Newbie Sellers' Pitfalls Guide Three Details Overlooked by 90% of Sellers on Amazon Logistics Costs

Newbie Beware Three Details 90% of Sellers Overlook in Amazon Logistics Cost Calculation

With the continuous expansion of Amazon in global markets, an increasing number of sellers are choosing to join this e-commerce platform. However, 90% of sellers ignore three details in Amazon logistics cost calculation, leading to high logistics costs and squeezed profit margins. This article will unveil these three overlooked details to help you succeed on the Amazon platform.

One, Failing to Plan Inventory Turnover Reasonably

Inventory turnover is one of the key factors affecting logistics costs. If the inventory turnover rate is too high, it means that your goods turnover speed is fast, enabling faster delivery and thus reducing logistics costs. Conversely, if the inventory turnover rate is too low, your goods stay in the warehouse for too long, increasing storage fees and delivery costs, thereby increasing logistics costs. Reasonable planning of inventory turnover is crucial to reducing logistics costs.

Two, Ignoring the Choice of Delivery Methods

On the Amazon platform, there are several delivery methods available, including FBA Amazon Logistics, self-delivery, and third-party delivery, etc. Different delivery methods have different costs and time requirements, which need to be chosen based on specific circumstances. For example, FBA can provide faster delivery times and better customer satisfaction, but the corresponding costs are relatively higher. Choosing improperly may result in excessively high logistics costs. When selecting a delivery method, sellers should fully consider their own situations and choose the most suitable delivery method for themselves.

Three, Lacking Understanding of Return Policies

On the Amazon platform, return policies are relatively lenient, but if sellers fail to fully understand them and make corresponding preparations, it may lead to increased logistics costs. For instance, some products require specific packaging and handling within the return period; otherwise, they may be returned to the sender. If these details are not understood, additional logistics costs may arise during the return process. Sellers should fully understand the return policy and prepare accordingly to reduce return rates and lower logistics costs.

Summary

The above three details are critical factors that 90% of sellers overlook in Amazon logistics cost calculations. By reasonably planning inventory turnover, choosing appropriate delivery methods, and fully understanding return policies while making corresponding preparations, sellers can reduce logistics costs and increase profit margins. Sellers also need to pay attention to market trends and competitor situations, continuously optimizing their operational strategies, to achieve success in the highly competitive Amazon platform.