Shortly after the conclusion of Prime Day, just when many sellers thought they could take a breather, Amazon released a new notice! FBA and FBM logistics have introduced new policies, with the latest implementation date being September 25th! Relevant sellers need to take measures before the deadline, otherwise it will affect listing sales!
What is the difference between Amazon FBA and FBM?
FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) are the two main fulfillment methods on Amazon.
FBA mode: worry-free logistics
Advantages:
Convenience: Amazon is responsible for storage, packaging, and delivery, allowing sellers to focus on business development.
Prime membership service: FBA products can enjoy the fast delivery service of Prime members, enhancing competitiveness.
Global Coverage: Amazon FBA supports global coverage, expanding your sales reach.
inferiority:
Storage Fees: The FBA model requires the payment of corresponding storage fees, especially for products stored for a long time.
Cost Structure: The cost structure of FBA is relatively more complex than that of FBM, requiring careful accounting.
FBM mode: Self-management
Advantages:
Cost Control: Under the FBM model, you can more directly manage costs and reduce storage and fulfillment expenses.
Independent operation: You have more flexibility to manage inventory, set your own packaging standards, and develop transportation plans.
Direct customer service: You can directly handle and control customer service, providing a more personalized experience.
inferiority:
Performing the job: You need to take responsibility for storage, packaging, and shipping tasks, which require more time and effort.
Delivery speed: Without the fast delivery service of FBA Prime members, it may reduce certain competitiveness.
How should one make a choice?
FBA Applicable Sellers:
With limited time and energy, I hope to outsource the fulfillment process to Amazon.
Pursue fast delivery and Prime membership services.
We hope to expand into the global market and fully utilize Amazon's global logistics network.
FBM applicable sellers:
There is sufficient time and resources to manage their own fulfillment process.
Wish to directly control inventory and costs.
Focus on specific markets or customized services, without emphasizing fast delivery.
New Policy of Amazon Logistics
For FBA sellers:
Amazon has issued a notice announcing that it will adjust the FBA refund claim policy. The relevant adjustments will be implemented in two stages, on October 23 and November 1, 2024, respectively. The main adjustments include the following two points:
Amazon's automatic claim policy -
Starting from November 1, 2024, Amazon will automatically claim for FBA products lost in the distribution center. For any FBA-distributed products that are lost in Amazon's distribution center, the platform will immediately issue compensation after receiving the report of lost goods, without the need for sellers to manually submit invoices and other documents for claims.
The time limit for FBA claims has been shortened
Amazon pointed out in the notice that if the automatic claim is not processed or removed in time, sellers need to manually submit a claim.
Starting from October 23, 2024, the deadline for Amazon sellers to file claims for returns has been revised to 60 days, which is approximately two months
Claims for lost or damaged goods at the operations center: Claims must be submitted within 60 days of the goods being reported as lost or damaged.
Amazon Logistics Buyer Return Claim: Claims can be submitted within 60 to 120 days after the buyer's return or exchange date, but cannot be submitted within 60 days.
Submit a removal claim for items lost during transportation: Claims can be submitted within 15 to 75 days after the shipment creation date, but not within 15 days.
All other removal claims: Must be made within 60 days after the item is returned to the seller.
The new claim policy has significantly shortened the deadline for proactive claims. If sellers initiate a claim with Amazon after October 23, they can only appeal for lost items and damages after the end of August. Therefore, it is recommended that sellers file claims for orders that require claims as soon as possible.
For FBM sellers:
In a related announcement, Amazon stated that in order to help reduce delayed deliveries and improve delivery speed, Amazon is changing its On-Time Delivery Rate (OTDR) policy. From September 25, 2024, sellers need to maintain at least 90% OTDR and have no commitment to delay in order to publish seller-fulfilled products on Amazon.com.