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Ozon FBS model: how it works and how to profit

Ozon FBS model: how it works and how to profit

Ozon was one of the first marketplaces to let sellers keep inventory in their own warehouses. The FBS (Fulfillment by Seller) model means you sell from your own warehouse while using Ozon's delivery network.

Here is how it works in practice. You register on the platform, get a seller account, and upload your products. Then you choose your fulfillment scheme. If you pick FBS, the steps below apply.

Secret 1. Set up operations properly

First, create a warehouse in your seller account (in the Logistics section). You specify the warehouse's working hours, days off, and the time needed to assemble one order. Ozon uses this data to plan delivery.

Next, choose a delivery method. There are two options: you drop shipments off yourself at a collection point, or you hand them to an Ozon courier.

With the first option, you bring goods to an order pickup point, an order acceptance point, or a sorting center. You enter your warehouse address in your account and the system suggests the nearest drop-off locations.

With the second option, you simply call a courier who comes and collects the goods. This service is not available in every location, though.

After shipping, update your stock levels (the quantity on hand). Products then go live within an hour.

Orders then arrive in your seller account. You assemble, label, and pack them yourself according to Ozon's rules. You have exactly 24 hours for this, or up to 7 days for made-to-order items. Once packed correctly, orders are handed to Ozon delivery.

This model suits you if you sell oversized goods weighing up to 125 kg. It also works for products that are not allowed in Ozon warehouses (for example, precious stones). It is convenient for sellers who already have their own warehouse (a separate space or just part of one, such as a garage or a room), but no delivery service.

Some categories cannot be shipped through Ozon at all (for example, live seedlings). For those, the realFBS model applies, where you deliver to the customer yourself.

Secret 2. Calculate your costs correctly

Costs include a fixed percentage on each sale (the rate depends on the category), since the marketplace acts as a trading platform and an agent connecting seller and buyer. Seller costs also include payment processing (the bank service for accepting card payments online).

Delivery costs cover Ozon courier services (if you ship through them), Ozon logistics, and the last mile. If you do not use a courier, you pay for shipment processing instead.

Once goods are accepted for delivery, they travel to a regional sorting center. That is logistics.

From there the item goes to a pickup point or straight to the customer. That is the last mile.

Secret 3. Weigh the pros and cons honestly

One downside is that customers see a longer delivery estimate. Ozon builds in a buffer because it does not know whether you will hand over the item immediately or at the end of the allowed window. Some customers care a lot about speed, so they may prefer an item from a marketplace warehouse with a faster estimate.

Another downside is that order processing, packing, and handover take significant time. You can hire an employee for this, but only if that is cheaper than delegating the work to the marketplace (switching to another model).

A key advantage is that you do not need to bring goods to an Ozon warehouse first, so you can start selling through the marketplace quickly or test demand for a new product.

Another plus is that product listings are not tied to stock levels. If a listing collects bad reviews, you can simply delete it and create a new one.

With this model, you do not need electronic document flow.

It is also convenient that you pack the goods yourself, so you can be sure the packaging is reliable. You can also add small gifts to orders, such as a sample or a card.

How to profit with the FBS model

With this model, you do not pay for storing goods in warehouses. That pays off if you have your own warehouse or another storage space. It also lets you experiment with different product types and test sales without losing anything.

It is also handy if you sell on more than just Ozon. Your goods are not frozen in a warehouse, so you can ship them at any time to a customer who ordered through another channel.

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