Anyone who wants to sell on Amazon and the other marketplaces soon faces a logistics choice that affects costs, margins and customer experience: entrusting logistics to Amazon FBA, managing it in-house with the FBM model or outsourcing it to a third-party operatorThere is no answer valid for everyone, because the choice depends on volumes, margins, number of channels and the level of control you want to keep over the brand. This article compares the three models to help you understand which one suits your situation.
The three fulfillment models for the marketplace
Before comparing them, it is useful to clarify what each model entails from an operational standpoint.
FBA (Fulfillment by Amazon): pros and cons
With FBA the seller sends the goods to Amazon's centres, which handles storage, shipping, customer service and returns. The main advantage is access to the Prime programme and the almost complete delegation of operations. The disadvantages concern costs, which include handling fees and storage rates that grow for slow-rotation goods, the limited control over packaging and brand experience, and the dependence on the platform's policies. Those evaluating Amazon FBA in Italy must also consider that the logic of the model remains tied to the single marketplace.
FBM (Fulfillment by Merchant): pros and cons
With FBM the seller sells on Amazon but manages warehousing, shipping and returns in-house. The advantage is full control over packaging, brand and timing; the disadvantage is that all operations, including compliance with the marketplace's SLAs, fall on the seller. For those who already have a solid logistics structure it is a flexible option, but it requires mature processes to avoid incurring penalties.
Outsourcing to a 3PL: the hybrid model
The third way combines the advantages of the first two: the seller keeps the brand control typical of FBM, but entrusts operations to a specialised logistics operatorThe 3PL manages warehousing, picking, shipping and returns for all channels, marketplaces included, with a single stock. It is thelogistics outsourcing, particularly suited to those who sell on multiple platforms and want operational consistency without giving up control.
How to choose based on volumes, margins and control
The choice between the three models comes down to three variables: cost structure, control over the brand experience and the number of channels to serve.
Fixed costs vs variable costs
FBM with an internal warehouse entails fixed costs (space, staff, equipment) that weigh regardless of volumes. FBA and outsourcing shift the balance towards variable costs, tied to the orders actually handled. For seasonal or growing businesses, a variable-cost model reduces the risk of oversizing the structure in periods of low demand.
Control over packaging, brand and customer experience
Packaging and unboxing are part of the brand experience, but with FBA the seller has little room to customise them. A model that keeps control over packaging, such as FBM or outsourcing to a partner, makes it possible to take care of the presentation and include brand materials. Relying on an external e-commerce fulfillment does not mean losing control, but defining the packaging rules and having them applied in a repeatable way.
Multichannel: a single warehouse for multiple marketplaces
Those who sell on Amazon, eBay, Zalando and their own e-commerce face the risk of fragmenting stock across multiple warehouses and systems. A marketplace logistics model based on a single centralised stock simplifies marketplace order managementavoids the misalignment of inventory and reduces the risk of selling unavailable products. An effective omnichannel strategy rests on the integration between OMS, WMS and ERP, which keeps orders and availability consistent across all channels.
Meeting marketplace SLAs without penalties
Marketplaces apply stringent service standards and penalise sellers who fail to meet them. Fulfillment times, traceability and compliant returns management are the three fronts on which the reputation of the account is played out.
Fulfillment times and traceability
Meeting the shipping windows set by marketplaces requires reliable processes and precise traceability of every order. A smart delivery platform such as SEND2U assigns the most suitable courier to each shipment and centralises tracking, helping to meet service standards.
Returns management compliant with marketplace policies
Every marketplace has precise rules on returns, and failing to follow them affects the account's metrics. A returns process aligned with the platforms' policies, with verification of the product's condition and rapid restocking, avoids disputes and protects the availability of the goods.