World e-Com Blog|EN
Online export

FBA vs. FBS - what is it and why does it matter?

e-retailers in the two-channel e-export option meet their needs either with inventory held in third-party distribution centers (FBAs) or with their own inventory (FBSs).

To expand their cross-border business, e-retailers must respond to their overseas customers in a timely manner.

According to a survey of 900 Chinese e-commerce retailers that provide services on international marketplaces, 71% of them consider meeting demand to be the top priority of their business model. This, in turn, is pushing some major marketplaces to adopt different fulfillment options.

Amazon, with its highly connected fulfillment networks around the world, offers Amazon sellers two main fulfillment options - either through inventory held at Amazon's distribution center (Fulfillment by Amazon, FBA) or through sellers' own inventory managed by sellers (Fulfillment by Seller, FBS).

To encourage sellers to adopt FBA, Amazon promises to scale their business and help them reach more customers by providing them with faster delivery options and reliable return services.

In turn, sellers incur additional service fees if they use this fulfillment option.

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