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Things You May Be Interested In About Amazon FBA

What does Amazon FBA refer to?

The full name of Amazon FBA is (Fulfillment by amazon), which literally means fulfillment by Amazon. In fact, this service launched by Amazon is very simple, that is, the seller will prepare the goods in advance to the warehouses built by Amazon around the world. When a seller has an order , Amazon performs follow-up work such as packaging, labeling, shipping, and customer service on behalf of the seller.
That is to say: after a foreign buyer places an order, if the goods are shipped in China, the timeliness will be very poor, and the buyer may not receive the goods for more than a week. In order to improve the service quality and level, you can use the FBA freight forwarderservice provided by Amazon, and according to the sales forecast, first ship the goods to foreign countries in large quantities by sea, air or international express, and then enter the Amazon FBA warehouse. In this way, once a foreign buyer places an order, it can be shipped directly from the FBA warehouse. For example, after an American buyer places an order, the goods will be sent directly from the American FBA warehouse. This is equivalent to the domestic express delivery in the United States, and the timeliness and quality are improved promote!
“FBA first journey”. FBA first journey refers to domestic shipments (by sea, air, international express… …) Until the goods enter the Amazon FBA warehouse, the period of logistics and transportation that can be put on the shelves for sale, as well as a series of related businesses such as customs clearance and tax payment.

(1) Sending the goods to Amazon, that is, the first step of FBA sellers is usually the only step that needs to be operated by themselves when doing FBA. Sending the goods from their own warehouse to Amazon’s warehouse requires labeling and other operations.

(2) Amazon Warehouse Commodities. After the goods arrive at the Amazon warehouse destination, the seller needs to register the goods with Amazon and store them in the Amazon warehouse for short-term storage.

(3) Amazon picking and packaging. When the seller receives the customer’s order, Amazon will sort out the seller’s goods from the inventory according to the order and pack them, waiting for delivery.

(4) Products delivered by Amazon Amazon will be responsible for the delivery of products from the FBA warehouse, and will also be responsible for the consumer’s return/exchange activity requirements.

Should you choose a freight forwarder from China or the country of your destination?

Regardless of the mode of transportation from China to the country of your destination, it is always best to choose a freight agent from China because the Chinese freight forwarder has the advantages of language and geography, becoming the ideal choice for overseas transportation. This will make the shipping process faster, will save you time, and the shipping price will be cheaper than your country’s shipping agent. In the shipping process, you will also need a Chinese warehouse for storage and preparation.

An experienced Chinese freight forwarder will have these abilities: he will be fluent in Mandarin and Cantonese; it will have a thorough knowledge of the Chinese business culture, experience in managing Chinese suppliers, category and sourcing process experience, quality control experience, audit experience, and logistics experience. Local forwarders (from the country of your destination) will often have to contact another agent in China to handle the picking, preparation, storage, and customs clearance, which will lead to higher costs and time.

May 23, 2022 / By tjchinafreight ivy / Shipping

Fulfillment by Amazon (FBA) vs. Dropshipping

If you've ever purchased anything on Amazon, you probably opted for same-day or one-day delivery at some point, even if the item wasn't sold by Amazon. After all, as the world's largest retailer, Amazon prides itself not only on the variety of products on its site, but also on its fast delivery.

But have you ever wondered what happens behind the scenes when shopping on Amazon? According to Statista, Amazon's main source of revenue is the online sales of its electronics and other products. The second is third-party seller revenue.

Third-party sellers on Amazon

The world's largest retailer has more than 2 million third-party sellers registered on its online platform. In fact, it is estimated that more than 47% of items shipped by Amazon are sold by third-party sellers.
More and more businesses are building and growing their wealth on Amazon. In trade and commerce, like it or not, there is always a very important aspect to deal with: logistics.

Fulfilled by Amazon or Dropshipped

Given these advantages, it's no surprise that most third-party sellers on Amazon use its Fulfillment by Amazon (FBA) service. With FBA, sellers' products are eligible for Amazon's Prime and Super Saver Shipping. They can also take advantage of Amazon's customer service experience, which all translates to more sales when competing with non-FBA sellers.

However, not everything that glows is gold. Amazon's FBA also has its disadvantages, and many sellers often choose to handle this part of the logistics themselves. In other words, direct fulfillment.

If you are a third-party seller who chooses direct fulfillment, you may need to hire an outside service to help you manage the logistics part. As the demand has increased over the past decade, direct or other implementations have become more popular and advanced. Technology is obviously a big help when it comes to managing the entire process, tracking individual shipments, and inventory in warehouses. For most people, the dream right now is to reach Amazon Prime levels, where, for example, when you preorder, you know the shipment will arrive at your door on a given date. And it actually delivered on that date.

April 12, 2022 / By tjchinafreight ivy / FBA • Shipping

Understand the KYC audit of Amazon Europe store opening

As an Amazon seller, the lifeblood of your business is making sure your selling account remains in good standing with Amazon. If you have to face Know Your Customer scrutiny, your business could grind to a halt. Many U.S. sellers on Amazon Europe and Canada are concerned about the Know Your Customer process, but few understand it. If you've read stories on message boards and blogs about sellers being closed due to KYC, you're probably reasonably shocked.

