Posted by The allure of Amazon’s global marketplace is undeniable. With over 300 million customers across 18 marketplaces and 200+ countries and territories, it presents a massive opportunity for sellers to expand their reach and boost their bottom line. But venturing into international sales introduces a new layer of complexity: international shipping.
This guide will equip you with the knowledge to navigate the world of international shipping for Amazon sellers. We’ll explore the two main options available – Fulfillment by Amazon (FBA) and Merchant-Fulfilled Network (MFN) – and delve into the intricacies of each, helping you decide which approach best suits your business needs.
FBA: A Hands-Off Approach to International Shipping
Fulfillment by Amazon (FBA) is a popular choice for sellers seeking a convenient, hands-off solution. Here’s how it works:
- Inventory Storage:You ship your products to Amazon fulfillment centers in your chosen international marketplaces.
- Picking, Packing, and Shipping:Amazon handles the entire order fulfillment process, including picking, packing, and shipping your products to international customers.
- Customer Service:Amazon’s international customer service team provides support to your buyers, resolving inquiries and returns.
Benefits of FBA for International Shipping:
- Simplified Logistics:FBA streamlines the complexities of international shipping, allowing you to focus on product sourcing and marketing.
- Faster Delivery Times:By storing inventory in local fulfillment centers, FBA can offer faster delivery times to international customers, increasing customer satisfaction.
- Prime Eligibility:FBA listings can qualify for Prime benefits, including free shipping and faster delivery options, making your products more attractive to international Prime members.
- Reduced Shipping Costs:Amazon negotiates discounted shipping rates with major carriers, potentially leading to cost savings for you.
Things to Consider with FBA:
- FBA Fees:Be mindful of additional fees associated with FBA, including storage, fulfillment, and potential cross-border fees.
- Limited Control:With FBA, you relinquish some control over the fulfillment process.
- Inventory Management:You’ll need to strategically manage inventory levels across multiple fulfillment centers to avoid stockouts and storage fees.
MFN: Taking Control of International Shipping
The Merchant-Fulfilled Network (MFN) approach allows you to manage the entire fulfillment process yourself. Here’s what’s involved:
- Inventory Management:You store and manage your inventory, either in-house or through a third-party fulfillment provider.
- Order Fulfillment:You’re responsible for picking, packing, shipping, and tracking orders to international customers.
- Customer Service:You handle customer inquiries and returns related to shipping.