Have You Chosen the Right Cross-Border Logistics Solution? Choose the Right Cross-Border Logistics Solution with Our Storage Cost Optimization Guide!
Have You Chosen the Right Cross-Border Logistics Solution? Choose the Right Cross-Border Logistics Solution with Our Storage Cost Optimization Guide!
New sellers who have just entered the cross-border e-commerce industry may overcome the initial challenges of product selection and listing, only to face the complexities of cross-border logistics—
• "Should I choose air freight or sea freight?"
• "Where can I see the shipment plan?"
• "How long does it take to ship goods abroad?"
• "What if the import tax rate is too high?"
• "Can Amazon handle delivery and after-sales service?"
• "How much does cross-border logistics cost?"
• "How do I handle returns?"
• "What should I do if my inventory goes missing?"
• "How do I manage inventory?"
• "Where can I see the shipment plan?"
• "How long does it take to ship goods abroad?"
• "What if the import tax rate is too high?"
• "Can Amazon handle delivery and after-sales service?"
• "How much does cross-border logistics cost?"
• "How do I handle returns?"
• "What should I do if my inventory goes missing?"
• "How do I manage inventory?"
Don’t stress— this article will answer the above questions. With Amazon's official logistics tools and services, sellers can effortlessly handle transportation, storage, and delivery. For beginners, ‘Supply Chain by Amazon’ is a fully automated set of supply chain services that gets your products from manufacturers to customers around the world. Take advantage of a complete end-to-end solution that keeps products in stock, provides faster and more reliable shipping, and significantly lowers costs. Today, let's learn how to solve common logistics problems together!
1. Seller: How do I handle FBA returns?
Answer: Returns are a natural part of cross-border e-commerce. To assist sellers in managing them effectively, Amazon has introduced a solution designed to minimize returns and provide tools for reducing return rates. Handling returns for FBA orders is easier than for self-fulfillment orders (MFN).
Follow these steps to locate and manage returned products for FBA orders based on the specific situation:
Follow these steps to locate and manage returned products for FBA orders based on the specific situation:
🔍 Where can you find returned products?
🔍 Path: "Seller Central" → "Inventory" → "Dashboard" → "FBA Returns".
Under "FBA Returns", sellers can see return analysis and specific return orders. Through this interface, sellers can also see the reasons and ratios for returns, such as product defects or discrepancies with product description.
📊 General recommendations for handling FBA returns
Returned products from buyers are sent back to Amazon's fulfillment centers. Amazon will evaluate the condition of each returned product:
• If the product is undamaged, Amazon will relabel it for resale.
• If the product is damaged but can still be sold, Amazon offers repackaging and refurbishment services, or resells it through the Amazon Renewed Program.
• If the product is defective or damaged and cannot be resold, Amazon provides bulk liquidation, donation, or disposal services. Sellers can also choose to remove inventory for repackaging or return it to their home country.
• If the product is undamaged, Amazon will relabel it for resale.
• If the product is damaged but can still be sold, Amazon offers repackaging and refurbishment services, or resells it through the Amazon Renewed Program.
• If the product is defective or damaged and cannot be resold, Amazon provides bulk liquidation, donation, or disposal services. Sellers can also choose to remove inventory for repackaging or return it to their home country.
If the return is due to FBA fulfillment issues, Amazon will fully refund the buyer and refund the shipping fee to the seller. *For more details on Amazon logistics return policies, visit FBA customer returns policy.
🔄 FBA Grade and Resell to activate inventory
If the product is deemed unsellable, Amazon has a "FBA Grade and Resell Program." This program, open only to invited users, allows sellers to relist unsellable inventory as used items without paying return or removal fees.
*This service is currently available on Amazon US, UK, France, Italy, and Spain.
Q2 Seller: "What if I can't ship due to inventory capacity limits?"
Answer: Managing inventory, maintaining stable storage capacity, efficiently handling peak season orders, and preventing delayed deliveries are crucial priorities for cross-border sellers to ensure a positive customer experience.
❗ Note: Amazon's new storage capacity policy: Exceeding your storage limit prevents new shipment plans and incurs overage fees.
To avoid this, Amazon offers three solutions:
❗ Note: Amazon's new storage capacity policy: Exceeding your storage limit prevents new shipment plans and incurs overage fees.
To avoid this, Amazon offers three solutions:
Solution 1: Increase capacity by using the Storage Capacity Manager
If sellers want to increase storage space for incoming inventory, they can apply for additional storage space to ensure strong sales performance during peak seasons.
How to apply for more FBA storage?
🔍 Path: "Seller Central" → "Inventory" → "Dashboard" → "Capacity Monitor" → "Capacity Manager"
🔗 Click here for more details 👉 Need more storage space? Apply now! Amazon’s 'Warehouse Capacity Manager' can help you expand your storage capacity today!
Solution 2: Free up capacity by using the four-step method to clear excess inventory
Excess inventory may include:
1. Aged inventory: Fees for aged inventory, especially those older than 365 days, are significantly higher than monthly storage fees.
