Merchant Fulfilled Network Plus ChinaDivision, A Good Amazon Fulfillment Solution

Selling on Amazon is a good way to get a lot of traffic. But before the start, the Amazon seller needs to make a crucial decision: in what way to fulfill orders? Amazon provides two fulfillment options for sellers: Fulfillment by Amazon(FBA) and Merchant Fulfilled Network(MFN). The first of the two is relatively well known, FBA is the first thing people may think of when it comes to Amazon order fulfillment. However, FBA is not the best choice for all Amazon sellers. In this case, some of the Amazon sellers choose to use MFN. Merchant Fulfillment allows the seller to deal with the Amazon fulfillment( including product storage, packing, labeling and shipping) by themselves, or by hiring a third-party company. As a dedicated fulfillment company in China, ChinaDivision provides one-stop order fulfillment service, which is a good supplement to Amazon MFN. Choosing the solution of ChinaDivision+MFN, Amazon sellers can enjoy more cost-effective and suitable fulfillment with less hassles.

 

Earns Amazon

 

Merchant Fulfillment Pros & Cons.

Compared with FBA, which helps Amazon sellers to take care of everything, Merchant Fulfillment can be time and energy consuming, especially when the seller uses it independently. When an order is placed for a FBA product, Amazon will automatically start to pick, pack and ship the product to the buyer, but if the seller uses MFN, after receiving orders, he or she has to export the orders, process them (in-house or outsourced) and ship the packages out.

 

MFN is more starter friendly. Just like I mentioned above, FBA requires the seller to buy some of the products and send them to Amazon warehouses in advance, which means using FBA can be expensive and risky for e-commerce starters. Imagine an e-commerce seller has spent quite a significant number on the inventory and the shipping, then he found it hard to sell them out, or his account got banned for some reason, he has to pay more for FBA warehousing. It’s definitely not a good business strategy for e-commerce starters, especially for those who sell electronic products with high values. Merchant Fulfillment is more suitable for this kind of Amazon sellers, with this starter friendly fulfillment option, they can hold a small amount of inventory and spend the rest of money on getting more flexible fulfillment solutions.

 

MFN is more controllable. Because Amazon pays more attention to the shopping experience, FBA is very buyer-oriented. In order to ensure that consumers can receive products as soon as possible, FBA ships products from the nearest warehouse. As long as the product ID is marked to be the same, Amazon won’t differentiate different sellers’ products. It means the FBA users are not able to know where their products are located or whose products their consumers will get, Amazon controls everything, consumers may give you negative feedback for other sellers’ bad products they received, some sellers even get their account closed because of this. Merchant Fulfillment allows the Amazon sellers to take control of their own products, the seller can inspect the products by themselves or entrust a third party order fulfillment company to do the quality control.

 

Merchant Fulfillment + ChinaDivision Order Fulfillment Service.

ChinaDivision order fulfillment service can remedy the limitation of Merchant Fulfillment, with the help of it, Amazon sellers can embrace MFN and its benefits without suffering from all the hassles.

 

One-stop service like FBA. Just like FBA, ChinaDivision provides one-stop service includes products receiving, inspection, labeling, custom packing, inventory management and global shipping. More than that, ChinaDivision fulfillment is automatic as well, with multi-platform fulfillment integration, customers don’t need to manually transfer the orders, tracking numbers, and update the inventory, the fulfillment software can one-click sync all the data.

 

Less upfront capital. ChinaDivision warehouse is in Shenzhen, China. Located in a manufacturing intensive area, ChinaDivision can provide a near-source fulfillment center for customers. Being ChinaDivision customers, Amazon sellers don’t need to risk buying a lot of inventory at once, they can hold a small amount and replenish any time they need. As a result, the upfront money used for inventory purchasing will become very little. Not only that, ChinaDivision requires neither minimum order quantity nor advance payment, which makes MFN+ChinaDivision fulfillment more starter friendly.

 

Low warehousing fee. Compared with FBA, ChinaDivision warehousing fee is lower. ChinaDivision also provides 90 days free warehousing service.

 

Fast global shipping. ChinaDivision provides DHL shipping for customers who need fast global shipping. This shipping method is particular suitable for high-value light products, such as electronic products. As long as the price is not as high as $800, the product can reach to the USA within 2-5 working days, tax free.

Irregular Shaped Products & Over Packing: Amazon FBA VS ChinaDivision

Almost every Amazon buyer once had the experience like this:

Amazon FBA over packing

(The picture is from twitter)

It may be hilarious to see someone receive a giant box after purchasing a pair of socks, but as an Amazon FBA user, what if you have to pay a lot of logistics fee or your customer gives you negative feedbacks because of the unnecessary huge volume? Not funny at all.

Over packing not only reduce the consumer satisfaction, but also being a waste of transportation resources and not environmentally friendly.

 

Why did over packing happen?

Mechanic operation. In order to save the labor, Amazon imported an equipment called CubiScan. It is said that CubiScan can scan the irregular object by the infrared laser sensor, then calculate the size of the packing box from the computer connected to the machine.

Amazon explained that this process ensure that the goods can be packed in the “most suitable” paper box automatically. But how to define the word “suitable”? Machines don’t know anything about user experience or transportation cost, the only thing they consider is whether the box can contain the object. As a result, after this new automated equipment went into service, there are more consumers’ complaints about over packing, a lot of FBA users have to pay extra logistics fee because of the increase of volumetric weight.

Another reason is, over packing seems to be an easy solution to protect the goods. But it’s not entirely true. The reason why the consumers usually have trouble finding the item is because the big Amazon box is filled with a lot of protective material such as bubble wrap and paper. This looks protective, but if the product is irregular shaped and fragile, the extra space will cause a lot of shaking in transit, and the light cushioning material is not supportive enough.

