Amazon fulfillment (FBA) alternatives: Find the best solution

Ecommerce brands are increasingly seeking alternatives to Amazon's Fulfillment by Amazon (FBA) program. While Amazon's competitive fulfillment services are considered revolutionary, and its Prime shipping options are highly attractive to online customers, there are valid reasons for businesses to look for more flexible, cost-effective and versatile fulfillment solutions. The primary concerns revolve around cost and inventory control, branding and customer service.

In this blog, we'll discuss some of the best Amazon fulfillment (FBA) alternatives, the reasons you might want to consider them and how partnering with a 3PL provider could be the best option for your brand.

Limitations of Amazon FBA

Although Amazon FBA has revolutionized ecommerce logistics, it comes with certain challenges that can make it less appealing for some brands. Understanding limitations is essential when considering alternatives that might better suit your needs.

Payment structure and fees

Amazon's fulfillment pricing structure can be a shock for many businesses, especially new merchants. The platform charges a variety of fees for fulfillment services, including picking, packing and shipping. Additionally, Amazon assigns storage fees based on the amount of storage space used and there are extra charges for slow-selling items.

Seasonal fluctuations and ongoing events can cause these charges to vary significantly, making it difficult to predict fulfillment costs. For many brands, these unpredictable fees can quickly add up, cutting into profit margins and complicating financial planning.

Limited control over inventory management and shipping

Navigating Amazon's strict requirements for shipments and storage can be challenging. Businesses that use Amazon FBA must follow strict standards for packaging, shipping, labeling and safety. These requirements often involve additional costs and operational complexities.

You can also face limitations when trying to create unique branded unboxing experiences, as all shipments fulfilled by Amazon prominently display Amazon's branding instead of the merchant's.

In addition to branding limits, working with Amazon FBA can mean a loss of control over inventory management. Adding and removing products from Amazon warehouses can be cumbersome, particularly during busy seasons. Amazon's strict storage and restock limits can lead to stockouts or excess inventory.

Omnichannel fulfillment

Amazon's multichannel fulfillment (MCF) service offers support for brands that sell outside the Amazon marketplace. For businesses that already sell on Amazon and other platforms, relying on Amazon to handle shipping, packing and handling may seem like a convenient option. However, there are notable drawbacks.

Inventory requirements, compliance rules and additional fees can make Amazon MCF less attractive. Moreover, Amazon prohibits the use of MCF for products sold on competing marketplaces such as Walmart and eBay, limiting its appeal for brands seeking omnichannel fulfillment capabilities.

Customer service

When issues occur during the shipping process, customers need efficient and effective support. Unfortunately, when working with Amazon, control over the customer service experience is handed over to Amazon’s support team. This can result in unresolved or inadequately resolved issues, which can damage a brand's reputation and strain customer relationships.

For businesses that prioritize personalized and responsive customer support, this loss of control is a significant drawback. Many brands find that partnering with a 3PL provider that offers dedicated customer service can be a more effective solution.

Amazon fulfillment (FBA) alternatives

If you’re seeking alternatives to Amazon FBA, there are several options that offer more control, flexibility and cost-effectiveness. Below are some of the top alternatives:

Self-Fulfillment

Managing fulfillment in-house is an appealing option. This approach allows brands to maintain complete control over packaging, shipping and the customer experience. It can also lead to potential cost savings for low-volume sellers who do not need access to the expansive infrastructure of a 3PL provider. Additionally, because self-fulfillment enables direct customer interaction, it can help build stronger brand loyalty.

However, self-fulfillment comes with challenges. Managing logistics internally is time-consuming and requires considerable investment in infrastructure, technology, management and manpower. As your business grows, scaling self-fulfillment operations can become increasingly complex and costly. Further, managing complex shipping and packaging requirements without dedicated logistics support can lead to disruptions and poor outcomes.

Traditional 3PL providers

Traditional 3PL providers can offer more flexible and customizable logistics support. With 3PLs, you can benefit from scalable infrastructure, access to a broader range of fulfillment options and support for multichannel sales. Many providers also offer specialized services such as kitting, custom packaging and access to advanced inventory and shipping management software.

However, traditional 3PL solutions also have their limitations. Contracts can be complex and may involve high minimum volume requirements. Additionally, some providers may lack the integration capabilities that modern ecommerce brands need to optimize fulfillment and inventory management.

Walmart Fulfillment Services (WFS)

Walmart Fulfillment Services (WFS) provides access to Walmart's extensive marketplace and competitive shipping rates. WFS operates on a model similar to Amazon FBA and manages storage, picking, packing and shipping on behalf of sellers. This can be very appealing for brands looking to diversify their sales channels beyond Amazon.

However, WFS comes with limitations. Its infrastructure is less developed than Amazon's, and it is limited to Walmart's ecosystem. Further, restrictive seller requirements can create challenges for businesses seeking to quickly scale their operations.

Choosing the right fulfillment partner

Choosing the right fulfillment provider is a critical decision that can both support and undermine success. A fulfillment partner that aligns with your brand’s unique needs and growth plans can ensure the best outcomes, help support growth and ensure you achieve important goals.

If you’re looking for Amazon fulfillment (FBA) alternatives, consider the following factors:

• Scalability
• Cost-effectiveness
• Multichannel support
• Integration capabilities
• Shipping speed and reliability

Choose Cart.com to support Amazon fulfillment

While Amazon FBA is a default choice for many businesses and brands, the increasingly complex ecommerce landscape requires advanced and highly flexible solutions. Cart.com can provide businesses with the solutions and support they need to thrive. We go above and beyond standard multichannel fulfillment solutions, integrating all sales channels into one seamless and cohesive experience, giving the brands the flexibility to fulfill from anywhere.

We can help brands with FBA, FBM and omnichannel support, offering flexible solutions for both B2b and B2C businesses combined with fast onboarding and expert support. We can handle your fulfillment needs and are dedicated to providing businesses with the tools and support needed to grow and succeed in increasingly competitive and complex markets.

If you’re interested in learning more about Amazon fulfillment (FBA) alternatives and how we can help your business maintain better control over shipping and fulfillment processes, including the customer experience, contact us today!