Many ecommerce businesses start selling on Amazon and outsourcing the fulfilment of Amazon orders to FBA (Fulfilment by Amazon). There are both pros and cons to selling using FBA, but what about Amazon FBA UK alternatives? Are there any benefits of Fulfilment by Merchant (FBM) and using a third-party fulfilment house to complete Amazon pick and pack of directly?
What is an Amazon FBA Business?
FBA stands for “Fulfilment by Amazon” which in practice means that a business does not have to store their product locally but in an Amazon warehouses. When your customer purchases products listed on Amazon from you, the product gets dispatched by them. It goes out from Amazon storage facility and gets delivered to your customer without your involvement. A valid solution if you’re after time-saving, but what about the costs? Is Amazon fulfilment centre the most cost-effective service to use for order fulfilment?
FBM – Amazon FBA UK Alternative
FBM stands for “Fulfilment by Merchant”, which is becoming a more and more popular alternative to FBA fulfilment. Ecommerce businesses in european marketplace, and especially in UK, often choose to work with third-party logistics (3PL). The Storage Place is often a preferred choice of UK Amazon seller due to many benefits we can offer, including saving cost and personalising customer experience among many others.
Based on our experience and feedback from amazon sellers that we work with fulfilment fees are the biggest obstacle when it comes to optimising costs of running your ecommerce business. Enterprise fulfilment centres are much less flexible and often apply standard charges that may work for some companies but not necessarily for others especially when it comes to storage fees. No matter if you’re running a Family Furniture store in the UK and want to expand the distribution from your local retail store or distributing large amounts of supplements, third-party order fulfilment companies can tailor their solutions to your needs.
Benefits of FBM – Seller Fulfilled by Merchant
1. Save time
There’s no need to spend time on preparing goods for FBA fulfilment – the fulfilment house will take care of everything from storing and inspecting goods, preparing your consignment and labelling goods, to dispatching to Amazon UK FBA on time.
Find out more about our Amazon preparation service.
2. Personable service
Personable service – You’ll have ease of access to real people and a dedicated account manager on hand to deal with any of your questions and queries, who know your business inside and out. However, Amazon can make ease of access quite difficult.
3. Transparent costs & no extra fees
FBA penalises long term storage, peak season storage, and handling oversized goods. If you decide to withdraw goods from FBA, that also results in extra Amazon fees like picking charges. With a fulfilment house, pricing is transparent, and there are no hidden costs
4. Increased efficiency
Using a fulfilment house means orders for all other channels can be fulfilled for you, such as Amazons platform, your own website, and even distributing goods to high street retailers.
Find out more about Seller Fulfilled Prime Amazon (SFP) services.
5. Control over packaging & branding
Control over packaging and branding – FBA fulfilment packaging is inflexible, comes in standard size, and does not allow individual brand name awareness, or in package promotions. Using a fulfilment house will give you the control over your own packaging, shipping labels and private labelling allowing for branded packaging and promotions within orders.
Can you do Amazon FBA by third-party logistics in the UK?
Yes, and we can optimise the costs of the order fulfilment and increase your profit margins by tailoring your seller account to the specific needs of your business. In fact, we specialise in providing large scale order fulfilment solutions thanks to:
- large warehousing space (70k square feet)
- strategic location close to the Port of Tyne in the North East, UK
- customs bonded warehousing option that will allow you to defer duty and VAT charges and save money
- 60k units shipped per week
- 99.8% Service Level achieved on a monthly basis
How much does Amazon FBA UK cost?
Amazon UK FBA fees are complicated or simple, depending on who you ask. But they are basically divided into Account Fees and Storage Fees which differ based on the type of the account you choose to set up in the first place: Basic or Pro Seller account. The detailed UK FBA account fees are not very straightforward. We estimate it’s the Storage fees where Amazon UK makes the most money from, it seems. The monthly storage fees differ based on the average daily volume of space that your inventory takes up in an Amazon fulfilment centre. There are also Long Term Inventory Storage Fees to take into consideration which apply to items which are kept in an Amazon fulfilment centre for over six months. You can find a detailed breakdown of the costs on Amazon UK website. UK FBA penalises long term storage, peak season storage, and handling oversized goods. If you decide to withdraw goods from FBA, that also results in extra charges. With a 3PL order fulfilment house, pricing is transparent, and there are no hidden costs.
How do I set up Amazon FBA UK alternative with a 3rd party logistics?
It’s simple! We have a team and Account Managers that will help you go through the procedure and set up seller account. TSP team will complete the majority of the actions, as we intend to make your order fulfilment onboarding problem-free. We handle API integration with Amazons platform for you (we have 48 other integrations as well in case you’re selling elsewhere).
First, we will set up an account within our fulfilment system. We will then continue to incorporate API and run multiple tests to look into the order processing in the management system. If required, we can establish several users with different access levels to reports.
Once the onboarding process is complete, we will arrange a web talk-through to ensure you have a full understanding of how everything works. We will also provide you with ‘How to’ documents and a list of all contacts within The Storage Place. After you get access to your control panel in our system, we will get you up and running in 24-48h.
Once the onboarding procedure is complete, we will schedule a web talk-through to make sure that you have a full understanding of how everything works. We will also supply you with ‘How to’ documentation and a list of all contacts within The Storage Place. After your access is properly set up, we will get your operations up and running within 24 to 48h.
This is the end of the initial onboarding process, but to ensure that you are happy with the process, we will schedule a review and hand over after a month. Also, after three months we will get in touch again to ensure you are settled and your shipping and fulfilment operations are running smoothly.
After we integrate your store with our platform, we will immediately process your FBA products orders. All orders received prior to 2 PM will be dispatched on that day. Our stock management system will make sure that product levels of stock are monitored and nothing out-of-stock is sold. We will pick pack and send your products with custom shipping labels (if needed) on time through authorised shipping providers. You can access our cloud-based system 24/7 from your area to monitor everything. Information is processed in real-time, so you do not need to wait for Amazon inventory syncing updates. TSP is a relied upon order fulfilment supplier with 99.8% Service Levels, and we pride ourselves in being able to customise our fulfilment services to your business requirements.
Looking for Amazon FBA alternative for your FBA shipments?
Call to find out about our FBM offer for your listing on Amazon and how we can help you improve cash flow & save money and time to create your business opportunity to grow.