The Amazon brand has become a household name over the last decade or so, earning itself an almost legendary status. With an estimated 18.5 orders delivered every second in the UK - which equates to a staggering 1.6 to 2 million packages every day - Amazon has cemented its position as the number one online selling platform globally.
Recent figures suggest that there are around 282,000 Amazon sellers in the UK, and around 85,000 of these use the Fulfilled By Amazon (FBA) program. While FBA offers several benefits, it's not for everyone and it's clear that some sellers need another method that suits their specific business requirements.
As a leading player in the realm of third-party logistics, Direct Fulfilment 365 is ideally placed to offer professional advice on this subject. In this blog, we'll explain the pros and cons of the FBA program and provide a selection of Amazon FBA alternatives to help online sellers and ecommerce business owners decide on the best option.
Amazon Programs
We'll start with a quick glimpse of the different programs Amazon offers to sellers, including FBA, as we feel it's important to provide a fair and balanced view. It may be that one of these options works better for you, depending on your business structure and sales volume.
You might already know about these (so feel free to skip ahead to the FBA alternatives!), but here's a rundown of the different programs for Amazon sellers for those who aren't familiar with them:
Fulfilment By Amazon (FBA)
Amazon fulfilment is a sensible option for sellers who’d rather focus on growing their business than dealing with logistics. You simply send your inventory to Amazon’s vast network of fulfilment centres, and they take care of everything - from storing your products to picking, packing, and shipping them out to customers.
When an order comes in, Amazon processes it quickly and ensures it reaches your customer’s doorstep within Prime’s strict delivery windows. They even handle customer service and returns on your behalf, which is handy if you’d rather spend your time scaling your business than worrying about order fulfilment.
Seller Fulfilled Prime (SFP)
SFP offers a sweet spot between keeping control of your fulfilment and enjoying the Prime benefits. With SFP, you manage storage and shipping from your own warehouse (or via a trusted 3PL provider like us!), but your listings still get that all-important Prime badge.
To keep that Prime status, though, you’ll need to meet Amazon’s high standards, including next-day delivery and using Amazon-approved carriers. It’s a more hands-on approach that demands attention to detail, but if executed properly, it gives you the best of both worlds: control over your fulfilment while keeping Prime customers happy.
Have a look at our post "Best seller fulfilled prime 3PL companies".
Fulfilled By Merchant (FBM)
FBM puts you firmly in the driver’s seat, giving you complete control over your fulfilment process. You list your products on Amazon, but everything else, from inventory storage and packaging to shipping and handling customer service, is your responsibility. You set the capacity limits*, transit times and shipping rates, but you also have the burden of finding adequate storage space - as well as taking on the costs.
*FBA inventory is subject to monthly limits based on various criteria
This approach suits sellers who prefer to manage their inventory directly and want to avoid Amazon’s fulfilment fees. However, it’s not without its challenges! You’ll need a solid logistics plan in place to ensure orders are dispatched promptly and accurately to keep customers satisfied and maintain positive feedback.
All of the above options are available on Amazon's Seller Central facility, so be sure to check them out for further details.
Why Would An Amazon Seller Look For Alternatives To FBA?
While Fulfilment by Amazon is undeniably convenient, it’s not always the best fit for every seller. Exploring alternatives can unlock greater flexibility, cost savings, and control over your business. Here’s why some sellers choose to break away from FBA and explore other options:
Lower Fulfilment Costs
FBA fees can quickly eat into your profit margins, especially for slow-moving or low-cost items. Storage fees can also rack up if your products linger in Amazon’s warehouses for too long. By switching to an alternative fulfilment service or managing your own logistics, you can potentially reduce these costs and improve profitability.
More Control Over Inventory And Own Branding
With FBA, Amazon controls how your products are packed and presented. If branded packaging is key to your customer experience, using a different fulfilment method - like Fulfilled by Merchant (FBM) or a third-party logistics (3PL) provider - gives you greater control over your brand identity and how it is represented.
