How Do New Amazon Sellers Choose E-commerce Logistics Methods?

For new Amazon sellers, facing a complex cross-border logistics system, how to choose the right logistics method is directly related to cost control, operational efficiency and customer experience. The choice of logistics links is often a key step in determining whether you can gain a foothold and achieve profitability. If you choose the wrong logistics, your profits will be damaged at best, and your account will be restricted at worst!

Looking at the new products that are eager to try on the product page, the first batch of goods is stuck in customs and cannot move? Carefully calculated profits, but they are swallowed up by unexpected logistics surcharges? Peak season orders are pouring in, but the warehouse cannot ship due to overcrowding, and the sales opportunity is missed?

As a service provider who has been deeply involved in cross-border logistics for many years, Chinadivision will provide a practical guide for new sellers from an industry perspective and answer common pain points.

What are the Amazon logistics delivery methods?

Amazon Logistics (FBA - Fulfillment by Amazon)

Operation mode

Sellers ship their inventory in batches to Amazon's global operations center. Subsequent warehousing, picking, packaging, delivery, customer service, and returns and exchanges are all handled by Amazon. It is suitable for sellers who pursue fast delivery, increase product exposure, and whose target market is mainly on the Amazon platform and are willing to bear higher fulfillment costs.

Suitable scenarios

High-volume, high-turnover hot-selling products (such as 3C accessories, household daily necessities);

Pursue "post-retail" (Amazon handles returns and exchanges);

New product promotion period (Prime logo can quickly increase exposure).

Core advantages

Prime logo & traffic blessing: Products automatically obtain Prime logos, and products can enjoy free two-day delivery, next-day delivery, or even same-day delivery, significantly improving exposure and conversion rates.

Ultimate buyer experience: Enjoy Amazon's efficient and reliable delivery and customer service, and improve buyer satisfaction and repurchase rate.

Sellers save time and effort: Amazon is responsible for warehousing, picking, packaging, delivery and after-sales service, completely freeing up sellers' energy in the order fulfillment link and focusing on product selection and operation.

Pain points & challenges

Complex cost structure: Storage fees (especially long-term storage fees), delivery fees, handling fees, etc. are superimposed, the cost is high and needs to be carefully calculated, and the profit margin of low-priced goods is limited.

Strict inventory policy: IPI scores, storage capacity restrictions, and warehousing requirements (such as labeling and packaging) are strict and have low flexibility.

Difficult to manage multiple inventories: Dispersed in different warehouses, replenishment strategies need to be more precise, and additional warehouse adjustment costs are high.

Difficult to enter warehouses during peak seasons: Tight warehousing appointments during peak seasons may cause delays.

FBA first-leg logistics options

International express (DHL/UPS/FedEx): Fast timeliness (3-5 days), suitable for emergency replenishment or high-value goods, but high cost.

Air delivery: moderate price (40-60 yuan/kg), delivery time 8-12 days, suitable for new product testing or small and medium-sized goods.

Sea delivery: the lowest cost, but the delivery time is up to 40-60 days, suitable for large-scale replenishment or stable sales of goods.

Seller self-delivery (FBM - Fulfillment by Merchant)

Operation mode

The seller is responsible for the whole chain operation from warehousing, packaging, delivery to customer service. Suitable for sellers who want to reduce logistics costs and flexibly control inventory.

Suitable scenarios

Small batch trial sales (such as new product testing market response);

Large/heavy goods (such as furniture, fitness equipment, FBA storage fees are too high);

Low customer unit price products (low profit, FBA fees eat up most of the revenue).

Core advantages

Flexible cost control: No need to pay Amazon storage fees, you can choose the most economical logistics provider and method, especially for small, low-value or spontaneous orders to effectively control costs.

High inventory autonomy: Inventory is fully controlled independently, without platform storage capacity restrictions or storage fee pressure.

Brand display space: Customizable packaging and brand materials can be inserted to strengthen brand image.

Pain points & challenges

No Prime logo: Traffic and conversion rate are usually lower than FBA products.

Heavy operational burden: You need to handle warehousing, packaging, distribution and after-sales by yourself, which requires high team capabilities and invests a lot of time and manpower to handle order fulfillment and customer service.

