Inflation, supply chain issues, global conflicts—all of these economy-shaking events have made margins razor-thin for many e-commerce sellers, and those margins are only being further thinned out by the recent FBA fee hike in Canada.
Amazon accounts for over half of all e-commerce sales in the U.S. over the past few years, so having your product available on Amazon is a must. As a result, many have opted for fulfillment by Amazon, or FBA, to store inventory and fulfill orders.
But with this FBA fee hike in 2022, that may no longer be the best option for many companies. Instead, they may prefer to go for FMA (fulfillment by merchant) which gives them more control over their inventory and shipments, as well as enables them to have better control of costs.
Let’s take a deeper look at the FBA fee hike in Canada and how this may impact the e-commerce industry.
The FBA Fee Hike in 2022
With economic pressures coming from multiple directions, the FBA fee hike in 2022 may be the last straw for many business owners who simply can’t continue to operate at Amazon’s prices.
A cursory Google search reveals that many businesses are finding it difficult to work with Amazon and at its current prices/processes as they are often loaded with a variety of fees.
Below, you can see the what the FBA fee hike in Canada looks like.
Source: Amazon Canada
What Could the FBA Storage Fee Change Mean for You?
If your business is already feeling the crunch and this FBA fee hike in 2022 is too much to bear, there is another option.
In fact, many businesses are opting to go with a third-party logistics (3PL) provider. There are now over 14,000 3PL businesses operating in the U.S, speaking to this demand.
A 3PL provider will manage all of your shipping and inventory needs, often for a more affordable price compared to FBA.
Businesses that choose FBM with a third-party logistics provider benefit from:
- Fully supported management of your picking, packing, and shipping needs
- Real-time shipping data and tracking
- Real-time inventory data
- More control over costs
- The ability to communicate directly with your provider (rather than jump through Amazon’s support network hoops)
- Full integration of all your systems on all platforms (Etsy, eBay, Amazon, Shopify, etc.)
- Access to custom packaging options
- And more
As mentioned previously, many businesses get all these added benefits for less than FBA, making it at a more cost-effective option.
Contact APS Fulfillment, Inc. for FBM Service
Rather than scouring the thousands of 3PL providers for a competent partner, you can save time and money by consulting with APS Fulfillment, Inc.
Have your Amazon orders processed quickly, efficiently, and accurately—no company has more experience than APS Fulfillment, Inc. when it comes to optimizing a business’s fulfilment services.
With state-of-the-art warehouse management software (WMS), we make it easy to manage your inventory and track goods. We’ll also support your business and automate the warehousing, prepping, shipping, picking, and packing of your Amazon orders!
With APS Fulfillment’s real-time processing, we can confirm your order, have it picked and packed, and shipped with one of our trusted partners, in just 24 hours.
There are a wide range of benefits to working with a third-party logistics company that uses the best-quality software systems to manage your warehouses. Other product fulfillment companies may offer a similar set of services, but APS Fulfillment, Inc. goes the extra step. We take great pride that our quality control procedures are state-of-the-art, and we guarantee 24-hour turnaround times for our service orders.