Fulfillment by Amazon (FBA) is aOutsourced logistics company (3PL).that offers multichannelprocessing orderServices intended to sell on Amazon. In our review ofThe best order processing companies.For small businesses, Fulfillment by Amazon (FBA) scored 3.78 out of 5 based on price, functionality, expert services, and ease of use.
Total score: 3,78/ 5
Benefits
- Premium designation on all orders with expedited two-day shipping
- Improved Amazon Search Ranking
- Integrated customer service and returns management
Disadvantages
- Frequent fees and price fluctuations
- Strict packaging and labeling requirements
- Undisclosed accuracy rate with commonly reported errors
When to use Fulfillment by Amazon?
- Amazon Seller:Fulfillment by Amazon offers valuable perks and benefits geared toward Amazon sales
- Direct to Consumer (DTC) Brand:Has infrastructure to optimize transit times, shipping costs and global expansion
- Small and light products:FBA pricing structure favors manageable, easy-to-ship merchandise
When to use an alternative
- Multi-channel seller:FBA supports multi-channel sales, but is not profitable unless Amazon is your primary market
- High value, heavy, fragile or oversized products: Red Stag Fulfillmentit is cheaper for special driving needs and is eligible for SFP (Seller-Fulfilled Prime).
- Healthcare, Food & Beverage, Cosmetics & Medical Products - ShipBobhas FDA certified handling and storage for sensitive products
Fulfillment by AmazonThird Party Fulfillment Servicesthey are best suited for Amazon sellers, e-commerce retailers, and brick-and-mortar stores who want to venture into selling online. Its expansive network of 185 warehouses creates efficient global distribution distribution, and every FBA order is eligible for Prime.
There's no minimum order size required to use Fulfillment by Amazon (making it affordable for startups) and it's more profitable for sellers who handle small, lightweight products. With its strict requirements, myriad fees, and associated risks, the service is not ideal for all businesses or products, especially those that require special handling.
Our FBA review concludes that it is not cost effective for large or heavy products. Although the company has temperature control in some of its warehouses, there is no guarantee that its temperature sensitive products will be stored in the proper environment. Also, unless Amazon is your primary marketplace, FBA's expensive multi-channel fulfillment fees aren't profitable.
FBA Decision Factors | |
|---|---|
Supported Business Types | Small and Medium Businesses, Startups, E-Commerce Stores, Retail Stores, DTC Sellers, B2B Sellers, Artisan/Handmade Products, Subscription Services |
excellent features |
|
Minimum order requirements | none |
Installation and integration fees | None (account onboarding and setup are free, but monthly)seller feesdevelop) |
prices |
|
Contract term | none |
warehouse locations in the United States | 110 |
International Warehouse Locations | 75 |
Shipping Partner Options | Amazon Logistics, UPS |
Customer Support | 24/7 phone, email, and live chat (support is not available during the call) |
How Fulfillment by Amazon works
FBA takes advantage of Amazon's vast infrastructure to customize the fulfillment process for customer convenience and experience. Here's a closer look at the steps in the process:
Incoming shipping and receiving
As an Amazon registered seller, you can ship your inventory directly from your supplier to an Amazon fulfillment center on a shipping platform or through a carrier. Alternatively, a service like ShipBob can prepare and ship your inbound FBA shipments for you. Once received, products can be distributed through the FBA network of warehouses to expedite logistics.
store
You must pay an inventory storage fee to store your products in an Amazon fulfillment center. These charges depend on the size of your items and how long they are stored. Amazon FBA storage rates start at 56 cents/ft during the off-season.
Did you know?
To streamline distribution, FBA implemented stock merging: the grouping of identical products from different sellers in its warehouses. Sellers view this as a potential risk, as merchandise that another FBA retailer has in stock could be shipped to a customer who purchased from their listing.
processing order
Once a customer places an order on Amazon or another sales channel, Fulfillment by Amazon selects, packs, and ships the merchandise. Shipping rates apply, starting at $3.22/unit for small items (weighing 6 ounces or less) and up to $200 or more per unit for large specialty items (like spas and freezers). The rate includes labor costs, shipping costs and packaging materials.