Difficult to control timeliness and experience: Delivery timeliness, package status tracking, and customer service quality are highly dependent on the capabilities of yourself or the selected logistics provider.

High performance indicator pressure: Amazon's requirements for order defect rate (ODR) and late shipment rate (LSR) must be strictly met, otherwise the account will be at risk.

Optimization suggestions

Use Amazon's "Buy Delivery" service: Automatically upload tracking information, improve effective tracking rate, and avoid bad reviews caused by logistics problems.

Choose a reliable logistics provider: Prioritize cooperation with logistics providers with customs clearance capabilities and stable timeliness to reduce the risk of lost packages and damage.

3PL - Third-Party Logistics

Operation mode

Sellers prepare inventory at overseas warehouses of professional third-party logistics service providers in target markets (such as the United States and Europe). The service provider provides warehousing, order processing, local delivery and return and exchange services. Suitable for sellers who want to balance timeliness and cost.

Suitable scenarios

Medium and large items (such as furniture and home appliances, FBA warehousing fees are high);

Seasonal items (such as Christmas decorations, which require flexible inventory adjustment);

High repurchase rate but not explosive (stable sales but no Prime traffic required).

Core advantages

Fast local delivery: Delivery from the destination country, with a timeliness close to or comparable to FBA, greatly improving the buyer experience.

Multi-platform one-stop service: Support inventory sharing, and efficiently serve orders from multiple platforms such as Amazon, independent stations, and eBay.

Flexibility and controllability: Provide customized warehousing, packaging, delivery and value-added services (such as quality inspection and labeling), more flexible warehousing policies, packaging options, and inventory management strategies (such as clearance channels) than FBA.

Cost structure optimization potential: Storage fees and delivery fees are usually lower than FBA, especially for large, heavy goods or goods with stable sales, the comprehensive cost may be better than FBA.

Pain points & challenges

Service provider selection key: The system stability, operation efficiency and customer service quality of the service provider directly affect the seller's operation.

Management and coordination costs: It is necessary to efficiently coordinate with overseas warehouse service providers to manage inventory and orders.

Initial investment: Usually a certain minimum order quantity or minimum inventory is required.

Chinadivision solution

Provides European and American overseas warehouse one-piece delivery service, supports the entire process of warehousing, sorting, packaging and delivery, and reduces the operating threshold of sellers.

Intelligent warehousing system monitors inventory in real time to avoid the risk of out-of-stock or backlog.

International direct mail parcels (such as postal parcels, dedicated line parcels)

Operation mode

Sellers send single packages to overseas buyers directly from China (or the country of origin) through postal or cross-border dedicated line services.

Suitable scenarios

Small batch, low-unit-price goods (such as accessories, mobile phone cases, profit < $10);

Test sales of new products (verify market demand);

Light and small items (weight < 2kg, small size).

Core advantages

The lowest startup cost: No need to prepare overseas goods in advance, no storage costs, suitable for testing or very small batch orders.

The operation is relatively simple: The process is relatively direct.

Pain points & challenges

Slow and unstable timeliness: Long delivery cycle (often 15-50 days or even longer), large fluctuations, poor buyer experience.

Incomplete tracking information: Some channel tracking information is incomplete or difficult to be effectively identified by the Amazon system.

High risk of package loss/damage: There are many links in long-distance transportation, and the risk is higher.

Customs clearance uncertainty: Some packages may encounter customs clearance delays or generate tariffs (affecting the buyer experience).

High performance risk: It is difficult to meet Amazon's requirements for timeliness and effective tracking rate, which can easily lead to account performance problems.

Key considerations for Amazon novice sellers to choose logistics

Cost control and profit maximization

FBA cost calculation: storage fee + delivery fee + order processing fee, which needs to be evaluated in combination with product profit margin.

FBM cost optimization: choose postal parcels or dedicated logistics, and batch delivery to reduce unit cost.

Third-party overseas warehouse costs: storage fee + local delivery fee, suitable for high-priced goods.

