This is a guest post from Ryan Flynn. Ryan is the founder and CEO of Charmac, a digital marketing agency that helps retail-focused brands reach more customers on Amazon. Charmac provides content creation and done-for-you account management solutions to help you succeed in the Amazon marketplace. Whether you need a new or refreshed product page or are ready to outsource the day-to-day of Amazon, the experts at Charmac can help. They specialize in creating high-converting content that matches your brand and can strategically manage advertising, reviews, inventory forecasting, and more. To learn more, visit Charmac.com.

Are you looking to take your eCommerce business to the next level? Whether you are already selling on Amazon or planning to, you have to look at FBA and what it can do for your business. This article will show you what FBA is, how the fees work, and how you can reduce your overall cost of using the service. Read on to get started.

What is FBA and why you should use it

Let’s start with the basics. To begin, FBA is an acronym for Fulfillment by Amazon and represents a service that Amazon offers to let you quickly and efficiently fulfill online orders.

As anyone with an eCommerce business knows, picking and packing customer orders takes significant time, effort, and money. FBA allows you to outsource this work to Amazon. Instead of sending out every single package, you send your inventory in bulk to Amazon warehouses. Then, when a customer makes an order, Amazon picks, packs, and ships the items.

Using FBA gives you, as the seller, several significant benefits:

Access to Prime and Amazon’s logistics network

The first thing FBA allows you to do is offload your fulfillment capabilities to Amazon, a dedicated solution to your business that knows how to do fulfillment right. In addition, FBA lets you take advantage of Amazon’s vast warehouse and delivery network.

Amazon’s fulfillment capabilities are remarkable since the company is as much a master of logistics as it is of eCommerce. By tapping into FBA, you tap into Amazon’s entire logistics infrastructure — a network of hundreds of warehouses located strategically throughout the United States and interconnected by a whole fleet of trailers, rail cars, and planes.

Easy flat-fee structure

Traditional carriers like FedEx or UPS often rely on zone-based pricing. This pricing model means the cost of sending a package can vary widely, depending on the destination. Unfortunately, this structure also makes it challenging for sellers to forecast their fulfillment costs accurately.

FBA takes much guesswork out of the equation by charging a flat fee, regardless of where the item is now and its final delivery point. Whether the product is going from New Jersey to Oklahoma or Florida to Montana, you, as the seller, will pay the same fulfillment cost. This pricing structure makes it much easier to understand and estimate your costs.

Better visibility on Amazon’s website

Using FBA also boosts your ability to sell on Amazon. Sellers who use FBA will rank better in Amazon’s search results than sellers who fulfill the items themselves.

Why does Amazon give sellers who use FBA an advantage? Many customers who shop on Amazon like to take advantage of Amazon Prime’s two-day (or sooner) shipping service. Thus, to cater to those customers, items delivered through Amazon are shown first — while items from sellers who ship from other warehouses are pushed farther down on the results page. If you’re using FBA, the products you sell are more likely to be seen first and, as a result, bought first.

Now that you know the benefits of FBA let’s get into the practical details of how to use it for your business.

Getting your products into Amazon warehouses

To start using FBA, you have to get your inventory to Amazon. Whether your products are currently at your manufacturer, co-packer, 3PL, prep partner, or logistics partner, you need to send them to Amazon’s network of warehouses.

That generally means choosing a delivery service to move your items. Here are the main options you have to pick from:

Small parcel versus LTL/FTL

When deciding how to send your products to Amazon, you need to consider three key factors:

• How much space do your products take up?
• How long are you willing to wait before your items start selling?
• How much do you need to send in?

If your products are light and don’t take up much room, shipping them via small parcel carriers like UPS might be the best option. This method will get your items over to Amazon quickly — and checked in quickly on Amazon’s end too.

However, if your products are heavier or more voluminous, you’ll save on delivery costs by selecting the LTL (less than truckload) or FTL (full truckload) option. With this method, your products must be palletized and loaded onto a trailer that eventually makes its way to an Amazon warehouse. If you have a significant quantity of items, this option will be more cost-efficient than sending them in small parcels. It will, however, also be the slower option, sometimes taking a week or two for delivery and check-in at the destination.

The best scenario is for you to calculate the higher costs of sending by small parcel against the longer timeline required for an LTL or FTL shipment. If you are already selling at scale and are consistently replenishing inventory at Amazon, LTL or FTL is your best long-term option. However, if your inventory levels are getting dangerously low at Amazon, it may be worth paying more to send in a limited quantity via the small parcel service for replenishment and send larger LTL or FTL shipments simultaneously.

Independent carrier vs. Amazon partnered carrier

Whether you opt for small parcel delivery or LTL/FTL, you’ll need to decide if you want to go with an Amazon-partnered carrier or a carrier unaffiliated with Amazon.

Choosing an Amazon-partnered carrier can streamline the process of getting your products to Amazon and often lower the costs. This is because Amazon’s partnered carrier network has existing relationships with the company and offers you negotiated rates that help reduce your costs.

In the case of small parcels, Amazon’s partnered carrier is UPS, which offers competitive, pre-negotiated rates to ship to Amazon warehouses. On the FTL or LTL side, Amazon works with many freight carriers that offer competitive rates. An additional benefit of working with an Amazon-partnered carrier is that you don’t have to worry about setting up delivery appointments because partners have pre-set appointments with Amazon. I recommend sticking with Amazon’s partnered carriers when going the FTL or LTL route because this makes the process much smoother for all involved.

Once your products are in Amazon’s warehouses, it’s time to start selling. So next, we’ll discuss clever tips for keeping your FBA fees as low as possible.

How Amazon determines an item’s FBA fees

Amazon determines the FBA cost of an item based on size and weight. This means the length, height, and width of your product — as well as its weight and dimensional weight. Knowing how to minimize these can keep fees low.

Be strategic about package design

Standardizing your packaging across all channels is the norm if you run a retail business in addition to an eCommerce one. However, optimizing your eCommerce packaging could save you a lot on fulfillment costs. The same product with a different packaging that’s smaller or weighs less could end up putting your item in a less expensive size tier in terms of FBA fees, making a significant difference on your bottom line.

Thus, it pays to check your product’s dimensions and weights against the size tiers listed on Amazon’s website. If Amazon is a significant channel for you, consider these size tiers in every part of your business process, from product design and development to packaging materials.

Consider multipacks and bundles

A strategy is essential when building multipacks and bundles for your products too. Using Amazon’s FBA size guidelines, ensure you put your items together in the most size-efficient way, taking up as little room as possible. Resist the urge to throw your products in a larger box, but instead pack them in a perfectly-sized box or poly bag that takes up less space, reducing your FBA fees.

Auditing your FBA fees

You must conduct a regular audit to keep your FBA fees in check. Luckily, Amazon Seller Central makes this process relatively simple. Here’s how to get started.

Check the Amazon reports

The first step to auditing your FBA fees is downloading your report from Amazon. In Amazon Seller Central, head to the “Reports” section and select “Fulfillment.” Once you get there, look under the “Payments” section on the left-hand side and click on the “Fee Preview” report.

The Fee Preview report is one that Amazon typically runs automatically for you daily. I recommend downloading the latest one as a CSV file, so you can easily pull it up using Excel or Google Sheets. Once you open the file, you can see all the products you sell through Amazon. You’ll also be able to see what Amazon has on record as the weight and measurements of each item.

Now it’s time to audit your products. Verify that Amazon’s record of each product reflects your actual product weight and dimensions. While the measurements don’t have to be exact, they should be close to your records. Once in a while, Amazon mismeasures the length of a product or miscalculates the weight. If this has happened to any of your products, take note of it and go on to the next step.

Ask Amazon to remeasure and reweigh the item

If you determine from the “Fee Preview” report that Amazon’s record of your product’s weight and dimensions is incorrect, take the necessary steps to correct it.

First, navigate to the “Help” tab on Amazon, scroll to the bottom, click “Get Support,” and then “Selling on Amazon.” Once you get to that page, you’ll be able to describe the issue you’re having. Typing in a phrase like “FBA fee” will prompt Amazon to ask if you’re having a problem with FBA product weights and dimensions. Confirm this is indeed your issue.

At this point, type in the ASIN or FNSKU of your item into the search box and hit “Next.” Amazon will then restate the package dimensions and weight and your current fulfillment fees. You’ll then be able to request product remeasurement and reimbursement for incorrect order fees.

Amazon limits the number of times you can request remeasurements due to sellers abusing this service in the past, so ensure your product has been weighed or mismeasured before asking Amazon to measure again. Once you submit the request, Amazon will have a worker remeasure and reweigh your item on a Cubiscan machine.

If Amazon determines that the previous measurements were incorrect, they will change your FBA fee to reflect the correct weight and dimensions. Sometimes, Amazon will automatically reimburse you for overcharged fees; other times, you’ll need to request reimbursement. The timeline for how quickly such issues get resolved can vary, but I recommend auditing your fees monthly to ensure they are correct.

How to reduce your FBA fees

After you’ve audited your FBA fees, you still have two opportunities to continue reducing them:

Optimize inbound deliveries

Lower your cost of selling by optimizing the products you send to Amazon’s warehouses. Determine how to make your shipments to Amazon as dense as possible while still staying within Amazon’s requirements: 50 pounds max per box on small parcel shipments through UPS ground and 1,500 pounds for an LTL/FTL pallet that’s no more than 72 inches high.

You can also save money by changing your seller settings to let Amazon decide where to send your inventory instead of the location closest to the source. In Seller Central, under “Settings,” go to “Fulfillment” settings, then “Fulfillment by Amazon.” Once there, go under inbound settings and ensure the “Inventory Placement Option” is “Distributed Inventory Placement.” Choosing this option will prevent you from paying added fees per item.

Ensure prep is done perfectly

A second way to reduce FBA fees is by prepping your items correctly before they arrive at Amazon. While Amazon can do prep work, that extra work comes at an additional cost. Have your manufacturer or a dedicated prep center take care of this to save money and time.

Because Amazon has a vast logistics network, they have a standardized prep process for different types of items. Make sure you follow these to a tee. If you prep your items incorrectly, they will not pass the break test or may need to be sent back for adjustments — in which case your inventory will become unfulfillable, requiring you to remove, re-prep, then return the items to Amazon, all at your cost.

Changes to Amazon FBA fees in 2023

Starting in January 2023, Amazon has adjusted their FBA program. Due to the global economic downturn, the company has thoroughly revised their FBA fees.

To address the issue of unproductive utilization of FBA and the accumulation of unsellable goods that congest Amazon warehouses, new fees related to storage utilization ratio and aged inventory were implemented in April. These fees aim to reduce the amount of working capital tied up in holding costs.

Let’s take a look at the biggest changes to Amazon FBA fees.

The Fuel & Inflation Surcharge is now permanent

Initially introduced as a temporary measure to address evolving economic conditions, the Fuel and Inflation Surcharge is now permanently installed in Amazon’s FBA fees.

Despite expectations for a decline in costs associated with fuel and inflation, these expenses have failed to decrease as rapidly as anticipated. So, rather than maintaining the surcharge as a separate entity, Amazon altered their standard FBA rates to incorporate these additional charges.

FBA fee structure changes

To address concerns about storing products that don’t sell well, Amazon implemented the following changes:

• FBA outbound fee rates increased by an average of $0.22.
• Returns processing fee rates in the apparel and shoe categories were reduced by $0.20 per return.
• Monthly off-peak FBA storage fees between January and September each year increased. Fees for standard-sized products increased $0.04 per cubic foot, while those for oversized products rose $0.03 per cubic foot.
• A Storage Utilization Surcharge was introduced for sellers with a high cube of inventory in Amazon warehouses compared to their weekly sales.
• The surcharges for inventory stored between 180 and 270 days (excluding apparel, shoes, bags, jewelry, and watches) went up.
• Removal and Disposal fees also increased.

Referral fees

Regardless of the category you sell in, the referral fee for your products remains the same. However, certain fee categories within the Collectibles space were discontinued.

Products previously classified under categories such as Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards had their fees eliminated and were transferred to the most suitable category.

Expansion of the Small and Light Program

By enrolling in Amazon’s Small and Light Program, you can ship eligible products worldwide, benefiting from reduced fulfillment expenses and providing free shipping to your customers.

