1. Differences in warehousing costs.
If the object is large, the cost of using Fulfillment by Amazon (FBA) is higher than using a third-party logistics (3PL) service like ShipSage.
2. Differences in standardized requirements for products before warehousing.
FBA warehouses’ requirement standards are strict. If the external packaging or product label is damaged, the seller will be required to replace it before the item enters the FBA warehouse. Additionally, Amazon does not provide product assembly services. The storage requirements of a 3PL service will not be as expensive as the FBA warehouses, and will provide sorting, inventory, and inspection services before the items are placed on warehouse shelves.
3. Differences in returns and customer support.
Amazon supports unconditional returns and exchanges for customers, and the FBA warehouse will no longer conduct any appraisal of the returned products and will not charge buyers any return fees. Even if the returned product is not damaged, Amazon will not resell the product to a second buyer. This kind of return method is more partial to the customer, which leads to a higher return rate. Amazon charges an additional fee when the product is returned, either for its disposal or for it being returned to the seller. Regarding ShipSage’s standards, if the product is returned, whether it is damaged or not, we will replace the label/repackage and restock so that it can be sold again in the future. ShipSage’s return and relabel service reduces the seller’s expenses and increases profit.
4. Differences in cargo storage risk.
Placing goods in FBA warehouses has certain potential security risks. The goods are secured with the corresponding Amazon account holder. If there is a problem with the products you sell on Amazon and your account is closed by Amazon, the goods in Amazon’s FBA warehouse will be temporarily seized. However, if your goods are stored with ShipSage, you don’t have to worry about this happening. Our customer service is here to support you in all your business needs 24 hours a day.