Amazon FBA Update: Navigating Your Amazon Fulfillment Amid Coronavirus

Richard Clayton

March 18, 2020

On March 17^th, Amazon US and EU sellers were notified that Fulfilled by Amazon (FBA) warehouses will no longer receive non-essential inventory through April 5^th, 2020. This step was taken in response to the coronavirus (COVID-19) pandemic to ensure that in-demand inventory, including household staples and medical supplies, remain stocked and available. In this article, we’ll go over the challenges faced by global merchants who are now unable to use FBA, and present 12 options for how you can address the situation, including a few exclusive promotions to get you started.

Currently, only products in the following categories can be fulfilled through FBA in the US and EU:

Baby
Health & Household
Beauty & Personal Care (including personal care appliances)
Grocery
Industrial & Scientific
Pet Supplies

Sellers who do not work with these categories will need to switch from FBA to an FBM (Fulfilled by Merchant) model, in which you’ll be responsible for your inventory’s storage and fulfillment. To help get you started, we’ve compiled a list of trusted service providers to keep your store running.

Locating the Right Service Providers

Ensuring a smooth transition from FBA to FBM will likely require the help of service providers. Here are a few that we’d recommend.

US-Based Service Providers

– Deliverr offers a fast fulfillment solution for Amazon FBM, Walmart, Wish and more.
– FlowSpace offers nationwide 1-2 day shipping with full marketplaces integrations on Amazon, Walmart and Shopify.
– AMFlat Logistics provides a variety of solutions for Amazon FBA sellers, including warehousing, storage, dropshipments and fulfillment.
– AMSFulfillment provides eCommerce fulfillment for mid-size businesses ($5 million – $20 million).
– Swan Fulfillment provides multi-channel, FBA, FBM and kit creation for SMBs.
– Fulfillment.com specializes in smaller items (health & beauty and household goods) and offers global fulfillment in the US, Mexico, Canada, the Netherlands and the UK.
– ShipBob is a fulfillment provider with tech-enabled 3PL and FBM capabilities. They are ideal for sellers working with less than 200 SKUs.

European-Based Service Providers

– Huboo is a fulfillment solution with no integration fees, no goods in fees, no monthly management fees, clear pricing, simple integration for Amazon and eBay, quick and easy start up and a portfolio of carriers for UK and international shipping. For non-UK companies, a UK VAT number is required to enable Huboo to open an account and trade. Currently, Huboo is offering Payoneer account holders two months of free storage, a three-month free subscription and fast-tracked onboarding.
– Cubyn is a fulfillment company offering low cost fast and reliable deliveries, and simple and central monitoring. Currently, Cubyn is offering Payoneer users free storage on necessities, such as pharmaceuticals, telecommunications and food, until June 21^st.
– Bezos.ai is a fulfillment as a service platform, offering one of the biggest fulfillment networks in the UK and a wide variety of services, including storage, pick and pack, delivery and returns. Currently, Bezos.ai is offering Payoneer users 30 days of free storage and no pick and pack fees.
– Global Ecommerce Experts is an eCommerce management solution offering a variety of services, including returns, labelling, pick and pack, and storage. They also can support sellers for a short period of time while they wait to convert their SKUs back to FBA. All new clients coming through the Payoneer network are eligible to have their £150 initial set up fee waved when they email sales@globalecommexperts.com with the title PAYONEER/GEE.
– Regional Express is a freight forwarder and international courier service specializing in Amazon fulfillment and shipping. Given the temporary Amazon FBA restrictions, Regional Express can hold goods for Payoneer users in their warehouse at preferential rates while sellers are unable to create shipments with Amazon.

Global Service Providers with Pay with Payoneer Integration*

You may use your Payoneer balance to pay to the below companies through an established integration in their platforms

– Winit is an integrated supply-chain solutions provider, offering international transportation, customs clearance, order fulfillment, inventory management, RMA handling, label replacement, repacking, cross-docking and dropshipping.
– Elogistic is an eCommerce logistics provider, offering standard fulfillment services, return handling, first-leg service, as well as other value-added services, including relabeling, repacking, and photographing.
– 4PX is a cross-border eCommerce solutions provider, offering warehousing quality inspection, goods on shelves, inventory management, receiving orders, order sorting, order review, multi-channel delivery and returns.
– BirdSystem is a logistics provider, offering returns services and FBA warehouse transfers.

Making the Switch from FBA to FBM

For any seller affected by Amazon’s temporary restrictions, making the switch from FBA to FBM is simple and can be done by following the steps below:

Log into Seller Central and select Manage FBA Inventory from the Inventory drop-down menu.
Locate the SKUs that need to be switched, open the drop-down menu next to each item and select Change to Fulfilled by Merchant.
Once you’re redirected to the Convert to ‘Fulfilled by Merchant’ page, simply click the Convert
Conversions to FBM are typically made within 24-hours.

Despite requiring more work to store your inventory and ensure it is fulfilled properly, FBM does have several advantages over the FBA model, including:

Cost effectiveness – While FBA provides a degree of security when it comes to fulfilling your orders, Amazon fees mean it isn’t always cost effective. Using cheaper 3^rd party storage and shipping providers can end up saving you money in the long run.
Control – FBM allows you to manage your inventory and shipping as you see fit, instead of having to follow Amazon policies.
Consistency – Managing inventory and fulfillment on your own ensures that you’ll be unaffected by sudden changes to Amazon policies.

Payoneer is here to support your business! Please reach out to your Payoneer account manager if you have any questions or concerns regarding Amazon’s new policies or the service providers outlined here.

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