A Viable Alternative to High Fulfillment by Amazon Fees in 2024

Apr 26,2024
Industry News
Due to the high Amazon FBA fees, how can sellers or businesses reduce Fulfillment by Amazon shipping fees? What other alternatives are there to FBA services

For those of you who are expanding into cross-border e-commerce, Amazon’s Fulfillment by Amazon (FBA) service may be a good choice. However, joining Amazon’s FBA logistics service means that you need to pay a certain fee. For a start-up online merchant or enterprise, these high fees can be a financial burden.

With the high Amazon FBA fees, how can sellers or businesses reduce shipping costs? What other alternatives are there to FBA services?

Amazon FBA fees

You may want to consider some Amazon FBA alternatives. These alternatives may include handling logistics yourself, finding other third-party logistics services, or exploring fulfillment services from other e-commerce platforms. Depending on your specific situation and needs, you can weigh a variety of options to ensure your online business operates efficiently and is successful.

Faced with the high Amazon FBA fees, sellers or businesses can optimize logistics packaging and transportation methods and other strategies to reduce transportation expenses.

Ways to optimize FBA services to reduce costs

Optimize the packaging and size of goods, reduce the use of packaging materials by packaging goods rationally, so as to reduce the weight and volume of goods, thereby reducing transportation costs.

Optimize the FBA delivery plan, formulate a reasonable delivery plan, and consider factors such as product sales, delivery cycle, capital cost, minimum inventory, etc. Avoid shipping too many or too few to reduce additional inventory management fees and shipping costs.

According to the nature of the goods, destination and transportation time requirements, choose the most economical and suitable transportation method, such as sea transportation, land transportation or air transportation.

Through centralized delivery, the number of delivery batches is reduced and transportation costs are reduced. It is also an effective method to cooperate with multiple sellers or companies to jointly organize LCL shipments.

Reasonably choose the delivery frequency and logistics method, taking into account the freight and the arrival speed of the goods. Try to maintain zero inventory and avoid excessive fixed inventory.

For small, lightweight products, Amazon’s Small and Light logistics program can be enabled to reduce shipping costs. Regularly monitor FBA inventory, handle abnormal situations in a timely manner, and reduce unnecessary losses. Including FBA arrival inventory exceptions, in-stock inventory change exceptions and FBA return exceptions.

For both large and small products, consider small products more as FBA fees are lower for small products. When selecting products, changes in FBA rates and warehousing fees should be taken into consideration.

Negotiate long-term transportation contracts with transportation companies to obtain more favorable transportation prices.

These methods can reduce Amazon logistics expenses to a certain extent. If you still feel that logistics costs are too high after taking the above methods, then you can consider the following methods, which will save costs more than using FBA logistics services.

Fulfillment by Amazon alternatives that sellers or businesses can consider

Merchant Fulfilled Network (MFN)

Sellers are responsible for the transportation and distribution of goods and can choose their own logistics channels to reduce transportation costs. Handling the picking, packing and shipping of orders yourself may increase the workload, but can reduce some costs. However, it should be noted that self-delivery may affect the delivery speed of goods and customer satisfaction.

Seller Fulfilled Prime (SFP)

If you can meet Amazon’s high standards for fulfillment, SFP allows you to remain eligible for Prime while avoiding FBA fees

Third party logistics services

In addition to Amazon FBA, there are other third-party logistics service providers that provide similar services. Third-party logistics companies that provide warehousing, packaging, distribution and other services, such as chinadivision, stone3pl, etc., these companies can usually provide more flexibility and competition than FBA. Competitively priced service plans.

It can also balance inventory and distribution among different e-commerce platforms through multi-channel distribution services of third-party logistics services, increasing flexibility.

Overseas warehouse

Establish your own warehouse overseas and ship goods to target markets in advance to reduce transportation time and costs. At the same time, overseas warehouses can also increase the delivery speed of goods and enhance customer experience.

Work directly with manufacturers

Working directly with a manufacturer may provide better wholesale pricing and delivery options.

By implementing these strategies and exploring alternatives to Fulfillment by Amazon, sellers and businesses can reduce shipping costs while maintaining an efficient order fulfillment process.

When choosing an alternative method, sellers or companies need to comprehensively consider their own business needs, cost control, customer service and other factors to choose the solution that best suits them.

When you are looking for alternatives to Fulfillment by Amazon, choosing ChinaDivision as a third-party logistics service provider is a viable option. ChinaDivision provides a range of logistics solutions, including warehousing, order processing and global distribution services, which can help you effectively manage your inventory and shipping needs. With its rich logistics experience and professional service team, ChinaDivision provides sellers or enterprises with a full range of logistics solutions to help them effectively reduce transportation costs and improve operational efficiency.

Advantages of choosing ChinaDivision as an FBA alternative

Cost advantage

ChinaDivision has an extensive logistics network and strong purchasing capabilities, enabling it to provide efficient logistics services at lower costs. By cooperating with ChinaDivision, sellers or businesses can enjoy more competitive shipping prices and reduce logistics costs.

Customized services

ChinaDivision has an in-depth understanding of the needs of different industries and sellers, and can provide customized logistics solutions based on customers' actual situations. Provides goods receiving and inspection, repackaging, labeling and other value-added services to meet Amazon FBA packing requirements. Whether it is warehousing, packaging or distribution, ChinaDivision can provide flexible and professional services to meet the personalized needs of customers. .

Seamless order processing

ChinaDivision supports seamless integration with multiple e-commerce platforms and synchronizes order information in real time, making your business operations smoother.

efficient operation

ChinaDivision has advanced logistics management systems and technical support, enabling fast and accurate order processing and cargo tracking. By optimizing logistics processes and improving operational efficiency, ChinaDivision can help sellers or companies shorten delivery times and improve customer satisfaction.

Excellent customer service

ChinaDivision focuses on customer service experience and has a professional customer service team and a complete after-sales service system. Whether it is consultation, complaints or after-sales service, ChinaDivision can respond promptly and provide thoughtful solutions.

global supply chain network

ChinaDivision is committed to building a global supply chain network to help e-commerce sellers solve their logistics needs from China to around the world.

By choosing ChinaDivision as your third-party logistics service provider, you can enjoy professional, efficient and cost-effective logistics services while maintaining control over product quality and customer satisfaction. If you are looking for a reliable third-party logistics service provider, you may wish to consider ChinaDivision, which will provide strong support for your business development. This not only helps you reduce your dependence on Amazon FBA, but also provides your business with more flexibility and expansion potential.