What Is Amazon Logistics?

What Is Amazon Logistics

When we operate the store, it will certainly involve the issue of delivery, and the choice of logistics delivery is a problem for many businesses. In recent years, Amazon Logistics has become the first choice for many merchants to ship goods. Why? This article will tell you the answer. This paper will analyze the connotation of Amazon logistics, operation mode, and advantages and disadvantages of various types. This will let you have a new understanding of Amazon logistics, I believe that as long as you understand these, you will avoid a lot of troubles in logistics transportation.

What is Amazon Logistics?

The Amazon Logistics system includes Amazon Logistics and Amazon “Buy to Deliver” services. The logistics solution covers orders delivered by Amazon and orders delivered by the seller.

1. FBA

What is Amazon Logistics

Amazon Logistics service is responsible for storing the goods for you after you send them in bulk to the Amazon Operations center. Once an item is sold, Amazon performs a series of customer service operations such as order sorting, packaging, delivery, and return. In summary, Amazon FBA can provide you with a high standard of warehousing, picking, packaging, delivery, collection, customer service, and return and exchange services, providing you with a true “one-stop solution”.

2. FBM

What is Amazon Logistics

When selling goods on Amazon, if FBA cannot be used due to the limitation of volume, weight, or category of goods, the seller can sell and complete the order delivery by self-delivery. And be responsible for a series of processes such as inventory management, packaging, delivery, and customer service.

What are the Pros and Cons of Amazon Logistics?

1. FBA

Advantages

  • Save Shipping Costs

Because the FBA mode needs to store goods, so the general shipment is relatively large. And in the logistics industry, the weight is a range of values. The greater the weight of goods, the more favorable the price, so you can save part of the freight.

  • Fast Delivery

Amazon has its own complete set logistics system. The seller sends the goods to the Amazon warehouse before the goods are sold, and the warehouse will have specials to check the packaging of the goods twice. After the order is generated, the Amazon warehouse will directly send the goods to the customers, which shortens the transportation and distribution time.

Disadvantages

  • You Need To Stock Up

One of FBA’s biggest problems is the need to stock up. In order to get the goods to customers faster, there is a lot of pressure on sellers to store large quantities of goods in Amazon warehouses.

  • High Cost

Amazon’s warehouse does not store your products for free. Instead, it charges storage fees based on the size of your products. The longer the storage time, the higher the cost. Insert picture description here.

What are the Pros and Cons of Amazon Logistics

2. FBM

Advantages

  • No Need To Stock Up

Sellers themselves operate FBM, so they can arrange delivery after customers place orders. There is no need to use Amazon’s warehouse to store goods, so there is no need to store large quantities of goods.

  • No Financial Pressure

Because you don’t need to stock up, you don’t need to pay for large quantities of goods. And you don’t need to pay for a series of warehousing expenses, so the cost is relatively low.

Disadvantages

  • Long Trading Period

Because the goods need to be shipped from home by the seller, the time of delivery is relatively long, and the customer has to wait for a long time, so the payment for goods is relatively slow.

  • Cumbersome Operation

Complete the packaging and labeling of goods by myself and increase the workload. And to contact their own logistics company delivery. Logistics companies will charge higher logistics fees unless the number of goods can be guaranteed. We can talk about cooperation with logistics companies to reduce logistics costs, but it is difficult for novice sellers.

How does Amazon Logistics Work?

FBA is mainly to the seller of goods batch sent to operation center, amazon by amazon coordinator Responsible for helping the seller store, when we will products sold by amazon coordinator sorting, packaging, distribution, contain after-sale services, can help the seller to save a lot of manpower and material resources and financial resources, similar to the overseas warehouse.

FBM sellers are responsible for inventory management, packaging, delivery, customer service, and so on when they deliver the orders sold on Amazon. The sellers are in control of every link in the whole process from the receipt of the orders to the delivery to buyers.

How is it Different from Conventional Carriers?

How does Amazon Logistics Work

1. Different Types of Commodity Logistics and Transportation

Compared with traditional carriers, under the Amazon logistics mode, based on information technology and network, the object of logistics operation is no longer large goods, but detailed to each customer’s every requirement, and customers can track the commodity logistics in any time period.

2. Different Types of Customers

In the traditional mode, the objects of logistics services are generally fixed, so logistics operators can have an accurate grasp of their product service needs and customer types.

Under the new Amazon model, the specific customer target group it faces is an unknown concept, and its service mode is far beyond traditional logistics.

3. Different Modes of Logistics Operation

Traditional logistics is a typical “push operation”. Once a commodity is sold out, it needs to rely on logistics to realize the distribution of goods. In this process, logistics and business flow are just “push”, and in essence, logistics only plays a supporting role in the whole process.

Amazon Logistics, on the other hand, is completely different. Its capital flow, logistics, and business flow are all operated around the market, and all links such as product production, sales, and goods distribution are operated according to customer orders. In this process, logistics plays a decisive main role.

4. Different Inventory and Order Flow

In the traditional logistics pattern, inventory and order are one-way, and buyers and sellers do not communicate. Under Amazon logistics, inventory and orders are two-way interactive, and customers can monitor and even modify inventory and orders in real time. In addition, manufacturers and retailers can adjust inventory and orders according to customers’ different requirements to optimize logistics performance.

5. Different Destination of Logistics

In the traditional mode, it is often unable to match the goods displacement information at first time, especially the scattered customer information.

However, Amazon logistics carries out commodity flow based on customers’ personalized needs. It not only needs centralized transportation to achieve the lowest transportation cost but also relies on differentiated distribution to improve the quality of logistics service. Because of the above points, its distribution destinations are decentralized and fragmented.

Conclusion

Amazon Logistics provides a variety of logistics modes for e-commerce operators. How to choose the right logistics mode should be based on the actual situation of their own stores. As long as you choose the right logistics mode, you can save the heart in this aspect of logistics. Therefore, Amazon logistics needs us to spend a lot of time understanding and analyzing carefully. Of course, if you want to know more information, please contact us.

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