Customized/branded outer packaging includedNoOne option. Products in certain categories, namely clothing and accessories, are subject to higher shipping rates.
Customer service and returns
When after-sales customer service is required (eg, customer service, order returns or refunds), Amazon handles the interaction. The company's team of representatives is available to customers 24/7 through various communication channels. Returns are processed, discarded and/or recharged according to your specifications and the platform manages the refund payments.
Populated by Amazon alternatives
Using FBA is one of three methods Amazon sellers can choose to fulfill their orders. Sellers using other fulfillment options are considered part of the platform's Merchant Fulfillment Network (MFN). Click on the tabs to see the other options:
- Ship with Third Party Processing
- send yourself
UnderPrime Seller (SFP)Option, however, the seller is responsible for the entire service and after-sales processAll orders are eligible for Prime. You can make the fillinginternal or subcontractorfor a 3PL, but orders must ship the same day and have a two-day delivery guarantee. Here's a look at some of the best fulfillment options:
Monthly Minimum | better for | analysis | |
|---|---|---|---|
| none | DTC and B2B e-commerce compliance; FBA Preparation Services | ShipBob review |
| none | On-demand services, labor and space to scale internal service | salt box review |
| $250 in pick and pack fees | Multichannel sellers targeting Seller Prime Fulfillment (SFP). | ShipMonk Review |
| ≈200 orders | Oversized, heavy, high-value or fragile items | red deer review |
UnderMerchant Compliance (FBM)Option, the seller is responsible for all aspects of order fulfillment, returns handling, and customer service. However, there are no strict requirements for packaging or speed of delivery.not all FBM orders are eligible for Prime.
As part of Amazon's Merchant Fulfilled Network, you can ship products to customers without having to pay to store your products in a warehouse. Instead, you keep them at your home, store, or facility until you're ready to give them to a customer.
With this method, you still pay a monthly referral fee (plus a referral fee per item) for the opportunity to sell on the Amazon marketplace. You'll also need to manage your inventory and any fulfillment processes or hire staff. Internal fulfillment is ideal for lower margin sellers who need to control costs.
FBA costs and fees
4.44/5
For this category, we classify according toPrice transparency, billing transparency,miload predictabilityas many fulfillment companies offer pricing based on custom quotes.
Also, FBA pricing is very transparent and all invoices can be viewed by order line on their online portal. However, it lost points on billing predictability due to fluctuating rates and complex pricing structure.
Since our last update:
As of January 19, 2023, Amazon changed its price. Below you will find the most up-to-date rates.
Service | Cost | that covers |
|---|---|---|
Integration | $ 0 | Account integration and setup is free, but monthly or per-item seller fees apply |
Counter | $0 if policy is followed | Reception of goods, unpacking and check-in |
inventory | Standard Goods: 56-83 cents per cubic foot/month from January to September; $1.20 to $2.40 per cubic foot/month from October to December Dangerous goods: 78-99 cents per cubic foot/month from January to September; $2.43 to $3.63 per cubic foot/month from October to December | Short-term storage with climate control and security options There is an additional monthly fee for long-term stored inventory |
greeting | $3.22 to $7.17 + 16 cents/half pound on first 3 pounds per unit for standard size nonhazardous goods (up to 20 pounds) $9.73 + 42 cents/lb on the first pound - $158.49 + 83 cents/lb on the first 90 lbs for non-hazardous oversized products (21-150+ lbs) | Stock picking, packing, shipping and after-sales customer service Shipping rates are based on the size, weight, quantity, sales channel, shipping speed, and category of merchandise in each order. |
FBA prices and fees change regularly and fluctuate throughout the year; This is an important detail to consider when determining profitability. Best sellers recommend reading the company carefully.guidelinesmirate guideand use of AmazonRechner-Toolsto see how profitable the business relationship would be before joining.
The FBA pricing structure is complex, especially when compared to other fulfillment providers. It is essential to understand wellorder fulfillment costsand the company's pricing model to ensure profitability and avoid unexpected charges. Your costs depend a lot on what you sell and the processes involved.
