Differences Between US Overseas Warehousing and Amazon FBA Warehouses: How to Choose?

By Benny Lim Photo:Tiger Lily
US Overseas Warehousing refers to warehouses established in the United States where cross-border sellers can send their goods to shorten delivery times and achieve local fulfillment in the US. This is more cost-effective for sellers with a certain volume of goods. On the other hand, Amazon FBA Warehouses are facilities where sellers send their products in bulk for order fulfillment, including order picking, packaging, and shipping, handled by Amazon.
What services are offered by USA Overseas Warehousing?
Long-term inventory storage: Sellers can send goods to US Overseas Warehouses during periods of lower shipping costs and sell them directly from the US warehouses during peak seasons. This helps sellers save costs on domestic warehousing, avoid high shipping fees and logistics delays during peak seasons.
FBA returns and relabeling: If a seller's products cannot be sent to FBA warehouses due to logistics delays, listing non-compliance, infringement claims, or account suspension, the goods can be moved to US Overseas Warehouses. After relabeling and repackaging in the overseas warehouses, the products can be transported back to Amazon warehouses for reselling, thereby preventing loss of inventory.
Single-item shipments: Sellers can store goods in US Overseas Warehouses. When an order is generated, the seller notifies the warehouse to pick and pack the package, which is then handed over to local couriers for delivery. This allows for delivery within 1-3 days throughout the US, improving efficiency.
Inventory liquidation services: US Overseas Warehouses offer services to help sellers quickly clear slow-moving inventory at a discounted price, freeing up storage space and recovering funds.
How does USA Overseas Warehousing differ from Amazon FBA Warehouses?
Customs clearance: Most US Overseas Warehouses can provide assistance with customs clearance, whereas Amazon FBA Warehouses do not offer this service. Choosing FBA warehouses requires sellers to handle customs clearance themselves, while US Overseas Warehousing can provide end-to-end services including inbound, customs clearance, and last-mile delivery.
Product restrictions: Amazon FBA Warehouses have limitations on product size, weight, and category, especially for oversized items. US Overseas Warehouses do not have such restrictions and can accommodate large and oversized products, although availability depends on the size of the specific overseas warehouse.
Amazon resources: By choosing Amazon FBA Warehouses, sellers can benefit from additional resources provided by Amazon, such as increased product exposure, improved listing rankings, and assistance with cart optimization, leading to higher store traffic and sales. US Overseas Warehousing services may focus more on basic service offerings.
After-sales and returns: Amazon FBA Warehouses handle end-to-end delivery and customer service. However, when it comes to returns, Amazon may not confirm if the returned products can be resold and might deem them unsellable. In contrast, US Overseas Warehouses use their own accounts for end delivery, which may be slightly more expensive, but they can help sellers assess the quality and determine whether returned items can be relisted for sale, minimizing losses.
Operational flexibility: FBA Warehouses require sellers to label products, and if the labels cannot be scanned, the goods cannot be listed. US Overseas Warehouses offer more flexibility in services, including assembly, relabeling, order picking, and delivery.
Overall, US Overseas Warehousing and FBA Warehouses have their own advantages and disadvantages, and they can complement each other. The choice depends on the specific needs of the seller. For sellers with sufficient funds and a need for faster delivery, FBA may be a suitable option. For those with less time sensitivity and a desire to save on ware
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