Notably, the program fees have recently lowered, now ranging from $10 or less instead of the previous $12 starting price.

U.S. FBA New Selection Program

The U.S. FBA New Selection Program now has reduced fees. This program aims to support brands in launching new products on the marketplace, making the process easier and more cost-effective.

Sellers who register for this program can enjoy free storage, liquidations, and return processing for a limited period.

With these changes, sellers who join the FBA New Selection Program will see an increase in rebates from 5% to 10% on new-to-FBA parent ASINs (Amazon Standard Identification Numbers). This boost translates to savings of 5% for participating sellers.

Wrapping up — Ready for FBA

The sooner you take advantage of FBA’s many benefits, the faster you can remove some of the burden of fulfilling products yourself. With proper planning, you can optimize your selling experience on Amazon for greater efficiency and profit.

Published: November 24, 2022
Updated: May 24, 2023

Amazon is a major player in the eCommerce industry, providing online sellers with a massive platform to reach millions of customers across the globe. One of its most popular services is Amazon Multi-Channel Fulfillment (MCF), which allows sellers to take advantage of Amazon’s vast fulfillment network to complete orders from other sales channels.

Amazon MCF helps merchants streamline their fulfillment processes and improve customer satisfaction. However, like any eCommerce service, it also comes with a set of challenges that can impact a seller’s bottom line, reputation, and overall operations.

In this article, we’ll explore some of the most common obstacles sellers face with Amazon MCF and provide tips on how to navigate and overcome them. By understanding these challenges and implementing best practices, you can effectively leverage the power of Amazon MCF to improve your operations, boost customer satisfaction, and increase profitability.

Common MCF challenges

These are common issues merchants encounter when using Amazon MCF:

• High costs: One of the biggest challenges with Amazon MCF is its high service cost. Amazon charges fees for storage, handling, and shipping, and these expenses can add up quickly, particularly for sellers with large or heavy items. Additionally, the cost structure for MCF can be complex, making it challenging to calculate costs and profit margins accurately.
• Limited inventory visibility: Amazon MCF provides limited visibility into inventory levels and locations, making it difficult for sellers to manage their stock efficiently. This can lead to overstocking or understocking, which in turn can result in lost sales or wasted inventory.
• Shipping delays: Although Amazon has an extensive fulfillment network, shipping delays can occur due to a variety of factors, such as natural disasters, weather conditions, or other unforeseen events. Such delays can negatively impact a seller’s reputation and customer satisfaction, particularly if the merchant fails to provide accurate tracking information or timely updates.
• Limited customization options: Amazon MCF offers limited customization options for packaging and branding, which makes it challenging for sellers to differentiate their brand and create a unique customer experience. This is a major drawback in crowded markets or for merchants with highly personalized products.
• Poor customer service: Some sellers have reported issues with Amazon’s customer service, including slow response times and a lack of personalized support. This can be frustrating, especially if merchants encounter issues with their MCF orders or need assistance navigating the platform.

Overcoming these challenges

Despite these issues, there are several strategies sellers can use to overcome them:

• Negotiate rates with Amazon: To reduce MCF costs, you can negotiate rates. This involves working with Amazon’s customer support team or using an Amazon-approved third-party service to explore opportunities to reduce fees and optimize fulfillment costs. Additionally, Amazon provides a fee calculator to estimate your costs and identify areas to cut expenses.
• Adopt inventory management software: To manage inventory levels more effectively, look for inventory management software that integrates with MCF. These tools provide real-time visibility into your inventory levels and locations, which helps optimize your inventory levels and avoid stockouts. Some inventory management software can also automate inventory forecasting and replenishment so you can stay on top of your inventory needs more easily.
• Work with third-party logistics providers: To improve shipping times and lower fulfillment costs, consider working with a third-party logistics provider (3PL). 3PLs can provide additional warehousing and fulfillment support to expand your reach and reduce shipping costs. By leveraging a 3PL’s expertise and infrastructure, you’ll enjoy the benefit of their fulfillment speed and accuracy while freeing up resources to focus on other aspects of your business.
• Maintain open communication: When shipping delays and other issues inevitably occur, communicate the situation to your customers. This includes providing accurate tracking information, sending automated updates, and offering clear and timely responses to their inquiries. You can also leverage Amazon’s built-in communication tools, such as messaging and feedback, to stay in touch and address any issues or concerns.
• Provide excellent customer service: To maintain customer satisfaction and avoid the headache of Amazon’s customer service, provide your own exceptional customer support. Similar to the previous point, clear and timely communication, accurate product information, and addressing customer concerns promptly are important components here as well. By catering to consumer needs, you’ll improve your reputation and drive repeat business.

Implement these strategies and stay proactive in managing your MCF operations to maximize its benefits for your business and achieve long-term success.

Best practices for Amazon MCF

To optimize your use of Amazon MCF, here are some of the most effective best practices to follow:

• Streamline your fulfillment process: This can involve refining your packaging, labeling, and shipping procedures, as well as using automated tools and software to manage orders and inventory. By streamlining your fulfillment process, you reduce errors and speed up shipping times.
• Implement quality control measures: Quality control measures ensure your products are delivered to customers in good condition. You can employ secure and reliable packaging materials, perform quality checks on products before they ship, and track products throughout the fulfillment process to identify potential issues. These actions lower the risk of returns, improve customer satisfaction, and protect your reputation.
• Stay on top of Amazon’s rules and policies: Amazon has strict rules and policies for sellers who use their fulfillment services. They cover everything from product packaging and labeling to shipping methods and handling procedures. To avoid penalties and maintain smooth operations, make sure you learn and follow these regulations.
• Take advantage of Amazon’s technology: Amazon MCF offers numerous tools and resources designed to help sellers optimize their fulfillment. These include automated order processing and inventory tracking, advanced analytics, reporting tools, and more. Take advantage of these resources to gain valuable insights into your business and make informed decisions to strengthen its functionality.
• Partner with third-party experts: Realize the full potential of Amazon MCF by partnering with third-party vendors who can streamline your business. Vendors like MyFBAPrep can provide additional warehousing and fulfillment support, helping you expand your reach and cut shipping costs. Additionally, many offer specialized services like kitting and bundling so you can create unique product offerings and stand out in a crowded market.
• Monitor and optimize your performance: Regularly measure your Amazon MCF performance and make adjustments where needed. This entails analyzing your shipping and fulfillment metrics and tracking your inventory levels. Stay on top of your performance metrics to identify issues and opportunities to improve your fulfillment.

Following these best practices and proactively managing your Amazon MCF operations will help you optimize your business operations, reduce costs, and improve customer satisfaction.

Wrapping up — Work smart, not hard with Amazon MCF

Amazon Multi-Channel Fulfillment offers numerous benefits to eCommerce sellers, allowing them to expand their reach, improve their customer satisfaction, and streamline their fulfillment operations. However, the service has its drawbacks, like high costs, restricted inventory visibility, shipping delays, limited customization options, and poor customer service. However, you can overcome these challenges by implementing strategies like negotiating rates with Amazon, utilizing inventory management software, working with 3PLs, communicating with buyers, and providing excellent customer service.

Follow these best practices, and you’ll make the most of Amazon MCF while reducing costs, improving operations, and driving long-term success for your eCommerce business. You’ll also stay informed on changes to the platform and identify opportunities to optimize your fulfillment operations.

With nearly two million active sellers on Amazon, it’s no surprise counterfeit products are a persistent problem for brands.

However, Amazon’s efforts to combat counterfeiters have significantly improved over the years, utilizing advanced technologies such as machine learning and automated systems to prevent fraudulent activities proactively.

Whether you’re a small business or a large corporation, it’s crucial to understand the various threats your brand may face on Amazon and learn how to mitigate them.

Keep reading as we explore the different strategies and tools available to help you protect your products on Amazon and safeguard your reputation.

Why Amazon brand protection is vital

Various strategies and tools can protect your intellectual property rights on Amazon. Employing these defenses safeguards not only your brand name but also your product designs, images, logos, and other unique features that make your products stand out.

As one of the largest eCommerce platforms in the world, Amazon attracts millions of shoppers every day. While this presents an excellent opportunity for you to reach a massive audience, it also makes you vulnerable to counterfeiters and unauthorized sellers.

Recognizing the severity of this threat, Amazon invested over $700 million in brand protection measures in 2020. As a result, the company blocked over six billion suspected bad listings that year alone.

You must take tactical measures to defend your brand on the marketplace and avoid losing sales, damaging your reputation, and even facing legal consequences. Below, we’ve broken down the best proactive and reactive steps to combat online attacks.

Interested in more stats that prove the importance of Amazon brand protection? Check out the results of MyFBAPrep’s 2022 Amazon Brand Protection Report.

Amazon Brand Registry

Amazon created a program to protect and build your brand called the Amazon Brand Registry.

By enrolling, you gain access to several tools designed to protect your brand and prevent counterfeiters from selling your products. You can search for and report listings that violate your intellectual property rights, as well as implement various features that make it easier to manage your brand and ensure your listings are accurate and up to date.

Eligibility and enrollment

To be eligible for Amazon Brand Registry, you must meet certain requirements:

• You need to have an active registered trademark for your brand.
• You need to be able to verify your identity and provide evidence of your intellectual property rights.

Then, to enroll in Amazon Brand Registry:

• Create an account on Amazon (if you don’t already have one).
• Provide information about your brand, including your registered trademark, and submit documentation that proves your ownership of said trademark.

Once Amazon verifies your information, you’ll be enrolled in the program and can take advantage of all the benefits outlined above and more.

Monitor your brand

One of the most effective ways to prevent attacks on your brands is to monitor it proactively. Regular check-ins allow you to identify counterfeiters and unauthorized sellers quickly and take action to remove them from the marketplace before they cause harm.

Amazon’s Brand Dashboard is a robust business monitoring tool. It provides real-time data on your product listings, including information on customer reviews, sales, and traffic. Look for irregularities or suspicious behaviors among them to spot potential scammers.

Additionally, many third-party monitoring software options can track your listings across multiple marketplaces, including Amazon, and provide alerts when unauthorized sellers or counterfeit products are detected. Some popular options in this category are Brandlox, BrandShield, and Red Points.

Monitoring strategy

A strategy for identifying counterfeiters and unauthorized sellers is also essential to your business. Incorporate tactics such as:

• Regularly search for your brand name on Amazon and other marketplaces.
• Check customer reviews.
• Monitor mentions of your brand on social media and other online platforms.

Take action against scammers

If you identify counterfeit items or unauthorized sellers on Amazon, act immediately to minimize the damage to your business. Your options here include using Amazon’s infringement reporting system, issuing cease and desist letters, and exploring other legal actions and options.

Amazon’s infringement reporting system

Amazon’s Brand Registry program enables store owners to take action against potential intellectual property (IP) violations. Access the program portal to report suspected IP violations, submit takedown requests, and monitor your brand on Amazon. The system allows you to remove counterfeit listings quickly and efficiently, as well as provides tools to track and manage potential infringements.

You can also work with Amazon’s Brand Protection teams, who specialize in uncovering and removing counterfeit listings. By collaborating directly with Amazon, you’ll ensure a faster resolution and maintain the integrity of your products on the platform.

Cease and desist letters

Cease and desist letters are formal, legally binding correspondence that demand the party in violation to stop using your brand’s intellectual property and remove any counterfeit or infringing products from their listings immediately.

The letter should include specific instances of infringement, your legal rights as the brand owner, and the consequences of non-compliance.

If the guilty party fails to comply with the cease and desist letter, you may choose to bring the matter to Amazon or pursue further legal action.

Further legal action

If both cease and desist letters and cooperation with Amazon fail to resolve the issue, you may need to consider legal pursuits. Infringement of intellectual property rights, such as trademark and copyright violations, can lead to civil litigation, monetary damages, and, in some cases, criminal penalties for counterfeiters.

Legal action tends to be time-consuming and costly, but it may be necessary to protect your brand’s reputation and value. Consult with legal counsel to determine the most appropriate course of action based on the specific circumstances and the severity of the infringement.

