Comparison of the advantages and disadvantages of overseas warehouses and FBA (Amazon Logistics)

The following is a comparative analysis of the advantages and disadvantages of overseas warehouses and FBA (Amazon Logistics) for reference:

  1. Advantages and disadvantages of overseas warehouses
    Advantages:
    High flexibility

Can serve multiple platforms (such as eBay, independent stations, Walmart, etc.), not limited to Amazon orders.

Support customized services (such as labeling, packaging changes, return and exchange processing, etc.).

Controllable costs

Storage costs are usually lower than FBA long-term storage fees, suitable for large or low-turnover goods.

No FBA surcharges (such as peak season fees, excess storage fees, etc.).

Autonomy of inventory management

Can freely allocate inventory to avoid the risk of inventory backlogs in Amazon warehouses.

Suitable for sellers selling seasonal products or frequent promotions.

Multiple choices for first-leg logistics

Can choose sea/air transportation channels independently to reduce logistics costs.

Disadvantages:
Slow logistics timeliness

It depends on the delivery capabilities of third-party overseas warehouses, which are usually slower than FBA’s Prime delivery.

No traffic support

Unable to enjoy the weight bonus of Amazon’s “Buy Box” (Golden Shopping Cart), which may affect the conversion rate.

Strong after-sales dependence

Need to handle returns, customer service and other issues by yourself, increasing the complexity of operations.

  1. Advantages and disadvantages of FBA
    Advantages:
    Fast logistics time

Support Amazon Prime members to deliver for free the next day, improving customer experience and conversion rate.

Platform traffic tilt

Products using FBA are more likely to win the “Buy Box” and get more exposure.

Simplified operations

Amazon is responsible for warehousing, distribution, after-sales and customer service, reducing the operating pressure of sellers.

Global logistics network

You can directly use Amazon’s multi-country warehouses (such as Europe, Japan, etc.) to simplify cross-border logistics.

Disadvantages:
High cost

Storage fees (especially long-term storage fees), delivery fees, return processing fees, etc. may erode profits.

Large or low-priced goods have high cost pressure.

Strict inventory restrictions

Amazon has dynamic restrictions on inventory capacity, and may face difficulties in replenishing during peak seasons.

Return policy is relaxed

Amazon tends to support buyers to return goods unconditionally, and sellers need to bear losses.

Compliance requirements are complex

FBA product labeling, packaging and other rules must be strictly followed, otherwise they may be rejected or fined.

III. Comparison summary table
Comparison dimension Overseas warehouse FBA
Applicable platform Multi-platform (Amazon + others) Amazon only
Logistics time Slow (depends on warehouse efficiency) Very fast (Prime delivery)
Cost Low (especially large/low turnover) High (more surcharges)
Traffic support No platform traffic support Enjoy Buy Box and exposure weight
Inventory management Flexible and independent Limited by Amazon rules
After-sales service Need to be handled by yourself Amazon fully managed
Return processing Customizable rules High return rate, sellers bear losses
IV. Selection suggestions
Choose FBA: If you focus on the Amazon platform, pursue high conversion rates, and sell small and high-turnover products.

Choose overseas warehouse: If you operate on multiple platforms, sell large/seasonal products, need to reduce costs or flexibly manage inventory.

Mixed use: some products go through FBA (to improve rankings), and some go through overseas warehouses (to reduce costs), balancing risks and benefits.

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