We adopted the FBA model at the initial stage to gain traffic and product reviews. However, as sales volume grew, we found that the last-mile delivery costs under FBA remained excessively high.

We initially built up product reviews via the FBA model, with last-mile delivery costs averaging around USD 73 per unit.
After sales scaled up rapidly, we rolled out a dual-warehouse layout across the US (California & New Jersey), limiting orders to an average of 6 shipping zones nationwide. This brought the average last-mile cost under the FBM model down to roughly USD 44 per unit.
We further optimized the setup into a three-warehouse network covering CA, NJ and GA, restricting shipments to an average of 5 zones across the US, cutting the average FBM last-mile delivery cost to approximately USD 40 per unit.

FBA storage fees during peak seasons also constitute risky operational costs. Can we leverage a multi-warehouse overseas warehouse layout and adopt the FBM model to cut costs and boost efficiency?

By comparing the difference in first-mile warehousing delivery costs between FBA and FBM, we can achieve an approximate 50% reduction in overall total logistics costs.

Returned products are not reusable as-is. How can we repack returned goods for resale to cut overall return losses?

When switching from the FBA model to the FBM model, sellers need to take charge of more return communication procedures to lower buyers' return rates or order cancellation rates.

Returned products cannot be reused as original stock. How can we repackage returned items for resale to reduce overall return losses?

With Jupiter Global’s dedicated return warehouses, we provide centralized processing and management for sellers’ FBM return orders. We offer a complete closed-loop return management process, including issuing return shipping labels, receiving returned goods at the warehouse, conducting photo inspections, uploading and registering records in the system, seller claim confirmation, product disposal or restocking for resale. This solution drastically cuts return handling expenses and maximizes the restock rate of returned merchandise.