Here's a look at the Amazon FBA fees you can expect:
Summary of FBA Fee Updates for 2023:
Valid from January 17, 2023:
- An increase inOutbound FBA feesfor an average of 22 cents, with more detailed weighting levels for outbound FBA fees
- reduction ofReturn Processing Feesfor returned products in the apparel and footwear categories at an average of 20 cents per return
- An increase in monthly storage fees, including:
- An increase in the monthly off-peak storage fee (January-September) for standard-size products by 4 cents per cubic foot and for oversized products by 3 cents per cubic foot
- An increase of 20 cents per cubic foot in maximum storage rates (October-December) for non-sortable mesh, while rates for sortable mesh remain unchanged
- Expansion of the Small and Light program: Item price increase for eligible products from $10 or less to $12 or less
Valid from February 16, 2023:
- For apparel, FBA uses the greater of the unit weight or dimensional weight to determine the shipping weight for all oversized items.
Valid from April 15, 2023:
- Aincrease in surchargesapplied to stock stored between 271 and 365 days. In addition, old stock surcharges will be introduced for inventory stored between 180 and 270 days, excluding products in the following categories: clothing, footwear, handbags, jewelry, and watches.
seller fees
There is a cost associated with selling on Amazon regardless of how you fulfill your orders. A professional seller account costs $39.99 per month, or individual sellers can pay 99 cents per item sold.
incoming shipment
You will be responsible for the cost of shipping your merchandise to Fulfillment by Amazon, which varies depending on the origin and characteristics of the shipment. Amazon negotiated its shipping discountsaffiliates.
Compliance Rates
No news:
Introduction of Fulfillment by Amazonnew basic service ratesEffectiveJanuary 17, 2023. FBA introduced a fuel and inflation surcharge to its FBA fees and considered it a temporary cost increase in April 2022. Unfortunately, costs didn't come down, so new standard FBA fees were implemented. and the separate inflation and fuel surcharge were removed. These changes are reflected in the summary below.
The cost of picking up an order at FBA warehouses, packaging, shipping, and customer service and returns starts at $3.22 per unit and goes up to over $200 for oversized specialty items. The grand total of this rate takes into account many factors, including:
- Size
- Weight
- Crew
- Category
- sales channel
- Shipping speed (for multi-channel orders)
FBA base rates for non-apparel items are listed below:
size level | delivery weight | Compliance rate per unit |
|---|---|---|
small pattern | 4 ounces or less | 3,22 $ |
4+ up to 8 oz. | 3,40 $ | |
8+ up to 12 ounces | 3,58 $ | |
12+ to 16 ounces | 3,77 $ | |
big pattern | 4 ounces or less | 3,86 $ |
4+ up to 8 oz. | $ 4,08 | |
8+ up to 12 ounces | 4,24 $ | |
12+ to 16 ounces | 4,75 $ | |
1+ to 1.5 pounds | 5,40 $ | |
1.5+ to 2 pounds | 5,69 $ | |
2+ to 2.5 pounds | $ 6,10 | |
2.5+ to 3 pounds | $ 6.139 | |
3+ pounds to 20 pounds | $7.17 + 16 cents/half pound on first 3 pounds | |
small big size | 70 pounds or less | $9.73 + 42 cents/lb on the first pound |
Average size | 150 pounds or less | $19.05 + 42 cents/lb on the first pound |
big size | 150 pounds or less | $89.98 + 83 cents/lb on the first 90 lbs. |
special big size | over 150 pounds | $158.49 + 83 cents/pound on the first 90 pounds |
Multi-channel sellers should note that FBA fees applyHigher fulfillment rates for fulfilling orders outside of Amazon(We'll get to these exact costs later.) It's also about higher costs for items in certain categories, such as:Dangerous goods and clothingregardless of the distribution channel.
release fees
FBA charges a reallocation fee if you want to reclaim Amazon inventory and/or dispose of unsold inventory. The cost for this service is based on weight and size and ranges from 97 cents to over $13.05.
