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Finding Alternatives to Amazon FBA

Amid the COVID-19 crisis, supply-chain strain at Amazon doesn’t have to spell trouble for sellers.

As the spread of the virus exploded in early March, calls to avoid crowded areas and stay home increased — which meant a sharp uptick in online shopping, particularly for household staples like cleaning supplies, paper products and groceries.

Consumers’ efforts to stock up and stay home, however, have strained Amazon’s usual supply chain and delayed shipments, with trucks backed up outside warehouses and online stocks dwindling. In an interview with Business Insider, Steven Yates, CEO of seller resource Prime Guidance, called it like he saw it: “Amazon has struggled to keep up with demand on essential items.”

On March 17, Amazon sent an email to sellers that it would no longer accept shipments of “nonessential products” to its warehouses, instead prioritizing high-demand products including medical supplies and household staples until April 5. That shift, compounded by shaky consumer confidence, has already made a dent: Yates told Business Insider that sellers on Amazon have seen orders for nonessentials drop by 40 to 60 percent.

Reliance on Amazon

It makes sense that many consumers are turning to Amazon — 300 million active customers, to be exact. The world’s largest online retailer has become synonymous with super-fast shipping and offers nearly 120 million products from 2.5 million active sellers. In December 2019, there were an estimated 112 million Amazon Prime subscribers who spend, on average, $1,400 per year in the booming online marketplace.

Brands who want to get their products in front of consumers know not only that Amazon is a crucial, trusted platform, but that selling there is a key survival strategy — as is meeting consumers’ expectations for free, two-day shipping.

Independent sellers have three different avenues to fulfill consumers’ orders through Amazon: Amazon FBA (or sometimes referred to as Fulfillment by Amazon), Fulfillment by Merchant (FBM), and Seller-Fulfilled Prime (SFP).

Fulfillment by Amazon (FBA)

Sellers ship merchandise to one of Amazon’s 175 warehouses, where Amazon employees then pack the items, ship them to consumers and track the order. Roughly two-thirds of Amazon’s sellers use this option.

Pros:Through one of Amazon’s FBA options, your products are eligible for Amazon Prime’s free two-day shipping, a beloved and built-in customer convenience. Amazon handles round-the-clock customer service, returns and refunds, and other logistics.

Cons: It’s going to cost you. Amazon charges fulfillment and storage fees, and you’ll get dinged with significant long-term storage fees if your products sit on the shelf for more than six months. Once those products are at the fulfillment center, if you opt to pool your products with the same items from other sellers, you run the risk of having your merchandise mixed up with counterfeit products.

Fulfillment by Merchant (FBM)

Sellers fulfill consumers’ Amazon orders themselves or outsource to a third-party service like One World Direct.

Pros: Sellers maintain more control over their business and inventory and don’t have to worry about FBA storage and fulfilment fees. Because Amazon penalizes sellers whose inventory doesn’t move off the shelves quickly, FBM is a better option for sellers with a smaller volume of more exclusive products. Stocking your own inventory or choosing your own warehouse to store it allows sellers to easily maintain a brick-and-mortar store in addition to offering online retail.

Cons: Some sellers aren’t equipped to handle every angle. Processing returns and handling customer service — on top of stocking inventory and managing shipments — can prove overwhelming for smaller sellers without help from third-party logistics (3PL).

Seller Fulfilled Prime (SFP)

Sellers fulfill orders through a hybrid of Amazon FBA and FBM options.

Pros: SA hybrid of the two, SFP allows sellers who manage and fulfill their own orders to participate in Amazon Prime and receive the Prime badge, which makes those products more appealing to consumers and increases sales.

Cons: Because sellers agree to deliver and fulfill orders using supported carriers within the two-day delivery window at no additional charge, they face the pressure of a time- and shipping-cost crunch.

Shifting Strategies

In a shifting market, sellers need immediate, dependable alternatives to Amazon FBA to move products, essential or otherwise. That means looking to companies that can handle 3PL outside Amazon’s overloaded infrastructure.

In uncertain times, OWD continues to operate, innovate, and support both its client and employees. OWD is sensitive to the impact that Amazon’s decision has had on their sellers and is waiving the integration charges for Amazon sellers who need an immediate alternative to FBA.

If you still have questions on finding alternatives to Amazon FBA, you can call us at 1-866-289-9010 or email us at sales (at) owd (dot) com.

Fulfillment Costs

Fulfillment costs are based on three criteria: size, weight and delivery time.

OWD offers five service levels: economy (7-10 days); Standard (5-7 days), 2-Day, Overnight and International.

Starting At

$3.99

Per Unit

FAQs

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International Shipping

The old way to ship internationally

DDU means Delivery Duty Unpaid – where the buyer pays for all of the import fees at delivery.

Unexpected import fees give buyers sticker shock – not good. When they refuse to pay, you’ve lost a sale and must pay to return your product, or abandon it.

DDU is an old idea whose time has passed. For these reasons and more, OWD doesn’t recommend DDU for e-com sellers.

The best way to ship internationally

DDP is an acronym for Delivery Duty Paid. DDP means that the seller pays for all the duties and import fees.

With DDP, your customers won’t be surprised with unexpected customs charges – good!

With OWD’s landed cost calculator, your foreign customers will know exactly what their various VAT, customers and duties will cost. No unhappy surprises.

Ship flat-rate anywhere in the world starting at:

$16.39

One World Direct, B.V.

For large-scale operations needing a full solution in Europe, there’s OWD Europe, based in Amsterdam.

We Make Contact Center EASY

Sell More with Live Agents

The Services

OWD handles phone calls, e-mails and web chat eighteen hours a day from our own state-of-the-art facility.

We’ll handle your inbound sales and customer service contacts.

You get career agents who speak American English and know how to sell.

The Costs

$99 gets you 200 calls, e-mails or chats handled every week.

You get your own phone number and custom e-mail.

We do a lot more. Call for details.

More than a Call Center

Get Virtual Assistants as needed

  • Credit Card declines
  • USPS and FedEx claims
  • Shipper Call Tags
  • Charge Backs & Credits
One World’s contact center in Mobridge, South Dakota.

The Voice of Your Brand

We Make Returns EASY

Returns? Yuck.
One World has a simple solution.

All-Inclusive Returns

OWD’s all-inclusive Returns service provides simplicity and high-end customer service. OWD includes a pre-printed return label as part of your packing slip. Your customer need only drop it in the mail.

What’s included: packaging slip with return label, QC inspection, re-bag, re-tag and return to stock. What’s excluded: postage cost, poly bags and any special packaging.

Base Price

$4.95

Add-On Services

  • Cleaning: (basic wipe down) $0.66
  • Apparel Steaming: $6.55
  • $0.50 for additional units

Call For Quotes

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