FBO (Fulfilled by Operator) is a scheme in which the seller places their goods in the marketplace warehouses. All logistics, including storage, packaging, order processing and delivery, are carried out by the platform itself.
That is, the seller actually delegates all operations related to order fulfillment to a third party.
What are the advantages of this scheme:
the seller is not responsible for logistics, which reduces namibia consumer email list the likelihood of problems with delivery;
the use of established warehouse and logistics processes of marketplaces allows for the rapid processing of orders and the reduction of delivery times to the buyer;
the seller can focus on other aspects of the business (marketing, expanding the range of products) without being distracted by logistics;
reliable marketplace delivery services help maintain customer satisfaction at the proper level. Exceptions, of course, happen.
There are also disadvantages:
Marketplaces charge fees for storage and processing services, which significantly reduces overall profits;
the seller loses some control over the process, including the quality of packaging and speed of delivery;
business becomes more dependent on the conditions and policies of the chosen marketplace.
FBS (Fulfilled by Seller) is a scheme in which the seller stores the goods at his place, and when an order is received, prepares and ships them to the marketplace order acceptance point, which delivers them to the buyers.
FBO vs FBS: Is Independence Really That Beneficial?
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