It's worth noting that many sellers have had issues with late fulfillment, meaning their inventory has been sitting in FBA warehouses for weeks or even months after they paid and requested fulfillment. This issue results in unexpected storage costs and reduced revenue for affected merchants.
labeling fees
Amazon has strict barcode label specifications for all inventory received from FBA. If items are not properly labeled, a labeling fee of 55 cents per item may apply.
FBA Preparation Service and Unscheduled FBA Preparation Service
Fulfillment by Amazon has strict product preparation and packaging guidelines. To avoid having to handle them yourself, you can have Amazon pack and prepare your products for a fee.
If you do not opt for the FBA advance preparation service, you will be charged an unscheduled preparation fee for shipping incorrectly prepared products. These fees vary depending on the type of product and service and range from $1.40 to $2.55 per unit.
returns processing
The cost of any return postage is included in the shipping fee for most items, but merchandise in certain categories (for example, clothing and accessories) do not qualify for this service. FBA will charge a return fee equal to the original fulfillment fee for those specific products. If returned products need to be repackaged for resale, Amazon will charge an additional repackaging fee.
storage fees
The cost of storing your products in a FBA warehouse varies by season and increases by up to 200% between October and December. The estimated cost also depends on the size of the product and whether it falls under the "dangerous goods" category.
Products that fall into the FBA Dangerous Goods category, which includes items such as laptops, smartphones, household cleaning products, spray paints, and cosmetics, incur higher storage costs. read aboutFBA Dangerous Goods ProgramLearn more.
Seasonal FBA storage rates
Products without dangerous goods | ||
Mes | standard size | big size |
January-September | 87 cents per cubic pie | 56 cents per cubic pie |
October December | $2.40 per cubic foot | $1.40 per cubic foot |
dangerous goods products | ||
Mes | standard size | big size |
January-September | 99 cents per cubic pie | 78 cents per cubic pie |
October December | $3.63 per cubic foot | $2.43 per cubic foot |
As shown in the table above, Amazon FBA fees increase dramatically during the holiday season. This is something to keep in mind when using FBA and is a major reason volume sellers rarely use FBA as their only storage option.
Instead, energy sellers often store most of their inventory in inexpensive storage units or in a company warehouse. Then, they regularly ship just enough FBA inventory to cover projected sales.
Long-term storage fees
Inventory stored in a FBA warehouse for more than 270 days will incur long-term storage fees for sellers. Between 271 and 365 days of storage, an additional $1.50 per cubic foot may be added to your expenses. Beyond 365 days of storage, an additional 15 cents per unit can be added or your cost increases to $6.90 per cubic foot (whichever is greater).
additional tools
While Amazon does not provide these downloadable tools such asSellics,inventory lab, mijungle explorerThey exist to make selling FBA easier (and more profitable). These apps increase your marketing, inventory management, and reporting capabilities by integrating with your Amazon account. Third-party tools like these can cost up to $100 or more per month, so it's important to factor them in when calculating your expenses.
FBA Shipping Rate Examples
cape for tablet
Size category: small standard Dimensions: 13.8 x 9 x 0.7 inches | T-shirt
Size Category: Large Standard Dimensions: 14 x 10 x 0.76 inches | cradle
Size category: small and large size Dimensions: 24 x 7.5 x 6 inches | television
Size Category: Large Plus Size Dimensions: 54 x 35 x 3.5 inches |
Shipping Weight 2.88 ounces | Shipping Weight 12.32 ounces | 7.9 lbs shipping weight | 41 pound shipping weight |
$3.22/unit | $4.84/unit | $12.67/unit | $89.98/unit |
What: Amazon
These fees, combined with other Amazon fees, are typically more expensive than the cost of contracting with another Seller-Fulfilled Prime (SFP)-enabled fulfillment provider, such as Red Stag or ShipMonk. But for many Amazon-focused sellers, the high cost of the benefits FBA offers are well worth it. In addition, you pay for the comprehensive services of Fulfillment by Amazon, which is more convenient for you.
Also, since they deal directly with Amazon, buyers know what to expect in terms of customer service. Outsourced 24/7 customer service is a significant investment when looking elsewhere, making it an important consideration for FBA costs. This is especially true for sellers who deal in products that inherently have a high rate of return, such as electronics or clothing.