Amazon’s (other) brand protection programs

In addition to Amazon’s Brand Registry, the company has launched other initiatives to help brands protect their intellectual property and name credibility. Two notable additions are Amazon’s Project Zero and the Transparency program:

• Amazon’s Project Zero is an innovative program designed to empower brand owners to drive counterfeit products to zero on the platform. It combines the platform’s advanced technology, machine learning, and your knowledge of your brand to identify and remove counterfeit listings. Project Zero also features a self-service tool that lets you take down fake listings directly, without the need for Amazon’s intervention.
• The Transparency program, meanwhile, is a product serialization service that allows customers to verify the authenticity of an item before purchasing. Brands enrolled in the program must apply unique Transparency codes (barcodes) to their products, which customers can then scan using the Amazon Shopping app or a Transparency-specific app to ensure they’re purchasing a genuine product.

Transparency barcodes are 2D QR codes designed to help authenticate a product before shipping to customers. Learn more about Transparency barcodes in MYFBAPrep’s guide.

Build and strengthen your brand

Along with increased sales and consumer loyalty, a strong brand presence on Amazon creates a positive, memorable image in customers’ minds, making them more likely to choose your products over others and become repeat buyers.

To cultivate an authoritative presence on Amazon, focus on several key elements that contribute to an appealing and trustworthy image, including:

• High-quality product images
• Compelling product descriptions
• Managing customer reviews
• Utilizing Amazon’s A+ Content

High-quality product images

Images are vital to attract customers and showcase your products’ features and benefits.

Ensure your photos have high resolution and are well lit and professionally shot. Include multiple angles and close-ups to highlight key product features. Lifestyle images and infographics also help customers visualize how your product fits into their daily lives.

Compelling product descriptions

Your product descriptions should be engaging, informative, and tailored to your target audience.

Focus on communicating your products’ unique selling points and preemptively addressing common concerns or questions. Use clear, concise language and avoid jargon or overly technical terms.

Also, format the text properly using bullet points and short paragraphs to make your listings easy to read and understand.

Encourage and manage customer reviews

Customer reviews wield great influence over shoppers’ purchasing decisions. Encourage buyers to leave reviews by providing excellent customer service, following up to gauge their satisfaction with your product, and running automated email campaigns.

Regularly monitor and respond to customer reviews to address concerns, show appreciation for positive feedback, and demonstrate your commitment to consumer satisfaction.

Utilize Amazon’s A+ Content

Amazon’s A+ Content (previously Enhanced Brand Content) allows brand owners to craft visually rich and informative product listings. These features enable you to showcase your brand story, highlight product features, and display additional images or videos.

By incorporating A+ Content into your product listings, you can create a more engaging shopping experience for customers, which encourages higher conversion rates and increased sales.

Wrapping up — Use Amazon brand protection proactively to guard your business

It’s imperative to safeguard your brand when selling on a platform as massive as Amazon.

Taking effective measures like enrolling in an Amazon brand program and strengthening your brand with engaging product listings will shore up your defenses and can significantly contribute to your brand’s success and reputation.

Stay alert by keeping an eye on your brand’s presence and acting quickly against counterfeiters and unauthorized sellers. Adopt these strategies to secure your brand’s future, improve trust with customers, and set yourself up for success on Amazon.

Growth is crucial for your eCommerce business to thrive, especially on a competitive marketplace like Amazon. Whether you’re a new seller looking to establish your brand or an experienced merchant seeking to expand your product offerings, you can achieve your goals by adopting a combination of powerful tactics.

This article will explore some of the top strategies for growing your Amazon business. From improving your product listings to taking advantage of the platform’s advertising and fulfillment programs, we’ll show you how to strengthen your business’s presence on Amazon.

Improve your product listings

One of the most important steps in expanding your Amazon business is ensuring your product listings are clear, informative, and optimized for search. Here are some strategies you can use to refine and hone your product listings:

• Clear product titles and descriptions: Your titles and descriptions should accurately reflect your products and their features. Be sure to include all relevant information, such as size, color, and material.
• Optimized keywords: Insert relevant keywords throughout your product listings to improve your search rankings. Use tools such as Amazon’s Keyword Tool to research popular keywords.
• Include high-quality images and videos: High-quality images and videos can significantly help attract customers to your products. Feature clear, well-lit images and videos that showcase your items from different angles.

By improving your product listings, you’ll make your products more appealing to customers and increase your search rankings, which leads to greater sales and business growth.

Expand your product line

Add more choices to your offering to hit more of your consumers’ pain points and appeal to a wider audience. To maximize your product line’s potential, you can:

• Identify product opportunities: Research popular products and pinpoint gaps in the market to uncover new opportunities. You can combine Amazon’s Best Sellers Rank with your sales data to determine which products are in high demand.
• Evaluate profitability and demand: Once you’ve identified potential products to add, estimate their profitability and demand. Look at factors such as production costs, shipping fees, and forecasted profit margins to determine if a product is worth pursuing.
• Research the competition: Before launching a new product, study your competition to see how they position their products and what pricing strategies they use. This will show you how best to differentiate your offering and stand out in the market.

Expanding your product line can help you reach new customers and increase your sales. Just be sure to do your research and evaluate potential products carefully before launching them on Amazon.

Capitalize on Amazon Ads

Amazon offers their own sponsored advertising options to help sellers make their products more easy to find. Here’s how to take advantage of Amazon Ads:

• Choose the right option: Amazon offers a range of advertising options, including sponsored products, brands, and display ads. Each one has different benefits and costs, so it’s important to understand which type of ad will work best for your business.
• Set an ad budget: Determine how much you’re willing to spend on advertising and set daily or weekly budgets accordingly. Monitor your advertising spend and adjust your budget as needed to maximize your return on investment.
• Analyze your ad performance: Amazon provides advertising analytics tools to track the performance of your ads so you can adjust your strategies as needed. Look at metrics such as click-through rates, conversion rates, and cost per click to determine which ads are most effective.

By effectively employing Amazon Ads, you can strengthen your visibility on the marketplace and attract more customers to your products, ultimately leading to business growth.

Join Amazon’s FBA program

Amazon FBA (Fulfillment by Amazon) can be a game changer for your business. Amazon stores and ships your products directly to customers, as well as takes care of customer service and returns. This saves you time and allows you to focus on other business aspects. Other ways FBA can benefit you include:

• Prime shipping and Buy Box wins: FBA gives you access to Amazon’s Prime shipping program, which increases your visibility and attracts more customers with guaranteed fast, free fulfillment. Additionally, FBA can help you win the Amazon Buy Box, the coveted top position on product pages.
• Efficient inventory management: With FBA, it’s easy to monitor your inventory levels so you know when to reorder, which avoids stockouts. Additionally, Amazon offers inventory management tools to optimize your inventory and reduce storage fees.

Need help navigating FBA? We can help!

FBA can streamline your fulfillment process by letting you take advantage of Amazon’s powerful fulfillment and shipping infrastructure. As a result, shoppers are more likely to buy from you, leading to more sales and business growth.

Build your brand

Building a strong brand presence on Amazon helps differentiate you from the competition and attracts loyal customers. Here are some strategies for nurturing your brand presence:

• Use consistent branding: Feature your brand name and logo on all of your product listings and marketing materials to make your business instantly recognizable to consumers.
• Get in front of your audience: Consider creating a dedicated storefront on Amazon where customers can browse your product catalog and learn more about your brand. Additionally, use social media and email marketing to connect with your customers and build brand loyalty.
• Incentivize buyers: Offer loyalty programs or incentives for repeat customers to encourage them to keep coming back. Tangentially, respond to customer inquiries and address any issues to improve their satisfaction; knowing they can expect a great customer experience with you can persuade them to return for future purchases.

Collect customer feedback

Customer feedback is a valuable source of information to help you improve your product offerings and increase customer loyalty. You can effectively gather and implement customer feedback by:

• Leveraging the “Request a Review” button: When someone makes a purchase on your Amazon store, you can manually request a review by clicking “Request a Review” in Amazon Seller Central. This sends a templated email to the buyer asking for them to submit their feedback. Although you can’t edit the request, Amazon does translate the text into the buyer’s chosen language automatically.
• Providing social proof: Positive customer feedback can help you attract more potential buyers and build trust with them. These types of reviews highlight your product’s strengths, showcase them being applied in the real world, and help remove doubts that may be preventing someone from purchasing.
• Incorporating negative feedback: Although unpleasant to read, negative reviews are an opportunity to transform a detriment into an advantage. Hone in on customer complaints to identify areas for improvement, such as with your products or customer service.

No matter the type of feedback you receive, be sure to respond to all reviews promptly and courteously. Thank your consumers for taking the time to rate your product or service. This brings dual benefits by making your existing customers feel heard and showing potential buyers you’re committed to caring for your audience and remedying any issues.

Embrace Amazon’s tools and analytics

Amazon provides a range of powerful analytics tools to help sellers grow their businesses. Some of the marketplace’s most helpful features are:

• Seller Central: Seller Central is Amazon’s hub for sellers. It provides tools for managing inventory, analyzing sales data, and communicating with customers.
• Amazon’s suite of analytics tools: Tools like the Sales Dashboard and the Business Reports tool help you track your sales and identify trends. Use these tools to make data-driven decisions about your business.

Analyze the sales data from these tools to identify opportunities for growth, such as expanding your product line or targeting new customer segments. That information can also help you optimize your pricing and advertising strategies.

Wrapping up — Many roads lead to business growth (and success) on Amazon

Expanding your Amazon business requires a combination of effective strategies and hard work. By following the tactics covered in this article, like improving your product listings, leveraging Amazon’s advertising and fulfillment programs, and using the platform’s tools and analytics, you can take your business to the next level.

As you take action, monitor your progress consistently, analyze your data, and adjust your strategies based on that information to maximize your results. With dedication and effort, you can achieve your business goals and experience significant growth on Amazon.

Competition is fierce in eCommerce, and understanding your competitors is essential to your business’s survival.

Amazon is the largest online marketplace, with over 300 million active customers worldwide. However, it’s also the major platform for a massive number of sellers — and you have to contend with this large pool to attract shoppers’ attention. By learning the ins and outs of your competitors, you can identify gaps in the market and stay ahead of changing trends.

A highly effective way to inform your pricing strategy, product offerings, marketing efforts, and customer service approach is to conduct an Amazon competitor analysis. Keep reading as we help you identify top competitors, assess their customer service and fulfillment processes, and learn from their strengths and weaknesses.

Identifying your top competitors

The purpose of running a competitive analysis is to examine your competition and collect essential data, such as:

• What successful strategies are your competitors employing?
• How can you enhance your own business tactics?
• What methods can you use to stand out against your competition?

The first step in the process is to identify your top competitors. To do this, analyze product listings and categories similar to yours. Look for retailers selling products that are the same as or similar to yours, then check their sales history, product features, and customer reviews.

Evaluate sales rank and customer reviews

Amazon’s sales rank is a powerful indicator of a product’s popularity. By evaluating the sales rank and customer reviews of your competitors’ products, you can gauge their market share and reputation.

Online reviews are especially critical, as 93% of consumers say they influence their purchasing decisions. Look for trends in customer feedback to understand what buyers value and hone in on any common complaints.

Look at price, product features, and brand reputation

Price, product features, and brand reputation are other factors to consider when identifying your top competitors. Look for retailers offering products at lower prices or with more advanced features than yours. These businesses may be capturing a significant portion of your target market.

Narrow your list

After following the above steps, you’ll have an extensive list of competitors. To shrink that number and gain the most valuable results from your analysis, prioritize sellers with strong results and conduct in-depth research on them.

For example, include sellers with Amazon’s Choice and Amazon Best Sellers products, representing top listings in each niche. Also, focus on sellers with multiple listings on the first page of search results.

Next, refine your list and categorize all sellers into three groups:

1. Your primary competitors (i.e., companies selling products highly similar to yours or targeting the same audience)
2. Businesses selling similar products to a different audience or offering slightly higher- or lower-end products than yours
3. Companies selling products related to your offerings (for example, if you sell candles, this category may include companies selling incense burners)

Ideally, you should create a spreadsheet containing all your competitors, their category assignments, product lists, and essential details about them, including strengths and weaknesses. This organized approach will help you focus on the most relevant competitors and inform your strategic decisions.

