FBA-Alternatives-amazon

If you want to start an online business, one of the first options that come to mind is Amazon FBA or Amazon FBA Alternatives. With Amazon FBA, you can focus on your business without worrying about shipment, logistics, and other problems. Amazon is going to deal with that.

What we don’t realize is that there is a price to pay for Amazon FBA. With the boost in e-commerce and the increase in Amazon FBA fees, many new sellers are turning to alternatives for Amazon fulfillment.

In this blog, we will talk about some of the most reliable, economical, and best Amazon fulfillment competitors to go for.

Table of Content

Chapter 1: Top 10 Amazon FBA Alternatives

Chapter 2:  What are the Drawbacks of Amazon FBA

Chapter 3: Top 3 Reasons for Needing an Amazon FBA Alternative

Chapter 4: FAQs About Amazon FBA Alternatives

Chapter 1: Top 10 Amazon FBA Alternatives

The alternative to FBA Amazon is FBM – Fulfillment by Merchant. This does not mean that the seller has to fulfill the order personally from his/her warehouse.

 Here is where 3 party fulfillment companies come in.

A 3rd party fulfillment company allows you to keep the products in their warehouse. They also ship your orders to customers just like Amazon does.

The difference will be in your product listing. Amazon is going to list your product as FBM.

1. FedEx Fulfillment

1.FedEx Fulfillment

FedEx is an American company that focuses on quick deliveries by providing shipping services. It has a worldwide network that allows Amazon sellers to use it as a third-party fulfillment company.

They have developed some of the world’s best eCommerce systems and transportation management networks.

Another distinctive service they offer is their supply chain consultations. For sellers that have a complicated supply chain, managing it can become difficult.

To sell different products across different industries consulting FedEx can be a good idea.

The biggest advantage FedEx has is that they are already number one in the delivery field. They have more than 400,000 employees and are already shipping more than millions of packages monthly. This shows how reliable they are.

The only downside to it is that there is a minimum order volume per year. A seller/company needs to sell a minimum of 1,130,000 orders per year. This might be a problem for the smaller sellers.

2. Rakuten Super Logistics

No more lost parcels with Rakuten Super Logistics. They promise you 100% accuracy when it comes to the delivery of parcels, unlike Amazon.

They promise that if there is any error on their part, they will give you free fulfillment services. With Rakuten, your order can be sent to 98% of America within one day.

This is possible because they have 15 fulfillment centers running all around the country.The minimum order volume is just 25,000 annually.

Unlike FedEx and Amazon, this makes it a service for smaller businesses and individual vendors too. Another aspect that Rakuten is leading in is customer support.

 You get a response in a maximum of 3 hours time. Their relationships with UPS and DHL make them a more reliable company.

3. Fulfillment.com

3.Fulfillment com

Another alternative for Amazon FBA, fulfillment.com is a service for everyone. They already have a good reputation and ship millions of B2C and B2B orders per year.

The biggest attraction is the minimum yearly order limit of 21,659. This is why it is a popular service amongst DIY sellers and mommy bloggers who don’t have very huge orders.

4. ShipMonk

Established in 2014, ShipMonk is a relatively newer name in the industry. Still, it provides stress-free shipment and fulfillment services to the sellers.

In less than a decade, they have established fulfillment centers globally in Australia, Asia, Russia, Europe and the U.S.A.

In the beginning, they did not have any limit on the minimum orders you could send. There was a fee of $2.5 per the first order item that you had to pay if you had 0-500 orders. But now, the minimum order limit is 27,000 per annum.

5. ShipBob

5.ShipBob

A very strong competitor to Amazon FBA, Ship Bob is already climbing the ranks in the fulfillment service industry.

Just like ShipMonk, it was established in 2014 and is much newer than the big names. What gives them the edge is their partnership with Google’s Free & Fast Shipping Label.

They combine high-tech web-based software and an excellent fulfillment network to provide two-day express shipping.

 They ship to almost 220 countries around the globe. It has one of the lowest minimum annual order volumes of 1800 orders, making it a good choice for small business owners and sole entrepreneurs.

6. IDS fulfillment

IDS Fulfillment promises a 2-day delivery service to 95% of the U.S.A even during peak season.

 This makes it a hit with sellers as peak seasons see many delays and lost packages even when dealing with Amazon FBA. It is automated and provides solutions and services to both B2B and B2C suppliers.

7. ShipWire

ShipWire provides fulfillment options to companies globally. They have warehouses in many locations like Europe, China, the U.S.A, Australia and Asia. This makes it possible to deliver quickly.

ShipWire pays special importance to provide security to the transportation process. It is a reliable and quick delivery system.

You can get reduced shipping costs also. You also have the choice of selecting your inventory location.

8. Ships-a-lot

8.Ships-a-lot

Another shipping service that can be used instead of Amazon FBA is Ships-a-lot. It offers a 99.8% inventory accuracy rate.

They also offer a 24-hour guaranteed turnaround rate. If they are unable to fulfill their promise, they offer a 20-dollar compensation.

