FBA (fulfillment by Amazon) means that the seller directly delivers the inventory of products sold on Amazon to the warehouse in Amazon’s local market. After the customer places an order, the Amazon system automatically completes the subsequent delivery. FBA has strict delivery requirements for sellers, so we need to take it seriously. The precautions for FBA shipment are as follows:
- FBA delivery time
There is a technical term called Amazon FBA inventory cycle, which refers to the time required for unit inventory to be sold. FBA inventory cycle is mainly an important indicator to measure whether product sales are healthy, and it is also an important link in Amazon FBA’s delivery process. The seller needs to have a clear understanding of the inventory cycle of the product in order to determine the delivery time of the product.
Especially in the event of large holidays or promotions, it is recommended that sellers make an FBA delivery plan in advance and try to make delivery as early as possible to avoid congestion during peak periods, which will delay the time for warehousing and listing.
- FBA cost accounting
The cost accounting of Amazon FBA should be based on a comprehensive freight base price, including special lines, railways, sea, etc.
If you are a novice seller preparing to send the first batch of FBA, you should consider whether it is necessary to test the launch. It is suggested that you can use the first batch of goods to test the launch and offset the ranking in the form of low prices. When the ranking is up, the sales volume will follow up. In the later stage, you only need to control the replenishment rhythm to save a lot of freight costs.
- FBA replenishment
The product ranking will affect the sales volume, and the sales volume will also affect the replenishment cycle. However, we can usually control the product ranking by adjusting the price and reducing the advertising bidding.
Generally, in order to ensure that the inventory of their products in the FBA warehouse is sufficient, sellers need to calculate in advance the time from replenishment to warehousing and listing, that is, the number of days from the seller placing an order with the factory to the product listing. Then calculate the safety stock of the product. When the stock is insufficient and close to the safety stock, place an order with the factory in time.
Note: product safety stock = average daily sales * days of replenishment and warehousing.
- Accurately fill in the dimensions and weights of products and packages
The Seller shall fill in according to the actual data when delivering goods. Amazon will also have its own measurement after entering the warehouse. However, if you make an error in the first filling, you may be assigned to some wrong warehouses (for example, small items are assigned to the warehouse of oversized items due to their large filling size, which will affect the warehousing time)
Special note: each site has different requirements for FBA delivery standards. Amazon logistics has detailed requirements in the background help. Be sure to read carefully before delivery. This is directly related to money. If the size is wrong, you will have to charge an extra delivery fee. If you are warned many times, you will have the right to use FBA for delivery.
- FBA shipment quantity
FBA’s shipment quantity is also a major factor. If the shipment quantity is too large, it is likely to cause waste of unsalable storage fees. However, if the shipment quantity is too small, the inventory is insufficient or there is a shortage of goods, it will affect the sales of products. Therefore, it is very important to control the delivery quantity. When calculating the replenishment quantity, the seller can calculate it according to the replenishment quantity formula, and then adjust the replenishment quantity according to the product sales.
Note: replenishment quantity = expected product sales days * average daily sales *2
- FBA quality inspection
The quality of FBA products must be strictly checked. Some people have tried to send an empty box before, which makes Amazon and its customers lose confidence. Especially the quality problem. If you receive Amazon’s warning of product description discrepancy due to product quality problems, your Amazon store listing is likely to be deleted.
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