Quality and functionality through Fulfillment by Amazon
3.2/5
Unlike many high-quality fulfillment services, FBA does not disclose its accuracy rate, and the service is notorious for its common mistakes between sellers and buyers. This cost the company points in that category, along with a lack of shipping partner options, limited out-of-the-box integrations, and expensive multi-channel fulfillment fees.
That being said, FBA offers fast response times and a vast warehouse network that outperforms competing services.
Click below to expand the resources that contribute to FBA scores.
Multi-channel compliance
If you use sales channels other than Amazon (for example, your own Shopify store and/or other online marketplaces likeEbay) you can also use Fulfillment by Amazon to fulfill these orders. Amazon calls this service Multi-Channel Fulfillment, or MCF.
For multi-channel fulfillment by Amazon users, the inventory holding fees remain the same, but the MCF fulfillment fees are higher. There is no additional Amazon seller fee for MCF orders.
The MCF rate is responsible for the entire process of picking items from inventory, packing and shipping. but amazon doesNoCustomer service for MCF orders. Therefore, you must handle (or hire staff to handle) all multi-channel customer inquiries, returns, and refunds yourself.
For most MCF orders, you have three shipping options to choose from: Standard, Two-Day Express, and One-Day Priority. This is useful if you offer a variety of shipping options on your own store or eCommerce site. Also note that if an MCF order contains multiple units, the cost per unit will decrease.
If you compare Amazon's MCF rates to the shipping costs you'd pay to fulfill orders, you'll probably find MCF to be a good deal. While this is the case, multi-channel sellers whoNoFocused primarily on Amazon sales, you're better off partnering with a cheaper 3PL like ShipBob.
storage network
Amazon has 110 FBA warehouses strategically located throughout the continental US (see full list ofstorage locationsbelow), plus an additional 75 fulfillment centers worldwide.
This allows sellers to split inventory across multiple warehouses and keep products close to multiple customer bases. FBA's large network of warehouses also simplifies inbound shipments and imports, allowing merchants to use warehouses close to their suppliers or destination ports.
Compared to competing fulfillment companies, ShipMonk has a total of 10 warehouse locations and Red Stag only has two. It's rare to find a small, enterprise-friendly 3PL with an infrastructure as extensive as FBA.
Customer Support
The Amazon Seller Support team serves FBA users in addition to all other Amazon sellers. While FBA reviews are scant on sites like Trustpilot and G2, discussion of the service is plentiful elsewhere: on forums like Reddit, Quora, and Amazon's own seller forums.
While Amazon's customer service is highly responsive and effective to buyers, seller support is notoriously unreliable, leaving users waiting several weeks or even months for their issue to be resolved. It is also reported that most vendor support is outsourced to third party agents with insufficient training.
If you search online for seller support contact information, you'll find a phone number reserved for Amazon.Customers. The only way to contact seller support is to fill out a ticket and request a call or email.
It's not uncommon for fulfillment companies to structure their support in this way; When response time is fast, lack of on-demand customer service is usually not an issue. However, FBA response time is reported to be very slow and some users claim that it takes multiple follow-up requests to speak to someone.
In addition to seller support, a seller community forum and online knowledge base are available for users to solve problems on their own.
the integration
FBA proprietary turnkey integrations are quite limited, but thanks to their open APIs and huge popularity, thousands of FBA integrations are available through third-party vendors.
In addition, FBA integrates directly with certain eCommerce integration service providers, such as WebBee. This allows for quick and easy integration with whatever tools or platforms you need, although this may incur additional costs.
Other companies like A B. Zapier have created various plug-and-play integrations to connect FBA and Amazon Seller Central with a variety of other apps and programs you can use.
Suppose you can't find your desired integration out of the box. In that case, FBA's developer-friendly APIs make it easy to create a custom connection. However, unlike other fulfillment partners such as ShipBob and Red Stag, FBA does not offer integration development as a value-added service.