Why does Amazon need a KYC review?

Amazon’s laws and regulations in the regions in which it operates require that its customers (in this case, you) be vetted to ensure that you are not engaging in any of the above illegal activities. We know you're probably an ambitious entrepreneur, not a member of an international crime syndicate, but Amazon doesn't know that. For this reason, Amazon periodically requires sellers to pass KYC checks. Yes, even if you did nothing wrong or changed your account. They may periodically ask you to verify your KYC documents. The randomness that triggers KYC reviews is something Amazon is working on. But be prepared that KYC may be triggered in many cases.

What situations might trigger a KYC audit?

1. Under normal circumstances, when the cumulative sales amount of European sellers reaches 5,000 euros or more, the seller review will be triggered. It is recommended that sellers try their best to complete the review when the cumulative sales amount reaches 15,000 euros to avoid being banned.

Although it is said that sellers can review the cumulative sales from 5,000 euros to 15,000 euros, there may also be omissions in review data during this period. Therefore, it is recommended that sellers in Europe start preparing KYC review documents when registering an account. ;

2. When changing the credit card;

3. When modifying background information such as identity information and contact information;

4. When modifying the receiving account;

5. Modify the company address (such as registered address, etc.). Some sellers have already done KYC audits when they registered for the European station, but because their business licenses are included in the abnormal list, they need to change their addresses. After changing their addresses, they will trigger a second audit and receive Amazon's KYC audit emails;

6. Even if nothing is done and no information is changed, Amazon will have periodic KYC audits. Such audits will become the norm as Amazon formalizes its operations.

Amazon's KYC audit is normally 3-5 days, but there are also sellers who are audited for half a month, a month or even longer, depending on whether your information is passed. The suggestion is to prepare the materials required for the audit before performing operations that may trigger the Amazon KYC audit. Once the audit is triggered, the materials can be submitted immediately. And as long as the company information is complete, KYC is easy to pass.

Start your shipping and learn more about Amazon FBA shipping

April 8, 2022 / By tjchinafreight ivy / FBA

A large number of sellers’ PayPal accounts have been cleared!

To this day, the aftermath of Amazon's title wave still leaves many sellers with lingering fears and fears.
In addition, since the beginning of this year, there have been platforms that have begun to follow Amazon's "road of imitation", and bad news has been reported frequently.

It is understood that recently, the payment platform PayPal has also joined the melee army of clearing accounts, targeting Chinese sellers.
There are even big sellers who revealed that their deductions and frozen funds exceeded 78 million yuan. Let's take a look at what is going on.

01PayPal cleaning

It is also a headache for independent stations to sell well

A few days ago, the cross-border big seller Tongtuo Technology released the announcement of major events, which attracted many sellers to come to watch.
The content of the announcement pointed out that some of the funds in the PayPal account bundled with the company's independent station recently appeared abnormal:
Among them, 29 accounts have been deducted by Paypal. As of March 28, 2022, the deduction amounted to a total of RMB 54.245 million;
6 accounts were sued for trademark infringement due to the products sold by the bound independent station, and 24.246 million yuan of funds were frozen;
For the rest of the accounts that are bundled with Paypal, according to the regulations of PayPal, after the account withdrawal function is closed, the last payment is 180 days before the normal payment can be applied.

02 Independence Station Waterloo

A large number of sellers suffered heavy losses

If the big sale is like this, how can the small sale be spared?

In the past few days, many independent website sellers have successively reported that their PayPal accounts were suddenly debited by the platform, and what’s more, some sellers’ PayPal accounts were directly cleared.
It is reported that PayPal has recently launched a special campaign against accounts in China to severely crack down on violations such as trademark infringement and the proliferation of counterfeit goods on independent websites. It does not rule out the harm of innocent people, but it has also caused many independent website sellers to suffer heavy losses.

Some sellers said that according to foreign practice, consumers can ask payment institutions for compensation when they encounter fraudulent acts. PayPal is likely to compensate many consumers for this, so this time it has increased its crackdown on violations.
You must know that last year, the tide of Amazon bans scare away onlookers, and at the same time, some Amazon prepared sellers turned around and threw themselves into the arms of independent stations.

There are also a group of sellers who adhere to the principle of "don't put eggs in the same basket", and have also started their own independent journeys.

I thought I had found a broad blue ocean to get rich, but I didn't expect that Feng Shui would take turns, and within a year, I encountered the "Independent Station Waterloo" which is the same as the "Amazon title tide".

Coupled with the recent "accidents" of the big sale, linking the various news from the outside world, it is not difficult to understand that someone would issue such a soul torture.
In fact, it is not that it is difficult to do an independent station, but that the overall environment of cross-border e-commerce has higher requirements for compliance.
Therefore, it is not difficult to judge that for cross-border sellers, strengthening legal awareness, intellectual property awareness, and operational compliance awareness will become a required course.

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