Third-Party Warehousing Alternatives to FBA

Third-Party Warehousing Alternatives to FBACompanies that sell through Amazon must contemplate whether it makes sense to use Fulfillment By Amazon (FBA) services or consider third-party warehousing alternatives to FBA. When making this important business decision, it is pivotal that companies understand the benefits of third-party logistics (3PL) while recognizing the potential issues associated with FBA. Here are a few of the problems facing Amazon retailers, and ways that 3PL companies such as Logistics Plus can help:

  • Issue: Expensive fulfillment and warehousing options where the prices can change monthly
  • Cause: Due to the decreasing space at Amazon fulfillment and warehousing centers, the costs continue to increase and fluctuate by month. Between the months of January-September and October-December, Amazon retailers can expect about a 265% increase in monthly storage prices.
    • Logistics Plus Solution: By offering similar services as Amazon, but at a lower price, Logistics Plus offers more flexibility with packaging and warehousing, along with predictable and stable pricing all year long (see examples below).

LP vs FBA Pricing Table

  • Issue: Supply chain visibility and unknown locations of products.
  • Cause: Due to the high volume of products and limited capacities of FBA warehouses, products may become lost or damaged, leaving the customer wondering where their product is located or being held. When Amazon struggles to offer this valuable information to their customers, this can often lead to a frustrating experience.
    • Logistics Plus Solution: Logistics Plus is able to track and locate products much easier because it is much smaller and more nimble than Amazon; and Logistics Plus warehouse management system (WMS) technology provides customers with complete, real-time status of products entering or leaving one of its warehouses (we support both LIFO and FIFO inventory systems).
  • Issue: Product quality may become compromised.
  • Cause: Many retailers may be selling the exact same thing on Amazon, but the customer always expects to receive the product from whom they bought it from. This may not always be the case with Amazon. Even if the buyer bought their item from a Florida seller, they may receive an identical product, but from a Pennsylvania seller. Although it doesn’t always cause issues, the chance of receiving a knockoff or fake product greatly increases.
    • Logistics Plus Solution: Logistics Plus ensures that the your customers will receive the exact product they ordered, significantly reducing the risk of delivering a fake or incorrect product.
  • Issue: Customer service communication and cooperation.
  • Cause: Due to the amount of retailers selling on Amazon, the customer service responses can often be delayed. Buyers and sellers tend to have multiple questions to make sure they know exactly what Amazon is doing with their orders.  Working through these questions, a retailer can often expect a significant amount of time on hold, often without final resolution.
    • Logistics Plus Solution: By employing an efficient and cooperative customer service staff, Logistics Plus will tend to every customer’s needs. Whether it is a quote on your next import or a simple question regarding the status of your inventory, Logistics Plus will provides answers quickly.

If you’re a retailer that sells on Amazon and you’re contemplating third-party warehousing alternatives to FBA, then contact Logistics Plus. As an endorsed member of the Amazon Global Selling Solutions Provider Network, we know Amazon and we know Amazon Sellers well.