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Podcast (10k-podcast): Play in new window | Download (Duration: 35:22 — 32.4MB)
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In this blog post, we will explore the concept of Fulfilment FBM China and its benefits for e-commerce brand owners looking to scale their businesses with minimal capital. We’ll delve into the insights shared by Dayu Yang, founder of EcommOps, and gain valuable knowledge on how to leverage Fulfilment FBM China effectively.
Time Stamps
0:00:00 | Exploring Fulfillment Solutions for Amazon Sellers with Daiu Yang of Ecom Ops
0:02:26 | Conversation with [Name], Former Product Manager and Boston Consulting Group Consultant, on Repositioning Business Using the Boston Consulting Group Matrix
0:04:27 | Exploring the Benefits of Direct Fulfillment from China: A Conversation with [Name]
0:05:58 | Exploring the Benefits of China Fulfillment for Businesses
0:08:10 | Exploring the Benefits of Utilizing China Shipping for Amazon FBM Listings
0:10:17 | Exploring the Benefits of International Shipping for Western Amazon Sellers
0:12:13 | Exploring the Benefits of Long-Term Shipping for Western Brands
0:17:24 | The Benefits of Establishing a Strong Brand: Lower Risk and Working Capital
0:18:47 | Benefits of a Hybrid Supply Chain Model for FBA Sellers
0:21:00 | Discussion on Logistics Chain and Inventory Management
0:24:18 | Benefits of Fulfilling from China for US and EU Markets
0:25:53 | The Benefits of Shipping Parcels from China to the US and EU
0:29:56 | Conversation on Solving VAT Problems for Amazon Sellers in the EU
0:31:18 | Balance Sheet Management: A Simple Tool for Risk Reduction and Capital Allocation
0:33:05 | Exploring Cash Flow Strategies for Ecommerce Business Growth with Dia from EcomOps
Dayu’s Background and the Rise of Fulfilment FBM China
Dayu Yang’s journey began in the video game industry, where he learned the importance of acquiring users at a loss initially to maximize profits later. After obtaining an MBA and consulting in the retail and e-commerce sector, he started his own company, which was featured on Shark Tank. Dayu gained valuable experience in the end-to-end supply chain of e-commerce, specifically in dropshipping from China. Fulfilment FBM China emerged as a new approach, allowing businesses to ship products directly from China and retain control over the supply chain.
Advantages of Fulfilment FBM China
Why do brands choose Fulfilment FBM China? One primary reason is the significant time reduction in shipping products. While traditional freight can take months, Fulfilment FBM China allows for shipment in as little as three days. Additionally, the cost aspect is favorable, with end-to-end shipping costs, including CF air freight, customs, and last-mile postage, typically being comparable or even cheaper than alternative options.
Competing with Chinese Sellers
As an e-commerce brand owner, it’s crucial to understand the competitive landscape when selling alongside Chinese sellers. While there may be challenges, Fulfilment FBM China provides an opportunity to compete effectively. By reducing inventory risk and planning for shorter lead times, businesses can maintain a healthy balance sheet. The ability to test additional markets without holding inventory in those regions offers a cost-effective way to expand internationally.
Fulfilment FBM China for DTC Brands
For brands with a Direct-to-Consumer (DTC) focus, Fulfilment FBM China can serve as a backup when facing out-of-stock situations. While selling through FBM may result in a slight decrease in performance compared to FBA, it allows brands to continue generating sales and maintain visibility. Moreover, for Amazon sellers looking to venture into DTC, Fulfilment FBM China offers a smoother transition and ensures fulfillment continuity.
Successful Case Studies and Unique Product Considerations
Shein, a fast-fashion online player, stands as a prime example of a successful brand leveraging Fulfilment FBM China. With their direct shipping from China, they have achieved remarkable growth and surpassed competitors like Zara and H&M. It’s important to note that Fulfilment FBM China is particularly suitable for brands with unique products or a strong brand identity. Customers are often willing to wait for such products, understanding the value they offer.
Comparing FBA and FBM
While the majority of customers tend to buy from FBA, there is still a significant portion that prefers purchasing from FBM sellers. FBA sellers and DTC brands can benefit from a hybrid model that combines both fulfillment options. This flexibility allows brands to optimize costs while maintaining a strong presence on Amazon. By considering factors such as lead times, inventory management, and customer preferences, brands can make informed decisions about their fulfillment strategy.
Simplifying Customs Clearance
Navigating customs clearance processes can be a complex task when shipping from China to different regions. Understanding the thresholds for tariffs and VAT charges is crucial. Fulfilment FBM China offers advantages such as Amazon handling VAT for sellers in the EU and facilitating shipping within the EU. This simplifies the process for sellers and ensures a smoother customer experience.
Conclusion
Fulfilment FBM China presents a compelling opportunity for e-commerce brand owners aiming to scale their businesses with minimal capital. By leveraging the insights shared by Dayu Yang of EcommOps, brands can tap into the advantages of Fulfilment FBM China, including reduced shipping times, cost-effectiveness, inventory risk reduction, and international expansion possibilities. Embracing this strategic fulfillment option can lead to increased agility, flexibility, and ultimately, business success in the ever-evolving e-commerce landscape.
