The Best Alternative to
Amazon FBA (2020)
Updated note: With COVID-19 (Coronavirus) situation accelerating, we want to help you maintain your current operations especially as Amazon is turning companies away. As an Amazon FBA alternative, we here at ZhenHub have 5 of our US-based fulfillment centers open and operating at full capacity. If you need help with fulfillment fast, request a quote here.
What’s the latest with Amazon FBA?
The global pandemic has led to a staggering increase in online sales and transactions. As more and more people turn to digital means to shop, the eCommerce industry is experiencing a boom like never before. This increase in demand led to Amazon FBA deciding to impose inventory limitations to sellers in order to avoid over capacity. Add that to the fact that online merchants are also experiencing inbound shipment delays; it’s not entirely surprising that eCommerce entrepreneurs are looking to take their business elsewhere.
While Amazon FBA generated about $280 billion in revenue in 2019 alone, many sellers are starting to explore options due to Amazon’s high fulfillment and storage fees. With all these going on, what’s the next best fulfillment center and eCommerce shipping option for your business?
The Best Amazon FBA Alternatives 2020
As a seller, it is important to know all your options. With Amazon’s costly fees, inventory limitations, and shipment delays, now is the best time to get to know the best Amazon FBA alternatives for your eCommerce business.
1. Self-Fulfilled Prime (SFP)
The SFP fulfillment method allows sellers to ship products directly to customers.
This method, must, however, be compliant with Amazon’s Prime shipping standards. With this, sellers are allowed to offer products listings with Prime shipping badges. These orders can be fulfilled using a 3PL provider or from the seller’s fulfillment facility. The SFP fulfillment method may require sellers to pay for 2-day shipping services to ensure they stay compliant with Prime shipping standards. This can be quite costly!
2. Fulfilled by Merchant (FBM)
Unlike FBA, this method also allows merchants on Amazon to ship out products directly to customers after the orders have been placed on Amazon. Like SFP, FBM allows orders to be fulfilled by 3PL providers or through the seller’s in-house fulfillment facility.
Although this method does not allow sellers to display the Prime badge on their listings, they get a lot more control and input into the post-purchase experience to better improve and customize the customer experience.
3. Third-Party Logistics (3PL)
3PLs is another Amazon FBA alternative you can explore that offers distribution, warehousing, and fulfillment services. The great thing about 3PLs is they are structured in a way that makes it easy for online merchants to scale their business based on their needs.
Advantages of a 3PL as an Amazon FBA alternative
As much as 74.58% of shopping carts end up abandoned, according to Statista.
While the most common reasons for cart abandonment have to do with shipping costs, delivery speed, and other similar things, even with those carts that end up converting, shipping and delivery will still go a long way to shape customer satisfaction and overall experience.
So what benefits can you expect from a 3PL as an Amazon FBA alternative?
ZhenHub, for instance, has multiple fulfillment centers so it makes it possible to distribute your inventory across different locations closer to your customers. This goes a long way to reduce shipping zones, reduce transit time, and shipping costs.
51% of consumers want a guaranteed delivery time.
And many of these consumers are now used to Amazon Prime’s 2-day shipping standards. It hardly makes any financial sense to offer 2-day shipping when fulfilling orders by Seller-Fulfilled Prime considering the huge shipping costs. But 3PL providers like ZhenHub with multiple fulfillment centers make this reasonably possible with distributed inventory opportunities.
Inventory management and control
3PL providers offer real-time visibility into your inventory for more insight and control. This means you can always avoid stockouts since you’ll always know what’s available in your inventory at any given time.
Amazon FBA makes order management quite possible. But while the order management dashboard for the Amazon FBA is a tad complicated, the ZhenHub order management software and that of most great 3PL providers offer better ease of use and experience. This can play a role in helping retailers prevent stockouts and back ordered items to improve customer experience.
What if Amazon is just one of your sales channels?
Would you really have to navigate and juggle the Amazon FBA platform with other channels? But great 3PL providers like ZhenHub makes this easier since the platform can seamlessly integrate with a host of other marketplaces such as Shopify, Woocommerce, eBay, and more. While you get to view all of your inventory in one place, there is also greater ease with the streamlined multichannel sales.
Up to 87% of marketers along with CX and analytics experts believe that customer experience is very important for their organization. What many people don’t understand, however, is that branding goes a long way to impact customer experience.
With Amazon FBA, there’s little to no room for custom packaging and branding as you’ll have to ship out products in Amazon-branded boxes. Partnering with a 3PL provider allows you to infuse your brand into the packaging and order fulfillment process. This can help you make an impression on your customers to shape their experience.
Lower costs and fees
Unlike Amazon FBA costs that are easily influenced by season, product type, category, and size, among other things, 3PL providers have pricing strategies that are often more consistent.
ZhenHub, for example, would charge fulfillment fees that take into account the costs of receiving, storage, implementation, and shipping. Other things such as the availability of distributed inventory and the partnership with multiple carriers mean you can benefit from lower costs compared to the often more expensive Amazon FBA fees.
ZhenHub’s 3PL Service as an Amazon FBA Alternative
Amazon has raised the bar for fast shipping and delivery with excellent customer service.
If you’re considering Amazon FBA alternatives, you can’t afford to go low. So if you’re looking for a worthy 3PL provider to offer fast and affordable shipping for your customers, only the best 3PL providers like ZhenHub can fit the bill.
What we can offer:
To give you an idea on why ZhenHub can the best Amazon FBA alternative for your business, here are the things you can expect when you invest on our 3PL solutions:
If you are all about reducing logistics costs, then you’ve come to the right place. Here at ZhenHub, we offer a variety of fulfillment solutions designed to fit every need and every budget.
In the world of eCommerce, it bodes well to be fast. Get ready to enjoy good customer reviews that rave about your timely and trackable deliveries.
ZhenHub boasts multiple strategic fulfillment centers and warehouses across the US. We have strategically located physical locations in multiple countries across four continents.
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