Here is a list of current proprietary FBA direct integrations:
- E-commerce platforms and marketplaces:WooCommerce, VTEX, 3dcart, Shopify, WebBee y Bytestand
- Loading and transportation solutions:AfterShip
- Operational, inventory and order management:ChannelAdvisor, Listing Mirror, Orderhive, Zentail, Skubana, Sellbrite y Sellercloud
Special Fulfillment by Amazon services
4.3/5
In addition to standard fulfillment, warehousing, and distribution capabilities, FBA offers a variety of benefits that can help your Amazon business thrive.
FBA specialized services include:
Prime eligibility and shipping
One of the most popular FBA features is free two-day Prime shipping for Amazon Prime subscribers. Some products are eligible for free shipping even if the buyer is not a Prime member. However, for non-members, it may take a little longer for the package to arrive.
FBA product listings prominently feature the Amazon Prime logo, indicating to Prime members that they can purchase their product with free Prime two-day shipping or other Prime offers. Prime has nearly 200 million subscribers who look for the Prime logo when they shop, so FBA products attract far more shoppers than non-Prime products.
Amazon offers all buyers, Prime or not, free shipping on orders over $25. The caveat is that products must be eligible, and the list of eligible products includes FBA items. The same goes for Amazon coupon deals or shopper events like Prime Day and Cyber Days; FBA products also qualify for these offers.
after sales service
In addition to standard order fulfillment processes, FBA performs all customer service related tasks for your Amazon orders. The company's well-established CS team is available 24/7 via phone, email, or live chat on the app or website and has a reputation for highly responsive support.
The cost to outsource this level of service elsewhere would be astronomical. For every representative hired, call center outsourcing in the US can cost anywhere from $25 to $65 per hour. Having an employee on call during those hours would cost thousands of dollars a month, and potentially hundreds of thousands a year. In that sense, FBA is incredibly profitable.
Amazon Competitive Advantages
FBA listings have a significant advantage over non-FBA items in Amazon's search engine algorithm. This leads to higher rankings for FBA products in Amazon product search results, leading to more sales.
Another benefit is the prioritization of the Amazon Buy Box, which is the "Add to Cart" button on most product listings. When viewing a product sold by multiple sellers, pressing this button will add a selected listing to the customer's cart.
The platform selects which listing can "own the Buy Box" using an algorithm that takes into account price, shipping speed, seller metrics, and fulfillment method. What is the most important factor in determining Buy Box ownership? Use of Fulfillment by Amazon.
The Buy Box (A) is where all Amazon sellers want to test their offer. The top listing will be automatically sold when the "Add to Cart" button is clicked. Products eligible for FBA Prime are preferred when there is a price tie and can even win the Buy Box over lower-priced non-FBA products (B).
Small and light program
The FBA Small and Light program reduces fulfillment costs for certain items, allowing for better profit margins. Based on Amazon Product ID data, eligible items must weigh 3 pounds or less, cost $12 or less, and sell quickly.
Certain items that require special handling, such as B. dangerous goods, temperature sensitive goods orrestricted goods- not qualify for the Small and Light program.
Since our last update:
On January 17, 2023, the nextFBA Small and Light Program Fee Changesentered by force:
- Item price for eligible products will increase from $10 or less to $12 or less
- Size increments for Standard Small and Standard Large sizes of 1 pound or less are divided into 4-ounce increments
- Size increments for large standard sizes over 1 lb are divided into 0.5 lb increments
Here are the shipping rates for FBA Small and Light:
size level | Weight | dimensions | Small and light handling fee per unit |
|---|---|---|---|
small pattern | 4 ounces or less 4+ up to 8 oz. | 15 x 12 x 0.75 inches or less | 2,47 $ 2,54 $ |
8+ up to 12 ounces | 2,61 $ | ||
12+ to 16 ounces | $ 3,15 | ||
big pattern | 4 ounces or less | 18 x 14 x 8 inches or less | 2,66 $ |
4+ up to 8 oz. | 2,77 $ | ||
8+ up to 12 ounces | 2,94 $ | ||
12+ to 16 ounces | 3,77 $ | ||
16+ to 1.5 pounds | 4,42 $ | ||
1.5+ to 2 pounds | 4,68 $ | ||
2+ to 2.5 pounds | 5,19 $ | ||
2.5+ to 3 pounds | 5,40 $ |
While these products still incur standard store and seller fees, enrolling in FBA's Small and Light program can increase your store's profitability and create more opportunities to test products in new markets.