Flexibility With Multi-Channel Selling
If you’re selling on multiple platforms (like eBay, Shopify, or Etsy), FBA can be limiting since it’s primarily designed for Amazon orders. Alternatives, such as ShipBob or Huboo, allow you to manage fulfilment across multiple channels seamlessly, making it easier to scale and diversify your business.
Avoiding Long-Term Storage Fees
Amazon penalises sellers who leave inventory sitting in FBA warehouses for too long by imposing high long-term storage fees. Switching to a 3PL provider or handling fulfilment yourself helps avoid these additional charges, especially if you deal with seasonal products or slow-moving stock.
Greater Flexibility In Shipping Options
FBA locks you into Amazon’s shipping methods and carriers, which may not always be the fastest or most cost-effective delivery option for certain regions. By exploring alternatives, you can choose carriers that suit your business model, ensuring faster delivery times and potentially happier customers.
You may also benefit from lower shipping costs as major 3PLs can often negotiate discounted shipping rates with carriers, particularly for high shipping volumes.
Fewer Restrictions On Product Types
Amazon has strict guidelines on what can and can’t be stored in their warehouses, making it difficult for sellers with oversized, fragile, or hazardous items. Choosing an alternative gives you more freedom to sell a wider variety of products without worrying about compliance issues.
Better Customer Relationships
When Amazon handles customer service, you lose a direct connection with your buyers. With alternative fulfilment methods, you maintain that personal touch, giving you the opportunity to build stronger customer relationships and increase brand loyalty within the ecommerce landscape.
Avoiding The Risk Of Account Suspension
FBA sellers are at the mercy of Amazon’s policies, and even minor infractions can lead to account suspension! By taking control of your fulfilment, you reduce your dependency on Amazon’s rules and safeguard your business from unexpected disruptions.
Therefore, choosing an alternative to FBA gives sellers more control, flexibility, and the opportunity to build a stronger brand - all while maintaining high standards of customer service.
Alternatives To Amazon FBA
Okay, so we now understand why you might want to switch to a 3PL, we'll check out some of the best FBA alternatives. These are in no particular order; it's just a selection of the 3PLs that have caught our attention because they consistently receive great reviews...
Huboo
Huboo is a great choice for UK-based sellers looking for affordable, flexible fulfilment.
This impressive company offers a hassle-free, cost-effective service that’s ideal for small to medium-sized businesses looking to streamline their fulfilment process without breaking the bank. They take care of everything from storage and picking to packing and shipping, using a unique hub model that sets them apart from traditional fulfilment centres. Each hub is managed by a dedicated account manager who oversees your inventory, ensuring that your products are handled with care and dispatched efficiently.
What’s more, Huboo integrates seamlessly with Amazon, eBay, Shopify, and other major platforms, making it easy to manage multi-channel sales from one central dashboard. Their technology-driven approach means you get real-time updates and greater visibility over your orders, giving you peace of mind as your business grows.
ShipBob
A superb option for scaling your business across the UK, Europe, and beyond, ShipBob offers fast, reliable fulfilment with multiple strategically located warehouses in the UK, US, and Europe, making it easier to reach customers quickly, no matter where they are. Their platform provides real-time inventory tracking and detailed analytics, allowing you to monitor stock levels and optimise order management effortlessly.
ShipBob is particularly well-suited for multi-channel sellers looking to expand internationally, as it integrates seamlessly with Amazon, Shopify, eBay, and other major e-commerce platforms. They also offer next-day and two-day shipping options, helping you meet customer expectations and maintain high satisfaction levels. With their growing network and tech-driven fulfilment solutions, ShipBob makes scaling your business across borders a smooth and efficient process.
Fulfilment Crowd
Fulfilment Crowd provides top-notch warehousing and order fulfilment services from multiple locations across the UK and EU, making it easier for businesses to reach customers throughout Europe. Their expertise lies in helping brands expand into European markets smoothly, with a focus on ensuring that inventory is managed efficiently and orders are dispatched quickly.