Conducting an in-depth Amazon competitor analysis

Once you’ve determined your top competitors, you can conduct an in-depth analysis of their product listings.

Titles, descriptions, images, and keywords

Study your competitors’ product listings, focusing on aspects like titles, descriptions, images, and keywords. Assess how well they present their products and determine if they use Amazon SEO best practices.

• Titles: Compare the titles across various products, noting potential additions or omissions that could enhance their effectiveness. Consider the keywords competitors incorporate in their product titles to describe their offerings.

• Product descriptions: Reviewing product descriptions reveals insights into the essential information to include or omit.
• Images: Images are foundational to any Amazon listing, as people can’t see or touch your product in person. Strive to obtain the highest-quality images, taken at the best angles that show the product in the greatest detail. Examine the photos of your competitors’ products and note things that do and don’t work.
• Bullet points: These typically feature a product’s key selling points, making them worthy of close examination as well. Check out which benefits your competitors emphasize in their products and devise strategies to address those advantages within your own product bullet points.
• Keywords: Just like you, your competitors work hard to optimize their listings for target keywords. So, take a close look at their listings and see if they’re doing something you’ve missed. You can do this manually, but using a keyword research tool makes the whole process faster and easier.

Take note of any standout features or tactics your competitors employ and think about how you can implement them in your own listings.

Looking for more ways to improve your product listings? Check out MyFBAPrep’s 3 Simple Strategies for Show-Stopping eCommerce Product Listings.

Pricing strategies

When making a purchase decision, an overwhelming 80% of online shoppers consider price to be the most critical factor. Understanding your competitors’ pricing strategies is thus essential to stay competitive on Amazon.

Examine their pricing history and any patterns in price changes. This will help you identify opportunities to undercut your competition or position your products as premium alternatives.

Matching your competitor’s pricing is a straightforward and low-risk approach, but it may diminish the perceived value of your products in your customers’ eyes. You could leave money on the table by engaging in a “race to the bottom.”

A more effective avenue is leveraging apps that track competitor pricing and implement dynamic pricing for your products. These tools automatically adjust prices to optimize profit margins in response to changes in your competitors’ average prices. This way, you can align your pricing strategy with your customers’ perceived value while remaining competitive in the market.

Advertising strategies

Before initiating Amazon ad campaigns, examine your competitors’ advertising strategies on the platform. To stay competitive, your ads must have a similar or slightly higher cost-per-click than other sellers in your niche.

Employ appropriate tools to assess other sellers’ Amazon ad campaigns and discover which keywords they’re targeting and their corresponding search volumes.

Additionally, investigate whether your competitors use Google Shopping ads. You can do this easily by inputting one of your primary keywords into Google and checking for Amazon product ads within the Google Shopping ads section.

If you find no such ads, you can capitalize on that opportunity by running ads for your products. However, be aware this approach carries some risk, as competitors might avoid Google Shopping ads for certain reasons.

Assessing competitor customer service and fulfillment

Customer service and fulfillment are critical factors in eCommerce, and assessing your competitors’ performance in these areas can help you solidify your own.

Customer support

Satisfactory customer support is critical to maintain a positive reputation on Amazon. Determine your competitors’ response times to customer inquiries and the quality of their support. Look for consumer reviews that talk about their performance as well for an honest overview.

If your competitors consistently receive praise for their customer service, consider whether you can improve your support to match or exceed their standards.

Fulfillment methods and shipping policies

Analyze your competitors’ fulfillment methods to understand their efficiency, cost-effectiveness, and overall impact on customer satisfaction.

First, determine which fulfillment methods your competitors use, such as Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), or Fulfillment by Merchant (FBM). Then, examine their shipping policies, including fulfillment costs, delivery times, and free shipping offers. This reveals how their fulfillment methods affect customers’ purchase decisions.

Look for signs of effective inventory management like consistent stock levels and minimal out-of-stock incidents as well.

If possible, purchase a product from your competitor to evaluate their packaging and unboxing experience firsthand. Pay close attention to the packaging quality, branding, and overall presentation, as these factors can impact buyer perception and satisfaction.

Determine whether their approaches are more efficient or cost-effective and consider adjusting your fulfillment strategy.

Want to optimize your eCommerce fulfillment? Learn how MyFBAPrep handles all typical merchant needs for FBA prep and more.

Learning from competitor strengths and weaknesses

Conducting a thorough competitor analysis will uncover areas where your business can improve. Use this information to develop a plan for addressing these weaknesses and enhancing your overall performance on Amazon.

Leverage competitor strengths

Take note of your competitors’ strengths and consider how you can integrate them into your own business strategy.

This may involve updating your marketing tactics, refining your product offerings, or improving customer service. Be prepared to innovate and find ways to gain an edge in the market.

Adapt and innovate based on competitor weaknesses

Don’t focus solely on your competitors’ strengths; their weaknesses can also provide valuable insights.

Identify areas where your competitors are underperforming and take advantage of those gaps to differentiate your business. Innovate and adapt your strategy to capitalize on these opportunities and set your brand apart.

Tools for Amazon seller competitor analysis

Several tools are available to help you conduct an Amazon competitor analysis effectively.

While each one offers unique features and benefits, the best selection for you will depend on your specific needs and budget. Here are some popular tools to consider for your research:

• Jungle Scout: Jungle Scout is an all-in-one platform for Amazon sellers, providing extensive market and competitor data. With features like product tracking, keyword research, and sales estimates, Jungle Scout can help you keep a close eye on your competition.
• Helium 10: Helium 10 is another comprehensive tool offering a suite of features for product research, keyword analysis, and competitor tracking.
• AMZScout: AMZScout’s range of Amazon seller tools includes a Chrome extension that allows you to analyze competitor data directly on Amazon’s website. With features like product tracking, sales estimates, and keyword research, AMZScout can provide valuable insights into your competition.
• Keepa: Keepa is a powerful tool for tracking Amazon product prices, sales rank, and other data. With Keepa’s historical price data and sales rank tracking, you can monitor your competitors’ pricing strategies and make informed decisions about your own pricing.
• Viral Launch: Viral Launch is a comprehensive Amazon seller platform with tools for product research, keyword analysis, and competitor tracking.
• SellerApp: SellerApp is another all-in-one platform for Amazon sellers that provides extensive market and competitor data. It has several impressive elements like product tracking, keyword research, and sales estimates.
• FeedbackWhiz: FeedbackWhiz is designed to help Amazon sellers manage their customer feedback and reviews. By tracking your competitors’ reviews and ratings, you gain insight into their customer service performance and identify areas where you can improve your own customer support.

Before making your choice, consider your specific needs, budget, and the tool’s features. Some platforms offer free trials or limited access to their features to help you determine the best fit.

Wrapping up — Gain an edge with Amazon competitor research

Conducting a thorough Amazon competitor analysis is essential for eCommerce retailers to stay ahead of other sellers.

You can make better informed decisions about your business by identifying your top competitors, analyzing their strategies, and learning from their strengths and weaknesses. The eCommerce landscape is constantly evolving, so it’s crucial to watch these fluctuations and adapt your plans.

Learn continuously from your competition and adopt the right tools to maintain a competitive edge on Amazon and position your business for success.

As an eCommerce professional, it’s essential to understand the importance of accessibility in the industry. It refers to how well individuals with disabilities can reach and use your website. Making your eCommerce website accessible means everyone, regardless of their abilities, can navigate, understand, and interact with your site easily.

In a brick-and-mortar store, you might think of accessibility elements like a wheelchair-accessible entrance or offering services to meet the needs of your diverse customers. Accessibility is not only a legal requirement but also a moral obligation to ensure everyone has equal access to your products and services.

Recent years have seen a growing emphasis on website accessibility. Various countries have passed laws and policies to ensure websites are accessible to all users. In the United States, for example, the Americans with Disabilities Act (ADA) requires businesses to provide equal access to their services and products for people with disabilities. Then, in 2010, the Department of Justice (DOJ) issued a rule stating that websites must be accessible to people with disabilities, including those who are blind or visually impaired, deaf or hard of hearing, or have physical disabilities.

In addition to meeting legal requirements, making your website accessible brings many benefits to your business: Your site becomes easier to navigate, provides a better user experience, and can grow your customer base. Additionally, an accessible website can increase website traffic and even enhances search engine optimization (SEO).

Whether you run a small business or a large corporation, you must ensure your company’s website is accessible to all visitors. To help you meet the legal definition, we’ve broken down eight vital accessibility features for your website. We’ll explore how these features can benefit your customers and your business and provide step-by-step instructions on how to implement them.

Textual accessibility features

One of the most important aspects of website accessibility is ensuring your website’s text is easy to read and understand. That involves making the text size and color contrast suitable for all users, including those with visual impairments. This is an important detail because:

• By allowing users to adjust the text size, visitors with visual impairments can increase it to a level that’s comfortable for them to read.
• A high contrast between text and background colors makes it easier for users with visual impairments to read your website.

Another important textual accessibility feature is text-to-speech software, which reads website content aloud to visitors. To implement this feature, you can add a plugin to your website that gives users the option to hear the content. Text-to-speech software is beneficial both for users with visual impairments and those who prefer to listen to content instead of reading it.

It’s also critical that the language on your website is clear and easy to understand. Avoid using technical jargon or complicated verbiage that may be difficult for some users to comprehend. You should also provide simple instructions on how to use your website’s features so people can navigate the site easily.

Screen readers: What are they and why implement them?

Screen reader compatibility is another way to increase site accessibility for the visually impaired. Similar to text-to-speech, screen readers are software programs that read website content out loud.

To make your website screen reader-friendly:

• Include alt text in all images: Alt text is a brief description of the picture that screen readers can read aloud. This helps users with visual impairments understand what the image depicts.
• Organize your website’s layout and structure: Clearly structure your site with headings, subheadings, and lists to make it easier for screen readers to move through the content and provide a more pleasant user experience.
• Ensure all forms and interactive elements are easy to use: Use labels and descriptive text to explain each field or button’s purpose in your forms and interactive elements.

Navigational accessibility features

Navigation is a core characteristic of any website. As such, yours must be clear and easy to use in general but particularly for users with disabilities.

In addition to screen reader compatibility, you can improve site navigation accessibility by:

• Making your website keyboard-friendly: Users with physical disabilities often use keyboard shortcuts to navigate through a website. This means all website features, including menus and buttons, should be accessible using only a keyboard. You can achieve this using standard HTML tags and attributes that enable keyboard accessibility, such as “tabindex” and “aria-label.”
• Creating simple menus: This includes using clear and descriptive labels for menu items, avoiding drop-downs, and maintaining a consistent menu structure across all site pages. Providing a site map or search functionality can also be helpful for users who have difficulty finding specific content on your website.

Visual accessibility features

We discussed the importance of alt text in images for users who are blind or visually impaired. However, there are other visual accessibility features you can incorporate to achieve a more inclusive site experience:

• Closed captions for videos: Closed captions are text descriptions of a video’s audio content that appear on screen. This feature allows users who are deaf or hard of hearing to understand what’s said in the video. You can add closed captions easily using various tools or plugins available on most video hosting platforms.
• Suitable color scheme and design: Include high-contrast colors on your site, avoid relying on color alone to convey information, and use easily readable fonts. You should also ensure the layout of your website is consistent and easy to follow.
• Legible text and interactive elements: Adopt a responsive website design that adapts to different screen sizes and resolutions. Also, offer options for users to adjust the size of the text or the zoom level on the page.

Cognitive accessibility features

This category of features is essential for users with cognitive disabilities, such as attention deficit hyperactivity disorder (ADHD), dyslexia, or autism. These users may have difficulty with reading comprehension, memory, or processing information, which can make it challenging to navigate and use a website. To lower these barriers, you can:

• Include simple language and clear instructions: Avoid complex sentences or technical jargon that can be difficult to understand. Instead, use plain language and concise sentences to convey your message.
• Employ a consistent design and layout: Featuring consistent design elements, such as color schemes, fonts, and page layouts, makes it easier for users with cognitive disabilities to comprehend your website. Additionally, maintain a clear and uncluttered website layout, with a logical hierarchy of content.
• Provide support: This can include providing audio recordings of your content or using text-to-speech software. Additionally, you can provide a glossary or list of frequently asked questions (FAQs) to help users understand your website content.
• Offer clear feedback to users: Display confirmation messages when users complete an action, such as submitting a form or making a purchase. Be sure your error messages are clear and concise as well, with suggestions for how to correct the error.

