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The Best FBA Alternatives for Amazon Sellers

Amazon has dominated the ecommerce market for many years. More than half of online consumers start their product search on this platform, and there is a logical explanation for this. The platform offers a vast selection of products, fast delivery, and high customer service standards.

Amazon attracts not only consumers but also sellers. For the latter, it provides access to 310 million active buyers and the company’s advanced logistics infrastructure. One of the most popular logistics and order fulfillment solutions on the platform for them is FBA (Fulfillment by Amazon). As of 2024, an impressive 82% of sellers have chosen this option.

However, high fees, limited branding opportunities, and dependence on the platform become obstacles for some companies. As a result, entrepreneurs are starting to look for Amazon FBA alternatives that offer more flexibility and control over their business.

In our article, we will explore solutions that can provide you with the flexibility and control that FBA cannot offer.


1. Disadvantages of Amazon FBA: What Drives Sellers to Seek Alternatives?

In the highly competitive ecommerce market, using Amazon FBA is not always the optimal solution for every seller. Indeed, the service offers many advantages, such as access to a vast network of prep centers worldwide and the Prime badge on product listings. However, it has significant drawbacks, which provide a compelling reason to consider alternatives to Amazon FBA.

1.1 High fees

Amazon FBA’s high fees are the most significant factor driving the search for alternative fulfillment solutions. The cost of FBA services is variable and quite high, especially for small and medium-sized businesses. Fees include charges for storage and order processing.

Costs can increase significantly during seasonal peaks. Additionally, Amazon imposes penalties for any non-compliance with packaging and labeling standards, as well as for long-term storage of goods in FBA warehouses.

1.2 Limited control over inventory

When using Amazon FBA, you are forced to relinquish a significant portion of control over your products to Amazon. All operations, including packaging, shipping, and returns, are fully controlled by the company. This limits your ability to quickly check the status of your inventory or make accurate forecasts based on demand.

1.3 Limited opportunities for brand development

Amazon sets its own terms and standards, which may not align with the unique needs of your business. Branding plays a key role in successful business operations, and the lack of flexibility in this regard can hinder your growth and development. After all, customers will find it harder to remember your brand when they only see Amazon’s standard packaging instead of your own.

Moreover, the platform restricts sellers’ interactions with buyers, as Amazon fully controls the delivery and customer service processes. This reduces the opportunity to build brand loyalty and enhance recognition.

1.4 Complete dependence on the platform

Using FBA means complete adherence to Amazon’s rules and algorithms. If the platform changes its terms or blocks your account, it can lead to significant losses and disruptions in business operations. Additionally, Amazon imposes strict rules regarding the packaging and labeling of products. Failure to comply with these rules can result in penalties or even denial of service.


2. What Are the Amazon FBA Alternatives?

For those seeking more flexibility in order management, there are several proven alternatives to Amazon FBA. These include Seller Fulfilled Prime (SFP), Fulfillment by Merchant (FBM), and third-party logistics (3PL) services. All these options offer greater freedom in managing logistics, allowing you to control costs, order fulfillment processes, and customer relationships. Let’s discuss each of them in more detail.

2.1 Seller Fulfilled Prime (SFP)

Like FBA, Seller Fulfilled Prime allows sellers to offer their products with the Prime badge. However, the program provides the opportunity to fulfill orders independently, bypassing Amazon’s warehouses and logistics. In turn, SFP sellers are required to ensure fast delivery and adhere to service standards similar to those offered by Amazon Prime.

Key advantages of SFP:

  • Control over logistics: Sellers can choose their own logistics partners and manage the delivery process themselves.
  • Participation in the Prime program: Despite using their own logistics, products remain available to millions of Prime subscribers.
  • Reduced fees: By using SFP, sellers can avoid the high storage and processing fees associated with FBA.

However, SFP requires adherence to strict delivery and service standards, which can be a challenge for some sellers. Sellers must ensure fast and reliable delivery of products within two days, which necessitates an efficient logistics infrastructure.

2.2 Fulfillment by Merchant (FBM)

FBM is a model where sellers manage all aspects of order fulfillment themselves, including storage, packaging, and delivery of products. Unlike FBA, it allows entrepreneurs to have complete control over logistics without Amazon’s involvement in these processes. However, this also means they do not have access to Amazon Prime.

Key advantages of FBM:

  • Full control over processes: FBM allows sellers to manage the entire order fulfillment process themselves. You can use your own warehouses, choose your own carriers, and set your own packaging standards. This enables you to optimize costs and provide more personalized service.
  • Reduced costs: Sellers can use their own warehouses or utilize the services of 3PL providers. This helps avoid additional long-term storage fees, which can significantly increase operating expenses when using FBA.
  • Flexibility in inventory management: FBM sellers can quickly adjust their inventory based on seasonal fluctuations or changes in consumer preferences. With FBA, this can be problematic due to restrictions on warehouse access and the need for advance planning.

