The best alternatives to Amazon FBA in 2025
When you sign up to sell on Amazon, you automatically get free access to Amazon FBA, but what are the alternatives?
If Amazon FBA isn’t right for your business, there are several other options that may better suit your needs.
1. What is Amazon FBA?
Amazon FBA (Fulfillment by Amazon) is a type of dropshipping where you send your goods to an Amazon warehouse, and the company stores them and processes the order. When a customer makes a purchase, Amazon picks, packs, and ships the goods to the customer.
This model is convenient for entrepreneurs, as it saves time on order fulfillment and allows them to obtain Amazon Prime status for eligible products. However, it has its drawbacks, including high storage costs and lack of control over the delivery process.
How much does Amazon FBA cost?
The cost of FBA in the USA depends on several factors:
- Fulfillment Fees: This fee is charged for each item sold and depends on its size and weight. For example, for a standard product weighing up to 1 pound, the fee is about $2.50.
- Storage Fees: This fee is charged monthly per cubic foot of space occupied in the Amazon warehouse. It varies depending on the season: from January to September, it is approximately $0.75 per cubic foot, and from October to December, it is about $2.40 per cubic foot due to increased demand during the holiday season.
- Other possible fees: These may include fees for long-term storage, return of goods, and other additional services.
To accurately calculate costs, we recommend using Amazon’s FBA calculator, which allows you to estimate costs based on the specific parameters of your product.
3. How does Amazon FBA work?
All you need to do is send your goods to the Amazon warehouse, and then they will process the order on their own. The main thing is to control the inventory level to avoid product shortages.
Disadvantages of Amazon FBA
- You need to produce goods in large volumes.
- High storage costs affect the profitability of operations.
- Lack of control over packaging and customer service.
- Limited branding opportunities – customers often associate a purchase with Amazon rather than a specific seller.
4. Alternatives to Amazon FBA
If you are looking for alternative options for order fulfillment, here are some popular solutions:
Fulfilment by Merchant
FBM is an ideal option for those who have exclusive products and a small number of orders. In this case, you process, package, and ship products to customers yourself.
Advantages of FBM:
- Full control over logistics – you choose your own warehouse and transportation service.
- The ability to improve the quality of service– the seller is in direct contact with customers.
Disadvantages:
- Lack of Amazon Prime – products do not receive a special badge, which can affect customer confidence.
- The need to deal with all stages of logistics on your own.
FBM is great for beginners, but if the number of orders exceeds 100-250 per month, you should consider outsourcing.
Seller-Fulfilled Prime
This program allows sellers to use their own warehouse or a partner to process and ship orders, but with the ability to earn the Prime badge.
Advantages of SFP:
- Control over logistics – you choose the method of storage and delivery.
- Access to the Amazon Prime audience – increases customer trust.
Disadvantages:
- A selective program – not all sellers can join because Amazon has strict requirements.
Third-party fulfillment operators (3PL)
3PL operators help sellers with order processing, storage, picking, and delivery to customers. This allows you to reduce costs and optimize your order fulfillment process.
Here are some well-known 3PL providers in the UK and USA:
a2b Fulfilment
- An award-winning company with four logistics centers in the United States.
- Offers fast delivery (1-3 days).
ShipBob
- A global logistics provider with a wide network of warehouses.
- Optimizes the placement of goods to reduce costs.
- High cost of services, which may not be beneficial for small sellers.
Red Stag Fulfilment
- High-quality order fulfillment service for small and medium-sized businesses.
- Excellent reputation and fast delivery.
- Has only two warehouses in the United States, which may limit international trade opportunities.
5. Conclusion.
If you sell on Amazon, Amazon FBA is not the only option for order processing. Using FBM, SFP, or third-party logistics companies can help you save money, maintain control over the delivery process, and strengthen your brand.
When choosing the best logistics model, you should consider your sales volume, budget, and business goals. If your business is growing and the number of orders is increasing, consider switching to automated order fulfillment.
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What is Amazon FBA?
What are the disadvantages of Amazon FBA?
How much does Amazon FBA cost?
What is FBM and what are its advantages?
What is Seller-Fulfilled Prime and how does it work?
What is 3PL and why can it be beneficial for business?
Who are the well-known 3PL providers in the USA and the UK?
How to choose the best order fulfillment model for your business?
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