The subtle benefits for you

By making your website accessible to all users, you can increase your consumer base and improve your brand reputation. Not to mention, it’s simply the right thing to do.

In terms of technical aspects, accessibility significantly improves SEO. Search engines like Google prioritize websites that are accessible to all users, including those with disabilities. As such, implementing accessibility features such as alt text for images and closed captions for videos boosts your website’s search engine rankings, which can ultimately lead to more traffic and conversions for your website.

An accessible website is also necessary to comply with legal requirements and prevent potential lawsuits. Failure to abide by accessibility laws can result in legal action against your business, costly lawsuits, and negative publicity. By prioritizing accessibility in your website design, you can mitigate these risks and ensure that your business is complying with legal requirements.

Finally, it enriches the overall user experience for every visitor, not just those with disabilities. Features like clear navigation and easy-to-read text create a more user-friendly website that’s simpler to use. This can increase customer satisfaction and loyalty, resulting in higher conversions and revenue for your business.

Wrapping up — Open access to your eCommerce website to all visitors

Ensuring your eCommerce website is accessible to all users is both a legal requirement and a moral obligation. You can transform your website into an inclusive experience using textual, navigational, visual, and cognitive accessibility features.

Incorporating these elements provides a smoother experience for all visitors, which serves to expand your customer base and strengthen your site’s SEO. Additionally, you’ll prevent potential lawsuits by complying with legal requirements.

Accessibility is an ongoing process, and you should regularly evaluate your website’s to make sure it meets the needs of all users. By prioritizing accessibility in your website design, you’ll create a more inclusive online environment and set a positive example for others in your industry — while reaping the rewards of greater consumer loyalty.

As customer expectations evolve, eCommerce retailers must adapt by implementing advanced solutions that cater to their clientele’s growing demands. One aspect that plays a vital role in achieving this is logistics management, with third-party logistics (3PL) providers emerging as indispensable partners for online merchants.

To better understand eCommerce sellers’ current priorities, challenges, and objectives, we conducted an extensive seller survey, gathering insights from business owners across various channels and industries.

Our survey provides a comprehensive overview of the online retail landscape in 2023, highlighting the ever-increasing importance of logistics and 3PLs for eCommerce merchants as they navigate the digital road to success. Read on and dig into some of the most interesting eCommerce 3PL data we uncovered.

The role of logistics and 3PLs for eCommerce merchants

Logistics and 3PL providers are integral for robust eCommerce operations, as they encompass everything from inventory management and order fulfillment to shipping and returns.

Logistics management directly impacts customer satisfaction and the overall shopping experience. By streamlining that process, businesses can ensure timely delivery, maintain adequate inventory levels, and offer exceptional customer service.

This is where 3PLs come into play. Outsourcing logistics to a 3PL allows eCommerce retailers to leverage the expertise and resources of seasoned professionals, enabling them to focus on their core competencies.

With a 3PL, eCommerce merchants can connect to a wide network of distribution centers, carriers, and other resources. This results in lower shipping costs and faster delivery times. 3PLs also offer the flexibility to scale operations up or down, depending on the business’s needs, ensuring optimal efficiency. Additionally, 3PLs often employ cutting-edge technology to help businesses optimize their supply chains and streamline the fulfillment process.

However, the journey to successful logistics management has its challenges.

eCommerce merchants often face obstacles such as finding the right 3PL partner, overcoming integration difficulties, and ensuring seamless communication between all parties involved.

Navigating these challenges is critical to effective logistics management. It lays the foundation for a fruitful partnership with a 3PL provider, ultimately driving growth and success for eCommerce businesses in the long run.

Interested in other results from our 2023 Seller Survey? Check out MyFBAPrep’s Seller Survey Insights 2023.

Most common 3PL partners among eCommerce merchants

Selecting the right 3PL partner is a crucial decision that significantly impacts a business’s growth and success. According to our recent survey, the most common 3PL partners that eCommerce merchants contract with are:

1. FedEx (58.9%)
2. UPS (43.9%)
3. Amazon FBA (43%)
4. Amazon MCF (35.5%)
5. USPS (29%)

These industry giants have established themselves as reliable and efficient logistics providers, making them popular choices among eCommerce retailers.

But how do merchants find their ideal 3PL partner?

How eCommerce merchants choose a 3PL partner

Our survey revealed the most common ways to find a 3PL partner are referrals, social media, online ads, and industry events:

1. Social media (39.2%): Social media platforms are a valuable resource for discovering and researching 3PL providers. Many 3PL companies maintain a presence on popular social media channels such as LinkedIn, Facebook, Twitter, and Instagram to showcase their services, share industry news, and engage with prospective clients.
2. Referrals (15.9%): Many merchants rely on word-of-mouth recommendations from their peers or industry contacts. This approach leverages firsthand experiences and insights, which can help businesses identify a partner with a proven track record of success.
3. Ads outside of social media (12.2%): You can often find ads for 3PL providers on various digital platforms, search engines, and industry-specific websites. These spotlight potential 3PL partners and educate sellers about their services and offerings.
4. Industry events (11.2%): Attending conferences, trade shows, and other industry-specific events can be an effective way to meet 3PL providers and learn about their offerings. These events often feature presentations and panel discussions that reveal valuable insights into the latest trends and best practices in logistics management.

Take advantage of these portals to find and select a 3PL partner that aligns with your unique needs and objectives.

What merchants consider when choosing 3PLs

When selecting a 3PL partner, eCommerce merchants consider several factors to ensure their chosen provider meets their unique needs and objectives.

According to our survey, the most crucial aspects that influence their decision-making process are:

1. Price (56.6%): Cost is a top concern for eCommerce retailers. They look for competitive pricing structures and strive to balance affordability with quality service. Pricing encompasses warehousing, order fulfillment, shipping costs, and any additional fees.
2. Delivery speed (46%): Fast and efficient delivery is mandatory to meet customer expectations and enhance the overall shopping experience. Merchants prioritize 3PL providers that offer quick turnaround times and efficient same-day, next-day, or two-day shipping options.
3. Reliability (45.4%): Online sellers need a 3PL partner who consistently delivers on their promises. Reliability includes meeting delivery timelines, maintaining accurate inventory levels, and minimizing errors in the order fulfillment process.
4. Ease of use (40%): A user-friendly and intuitive interface is essential for seamless integration and efficient management of logistics operations. Merchants prefer 3PL providers with simple and straightforward systems that remove the complexity of managing inventory, tracking orders, and handling returns.
5. Customer service (33.2%): Responsive and proactive customer support is foundational to a successful 3PL partnership. Sellers value providers that offer dedicated account managers, timely issue resolution, and regular communication to ensure smooth logistics operations.
6. Services (30.4%): A 3PL provider’s range of services can be a decisive factor for eCommerce merchants. Businesses look for partners catering to their specific needs, such as kitting and assembly, customized packaging, or international shipping.

Consider these factors carefully to identify a 3PL partner who aligns with your requirements and streamlines logistics operations.

Your business may benefit from a 3PL partnership. Read our blog on why you should outsource your eCommerce logistics.

Most common concerns when partnering with 3PLs

Despite their advantages, 3PLs have a few concerns that cause eCommerce sellers to hesitate. Identifying and addressing these concerns is crucial for fostering a successful and lasting relationship.

According to our survey, the most common concerns include:

1. Shipping mistakes (42%)
2. Expensive shipping costs (37.2%)
3. Poor communication (28.2%)
4. Inventory loss, theft, or breakage (27.2%)
5. Lack of services (23.2%)
6. Inaccurate receiving (20%)

To address these issues and ease merchants’ worries, 3PL providers are taking proactive steps like:

• Investing in internal processes: Implementing robust quality control measures, investing in advanced technology, and providing continuous training for staff can help reduce shipping errors. Scheduled audits and performance evaluations also ensure 3PL providers maintain robust operations.
• Cutting shipping costs: This includes transparent and flexible pricing structures, negotiating better rates with carriers, and providing access to a wide network of shipping options. Regularly reviewing and optimizing shipping strategies can yield cost savings for merchants.
• Strengthening communication: 3PLs now focus on establishing clear lines of communication, offering dedicated account managers, and adopting efficient communication tools to improve the flow of information between them and their clients. Regular updates on order status, inventory levels, and other logistics-related matters also build trust and enhance the partnership.
• Protecting inventory: To reduce theft, loss, and damage, providers are implementing stringent security measures, investing in warehouse management systems, and conducting regular inventory audits.
• Expanding services: As eCommerce needs increase in complexity, fulfillment providers see the need to expand and diversify their service offerings, stay abreast of industry trends, and customize solutions to cater to the unique requirements of eCommerce merchants. This enables 3PLs to become versatile partners capable of adapting to the evolving demands of their clients.
• Refining receiving processes: This involves streamlining the receiving process, utilizing barcode scanning technology, and ensuring accurate documentation. 3PLs also run regular audits and staff training to improve the accuracy of their inventory-receiving processes.

By addressing these concerns and demonstrating a commitment to excellence, 3PL providers can instill confidence in eCommerce merchants and establish themselves as trusted partners in the online retail ecosystem.

Wrapping up — Learn from our eCommerce 3PL data

A robust logistics strategy with the support of a reliable 3PL partner can significantly impact your business’s overall success and growth.

As customer expectations evolve, effective logistics management becomes even more critical in ensuring a seamless shopping experience and, ultimately, higher customer satisfaction and loyalty.

Diligently assess your business’s unique needs and objectives and conduct thorough research on potential 3PL partners to secure a logistics solution that streamlines your operations and propels your eCommerce venture to new heights.

Customer trust is hard to earn and easy to lose. ​​After a single negative experience, 76% of consumers will stop doing business with a company.

In eCommerce, providing exceptional customer support is crucial to set your business apart from competitors and maintain consumer loyalty. However, offering 24/7 support can be challenging, especially if you have limited resources.

Luckily, automated customer support solutions can help. Using technology like chatbots and AI, you can offer fast, efficient, and personalized customer support with zero human intervention.

In this guide, we’ll walk you through the benefits of implementing automated customer service solutions for your eCommerce business and offer tips to help you get started.

What is customer service automation?

Automated customer support refers to the use of artificial intelligence (AI), chatbots, and other technology to automate various aspects of customer support. Popular tasks to streamline include answering FAQs, providing real-time assistance, and guiding customers through the purchasing process.

Implementing this option brings many advantages, such as round-the-clock availability, support consistency, cost savings, and more. Automated solutions come in many forms though, and which will work best for your business depends on your channels, your budget, and your available resources.

Types of customer service automation

As an eCommerce business owner, you have several options to improve your customer service. We’ve listed the most common solutions below.

Automated chatbot

Chatbots are AI-powered software programs that can engage in automated conversations with customers through chat windows on your website or messaging apps like Facebook Messenger. Some can even interact with buyers through voice commands, providing quick answers to commonly asked questions.

Automated email

Email automation tools allow you to send personalized emails to customers automatically based on their behavior, such as abandoned cart reminders or follow-up emails after a purchase.

Automated phone

With automated phone solutions, customers can receive support even outside of business hours — allowing you to provide 24/7 support and thus improve the overall customer experience.

This reduces the workload of your support team, which saves on staffing costs while still providing high-quality customer service.

Automated social media

Social media automation tools help you manage your social media accounts. Automatically respond to customer inquiries, comments, and messages for top-notch service.

Implementing automated customer support

Introducing automated customer support solutions can streamline your customer service processes and improve the overall customer experience. However, the task can be complex if you jump in without preparing ahead.

To ease the transition, here are some helpful tips to implement automated customer support smoothly in your business.

