Amazon has become an e-commerce giant, delivering everything from computers and home goods to toys and shoes to almost every corner of the world. But, they have also started to build their own global freight and parcel distribution network, and with that, stepped into the world of logistics.
Last year, Amazon announced plans to build out its own logistics services – simply to handle the surging number of online orders that UPS, FedEx and the U.S. Postal Service cannot. They launched an initiative where entrepreneurs can form small delivery companies to help it deliver packages the “last mile”.
As its massive fulfillment network keeps expanding at an incredible pace, Amazon invites merchants to join Fulfillment by Amazon (FBA), promising quick business growth. In return for a monthly fee, Amazon picks, packs, ships, and provides customer service for your products. An enticing prospect, for sure. But there’s a potential downside to using FBA.
When you let Amazon take care of packing and shipping your orders, you are then locked into the Amazon network, where the company dictates all terms and conditions. This means you give up a lot of control.
For one thing, Amazon packs and ships their way, so you don’t get to discover materials or routes to a lower cost. Secondly, your inventory is sorted by like, which means that the product that goes to your customer may not necessarily be the one you sent Amazon.
So, when you are considering convenient ways to distribute your products, is there an alternative to Fulfillment by Amazon?
Enter next-generation delivery management software. These SaaS solutions allow you to select the best and most cost-effective distribution option at all times.
Instead of getting locked into a closed network, you get:
Cloud-based distribution management solutions put you in the driver’s seat. Are they costly you might ask? No. In fact, using them is the best cost-cutting initiative you can make.