However, it is important to note that FBM requires a higher level of seller involvement. The need to manage logistics and customer service independently can demand significant investments of time and financial resources.

2.3 Third-party logistics (3PL) services

3PL is the outsourcing of logistics operations to third-party companies that handle the entire logistics management cycle for businesses. This includes storing goods in warehouses, packaging, shipping, processing returns, and even managing inventory.

Key advantages of 3PL:

  • Flexibility: 3PL offers a broader range of logistics solutions, including the ability to customize services based on business needs. You can adapt the service level, scale operations, and choose delivery methods that best suit your market.
  • Resource savings: 3PL allows sellers to avoid the need to build their own logistics infrastructure, saving on warehouse rentals, staff, and equipment. This is an excellent solution for FBM sellers who manage logistics independently.
  • Fast delivery: 3PL companies often have an extensive network of warehouses and delivery partners. They can ensure fast and accurate shipping, meeting the high standards required for SFP programs and other Amazon options.
  • Scalability: 3PL providers can easily adapt to business growth or seasonal fluctuations in demand. You can quickly increase or decrease storage and shipping volumes as needed.
  • Access to innovative technologies: Many 3PL companies offer inventory and delivery management systems, allowing you to track all processes in real time.

Switching to 3PL is not without its challenges. Handing over business processes to an external provider requires a high level of trust and coordination. Companies must carefully select partners, considering their experience, reputation, and ability to adapt to changing market needs. Additionally, it is important to establish clear performance evaluation criteria and regularly audit the services provided.


3. Fulfillment-Box – A Comprehensive Solution for Successful Selling on Amazon

Fulfillment-Box offers a full range of services for Amazon sellers, providing effective and flexible FBA alternatives. If you prefer FBA, we will handle packaging, labeling, and compliance with Amazon’s strict requirements. This ensures the timely and accurate delivery of your products to the company’s fulfillment centers and helps avoid penalties or delays.

For those who prefer to manage logistics independently, we offer FBM and SFP fulfillment. The company will handle the entire logistics cycle—from storage and processing to order shipping—while adhering to high quality standards and delivery timelines.

With Fulfillment-Box, you will receive:

  • International warehouse network: Our network of warehouses is located in key countries where Amazon operates. This will allow you to deliver products to customers more quickly and efficiently, minimizing logistics costs and reducing order fulfillment times.
  • Complete automation: Fulfillment-Box will provide full automation of all processes—from inventory management to order fulfillment. Integration with Amazon Seller Central allows us to easily monitor orders, warehouse stock levels, and delivery statuses in real time.
  • Order customization: We offer the ability to customize orders according to your needs. This includes branded packaging, unique promotional inserts, or special delivery instructions. All of this will help you maintain brand identity and enhance customer experience.
  • Return processing: We offer flexible solutions for product returns, helping you maintain a high level of service and customer satisfaction.
  • Warehouse in China for working with suppliers: To streamline operations with manufacturers and suppliers in Asia, we provide a warehouse in China. This will facilitate the storage of products before shipping them to your warehouse or Amazon FBA fulfillment center.

In today’s market, it is essential to be flexible and find solutions that align better with your business strategies. SFP and FBM can offer more flexibility and control over logistics than FBA. They allow you to manage order fulfillment independently. However, managing these processes requires significant time and financial resources.

Fulfillment-Box is an excellent alternative to Amazon FBA. Like FBA, you can outsource order fulfillment while still maintaining control over all fulfillment processes, preserving brand control, and reducing costs. We understand all the requirements and specifics of working with Amazon and can help minimize the risks associated with order fulfillment. Allow yourself to focus all your efforts on what matters for your business—its development and growth.


4. Frequently Asked Questions

1. What are the alternatives to Amazon FBA?

As an alternative to Amazon’s FBA program, the platform offers Seller Fulfilled Prime and Fulfillment by Merchant services. These allow sellers to independently control and manage order fulfillment on the platform. If you do not have the resources to handle orders and logistics on your own, it is worth considering partnering with a 3PL provider. Third-party logistics companies offer more flexibility in managing logistics, customizing packaging, and lower fees compared to Amazon FBA.

2. What is the difference between SFP and FBM?

Seller Fulfilled Prime allows sellers to handle orders themselves while offering products with the Prime label. Fulfillment by Merchant also involves self-fulfillment of orders, but without access to the Prime program.

3. Can FBA be combined with other models, such as FBM or 3PL?

Yes, many sellers use hybrid strategies, combining FBA for high-demand products with FBM or 3PL for larger or specialized orders. This helps optimize logistics costs and improve customer service.

4. What factors should be considered when choosing a 3PL for selling on Amazon?

It is important to assess the proximity of warehouses to Amazon fulfillment centers, delivery speed, the ability to customize packaging, as well as the cost of 3PL services. Additionally, pay attention to the possibility of integration with the platform to automate processes.

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Julia Gordon

AuthorJulia Gordon

Head of the Fulfillment-Box Prep Centers network

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