll go to the page for exemption applications and be able to start the application process for a commodity code exemption.

At this point, you’ll be taken to the “Apply for a GTC Exemption” page, where you can apply for a commodity code exemption. When “Apply for GTIN Exemption” is typed into Seller Central:

Process

1. Click on “Select.” “Select product category” will appear on the page at this point.

category)” menu.

2. From the menu, choose the product category that fits the item being sold.

3. If you fit into more than one category, click “+Add more categories.” Then enter.

4. Type the name of the brand in the Brand/Publisher field.

a. If the product doesn’t have a brand, type “Generic” here.

b. Click +Add more brands/publishers to add a brand or publisher if the product is owned by more than one brand or publisher.

Note: Sellers can add as many products as they want to this page without having to apply for exemptions for each brand or category.

5. Click “Check for eligibility”. If the product doesn’t meet the requirements for exemption, please wait until a product code is available before listing it. If the product qualifies for the exemption, the page will show a list of product categories and brands that are exempt from the product code.

6. If you confirm that your brand name also meets the requirements for exemption, please click “continue to submit the certificate.”

show proof: The supporting documents must be sent in one of three formats: JPEG, TIFF, or PDF.

Note: You won’t be able to click “Continue to submit proof” if the product doesn’t meet the GTIN exemption requirements.

7. Post pictures of the product and its packaging from all sides.

8. Click “Submit Request”.

Fulfillment By Amazon is the next evolution of AmazonShip. For commercial purposes, the vendor ships the items to an Amazon FBA warehouse. Amazon will assist in the picking, packing, and shipping of customer orders. Although this line of work may seem ideal, a solid stocking capacity on the part of the vendor is essential. Initial investment is relatively significant because of the required amount of preparation time in the Amazon warehouse.

It is not advised that first-time, independent vendors go this route. There will be no issues if a team of sellers operating more like factories reach out to the FBA business, and Amazon will even provide some traffic help.

Thus, more Xiaobai sellers will choose for FBM services if they wish to follow in Amazon’s footsteps in cross-border e-commerce. Fulfillment by Merchant or FBM, is its own fulfillment service. In Amazon, vendors can list their wares for sale. In response to an order, the seller will prepare the items for shipment, and then send them along the international logistics chain to the final destination.

Advantages of Amazon FBM

With FBM, vendors can increase their stock-keeping unit (SKU) count without increasing their warehousing footprint at Amazon. When merchants are at a loss for what to stock, they often count on a steady rise in product distribution. This service has the potential to be successful because it requires little to no initial capital investment, but it also has some drawbacks.

Disadvantages of Fulfillment by Merchant

FBM service has the drawback of being quite onerous and time-consuming for vendors. In the first place, the seller needs to act as a customer service to handle a series of client problems when the number of customer orders is huge but not obvious.

Shipping from China means a longer total delivery time, more complicated logistics, and less direct influence over product quality. Sellers may grow weary of fielding questions and dealing with issues relating to subsequent returns and exchanges.

There is growing consensus that the Amazon platform’s stringent controls make widespread product distribution impossible. Even if they can’t pass, there are still people on foot. Is that the metal? It’s possible for this reason, but it really only applies to your own life. They have to resort to the mass distribution when they lack the resources, product range, and operations staff to pursue any other option.

Conclusion

Which begs the original question: will FBM be successful in 2022? It’s possible, but merchants interested in FBM should give serious thought to whether or not their individual situations make them good candidates for the service.