Choose a robust solution

Consider these key factors when selecting the right solution for your business:

• Customer needs: Consider your customers’ specific needs, including the type of support they require and their preferred communication channels.
• Scalability: Your chosen solution must be able to grow with your business and handle an increasing volume of customer inquiries and interactions.
• Integration: Ensure the software can integrate with your existing systems, such as your eCommerce platform and CRM.
• Ease of use: Search for a solution that’s easy to set up and use, with an intuitive interface your team can learn quickly.
• Cost: Look into the total cost of the solution, including any ongoing fees, and ensure it provides sufficient value for your business to justify its expense.
• Analytics and reporting: Look for tools that provide data on customer interactions, enabling you to delve into and optimize your support processes.

Integrate your solution into existing systems

When choosing an automated customer support tool, look for one with robust integration capabilities like APIs, plugins, and third-party integrations.

Assess your existing systems, including your eCommerce platform, CRM, and other tools, to determine which integration points are necessary for smooth integration. Then, test the integration between your customer service automation solution and your existing systems to ensure everything works as expected.

Even after you join these two elements, you should continuously monitor the integration and make necessary adjustments to optimize performance.

Train your staff

Provide your team with comprehensive training on your adopted automated customer support system, including its features, functionality, and how to use it most effectively.

Throughout the process, encourage your team to provide feedback on the new software, such as any issues or areas for improvement. This will help you refine the system before it launches and ensure it meets the needs of both your team and customers.

Then, develop a knowledge base or training materials your team can refer to when using the automated system. Access to this knowledge base will help them troubleshoot problems quickly and provide efficient support to customers.

Launch and promote

Test the solution with a small group of customers to identify any additional issues or areas for improvement and make necessary changes.

Once you’re confident the system works effectively, launch it and promote it to your customer base through your website, social media, and email marketing.

How customer service automation benefits your eCommerce business

eCommerce customer support software is designed to improve customers’ experience by providing them with fast, efficient, and personalized service around the clock—without requiring human intervention.

Here are a few ways in which automated customer support solutions can benefit your business:

24/7 Availability

With automated support systems, you can provide your customers support anytime, day or night.

This 24/7 availability can lead to increased customer satisfaction and loyalty, as customers will appreciate being able to receive assistance whenever they need it.

Reduced workload for support teams

Automating common support tasks can free up your support teams to focus on more complex issues. This improves both their productivity and job satisfaction, as they can spend more time on challenging and fulfilling tasks.

Increased efficiency and speed

Automated support systems respond to customer inquiries instantly, providing fast and efficient service that delights shoppers and minimizes their frustration.

Consistency in support

With automated support systems, you can achieve consistent and accurate responses to customer inquiries. This ensures everyone receives the same high level of support, regardless of the time of day or the representative they interact with.

Cost savings

By automating common support tasks, you reduce reliance on your support team. In turn, that cuts down on staffing and training costs without sacrificing the quality of customer support.

Improved data analytics

Automated solutions collect data on your customers’ inquiries and behaviors, revealing valuable insights into their needs and preferences. You can then use that information to improve your products and services, as well as personalize your marketing and customer support strategies.

Leverage this data trove to better understand your customers and provide a more tailored and fruitful customer experience.

Challenges of customer service automation

It’s important to be aware of the challenges of implementing automated customer support solutions before you rush into adding it to your eCommerce business:

• Lack of personalization: Many solutions lack the personal touch of human support, causing customers to feel dissatisfied or frustrated.
• Language barriers: Automated support systems may struggle to understand non-native speakers or customers with unique dialects or accents, which can result in miscommunications or misunderstandings.

• Technical issues: No piece of tech is perfect, but with automated support systems, you risk technical issues such as bugs or system failures, leading to downtime or inaccurate responses to customer inquiries — all of which can significantly hurt your business.

• Difficulty handling complex issues: Some solutions may struggle to accommodate complicated customer inquiries, requiring escalation to a human support team and thus delaying a resolution.
• High implementation costs: It can be costly to incorporate an automated customer support solution, as they entail significant technological and training investments.
• Maintenance and updates: These systems require ongoing maintenance and updates to remain effective, which can be time-consuming and expensive.

Understanding the challenges of automated customer support solutions is the first step in addressing them properly.

By facing these obstacles head-on, you’ll ensure your system meets the needs of your customers and business goals. This may involve investing in additional training for your support team, upgrading your technology infrastructure, or implementing new processes to improve the accuracy and effectiveness of your automated customer support system.

Wrapping up — Satisfy your customers with automated service

Automated customer support solutions are invaluable for eCommerce businesses seeking to improve their customer service processes and drive growth. They provide 24/7 support, faster response times, and personalized service while reducing costs and freeing up resources for more complex business issues.

However, implementing customer service automation is not without its challenges, such as language barriers and technical issues. Consider these obstacles carefully when selecting a solution to encourage a smoother integration.

Look for an eCommerce customer service software that meets your business needs and establish procedures for any issues that may arise. By leveraging automated customer support, you’ll provide exceptional customer experiences that build loyalty and drive sales.

Customer expectations for shopping experiences are higher than ever. Fast, reliable, and trackable deliveries are just some of the perks customers assume as standard. These assumptions have become so mainstream that 42% of shoppers leave their carts due to issues with the estimated delivery date, while 24% abandon orders due to no delivery date provided.

As you step into your next growth phase, having an extra pair of hands can ensure your fulfillment and supply chain run smoothly. That’s where 3PLs and 4PLs come in. We’ve compiled a list of top-performing providers for eCommerce and retail brands to help you find your business match. Before we dive in though, let’s clear up some definitions.

What’s a 3PL?

A third-party logistics (3PL) provider handles fulfillment-related tasks that eCommerce brands outsource, including warehousing, inventory management, picking and packing, shipping, and returns.

What’s a 4PL?

A fourth-party logistics (4PL) provider covers the same tasks as a 3PL but also takes care of the entire supply chain, including freight booking, legal and customs clearance, reverse logistics, and other tasks.

First impressions count. Partner with MyFBAPrep to build a stellar post-sale experience.

3PLs vs. 4PLs

The difference between a 3PL and a 4PL lies in the tasks they handle within a supply chain. A 3PL is limited to a set list of duties so the eCommerce business maintains most of the control over their supply chain. With a 4PL, the company hands over the responsibility for managing their entire supply chain.

(If you want a breakdown of the benefits of working with a 3PL, check out our blog post on the topic here.)

Top 3PLs

XPO Logistics

XPO is a large-capacity logistics provider specializing in Truckload (TL) and Less Than a Truckload (LTL) shipments. They use cutting-edge technology to formulate optimal carrier volume and capability. XPO also offers services such as truck brokerage, last mile, expedited, and global forwarding.

Service highlights: TL, LTL, and temperature-controlled shipping

Best for: Businesses requiring road transportation

APL Logistics

APL Logistics prides themselves on simplifying complex fulfillment processes and making them seamless. Through services such as global shipping, distribution, and order management, plus visibility through analytics, they build streamlined systems to move goods from point A to point B efficiently.

Service highlights: End-to-end fulfillment solutions, socially responsible practices, global offices in more than 60 locations, over 100 years of experience

Best for: Brands with complex supply chains and fulfillment requirements

Americold

Some fulfillment providers shy away from transporting fragile, temperature-controlled items, but Americold takes the task head-on. During their 120 years in business, Americold has mastered the art of shipping and storing specialized goods safely, sustaining them with purpose-built transportation, warehousing, and integrated technology. So, whether you’re a retailer, producer, or food service provider, Americold has what you need for worry-free logistics.

Service highlights: Temperature-controlled warehousing and transport, storage for fragile items

Best for: Businesses selling perishable goods

Imperial Logistics

Shipping goods across Africa? Partnering with Imperial Logistics could be a wise move.

Tap into the company’s growing strategic partnerships and geographies. What’s more, Imperial Logistics also offers a unified route-to-market solution for their clients that incorporates shipping, warehousing, distribution, and supply chain management.

If you’re looking for a team to take the stock purchasing process off your hands, Imperial Logistics can execute this for you as well. Fulfillment with a purpose is important to this 3PL provider, so you can pride yourself on partnering with a company that regularly donates resources to charitable causes around the globe.

Service highlights: Diverse industry experience, comprehensive fulfillment, and supply chain management services for Sub-Saharan Africa

Best for: Brands with cross-border sales from or stores in Africa

Landstar

Living up to their name, Landstar is a widely connected, safety-focused shipping company specializing in land transportation. Boasting an extensive workforce of 1,200 agents, 11,000 leased-owner operators, 18,000 trucks, and 90,000 approved trailer capacity providers, Landstar has everything you need to transport goods overland securely. They also offer land shipping services globally.

Service highlights: Flexible logistics, integrated transportation, safety-first practices

Best for: Businesses with fragile and high-value goods

Penske Logistics

Shipping goods that require refrigeration or freezing? Consider partnering with Penske. They have extensive experience hauling food and boast state-of-the-art technology to back it up.

Penske remains competitive in their offering too. From contract carriage and supply chain management to transport management and freight brokerage solutions, Penske maintains an impressive supply of services to keep your inventory cold.

Service highlights: Vast service capabilities, tech-enabled, data-backed supply chain management

Best for: Businesses selling perishable items

Mainfreight

Global logistics provider Mainfreight is on a mission to help their customers construct dependable and efficient supply chain logistics. Combining air, ocean, and land shipping with warehousing and technology, Mainfreight provides effective, complete logistics.

The company is a visionary, relying on a 100-year strategy that shapes everything from their recruitment and culture to their growth tactics.

Service highlights: Large workforce with over 11,000 team members, 44 years in business, ships to 26 countries, end-to-end supply chain management, 315 branches globally

Best for: Businesses that want to outsource control of their supply chain management

ShipBob

ShipBob is an omnichannel fulfillment provider specifically for e-tailers and retailers.

So, if you ship orders from Canada, the UK, the U.S., or Australia, look into ShipBob’s global network to fuel your cross-border expansion.

The company offers various services to help brands scale their fulfillment capacity with their growth. These include receiving goods, pick-and-pack capabilities, and order customization.

ShipBob also provides apps and APIs for smooth integration to help you build a powerhouse tech stack.

Service highlights: Custom pricing, extensive shipping territory (to over 220 countries), strategic integrations, proprietary apps, and APIs

Best for: eCommerce startups ready to scale

Omni Logistics

From freight forwarding to distribution and storage, Omni Logistics steps up to the plate with a diverse range of services spanning the entire supply chain. Whether you need help with trade show logistics, white glove logistics, relocation, customs, or compliance, Omni Logistics’ flexible approach to fulfillment makes them a solid candidate.

They also have expertise in many industries and can customize solutions for retail, eCommerce, tech, healthcare, and more.

Service highlights: Flexible approach to fulfillment, a diverse range of offerings, customizable services, cost-effective

Best for: Brands needing specialized fulfillment or those that want customized fulfillment solutions

Red Stag Fulfillment

Shipping large orders cost-effectively, safely, and quickly can be challenging for even the most experienced shipping company. But for Red Stag, their services allow them to excel at it.

Red Stag understands the importance of creating a fantastic customer experience through your fulfillment and is dedicated to providing seamless service to keep those almighty five-star reviews rolling in. Their services include warehousing, kitting and assembly, and pick and pack, and Red Stag integrates with many major eCommerce platforms as well.

Service highlights: Specialization in shipping heavy and bulky items, accommodation for goods that need special attention and handling, cloud-backed solutions, omnichannel fulfillment

Best for: B2B and B2C retailers and eCommerce brands selling wholesale or large items

ShipNetwork

ShipNetwork (formerly Rakuten) offers fast ground shipping (as quick as one to two days) at low rates for 98% of the U.S. Pick from a host of 3PL services, including freight, one-day order fulfillment, returns management, and kitting, as well as specialized services like temperature-controlled shipping.

ShipNetwork cares about doing the job right — so much so, they guarantee 100% accuracy along with U.S.-based support to keep fulfillment on track.

Service highlights: U.S.-based fulfillment services, fast shipping

Best for: Brands that sell only in the U.S.

Radial

Great customer experience through fine-tuned logistics is Radial’s specialty. This fulfillment expert offers tailored solutions for eCommerce solutions that scale with your brand.

Services span transport and fulfillment management. Some of the perks you receive as a Radial client include extended holiday cutoffs, actionable reports and analytics, and an expansive carrier network to simplify management.