This company's system integrates seamlessly with Amazon, Shopify, eBay, and other major platforms, giving you full control over multi-channel operations. Their advanced reporting and analytics tools provide real-time insights into your inventory management and order performance, helping you make data-driven decisions that support business growth. Whether you’re scaling your operations or breaking into new markets, Fulfilment Crowd’s reliable fulfilment services ensure a hassle-free experience!
Shopify Fulfilment Network (SFN)
Probably one of the better-known names on this list, Shopify is perfect for merchants who are looking for an all-in-one solution to streamline their e-commerce operations. The Shopify Fulfilment Network provides seamless order fulfilment for Shopify stores, with strategically located warehouses that ensure fast and reliable delivery across the UK and internationally.
SFN is a smart choice for sellers who want to consolidate their fulfilment processes under one platform, reducing the complexity of managing multiple sales channels.
By using SFN, you can automate inventory management, track orders in real-time, and maintain high delivery standards while focusing on scaling your business. With Shopify’s excellent reputation for reliability and ease of use, it’s a great option for growing brands looking to simplify their fulfilment strategy.
Direct Fulfilment 365
Well, we could hardly make a list of the best FBA alternatives without including ourselves, could we?
Joking aside, we can confidently claim our place among these companies as we can match them in every category. In fact, we believe that we can exceed them in many ways...
Here's what we have to offer:
Direct Fulfilment 365 is an excellent alternative to Amazon FBA for UK-based sellers looking for reliable, scalable, and flexible fulfilment services. We specialise in end-to-end order fulfilment, offering everything from secure warehousing and inventory management to picking, packing, and a super-fast shipping process. Our operations are designed to handle high order volumes, making us ideal for growing businesses that need a dependable partner to keep up with demand.
What sets us apart is our commitment to flexibility. Our systems integrate seamlessly with Amazon, eBay, Shopify, and other major platforms, allowing you to manage multi-channel sales effortlessly. Whether you’re selling domestically or expanding into international markets, Direct Fulfilment 365 ensures that your orders are dispatched accurately and on time. Our advanced reporting tools also give you complete visibility over your inventory and order status, empowering you to make informed decisions and optimise your supply chain.
For sellers who want to maintain greater control over their fulfilment while still benefiting from streamlined operations, Direct Fulfilment 365 is a smart, cost-effective solution.
James And James Fulfilment
Based in Northampton, James and James offers cutting-edge fulfilment services with a strong focus on tech-driven solutions.
Their cloud-based platform, ControlPort, provides real-time visibility over your inventory, orders, and fulfilment processes, giving you the insights needed to maintain exceptional service standards while scaling efficiently. ControlPort’s intuitive interface makes it easy to track orders, manage stock levels, and monitor performance from anywhere, ensuring that your fulfilment operations run smoothly.
James and James specialise in helping growing brands deliver fast, accurate, and reliable service to customers, making them a top choice for businesses that prioritise speed and precision. With a network of fulfilment centres strategically positioned in the UK, EU, and US, they enable faster delivery across multiple regions, helping you meet customer expectations and boost satisfaction. This is a premium option for brands that value cutting-edge technology, operational transparency, and a commitment to accuracy as they expand their business.
What To Look For In Alternatives To Amazon FBA
When considering a 3PL to provide an alternative to the FBA program, Amazon sellers should choose a partner that not only meets their current business needs but who continues to support them in long-term growth.
A reliable 3PL will help you reduce costs, streamline your fulfilment operation and improve customer satisfaction, but only if they align with your specific business goals.
Here are a few pointers to help you make the right choice:
- Seamless Integration with Amazon and Other Platforms - A great 3PL should integrate smoothly with Amazon, enabling real-time inventory updates, fast order processing, and efficient shipping. Look for multi-channel support to connect with platforms like Shopify, eBay, and Etsy, ensuring all your sales channels are managed effortlessly. This flexibility allows you to diversify your channels without complicating your operations.
