- Advertisement -
Home Tips Playing by Your Own Rules: 3 Alternatives to Amazon FBA

Playing by Your Own Rules: 3 Alternatives to Amazon FBA

- Advertisement -

With Amazon having recently suspended non-essential deliveries to its warehouses, the Fulfillment by Amazon (FBA) service is no longer a good option for many eCommerce business owners. Thankfully, there are plenty of alternatives that offer greater control and, in some cases, a higher level of cost-efficiency. Read on to find out about three alternatives to using Amazon FBA.

Amazon FBM

Amazon FBM, short for Fulfillment by Merchant, allows online storefront owners to take full control over handling and shipping orders placed through the website. Business owners who use this strategy can avoid shipping and storage fees associated with using FBA and can retain complete control over everything from purchasing and managing inventory to packing and shipping orders. Those who want help figuring out how to make FBM work for them can head to sharpcommerce.com to find an eCommerce consultant.

RELATED POST: THE AMAZON FACTOR – HOW ONLINE SELLING WILL CHANGE IN 2020?

Pros of Amazon FBM

Business owners who use FBM often have better profit margins since they don’t have to pay FBA fees. They’re also protected against Amazon policy changes, such as embargos on the storage and shipment of certain products, and are better able to build a genuine eCommerce brand.

Cons of Amazon FBM

Playing by Your Own Rules: 3 Alternatives to Amazon FBA

Business owners won’t have to pay FBA fees, but they will have to tackle the added overhead of running their own fulfillment facilities. This may require hiring and training pickers and packers in addition to renting warehouse space, which can be a large expense for small business owners. Alternatively, some business owners prefer to work with third-party fulfillment companies, which can make FBM more affordable.

ALSO READ: FROM IDEA TO REALIZATION: WHAT ARE THE 6 STAGES OF PRODUCT CREATION?

Amazon SFP

Amazon also offers a version of FBM called Seller Fulfilled Prime (SFP). Sellers who go this route will need to adhere to more stringent standards but will be able to display the Prime badge on their listings. Sellers can still work with third-party fulfillment companies, but the high fulfillment standards associated with SFP can drive up the cost of immediate packing and shipment.

Pros of SFP

SFP offers the same benefits as FBM. However, it also comes with the added benefit of allowing Amazon sellers to list the Prime badge on merchant-fulfilled products. This can dramatically boost sales.

Cons of SFP

Whether they choose to operate a private fulfillment center or work with a third-party provider, business owners will likely spend more on SFP. Some also find it difficult to maintain the incredibly high standards required by Amazon to list the Prime badge next to products.

ALSO READ: HOW TO START A DROPSHIPPING BUSINESS IN 2020?

Use a 3PL Service

Playing by Your Own Rules: 3 Alternatives to Amazon FBA

ALSO READ: TOP ARTIFICIAL INTELLIGENCE PLATFORMS FOR YOU TO EXPERIMENT THE TREND!

Many sellers use third-party logistics (3PL) services to store inventory and fulfill orders. These services work a lot like Amazon FBA, but they may cost less and may offer more flexible options. Business owners should find a 3PL service provider that maintains at least one warehouse in their primary country of sales.

Pros of 3PLs

Using a 3PL is usually less expensive than self-fulfillment. Since these fulfillment companies operate independently from the Amazon warehouses, merchants will still be protected from policy changes.

Cons of 3PLs

Business owners need to relinquish some control over their packing and shipping. Adding a third party between sellers and customers can also complicate communications.

ALSO READ: WHAT HAPPENS TO THINGS, YOU RETURN TO AMAZON

The Bottom Line

Most sellers who list products on Amazon don’t have it in the budget to operate full-scale fulfillment centers. This makes 3PLs the best option whether business owners want to use SFP or FBM.

- Advertisement -
- Advertisement -

Must Read

SIGNO: India’s first launched AI-Driven Blue Collar sourcing in 60 seconds

As termed as a developing market economy, India is trying its best to cover all the aspects it needs to have so as to...
- Advertisement -

The Top 11 Most Famous Scientists of Today      

We all know some of the most famous scientists, from Albert Einstein to Steven Hawkings. Do you know who the most prominent scientists today,...

How to Deal with Micromanagement in the Workplace

Introduction Micromanaging is a common behavior in the workplace. No one likes a micromanaging boss and such behavior is likely to create workplace conflicts....

What is Agile Methodology in Project Management

Introduction: What is Agile Methodology? An agile methodology is an iterative approach to project management. It aims at breaking down complex projects into small and...

Related Category Posts

SIGNO: India’s first launched AI-Driven Blue Collar sourcing in 60 seconds

As termed as a developing market economy, India is trying its best to cover all the aspects it needs to have so as to...

What is Agile Methodology in Project Management

Introduction: What is Agile Methodology? An agile methodology is an iterative approach to project management. It aims at breaking down complex projects into small and...

7 Effective Problem-Solving Techniques in the Workplace

Introduction Problems are a part of our lives at work. We are faced with multi-faceted problems in daily work life. Successful leaders are good at...

How to become a tech entrepreneur?

Becoming a new entrepreneur involves several factors and one should aware of them in detail for accomplishing goals. The technologies are improving a lot...

How to protect your privacy in USA?

Almost every website you visit or mobile app you open is either tracking you or harvesting your browsing activity for commercial services. Research shows...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Select Language »