Service highlights: Personalized eCommerce fulfillment, customer-centric services

Best for: Growth and customer-focused eCommerce brands

Shipwire

Shipwire isn’t just another fulfillment provider focused on shipping products; they care about their customers’ growth and actively support it. On top of logistics and warehousing services, Shipwire offers a cloud-based order and inventory management platform, live intelligence tools, and customizable reporting.

Clients can also integrate with popular sales channels, and hands-free parcel routing for each order ensures optimal shipping times (all of which the system manages).

Service highlights: Full-service fulfillment, insight-backed approach, global shipping

Best for: Retail and eCommerce brands

AFS Logistics

AFS’ secret to success lies in their data: Having managed $11 billion in transportation transactions, they’ve transformed the insights gleaned from this experience into actionable strategy. Their data-led approach has also enabled AFS to secure $183 million in savings for their clients.

This 3PL provider can help you with LTL, TL, express, and ground shipping, as well as parcel and freight audits. If your company prioritizes insights, AFS could be a strong match.

Service highlights: Cost-effective services, transportation management solutions, parcel and LTL solutions

Best for: Data-focused brands and businesses looking for a complete suite of supply chain services

AIT Worldwide Logistics

AIT is a global freight forwarder offering flexible and cost-effective fulfillment services like intermodal, ground distribution, and warehouse management. Sustainability is important to AIT, so they pursue shipping options with less of an environmental impact. If you need help balancing the books for your supply chain, the company also provides lending assistance.

Service highlights: Supply chain finance and auditing, fulfillment, warehousing, chain cold transportation, import/export customs assistance, reverse logistics, green logistics

Best for: Brands looking for flexible and environmentally friendly fulfillment options

Capacity

Capacity focuses on helping brands pick, pack, and ship goods. This commerce-focused 3PL has value-added services and efficient transportation options, as well as warehousing within carriers’ commercial zones across Europe and the U.S. for swift collection.

Service highlights: eCommerce and retail specialization

Best for: Retail and eCommerce startups

Fulfyld

This 3PL eCommerce provider boasts strong warehousing and distribution. Fulfyld helps budding online stores streamline their order fulfillment and back-end processes for a two-day delivery window that’ll delight customers.

The 3PL also offers specialized services such as omnichannel fulfillment, B2B distribution, Amazon SFP and FBA Prep, crowdfunding fulfillment, and subscription box management. As a bonus, Fulfyld assigns a dedicated account manager to each client.

Service highlights: Two-day delivery guarantee, extensive range of fulfillment types, returns management, subscription box management

Best for: eCommerce businesses of all sizes

FedEx

If you need flexible fulfillment assistance for your in-house operations, FedEx can help. Offering efficient packaging options, an accommodating pickup schedule, and delivery seven days a week, you’ll quickly gain a handle on your back-end operations.

FedEx’s global coverage and affordable rates also make cost-effective freight accessible for even the smallest of operations.

Service highlights: Global shipping, seven-day home delivery fulfillment, extensive knowledge bank

Best for: Startups with in-house fulfillment setups, fluctuating order volume, and global following

C.H Robinson

C.H Robinson is a 3PL and Fortune 200 company that combines robust logistics solutions and high-spec technology to create optimized supply chains. Their longstanding carrier relationships and global network allow them to achieve competitive rates up to 15% less than what’s offered on the market.

C.H. Robinson excels in helping businesses digitally transform their back-end operations, leading to the provider being named in two Gartner® Magic Quadrant™ reports for TMS and live visibility platforms.

Service highlights: Proprietary bidding system, on-demand freight services, transport management, and brokerage, freight forwarding, and live tracking systems, plus over 85,000 carriers and 100,000 customers

Best for: Established eCommerce and retail brands

Fourth-party logistics companies (4PLs)

MyFBAPrep

MyFBAPrep is a flexible fulfillment provider offering a full suite of fulfillment services for DTC, marketplace, and omnichannel brands, including picking, packing, shipping, and returns.

For value-added services, MyFBAPrep has you covered, with solutions including product kitting, pallet bagging, sorting and segregation, subscription box creation, and co-packing. Also, through their proprietary inventory management, Preptopia, MyFBAPrep helps their clients spot both problems and opportunities while establishing direct communication with their warehouses. MyFBAPrep also works as a partner for 3PLs and 4PLs.

Service highlights: Expansive warehousing (over 50 locations globally), value-added services, transparent and fair pricing

Best for: Scaling eCommerce and omnichannel brands, 3PL and 4PL partnerships

Want to level up your fulfillment process? Learn how MyFBAPrep can help.

Maersk

Maersk is a world-renowned integrated container shipping and logistics provider. Their digital approach to supply chain management, extensive industry experience, and global service has allowed them to build an impressive reputation in the transport and logistics industry.

You can also secure instant prices and custom quotes through their website. In addition to digital and transportation solutions, Maersk provides risk, insurance, and payment solutions.

Service highlights: Integrated container logistics and supply chain services, digital supply chain and customer order management, financial services

Best for: Established brands going global

XPO Logistics

XPO is a 4PL provider specializing in TL and LTL road shipping. Focused on efficiency, this service employs advanced technology to streamline processes and make tracking deliveries easy. Services include expedited global forwarding, last mile, and managed transportation. If you’re ready for your goods to hit the road, give XPO a call.

Service highlights: Trucker brokerage, LTL, and TL transporting

Best for: Companies looking for road transportation of goods

Kuehne+Nagel

An experienced 4PL provider, Kuehne+Nagel combines cutting-edge technology with their extensive supply chain expertise to drive efficiency and cost-savings for their clients.

Services include sea, land, and air freight forwarding, as well as contract logistics. Data guides Kuehne+Nagel’s every move, and IT architecture integrates with more than 40 technological solutions for seamless insight sharing and supply chain visibility.

The company’s efforts have paid off, earning the title of “most visionary leader” in Gartner’s Magic Quadrant for 3PL Logistics in 2022.

Service highlights: End-to-end supply chain management, including transportation, order management, and fulfillment consulting

Best for: Brands needing to simplify and digitize their entire supply chain

ShipHero

ShipHero is a modern 4PL focused on making shipping easier for eCommerce brands. Whether you opt to outsource your entire supply chain or want to cherry-pick fulfillment solutions, ShipHero can support your business needs.

They offer a wide range of fulfillment services, including mobile pick and pack, B2B order fulfillment, putaway, order and return management, and inventory management. ShipHero has warehouses across the U.S. and provides a warehouse management system clients can subscribe to for end-to-end visibility.

Service highlights: Expansive carrier network, experienced eCommerce fulfillment providers, tech-backed

Best for: DTC eCommerce brands

DSV

As a growth-focused 4PL provider, DSV helps brands large and small scale sustainably with their 75,000-strong team. DSV offers global transport and logistics by road, air, sea, and rail freight, plus solutions like warehouse management, purchase order management, and distribution.

One feature that sets DSV apart is their self-service tool: Aside from requesting quotes, you can manage POs, book shipments online, track and manage products in your business ecosystem, and more. So, whether you’re looking for a 4PL to take over the entire supply chain management process or want to manage everything yourself, DSV can help.

Service highlights: Self-service tools, large skilled workforce, accommodations for various growth stages

Best for: Retail and eCommerce businesses of all sizes

Nippon Express

Boasting 739 locations in over 49 countries and regions, Nippon Express has the connections and infrastructure necessary to ship goods internationally without breaking the bank. Choose from air, sea, rail, or road freight or a combination to create your optimal shipping journey.

This 4PL provider also boasts specialized transportation such as fine arts moving, cross-border fulfillment, and heavy goods, construction, and halal logistics.

Nippon Express caters to many industries spanning fashion and retail to food and electronics. So, if you need supply chain management, global transport services, and warehouse and distribution solutions rolled into one, Nippon Express is a great option.

Service highlights: International coverage, specialty shipping, extensive industry-type experience

Best for: Brands needing global supply chain services or having special shipping requirements

Schneider

Schneider is committed to helping their clients “get and stay ahead” by offering one of the largest ranges of logistics services. This 4PL serves both shippers and carriers through services such as dry van truckload, intermodal, bulk, refrigerated, flatbed, and LTL shipping.

They also provide a trademarked online marketplace where businesses can find carriers and services, obtain instant quotes, and access shipping documents on demand.

Service highlights: TL, intermodal, cross-border freight, brokerage, cross-dock logistics, supply chain management, and port logistics

Best for: Brands that want more control over managing logistics

Logistics Plus

Dubbed a 21st-century logistics company, Logistics Plus focuses on executing tasks with precision to drive customer satisfaction. The 4PL provider maintains a broad range of services covering transportation, global freight forwarding, customs and compliance, Importer of Record services, warehousing, and 3.5PL and 4PL. Their dedication is recognized in the industry, with Inbound Logistics magazine naming Logistics Plus a 2022 Top 100 3PL.

Service highlights: Specialized shipping setups, warehousing, international, project cargo, supply chain solutions, warehousing, fulfillment installation

Best for: Brands anticipating high growth

Hellmann Worldwide Logistics

Hellmann Worldwide Logistics is an experienced fulfillment provider that’s been in the industry for 150 years and counting.

Their services span rail, road, and sea freight, as well as contract and perishable logistics, special services, and customs brokerage. If you need specific industry experience, there‘s a strong chance Hellmann has it. Some of the industries they serve are fashion, consumer goods, and perishable items.

Service highlights: CEP services, customs brokerage, perishable goods logistics

Best for: Brands needing various shipping types and fulfillment services

Hub Group

Hub Group is a technologically advanced trucking 4PL with strengths in eCommerce and B2B. They offer end-to-end supply chain services and a strong omnichannel fulfillment network. Hub Group will partner with you to customize your solutions and provide tech tools to establish supply chain visibility.

This 4PL is all about trucking, so their shipping solutions include intermodal, dedicated trucking, and truck brokerage.

Service highlights: eCommerce and B2B omnichannel fulfillment network, supply chain management, tech-backed, consolidation, final mile fulfillment

Best for: Brands seeking a straightforward fulfillment option

J.B. Hunt

4PL J.B. Hunt empowers their clients to win with a tech-, people-, and capacity-focused approach. Utilizing self-service and done-for-you solutions, J.B. Hunt creates supply chain strategies that give their customers a competitive edge.

Aside from their catalog of fulfillment services, clients can access the company’s Shipper 360™ and Shipper 360™ purpose-built shipping solutions, which simplify the ordering process and provide transparent supply chain visibility.

Service highlights: Intermodal, flatbed, temperature-controlled, international, and expedited shipping, plus managed logistics

Best for: Brands focused on digital transformation

LynnCo

LynnCo takes supply chain management best practices seriously. Leveraging technology, their experienced task force, and innovative strategies, they craft and execute procedures for well-oiled operations.

The 4PL helps customers identify the source of disruptions in their supply chains to construct tailored solutions and strategies for optimal performance.

The hands-free nature of their services combined with their great track record make LynnCo a great match for enterprises hoping to offload all their supply chain management tasks.

Service highlights: Supply chain management, digitization, and consultation

Best for: Enterprises that want to outsource supply chain tasks entirely

CJ Logistics

Formerly DSC Logistics, CJ Logistics isn’t your average fulfillment provider. They feature engineering and consulting services to help their clients build well-optimized supply chains and customized operations.

To set their customers up for long-term success, this 4PL offers supply chain packaging, greenfield warehouse execution, warehousing engineering and automation, and other critical services. CJ Logistics also has experience with managing eCommerce and omnichannel fulfillment, so you’ll feel confident they know what they’re doing.

Service highlights: Supply chain engineering, intermodal and integrated logistics

Best for: Brands seeking customized supply chain solutions

CSX

In their 190 years of operation, CSX has been through many transformations, from horse-drawn rail cars to their present-day fast, brand-owned railroading. At their core, CSX has always maintained a commitment to improving customer service, controlling costs, optimizing asset utilization, and making a positive impact on the community.

These days, CSX focuses on helping their clients transport goods efficiently in North America, Canada, and, soon, Pan America by rail. So, if you’re looking for experts in rail transport, CSX could be your match.

