Difference Between Amazon's Own Shipment and FBA

The way that a seller's inventory is fulfilled by Amazon differs between the two programs. With Amazon Fulfillment By Amazon (FBA), sellers store their inventory at one of the company's fulfillment centers, where it is picked, packed and shipped to customers.

With the Seller Fulfilled Prime (SFP) program, merchants sell products on their own websites and through their own marketplaces. However, they still ship the products through Amazon.

This is a great option for merchants who want to expand their sales channels without requiring extra storage space or staffing to manage warehousing and logistics. The Amazon platform handles the picking, packing and shipping of their orders, enabling sellers to focus on building their business and growing their customer base.

SFP can be expensive, though. The fees can include commissions, a referral fee, fulfillment costs and storage fees.

Another factor to consider is the cost of storage fees, which increase when products stay in a fulfillment center for longer than 365 days. This can be a significant expense for some businesses, especially those that have a high turnover rate of products.

Fortunately, a number of third-party logistics companies also offer fulfillment services that can be less expensive than Amazon's own program. It's important to do your research and compare the different options before signing up for one of these companies. A reputable company will be able to provide the best service at an affordable price.

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