FBA alternatives for Amazon sellers
Looking for alternatives to Amazon’s Fulfillment By Amazon (FBA) service? You’re not alone. Many online sellers are seeking more control, lower costs, and greater flexibility. Learn about the best FBA alternatives, including third-party logistics (3PL) and hybrid approaches that offer the best of both worlds.
Amazon is nearly monolithic in the online shopping industry. Regardless of the product, Amazon likely carries several varieties. With Q3 revenues for 2020 reaching $96.15 billion, for most brands, the decision to sell products on Amazon seems like an obvious choice. The eCommerce landscape is dominated by Amazon, and sellers on their marketplace often feel pressured to sign up for Fulfillment By Amazon (FBA) logistics services for their shipping needs.
FBA-subscribed sellers ship inventory to Amazon fulfillment warehouses where Amazon takes over on the seller’s behalf. While a main benefit of FBA is the ability to store merchandise in Amazon’s warehouses, FBA also offers the convenience of outsourcing shipping fulfillment to a global powerhouse with long-standing expertise and a high standard of operations. However, FBA does have drawbacks, including loss of control over branding and inventory, unpredictable and expensive fulfillment fees, and limited customer interaction.
One example of the unpredictability faced by sellers using FBA was Amazon’s decision in March 2020 to stop accepting non-essential inventory in Amazon fulfillment warehouses because of the high demand for essential goods during the coronavirus pandemic. Sellers received notice that their products would be deprioritized and had to quickly pivot and find shipping alternatives in order to stay afloat. While Amazon did eventually open up FBA to more products, savvy global merchants left in the lurch had already ensured continuity of supply by finding Fulfillment By Merchant (FBM) alternatives.
Advantages of FBM
Many international Amazon merchants use FBA so that they don’t need to manage the logistics and cost of fulfilling orders, preferring to leverage Amazon’s world-leading fulfillment network. But FBA storage and fulfillment fees can be expensive, and sending inventory to Amazon warehouses means less control of your supply chain. FBM, on the other hand, gives international sellers more control over their inventory. Here are some advantages of FBM over
FBA:
No need to pay additional fees to Amazon
Greater ability to build your brand
Security from unexpected policy and fee changes to FBA
More ‘hands-on’ understanding of the business
Greater operational freedom
No unexpected costs
Despite the numerous advantages of managing your own fulfillment, FBM can be time-consuming and distract international merchants from the task of running a business. Storage, shipping, and distribution can be difficult for sellers without experience in this aspect of the business. Using third-party logistics fulfillment (3PL) partners can mitigate the risk of operating your own shipping fulfillment while still giving many of the advantages of FBM over FBA.
Amazon sellers who do not sell essential products are switching from FBA to FBM, assuming responsibility for inventory storage and fulfillment. This transition can be made easier by finding the right 3PL partner to keep your eStore running.
Finding 3PL service providers
It is important to find the right 3PL service provider to help you move from FBA to FBM. With numerous providers offering special promotions to Payoneer account-holders and Payoneer integration solutions, there is a range of choices for Amazon sellers looking to make the switch. Here are some options:
US 3PL Service Providers
Deliverr
Offers fulfillment solutions for Amazon FBM, Walmart, Wish, and more.
Email Timothy McDonnell tmcdonnell@deliverr.com and mention Payoneer to learn more.
Flowspace
Delivers nationwide 1-2 day shipping with full marketplace integrations on Amazon, Walmart, and Shopify.
Amflat logistics
Offers solutions for Amazon FBA sellers, such as warehouse, storage, drop shipments, and fulfillment.
Amsfulfillment
Delivers eCommerce fulfillment for mid-size businesses.
Swan Fulfillment
Is a multi-channel FBA and FBM fulfillment services provider for SMBs.
Fulfillment.com
Offers global fulfillment in the US, Mexico, Canada, the Netherlands, and the UK specializing in fulfillment for small items.
Shipbob
Offers tech-enabled 3PL and FBM capabilities and is best suited for sellers with less than 200 SKUs.
EU 3PL Service Providers
Huboo
Is a fulfillment partner delivering solutions for Amazon and eBay sellers, with low pricing and quick integration for UK and international shipping. Payoneer account-holders can currently enjoy two months of free storage, a three-month free subscription, and fast-tracked onboarding with Huboo.
Cubyn
Delivers inexpensive, fast, and reliable fulfillment, and robust monitoring. Payoneer account-holders can currently get free storage on essential product inventory until June 21st.
Bezos.ai
Is a fulfillment service platform in the UK, offering storage, packaging, delivery, and returns. Currently, Payoneer account-holders can get 30 days of free storage and no pick and pack fees if they sign up with Bezos.ai.
Global Ecommerce Experts
Is a management solution for eCommerce businesses, offering a full range of fulfillment services. Payoneer account holders that sign up now will enjoy no signup fee for a £150 savings. Just email sales@globalecommexperts.com with the title PAYONEER/GEE.
Global Commerce Experts
Is a management solution for eCommerce businesses, offering a full range of fulfillment services. Payoneer account holders that sign up now will enjoy no signup fee for a £150 savings. Just email sales@globalecommexperts.com with the title PAYONEER/GEE.
Global 3PL Service Providers with Payoneer Integration
The following 3PL service providers offer fulfillment solutions and are also set up to accept payment from your Payoneer balance. This integration lets you streamline 3PL services and payments for less logistical burden.
Winit
Is a supply-chain solutions provider, with international service across every aspect of your business, from customs clearance and order fulfillment to returns and dropshipping.
Elogistic
Offers standard fulfillment services to eCommerce sellers, as well as several value-added services such as product relabeling, repacking, and photographing.
4PX
Delivers cross-border eCommerce solutions. Some of the services provided include warehouse quality inspection, inventory management, receiving orders, delivery, and returns.
Birdsystem
Provides returns logistics and FBA warehouse transfers to international eCommerce sellers.
Moving from FBA to FBM
Finding alternatives to FBA is important, based on the reasons detailed above. Once you have explored your options for 3PL service providers, switching from FBA to FBM is straightforward and quick. Just follow the steps outlined below:
Log in to Seller Central with your information.
Select ‘Manage FBA Inventory’ from the Inventory drop-down menu.
Locate SKUs that you will be switching to FBM and open the drop-down menu next to each item.
Select ‘Change to Fulfilled by Merchant’ for each SKU.
Once you are redirected to the Convert to FBM page, click ‘Convert.’
Within 24-hours, any SKUs that you have moved to FBM should be processed.
Payoneer is here to help with white glove services
Moving from FBA to FBM may seem daunting, but Payoneer is here to help. If you have any questions about Amazon fulfillment policies or would like more information about any of the 3PL providers listed here, please reach out to your Payoneer account manager for more information on white glove services. Payoneer is a cross-border payment processing platform delivering quick, low-cost, secure solutions for international eCommerce sellers.Still don’t have a Payoneer account? Sign up today.
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