FAQ: Logistics
Logistics & courier FAQ.
01: Fulfilment Models
Fulfilment Models
FBA vs FBM vs 3PL: which should I use?
FBA gives you Prime badge and Buy Box advantage but costs more and limits control. FBM works for slow-moving, oversized, or high-value items where you want margin control. 3PL gives flexibility across channels without FBA restrictions. Most operators use a hybrid: FBA for top sellers, 3PL for everything else.
When should I switch from self-fulfilment to a 3PL?
When fulfilment takes more than 15 hours/week, when you're making picking errors, or when you've outgrown your storage space. The breakeven is typically 50-100 orders/day. Below that, a 3PL may cost more than doing it yourself. Factor in your time value, not just direct costs.
How do I choose a good 3PL?
Evaluate on: pick accuracy rate (target 99.5%+), same-day dispatch capability, tech integration with your sales channels, transparent pricing with no hidden fees, and scalability. Visit the warehouse. Talk to existing clients. Start with a 3-month trial period. The cheapest 3PL is rarely the best.
02: Shipping Strategy
Shipping Strategy
How do I reduce shipping costs?
Negotiate rates based on volume commitments. Use dimensional weight calculators to optimise packaging. Compare carriers quarterly. Consider regional carriers for domestic deliveries. Use a multi-carrier shipping platform (Shipstation, Veeqo) to auto-select the cheapest option per parcel.
What's the impact of delivery speed on sales?
Next-day delivery increases conversion by 15-25% on most UK marketplaces. Prime eligibility on Amazon can double your sales velocity. But fast shipping isn't free. Model the cost before committing. For items over £30, customers are more patient. For items under £15, speed is the primary differentiator.
How should I handle international shipping?
Start with one market and master the logistics before expanding. Use a freight forwarder for regular shipments. Understand duty/VAT implications (IOSS for EU, DDP for simplicity). Consider Amazon's Pan-European FBA for EU distribution. International returns are expensive. Build into your pricing.
03: Inventory Management
Inventory Management
How do I avoid stockouts without overstocking?
Calculate reorder point = (average daily sales × lead time) + safety stock. Set safety stock at 2 weeks of average sales for fast-movers. Review weekly. Use sell-through rate and days of inventory to flag slow-movers. Stockouts cost you 3-5x more in lost sales and ranking than holding extra inventory.
How do I manage inventory across multiple channels?
Use a multi-channel inventory management system (Linnworks, Brightpearl, or ChannelAdvisor). Allocate buffer stock per channel based on sales velocity. Sync in near-real-time to prevent overselling. The biggest risk is selling the same unit on two platforms. Oversells cause account suspensions.
When should I liquidate slow-moving stock?
If an item hasn't sold in 90 days and shows no seasonal pattern, begin markdown. At 180 days, consider bundling, donation, or liquidation channels. Amazon charges long-term storage fees at 180 and 365 days. Holding dead stock ties up capital and warehouse space that could generate returns elsewhere.
Fulfilment and shipping terms used here are defined in full in the logistics glossary.
Related pages
← Back to FAQ HubRelated
Language matters as much as mechanics.
Every term used in these answers has a consistent definition in the Glossary.