How to reduce the initial logistics cost of FBA

Due to the fact that the initial cost of FBA accounts for the majority of logistics costs, reducing logistics costs can reduce e-commerce costs. Therefore, cross-border e-commerce will find ways to reduce this cost. How to reduce the initial logistics costs of FBA is not a simple task. It greatly tests the ability of cross-border e-commerce logistics managers. They must have a good understanding of the FBA process, understand the costs of FBA customs clearance, transportation, and tax declaration, and understand the timeliness of various transportation methods.

There are three main ways for FBA's first journey: FBA special line (air+delivery), FBA special line (sea+delivery/card), and international express delivery. Among them, international fast delivery is faster and can be booked into Amazon warehouses without reservation. However, this transportation method is not responsible for FBA customs clearance and tax payment, and the overall transportation cost is relatively high. FBA special line (air+delivery) refers to the use of air transportation to transport goods to the destination city airport, and then use local express delivery to deliver the goods to Amazon warehouses. This FBA first leg transportation method is only second in terms of timeliness to international express delivery, and can also be exempted from booking for storage. Its cost generally includes double clearance and inclusive tax, but the price is not cheap. FBA special line (sea+delivery/card) refers to the use of sea freight to deliver goods to the destination port, and then use express delivery or truck transportation to deliver the goods to Amazon warehouses. This method of transportation has very low costs but takes a long time.

Cross border e-commerce needs to choose different types of FBA first trips based on the sales situation of goods, in order to reduce logistics costs. Based on the estimated analysis of goods sales and inventory situation, the usage ratio of the three FBA first leg logistics transportation methods should be changed to reduce logistics costs without affecting the supply of goods. Due to the lower cost of FBA dedicated lines (sea+dispatch/card), most goods should be transported using this method.