ChinaDivision, never over packing

Packing is not just about wrapping things up, it requires skills and a heart of “all for the customers”. The customer oriented packing service has to be solid, nice-looking and freight saving.

With multiple year of accumulated experiences in B2C business, ChinaDivision has a lot of well-trained packing staff. They can find different packing solutions for different shaped products, which not only provides enough protection but also reduce logistics fee. Not only that, when Amazon only has 17 different sized packing boxes, ChinaDivision can provide a hundred different boxes for a hundred clients. We can customize packaging for you thanks to all the packaging box manufacturers in China.

Assume that you are an online store owner who sell beautiful scroll paintings, it’s better to wrap the long shaped scroll in a cylindrical box with the diameter slightly larger than the scroll. But if your fulfillment provider scan your product with a machine and only have regular shaped boxes, then your beautiful scrolls have to be placed on the diagonal of a big box. Calculate the volumetric weight of that !

Amazon Order Fulfillment VS ChinaDivison Order Fulfillment

There is no doubt that the 21st century is the era of shopping online, thus for online merchants, sourcing, warehousing, shipping, and other extended services become the hottest issues. Faced with these important but trivial things, the smartest option is outsourcing all these order fulfillment services above. And as China plays a much more important role as a recognized major exporter than ever, choosing a right order fulfillment agent from China appears to be wise.

But here comes the question, although every company claims to be the best one, which is truly trustworthy still remains unknown. Below is the comparison between Amazon and its alternative, ChinaDivision, so as to find out the better option.

Claimed to be a world-class customer fulfillment service provider, Amazon developed a system called FBA, which helps both Amazon and non-Amazon sellers. However, when it refers to offering the order fulfillment service from China, the famous one doesn’t always turn to be the right one.

 

  • Much Lower Pricing

For merchants outsourcing order fulfillment from China, the reason why they are eating this attractive piece of cake is that they see lower cost and higher profit in it, and there is no exaggeration to say, this is all merchants’ goals. In this sense, the top fatal disadvantage of FBA is their sky high costs. Amazon order fulfillment fees depend on product type, the dimension and weight of the item and the channel the item gets sold on. And the truth is, tens of thousands of Amazon users complain about FBA charges. When you sign up with a FBA account, Amazon charges initial setup fee, while another order fulfillment service provider similar to Amazon, ChinaDivision, does not. Furthermore, Amazon order fulfillment fees include fulfillment fees, monthly storage fees and inventory placement service. And fulfillment fee can be again divided into order handling, pick & pack and weight handling. Better yet, if your products doesn’t sell that well, you’ll have your inventory stored in Amazon’s warehouse, which means in the long run you have to pay a substantial extra price.

On the contrary, as a China-based company and Amazon’s competitor, ChinaDivision allows you to benefit from much lower costs, compared to Amazon. So ChinaDivision doesn’t charge you the so-called initial setup fee, as mentioned above, pack fee or inventory placement fee as Amazon does charge. And the great news is that they openly offer clients with free storage service within 30 days, which is even negotiable.

Amazon Order Fulfillment VS ChinaDivison Order Fulfillment:

Amazon ChinaDivision
Initial setup fee ×
Fulfillment fee Including order handling, pick & pack and weight handling) No pack fee.
Monthly storage fee Free for goods under 10 CBM within 30 days
Inventory placement fee ×

(Amazon Order Fulfillment Charges VS ChinaDivision Order Fulfillment Charges)

 

Shipwire VS Amazon FBA VS ChinaDivision Order Fulfillment from China Price Comparison
Shipwire VS Amazon FBA VS ChinaDivision Order Fulfillment from China Price Comparison
  • Better Extended Services

Surprisingly, ChinaDivision also defeats Amazon in other aspects. As a one-stop China based platform, ChinaDivision focuses on helping clients streamline order fulfillment from China and it offers well-coordinated services from sourcing, warehousing, pick&pack, shipping to handling returns. Both Amazon and ChinaDivision serve as customer order fulfillment agents, the former appears to be less caring. Take warehousing for example, Amazon has established quite strict requirements for items to be stored, including packaging and time of arrival. In the case that requirements are not met, Amazon would reject the product without paying for the transportation both ways. Conversely, Amazon’s competitor, ChinaDivision, serves in a distinctly different manner. If there’s any discrepancies, ChinaDivision would get contact with clients directly and promptly, till the problem get resolved.

For order fulfillment services, first comes the order. So if unfortunately, your products don’t sell like hot cakes or even worse, your account gets killed, Amazon would again hit you for it costs much whether you choose to have items sent back or disposed of. And assume that you are cautious enough and just store a small quantity of products in Amazon warehouse, another problem could occur if your products sell well. Because it’s highly possible that you might drop in ranking due to stockout, since it consumes too much time in shipping to Amazon. And once it happens, it’s very hard to get the golden age back. In this view, ChinaDivision displays strong advantages over Amazon. Similar to but not exactly the same as Amazon, ChinaDivision has established a hub facility in Shenzhen, so it’s extremely convenient for it to source and replenish goods, thereby saving your time and money.

ChinaDivision aims at developing along with clients’ business, hence it processes returns efficiently and is committed to reducing chargeback rate by double quality-check before shipping.

Compared order fulfillment services by Amazon with that by Amazon alternative, ChinaDivision, conclusion can be drawn that for merchants who’s planning to outsource order fulfillment from China, ChinaDivision should be a better option since it stands for less cost and better service.