Although FBA fees are transparent, there are many items. Overseas warehouses need to inquire about quotations in detail, and small packages need to calculate hidden costs.

Balance between logistics timeliness and customer experience

Prime member products: FBA must be used, otherwise it will be difficult to compete.

Non-Prime products: FBM+dedicated logistics can be used to ensure delivery within 7-15 days, taking into account cost and experience.

Product attributes determine logistics mode

High value/urgent replenishment: FBA+international express or air delivery is preferred.

Low unit price/large-volume replenishment: choose FBA+sea transportation or third-party overseas warehouses.

Test new products: FBM+air delivery or postal parcels, low-cost trial and error.

Inventory management capabilities

In-depth questions: "Can I accurately predict sales to avoid FBA long-term storage fees? Do I have the energy to manage inventory scattered in multiple locations? Can overseas warehouse service providers provide real-time inventory data and intelligent replenishment suggestions?" Inventory backlogs mean frozen funds and high fees, and out-of-stock means missed sales opportunities.

Logistics provider capabilities and risk control

Customs clearance capabilities: Amazon is not responsible for customs clearance, so be sure to choose a logistics provider with customs clearance capabilities.

Package loss/damage protection: It is recommended to purchase insurance for high-value goods to reduce the risk of loss.

Service stability: Prioritize logistics providers with stable routes to avoid congestion during peak seasons.

Long-term planning and supply chain flexibility

Stocking plan: Combine sales data with logistics timeliness and stock up 2-3 months in advance.

Multi-channel layout: FBA+FBM+third-party overseas warehouse combination to diversify risks.

Common problems and solutions for novice sellers

What to do if logistics are paralyzed during peak seasons?

Stock up in advance: Start the stocking plan for the peak season at least 2-3 months in advance, and use sea transportation to lock in space and price.

Multi-warehouse layout: Use overseas warehouses to distribute risks at multiple points, deliver nearby, and improve timeliness and risk resistance.

Lock in resources: Lock in storage space, operating manpower and transportation space in the peak season in advance with reliable logistics partners (such as Chinadivision).

Real-time monitoring and early warning: Rely on the system monitoring and local team of professional logistics providers to grasp the logistics dynamics in real time and respond quickly to emergencies.

How to choose a reliable logistics provider?

Qualification review: Check the customs clearance capabilities, route resources, and service reputation of the logistics provider.

Trial order test: Small batch shipments test timeliness and service stability.

FBA and third-party overseas warehouses, which one is more suitable for novices?

Newbies are advised to "try third-party overseas warehouses first, then switch to FBA." FBA has strict requirements on warehousing rules (such as labels and packaging), and novices are easily rejected due to operational errors; third-party overseas warehouses (such as Chinadivision) provide "warehouse quality inspection + labeling operation" services to lower the entry threshold, and then switch to FBA to grab traffic after sales are stable in the later stage.

Chinadivision: Your cross-border logistics partner

Choosing Amazon logistics is by no means "once for a lifetime". With the increase in sales, expansion of categories, and changes in platform rules, your logistics strategy needs to be continuously optimized.

Chinadivision understands the real pain points of cross-border sellers. We provide one-stop solutions from professional and compliant FBA first-leg, stable and efficient global overseas warehouses (US/Europe/Australia/Japan, etc.), to economical and fast international dedicated line parcels.

As a service provider who has been deeply involved in cross-border logistics for many years, Chinadivision provides the following solutions for Amazon sellers:

FBA first-leg logistics: supports sea, air, and express delivery, and provides one-stop door-to-door services.

Third-party overseas warehouses: European and American warehouses for one-stop delivery, supporting the entire process of warehousing, sorting, packaging, and distribution.

FBM dedicated logistics: covering Europe, America, Southeast Asia and other regions, with a time limit of 7-15 days and transparent prices.

Intelligent warehousing system: real-time monitoring of inventory, automatic replenishment reminders, and reduced operational risks.

Whether you need professional FBA preparation, efficient FBM distribution, or streamlined international transportation, we can provide comprehensive solutions to meet your specific needs. Are you ready to optimize your Amazon logistics and grow your business with confidence? Contact Chinadivision now for a personalized consultation!