Sign up and save
Amazon's Subscribe & Save feature offers customers a discount and free shipping when they sign up for a product, an automatic, recurring purchase. This provides customers with convenient and regular delivery at their chosen interval and helps sellers attract repeat customers. It is one of the best ways to earn steady income from Amazon.
The Subscribe & Save purchase option can be offered to customers in your FBA listings as a convenient scheduled purchase.
It costs sellers nothing to offer Sign Up and Save. However, traders must meet the minimum requirements (for example, a rating of 4.7 or higher) and maintain a good reputation on the platform. The feature is only available to sellers who have been using FBA for at least three months.
Ease of use of FBA
4.43/5
Fulfillment by Amazon earned points for its 24/7 customer support, high scalability, and lack of minimum order volume requirements. We scored points for poor operational visibility and FBA fulfillment software (which isn't as mature or user-friendly as competing vendors).
Here is a summary of the factors we considered:
- Support:Unlike many fulfillment companies of its kind, FBA does not offer onboarding and migration assistance. Users report that this leads to a significant learning curve.
- Precision:The FBA does not publish its accuracy rate and errors are frequently reported. For comparison, ShipBob, ShipMonk, and Red Stag all have an accuracy rate of 99.95% or better.
- error policy:If an item you send to FBA is lost or damaged on Amazon's behalf, Amazon will replace that item with an identical orreimburse you for it. Sometimes this is done automatically, but in many cases you must apply. There are several processes for filing a claim, depending on where your product was in the fulfillment process when it was lost or damaged.
- Customer Support:FBA customer service is available 24 hours a day, seven days a week. Support is not available on demand, so customers must submit a ticket and request a call or email. The service is poorly rated by its users.
- Transparency:Amazon fulfillment lacks operational visibility, making it difficult for sellers to accurately see their inventory levels or track an order during the fulfillment process.
- Scalability:With more than 150 million square feet of warehouse space and 1.6 million employees worldwide, Fulfillment by Amazon has a vast infrastructure that most retailers can't match. It also supports B2B transactions through Amazon Business.
FBA Expert Score
Overall, we commend FBA for their ability to give Amazon sellers the competitive edge they need to thrive on the platform. It offers good value for money and several unique services, but FBA's popularity and ease of use allow for improvement.
What users think of Fulfillment by Amazon
There aren't many Fulfillment By Amazon reviews or ratings available online, and much of the scrutiny you'll find relates to Amazon's overall marketplace platform (rather than FBA itself).
Amazon Service Seller Forumsis a great place to get a feel for what it's like to use Fulfillment by Amazon as an online retailer. As this is a resource for solutions, support, and discourse rather than ratings and reviews, postings do not reflect the benefits of FBA. But the questions and discussions raised by FBA users are very valuable.
In reviews, forum posts, and comments, users report FBA dialing protocol complications, lost items and shipments, and difficulties with Amazon seller support. Much of this is probably related to the FBA error rate which, unlike almost all other fulfillment providers, is not disclosed.
Positive Fulfillment By Amazon reviews mention the benefits of the company's fast shipping and third-party customer service. Many describe the relationship as "simple" and "no fuss," but even the 5-star reviews mention the high cost for convenience that FBA offers.
- G2:4.5 star rating from 10+ reviews
- FulfillmentCompanies.netFBA Verification
| BENEFITS | DISADVANTAGES |
|---|---|
| Problemlose End-to-End Outsourcing Services | Rate fluctuations and product categorization |
| Fast delivery | Lost goods and shipments |
| Storage services and efficient processing times | ineffective customer service |
| The best customer experience | Complex restrictions and regulations |
| Save time | expensive fees |
Populated by Amazon storage locations
Click on the interactive state location map below to view FBA warehouse locations by state.
How we evaluate Fulfillment by Amazon (FBA).
In our evaluation of FBA and other logistics providers, we rate them on a 23-point scale based on price, functionality, expert services, and ease of use. Our team of retail and eCommerce experts also weighed and ranked each service based on our experience in the industry.