Just by paying $35, you get zero restrictions on storage space. You can store as many products as you want. The only limitation is that the order needs to be placed from their interface and the rest is up to them. They are integrated with Bigcommerce, Shopify and Amazon.

9. Fulfillyfy

Fulfilling is a promising Amazon FBA alternative. It sells almost 75 million items per annum. There is no obligation to start a long-term contract with the shipping service. Sellers can enter into a one-time contract.

The service integrates with many existing eCommerce systems to make things smoother.

10.  Red Stag Fulfillment

The last one to make our list, Red Stag Fulfillment is a shipping and packing service that you can opt for as an Amazon FBA alternative.

 They don’t increase their fee during holidays or peak seasons. Like the others, they also provide a 2-day delivery promise to 97% of the areas of the U.S.A

Chapter 2:  What are the Drawbacks of Amazon FBA

hat are the Drawbacks of Amazon FBA

Amazon FBA is the first option for the majority of the people who sell online on. It offers a lot of convenience to sellers by picking, packing, and shipping the orders on their behalf.

The inventory is also kept in Amazon warehouses and returns and delays are dealt with by Amazon too.

With so many benefits being offered, why do people look for Amazon FBA alternatives? The truth is that Amazon FBA has drawbacks to it too. In this blog, we will talk about the drawbacks of Amazon FBA.

1. Inventory and Store Restrictions

After the COVID-19 pandemic and the implications it had on the business world, Amazon has changed many policies.

In 2020, Amazon put a limit on the inventory a seller can keep in their fulfillment centers. Applicable since 2020, a seller can only keep 200 units of a new product in their inventory.

In 2021, the amount of inventory a seller could keep depended on the IPI score. If the Inventory Performance Index Score (IPI) of the seller is above 450, there is no restriction on the amount of inventory they can keep. For others, they have a restriction.

2. Amazon FBA Fee Hikes

As everyone knows, Amazon charges a fee for keeping the products in their warehouse and taking responsibility for them. Even though the fee of Amazon FBA is not very expensive, it is uncertain and unpredictable.

There is no check and balance on the amount of fee they can increase.

Another issue was that in the middle of the pandemic COVID-19, Amazon stopped stocking non-essential inventory in their warehouse.

This decision was made because coronavirus had increased the demand for a certain good. Amazon sent out notices to the FBA seller to look for alternatives to shipping their products.

3. No brand Recognition

The biggest disadvantage with Amazon FBA is that you can’t go ahead and use your branding. Amazon doesn’t allow that as Amazon has its branding. If you eventually want to take back more control of your brand that is not possible.

4. Lower Compliance Flexibility

The criteria for which item can be placed the very strict. The quantity of items is also pre-defined.

 There is zero flexibility when it comes to compliance with these restrictions. If a seller does not comply with these, there are very heavy penalties for each violation.

Chapter 3: Top 3 Reasons for Needing an Amazon FBA Alternative

Amazon-Alternatives fba

If a seller wants more control over their products and doesn’t want to invest in Amazon FBA there is good news.

There are many alternatives to FBA amazon that you can choose. The biggest advantages you will get by going with Amazon FBA alternatives are discussed below.

1. No Extra Fee

There is no extra fee when it comes to FBA Amazon alternatives. There is just one fee that you have to pay the 3PL companies.

 You just pay one fee that covers everything. With Amazon, you have to pay packaging, labeling and other fees along with a fee for keeping inventory.

2. Greater Branding

When you work under the Amazon FBA model, you are not allowed to do much branding.

Your products are shipped in Amazon boxes and individual branding is not allowed. When you are using Amazon FBA alternatives, you are allowed to send goods in your brand boxes.

This is excellent in case you want to redirect the customers to your website.

3. Control Your Inventory

There are many issues with Amazon’s inventory restrictions. Sellers are not allowed to have a low-inventory turnover rate. Sellers have to pay a penalty.

Managing the inventory is critical at all times. With FBA alternatives, you don’t need to worry about controlling your inventory.

Chapter 4: FAQs About Amazon FBA Alternatives

faqs

1. Is FBM better than FBA fulfillment?

In most situations, FBA is a better eCommerce model than FBM. But, FBM also has its perks. It depends on what type of product you are providing and what is your business model.

2. Is it possible to sell on Amazon without doing Amazon FBA?

Yes. When you sell on Amazon without doing FBA, it is known as FBM.

3. Can you do both FBM and FBA together on Amazon?

Yes. It is possible to use both models. It has been seen that more than 30% of sellers use both models simultaneously. This is ideal for sellers who sell a variety of products instead of one.

4. What is 3PL fulfillment?

A 3 PL fulfillment is a service that companies provide to help merchants manage their inventory and supply chain. Common services include exchanges, order fulfillment, inventory management, retail distribution, shipping coordination and returns.

Conclusion

As you can see there are many Amazon FBA alternatives available in the market. Many of them provide the same services without the minimum order quantity restriction that Amazon offers.

In many situations, going for third-party services is the best option to go with.

With our guide, you can choose from the ten best 3PL services out there. To know more about them, you can always contact us at Ejet Sourcing.