2. Products with high predicted storage costs: If Amazon predicts that storage costs will exceed clearance costs, it’s recommended to actively clear this inventory. This helps to manage storage capacity, make room for best-selling products, and save on storage fees.
1. Aged inventory: Fees for aged inventory, especially those older than 365 days, are significantly higher than monthly storage fees.
2. Products with high predicted storage costs: If Amazon predicts that storage costs will exceed clearance costs, it’s recommended to actively clear this inventory. This helps to manage storage capacity, make room for best-selling products, and save on storage fees.
🔍 Path: "Seller Central" → "Inventory" → "Dashboard" → "Inventory" → "FBA Inventory"
Follow the above path and sort by "Estimated excess units". On the far right of the dashboard, there is a “Recommended action” column providing suggestions that sellers can opt to follow.
🔎 Zoom in:
🔍 How to clear excess inventory?
The following steps are ordered from highest to lowest recovery value and from slowest to fastest recovery speed:
1. Expand sites: Increase sales by listing products at its original price on more distribution channels/sites
2. Run promotions: Reduce prices to clear stock and resolve inventory backlogs
3. Storage capacity: Allocate space for pending inventory
4. Eliminate redundancy: Remove inventory and recover remaining value
1. Expand sites: Increase sales by listing products at its original price on more distribution channels/sites
2. Run promotions: Reduce prices to clear stock and resolve inventory backlogs
3. Storage capacity: Allocate space for pending inventory
4. Eliminate redundancy: Remove inventory and recover remaining value
🔧 Understand and check your excess inventory status via your FBA inventory dashboard to troubleshoot and take action against excess inventory.
Solution 3: Improve efficiency by using Amazon Warehousing and Distribution (AWD) to store extra inventory and enable automatic replenishment to Amazon’s fulfillment centers.
AWD helps solve the storage and distribution issues of goods upon arrival, offering greater flexibility and more cost-effective bulk storage.
Advantages of Auto-Replenishment of AWD:
• Advantage 1: Lower supply chain costs AWD's average storage fee is lower than FBA, with no seasonal price adjustments. AWD charges only storage, handling, and shipping fees, with no inbound placement fees. If 70% or more of your inventory in FBA is replenished through AWD’s auto replenishment, you will not be subject to FBA’s low inventory level, storage utilization, and capacity overage fees. Learn more on the AWD fees page.
• Advantage 2: Auto-replenishment auto triggers inventory movement from AWD Distribution Centers (DC) to the FBA network (Amazon FCs) on your behalf, based on a scientific model to forecast and optimize FBA inventory to avoid out-of-stock.
• Advantage 1: Lower supply chain costs AWD's average storage fee is lower than FBA, with no seasonal price adjustments. AWD charges only storage, handling, and shipping fees, with no inbound placement fees. If 70% or more of your inventory in FBA is replenished through AWD’s auto replenishment, you will not be subject to FBA’s low inventory level, storage utilization, and capacity overage fees. Learn more on the AWD fees page.
• Advantage 2: Auto-replenishment auto triggers inventory movement from AWD Distribution Centers (DC) to the FBA network (Amazon FCs) on your behalf, based on a scientific model to forecast and optimize FBA inventory to avoid out-of-stock.
How to Apply for AWD
🔍 Path: "Seller Central" → "Inventory" → "Warehousing and Distribution" → "Create Shipment"
Save 25% on Amazon Warehousing and Distribution storage costs
To help you plan ahead and send your inventory in time to meet demand during the peak season, Amazon Warehousing & Distribution (AWD) is offering 25% off the base rate for storage costs and 15% off the base rate for processing and transportation costs between July 1 and September 30, 2024.
This promotion is available to all new and existing sellers who use AWD during this time period. The discount will be automatically applied to your account and will appear in the following settlement period in August, September, and October 2024.
If you’re new to AWD, the program is a low-cost bulk storage solution that replenishes inventory to the Amazon store and your other distribution channels. There are no additional costs for AWD during busy holiday seasons, and inventory that is auto-replenished from AWD to Fulfillment by Amazon (FBA) is not subject to FBA capacity limits.
Try AWD today to streamline your inventory management and lower costs.
This promotion is available to all new and existing sellers who use AWD during this time period. The discount will be automatically applied to your account and will appear in the following settlement period in August, September, and October 2024.
If you’re new to AWD, the program is a low-cost bulk storage solution that replenishes inventory to the Amazon store and your other distribution channels. There are no additional costs for AWD during busy holiday seasons, and inventory that is auto-replenished from AWD to Fulfillment by Amazon (FBA) is not subject to FBA capacity limits.
Try AWD today to streamline your inventory management and lower costs.
Why use Supply Chain by Amazon today?
Supply Chain by Amazon brings Amazon’s advanced capabilities to your entire supply chain. Combine services through Amazon Global Logistics (AGL), the Partnered Carrier Program (PCP), Amazon Warehousing and Distribution (AWD), Fulfillment by Amazon (FBA), Multi-Channel Fulfillment (MCF), and Buy with Prime. You’ll enjoy optimized inventory placement, automated replenishment for your sales channels, and reduced costs for shipping and storage.
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