Click to see the evaluation criteria:
- Destroy
- prices
- quality/functionality
- Special services
- Easy to use
- expert rating
20%
prices
30%
quality/functionality
15%
Special services
15%
Easy to use
20%
expert rating
20% of the total score
Many fulfillment companies offer quoted prices. We maintain that it is better to publish prices openly. This eliminates the need for potential customers to contact each company for a quote, which could waste time for both parties, and promotes overall transparency. Since we cannot fairly compare provider-specific costs, this category examines price transparency, billing transparency, and billing predictability between providers.
Fulfillment by Amazon is very transparent with its pricing; All fees are listed on the company's website, along with tools to help you determine your spend and profitability. It also offers a high level of billing transparency. However, FBA's complex pricing and fluctuating pricing structure results in poor revenue predictability.
30% of the total score
We assess the quality and functionality of each company's service, evaluating key details such as order processing time, shipping partner options, call center network size, and accuracy rate. Additionally, we consider how each service integrates with the eCommerce shopping carts, marketplaces, operational tools, and solution providers your online store might use.
Amazon's customer service scores mediocre in this category. It was docked mainly due to the lack of shipping partner options and undisclosed accuracy rate (accompanied by frequent reports of operational errors).
15% of the total score
We award points for the availability of special services such as air conditioning, international transport, individual packaging elements and different types of assembly. Returns processing and reporting/analytics were prioritized as critical to e-commerce operations. Finally, we assessed whether each business was eligible to fulfill Amazon Prime or SFP (Seller-Fulfilled Prime) orders.
Fulfillment by Amazon was plagued by a lack of standard services such as custom repackaging and assembly/assembly, but scored points for its strong Amazon-focused specialty services.
15% of the total score
This evaluation took into account the availability of customer service, prioritizing companies that provide a dedicated service representative for each customer and weighing the availability times of their help desk.
The usability of the software and the operational transparency of each service were also evaluated. The companies received points for their highly functional software that allows users to see where each order is in the fulfillment process and the warehouse space.
Ultimately, minimum order quantities and service scalability were heavily weighted to provide the best recommendation for small businesses that need a fulfillment partner that can grow with them.
We gave FBA a moderate score in this category, factoring in customer support complaints, poorly polished support software, and lack of operational transparency. We award points for FBA customer service times, scalability, and lack of minimum order quantities.
20% of the total score
This review combined the final assessment of value, ease of use, and exceptional features from our retail and eCommerce experts with reviews from real users on trusted third-party sites.
FBA has a bad reputation among its users, which costs the provider points in this category. We gave it decent marks for its overall value and impressive special services.
* Percentages of the total score
FBA Frequently Asked Questions (FAQs)
Who should use Fulfillment by Amazon?
Fulfillment by Amazon is a service for Amazon-facing businesses that sell physical products. You may be a good candidate for FBA if youAt least 80% of your sales come from Amazonand your store is processing more orders than it can or wants to handle.
The company specializes in DTC e-commerce sales, but also supports Amazon's B2B sales program.
What do the FBA fees include?
FBA fees include costs associated with selling on Amazon. It consists of fulfillment fees, inventory, storage, labeling, and preparation services, to name a few. read ourAmazon Seller Fee Guideto find out the cost of selling on Amazon.
final result
Amazon fulfillment is not just thatgreeting. It's all about leveraging the Amazon brand and Prime loyalty program to increase your exposure and sales in the Amazon marketplace.
Fulfillment by Amazon offers reasonable fulfillment rates and smooth order processing for Amazon sales, but it can be tricky. Sellers should carefully monitor their fees incurred, stock preparation, and stay on the platform. Also, it opens the door to fraud, e.g. B. counterfeit products andkidnapping listTherefore, sellers should also pay attention to their reputation with customers.
Many factors contribute to your profitability with FBA, most notably the size and weight of your products. Be sure to calculate your projected FBA costs and consider other fulfillment providers. To compare your specific needs with over 500 shortlisted companies, try a broker like WarehousingAndFulfillment.com. It comes with an anti-spam guarantee and is completely free.