Advantages and charges of FBA head process
FBA Fulfillment by Amazon, whose full name is bai: Fulfillment by Amazon, mainly includes online store + sales flow + warehouse leasing + packaging and delivery + payment. amazon is currently in three vendors' main businesses :Media(i.e. sales commission of its own vendors products), FBA (vendors' rental store + sales flow + sub-warehouse rental + packaging & shipping + collection), and amazon web services(including products like s3\db\aq). Sell good products, will sell better, stable ranking, a certain profit, natural comfort, send a batch of goods, can go out to travel, do not have to tube too much. Amazon will have a certain amount of traffic support. If there is little competition, the sales volume of FBA first stage products will definitely be higher than FBM products, and buyers will be inclined to buy FBA products with fast time limit. For traditional foreign trade, many people become factory customers, or self-production and self-marketing.
Amazon is a big landowner, and you are given several pieces of land to raise your own pearls, which are diverted from the Amazon River to your own pond. However, you may not make a profit in the first year, but you may lose money, because the pearls are too small and no one buys them, so you invest 100,000 yuan and lose money back, or you invest 2 million yuan in a big pond contracted by the landowner, but no harvest.
Another part of the contractor to earn some money, the family built a villa, sold a luxury car, and then some shell suppliers see very jealous, they also want to contract some, their own kind, but finally a loss is also very much, others do not look for him to buy shells.
The Amazon IPI score (inventory performance indicator) is a number between 0 and 1000 that measures how well a seller is managing their FBA inventory (understock, overstock, lingering inventory that cannot be sold due to inventory issues, etc.).
Earlier, Amazon had stipulated that as of May 14, Amazon had raised the score threshold for the IPI storage limit from 350 to 400. If a seller's IPI score on Amazon exceeds 400, the seller will receive unlimited storage in the third quarter. If the seller's Amazon IPI score is below 400 and does not improve, there may be a storage limit in Q3.
In another case, after investing 2 million yuan in a big pond, we have to invest more ponds every year if we want to get higher returns. However, as more and more people contract around the pond, some people do things like secretly waterproof the pond in the middle of the night, or steal some shells and put them in their own pond. At the end of the year, contractors find that they don't have much money in their pockets.
If a seller's Amazon IPI score needs to be improved but is not, and the seller's inventory at Amazon fulfillment centers exceeds the storage limit on any day of the month, then Amazon will charge the seller a monthly inventory excess fee for additional inventory. This is in addition to the monthly storage and long-term storage charges.