- Warehousing Services - Any 3PL worth your custom should be able to store inventory on your behalf, and they should possess a network of strategically-placed fulfilment centres.
- Fast and Reliable Shipping Options - To maintain customer expectations, your 3PL should offer quick, reliable, and cost-effective shipping. If you’re considering Seller Fulfilled Prime, ensure they can meet Amazon’s strict delivery standards. Multiple warehouse locations close to your target markets can also help reduce shipping times and lower costs, improving customer satisfaction.
- Transparent Pricing Structure - FBA fees can quickly eat into your profits, which is why many sellers switch to a 3PL to gain better control over their costs. Look for a 3PL with a clear, transparent pricing structure that includes storage, picking, packing, and shipping fees. Be mindful of potential hidden fees, such as surcharges for oversized items or long-term storage, so there are no surprises down the line.
- Scalability and Flexibility - As your business grows, your fulfilment needs will evolve. A reliable 3PL should offer scalable solutions that can handle seasonal peaks, flash sales, and sudden increases in order volume without compromising service quality. Choose a provider that can adapt to your growth and continue to meet your customers’ expectations as your business scales.
- Inventory Management and Real-Time Visibility - A 3PL with robust inventory management tools can help you keep track of stock levels, prevent overselling, and minimise errors. Opt for a provider that offers real-time visibility and detailed reporting, giving you the insights needed to optimise your supply chain and make informed business decisions. This level of control can be excellent for scaling your operations smoothly.
- Expertise in International Fulfilment - If expanding into international markets is part of your growth strategy, choose a 3PL with experience in cross-border fulfilment. Look for a provider with a strong presence in key regions and a solid understanding of international shipping, including customs clearance, duties, and taxes. A 3PL with international expertise can help you navigate the complexities of cross-border shipping while ensuring timely and compliant deliveries.
- Strong Customer Service and Support - Excellent customer service is key to maintaining a smooth fulfilment process. A responsive 3PL with knowledgeable support can quickly resolve any issues that arise, preventing disruptions to your business. Having a dedicated account manager can make a big difference, ensuring seamless communication and offering personalised assistance as your business grows.
- Returns Management and Reverse Logistics - A reliable 3PL should have an efficient returns management process to handle refunds, restocking, and exchanges effectively. Managing returns well is essential for maintaining customer satisfaction and protecting your brand’s reputation. Look for a provider with clear policies and streamlined systems that ensure returned products are processed quickly and correctly. View our post for more information "How to reduce returns in ecommerce".
- Customisation and Branding Options - If brand control is important to you, choose a 3PL that offers custom packaging, branded inserts, and personalised unboxing experiences. Unlike FBA, which limits branding opportunities, a 3PL can help you create a memorable, branded experience for your customers. This can enhance customer loyalty and reinforce your brand’s identity.
- Proven Track Record and Positive Reviews - Reputation matters when choosing a 3PL. Look for a provider with a proven track record of reliability, accuracy, and scalability. Positive reviews, testimonials, and case studies can give you valuable insights into the provider’s strengths and highlight any potential challenges. Partnering with a 3PL that has a history of success ensures that your fulfilment operations are in safe hands.
Alternatives To Amazon FBA: The Takeaway
Partnering with a 3PL instead of using Amazon FBA offers numerous advantages, allowing you to sell products through multiple marketplaces or your own ecommerce platform without the hassles, headaches and costs involved.
Even so, it's a big step that requires careful consideration, and it's vital that you choose wisely.
We've offered a selection of the best FBA alternatives, and now it's up to you to decide. Under the heading "What To Look For In Alternatives To Amazon FBA" above, we listed eleven qualities you should look out for, and we can say with confidence that you'll find all of these at Direct Fulfilment 365.
Contact us when you're ready to take the next step, and we'll help your online business realise its full potential!