Service highlights: Rail-to-truck, intermodal, and rail logistics

Best for: Brands seeking pureplay rail transportation

Wrapping up — Find your right fulfillment partner

Bookmark this article as your go-to list of 3PL and 4PL providers for eCommerce and omnichannel businesses. With our trove of recommendations, streamlined fulfillment is within your grasp. Research the options in this list and decide whether a 3PL or 4PL is right for your business needs. Then, dive deeper into the providers that fit your requirements and set up meetings to start your move.

Let us know what 3PL and 4PL options you would add to this list and why.

Over the last three years, millions of online businesses have displayed resilience in the face of the unexpected.

The COVID-19 pandemic accelerated the adoption and innovation of digital commerce, with online shopping increasing by 77% year over year in a matter of months.

By the end of 2023, eCommerce sales will make up one-fifth of all retail sales globally.

However, after years of lockdowns and restrictions, people crave meaningful connections across all aspects of their lives, including commerce. Physical spaces foster online and offline relationships between merchants and customers.

Now, brands must be flexible and responsive to challenges, adding flexibility to their products, strategies, and policies. To help you stay ahead of the curve, MyFBAPrep conducted a seller survey that sought to include eCommerce business owners across all channels and industries.

Our findings shed light on eCommerce merchants’ current priorities and challenges and highlight their priorities as they drive their businesses forward in 2023.

Join us as we explore the new eCommerce landscape and discover where it’s headed this year.

Where are retailers selling?

eCommerce merchants are selling their products and services in a variety of online marketplaces, including established marketplaces such as Amazon (47%), eBay (50%), Walmart (27%), and Etsy (33%).

Other merchants sell through their custom websites (14%) or on platforms such as Shopify (37%) and BigCommerce (12%).

According to our respondents, the top three sales channels are eBay, Amazon Marketplace, and Shopify. This clearly indicates that marketplaces are still thriving, but direct-to-consumer (DTC) sales are also gaining significant popularity.

Statistics reveal 43% of Amazon sellers generate between 25% and 50% of their revenue through Amazon sales, while 35% of DTC sellers generate a similar percentage. These numbers suggest that most merchants have transitioned to a multi-channel approach, leveraging a combination of marketplaces and DTC sales to drive revenue.

Where do retailers want to sell next?

As eCommerce continues to evolve, merchants are constantly searching for new sales channels to expand their reach and grow their businesses.

According to our survey, many sellers (39%) have their sights set on Amazon Marketplace as their next step forward.

For those already selling on Amazon though, the picture takes on a darker hue: Almost 30% are concerned about Amazon’s white labeling and potential competition with their products. It’s a valid worry that closely aligns with the second-most popular concern, which is a decrease in listing visibility or unfavorable algorithm treatment.

While Amazon is a powerful sales channel, these worries highlight the importance of diversifying sales channels, rather than relying solely on one platform.

Embracing a multi-channel approach

Amazon isn’t the only platform capturing the attention of growth-focused merchants; 31% of merchants also want to expand to Shopify. This shows an interesting exchange wherein retail and DTC sellers are interested in exploring Amazon, while retail and Amazon sellers are keen to pursue DTC sales.

These trends display how eCommerce is increasingly moving towards a multi-channel approach, with retailers utilizing a mix of sales channels to reach their customers. As a result, merchants can mitigate risk and take advantage of each channel’s unique strengths to further their business.

What is their average order value?

The data shows most merchants have an average order value (AOV) of $10–$50, with the second-most common AOV falling between $50 and $100.

If your cart sizes are smaller than this, consider employing AOV-boosting tactics to increase the value of each sale. These could include upselling and cross-selling, offering volume discounts, or creating product bundles. By focusing on boosting AOV, merchants can maximize revenue and improve profitability.

Which seller tools are merchants using?

Today’s eCommerce merchants use a multitude of seller tools to streamline their operations, improve efficiency, and enhance the customer experience. Some of the most popular tools include:

• AMZScout (15%): AMZScout is a suite of tools designed for Amazon sellers to research and analyze data related to item sales, competition, and profitability. It provides a range of features and functionalities to help Amazon sellers make informed decisions about their products and business.
• CedCommerce (15.6%): This multi-channel solutions provider offers various tools and services to help merchants sell their products online. CredCommerce boasts integration solutions for eCommerce platforms such as Magento, Shopify, WooCommerce, and BigCommerce, as well as marketplaces like Amazon, eBay, and Walmart.
• Channel Advisor (15.6%): A cloud-based platform, ChannelAdvisor can integrate with popular eCommerce marketplaces including Amazon, eBay, Walmart, and Alibaba, as well as social media channels like Facebook, Instagram, and Google.
• Ecomdash (11.2%): Ecomdash is a cloud-based inventory management software designed for small to medium-sized businesses. It helps merchants streamline inventory management, order fulfillment, and shipping processes across multiple sales channels.
• GeekSeller (16.2%): This comprehensive eCommerce management platform provides a range of customization options that enable merchants to tailor it to their specific needs. They can customize their workflows and automate repetitive tasks, freeing up time to focus on other aspects of their business.
• GoDataFeed (9.8%): Another cloud-based platform, GoDataFeed enables merchants to manage and optimize their product feeds for multiple sales channels. It automates the creation and updating of product feeds for marketplaces like Amazon, eBay, and Walmart, as well as shopping carts like Shopify and Magento.
• Custom-built software (28.8%): One of the most noteworthy statistics to come out of our survey is the number of merchants using custom-built software. Custom software can give merchants a competitive advantage by providing unique and innovative features and functionalities unavailable in off-the-shelf solutions.

Which newsletters and podcasts do merchants subscribe to?

Staying current with the latest trends is essential in the evolving eCommerce industry. With so many resources available, like top marketing blogs and intriguing podcasts, there’s no shortage of in-depth topics and trends to explore.

Below are our results on the most popular podcasts and newsletters merchants are following:

• Shopify Retail Radar: With nearly 1.7 million merchants selling their products through Shopify, it’s no wonder the platform’s newsletter is full of valuable resources and inspiring success stories. Subscribe to the free Shopify Retail Radar newsletter and receive monthly news about eCommerce updates, thought-leader interviews, and advice from industry experts. Whether you already run an online store on Shopify or are considering launching one, this newsletter is a must-read for anyone looking to stay ahead of the game.
• Digital Commerce 360: Digital Commerce 360 is a leading research and media organization that provides objective B2B news, eCommerce analyses, and in-depth market research. When you sign up for their newsletter, you can choose to receive either retail or B2B news (or both) according to your interests. Both options will give you daily news and insights (Monday to Wednesday) about eCommerce trends and strategies from top experts in the field.
• Ecommerce Playbook: Hosted by Andrew Faris, former CEO of an eCommerce aggregator and current VP of growth for an eCommerce growth agency, the Ecommerce Playbook podcast is packed with valuable insights and firsthand experiences. Andrew shares his personal journey, including both recent successes and past failures, with listeners. He also invites fellow entrepreneurs to join the conversation and recount their own eCommerce stories.

MyFBAPrep curates the best news in shipping and operations every other week. Subscribe to our newsletter to stay on top of the market and join over 3,000 fulfillment experts who enjoy the industry’s most relevant news.

What are the top acquisition channels?

The top acquisition channels for eCommerce vary depending on the specific business and industry. Here are our respondents’ top acquisition channels:

1. Social media (62.2%)
2. Amazon ads (36.6%)
3. Referrals/Affiliates (30.4%)
4. Videos (25.4%)
5. Email outreach (27.4%)
6. Paid social ads (28.2%)
7. Influencer marketing (21.8%)
8. Paid search ads (21.2%)
9. Brand partnerships (16.2%)
10. Content marketing/SEO (14.8%)

Looking toward social commerce

With social media coming in at number one, today’s merchants are obviously focusing more on social commerce.

Social media platforms like Instagram, Facebook, and Pinterest have introduced features to support social commerce, including shoppable posts and tags, buy buttons, and in-app checkout. These features allow users to browse and purchase products directly from their social media feeds without having to navigate to a separate website.

Social commerce sales in the U.S. are projected to grow by 34.4% this year, reaching $53.1 billion. Retailers who are able to overcome the trust gap will reap the rewards, attracting a wave of new shoppers and inspiring existing customers to spend more.

Capitalizing on Amazon ads and referral marketing

Amazon ads and referrals take second and third place, respectively. This underscores the large number of merchants utilizing Amazon as a key sales and acquisition channel, as well as the effectiveness of referral marketing.

Amazon ads are a powerful avenue for showcasing your products to potential customers. You can ensure your ads reach the right audience by using a range of targeting options like keywords, interests, and demographics.

Referral marketing is another highly effective acquisition channel for eCommerce businesses. By incentivizing current customers to refer their friends and family to your brand, you can tap into a network of new leads who are already interested in what you offer.

Implementing a loyalty rewards program is a savvy strategy for boosting customer lifetime value (CLV). Learn how to launch a successful referral program.

How are online retailers fulfilling orders in 2023?

The following are the most popular fulfillment methods for today’s merchants:

1. In-house (60%)
2. Amazon FBA (33.2%)
3. Amazon multi-channel (27.4%)
4. Third-party logistics (3PL) provider (21.4%)
5. Dropship (17%)

Identifying logistics concerns

After years of digital transformation, unprecedented growth in eCommerce, and supply chain challenges, the industry experienced a significant shift in 2022. Rising costs and concerns about a potential recession contributed to a slowing of its upward trajectory.

This year, merchants are focusing on anticipating the changes that’ll shape the sector and identifying new opportunities. Their most pressing concerns include:

1. Shipping mistakes (42%)
2. Expensive shipping (37.2%)
3. Lack of services (23.2%)
4. Inventory loss, theft, or breakage (27.2%)
5. Poor communication (28.2%)
6. Inaccurate receiving (20%)
7. Unreliable manufacturers (18.8%)
8. Unreported damages (17.8%)
9. Long prep turnaround time (15.2%)
10. Limited visibility or no inventory reports (14.8%)
11. Geographic constraints/Limited warehouse locations (13.2%)
12. Backlogs and no SLAs (12.6%)
13. Unfamiliarity with FBA standards (11.2%)
14. Containers sitting idle (10%)
15. No reverse logistics processes (7.2%)

Overall, merchants need to pay close attention to logistical concerns to ensure their operations are efficient, cost-effective, and sustainable while also meeting their customers expectations.

Top 3PL providers

For those merchants using 3PLs, their most commonly used partners are:

1. FedEx (58.9%)
2. UPS (43.9%)
3. Amazon Multi-Channel Fulfillment (35.5%)
4. USPS (28.9%)
5. eFulfillment Service (23.4%)

An overwhelming majority of our respondents found their 3PL through social media (39%), with friends or family (15%) coming in second.

When choosing a 3PL, these online retailers consider price (56%) and delivery speed (46%) to be the most influential factors, with reliability (45%), ease of use (40%), and customer service (33%) closely following.

What are merchants prioritizing in 2023?

In 2023, eCommerce merchants are prioritizing a range of strategies to remain competitive and meet evolving consumer demands.

Increasing customer retention (32%), growing teams (32%), and content marketing (29%) are top points of focus for retailers this year. These goals are in line with experts’ predictions for the coming year.

The emphasis on retaining existing customers is based on the statistical probability of selling to an existing customer versus a new prospect: While the likelihood of selling to an existing customer is 60%–70%, the chances lower to just 5%–20% for new prospects. This underscores the importance of building strong customer relationships and providing exceptional experiences that keep customers coming back.

Wondering how to optimize your post-purchase experience to boost customer retention? Our blog explains how to deliver a memorable experience for your customers.

Other priorities for merchants in 2023 include building brand awareness (26%), optimizing fulfillment (25%), and catalog expansion (21%).

Wrapping up — The only constant in eCommerce is change

Our Seller Insights survey highlights the significant shifts and challenges that the eCommerce industry has experienced in recent years. From changing consumer expectations to supply chain disruptions, merchants have had to adapt quickly to remain competitive.

Looking ahead, sellers are prioritizing strategies like customer retention, multi-channel selling, brand awareness, and data-driven decision-making to optimize their operations and meet evolving consumer demands.

By staying informed and agile in the face of these ongoing fluctuations, eCommerce merchants can weather the storm and continue to drive growth and success in their businesses for years to come.