FBA Multichannel Fulfillment Is Killing Your Multichannel Business
Too many sellers are addicted to Amazon FBA, and now they're paying the price.
Over the past 4 weeks, we've noticed a dramatic increase in late FBA Multichannel Fulfillment shipments. With no explanation, standard multichannel fulfillment orders that typically ship in 24 to 36 hours are now shipping in 2 to 8 days. Sellers are frantically trying to triage the situation, but how did we let it get to this point?
Sellers that think they can leverage their FBA inventory in their efforts to build a durable, diversified online retail business are sorely mistaken.
- eBay actively avoids driving traffic to sellers that use FBA.
- Walmart is actively suspending sellers caught fulfilling from FBA.
- Jet routes orders to sellers that ship on time from their own warehouse or a channel agnostic 3PL.
- Google drives traffic to Shopping ads for products that can be fulfilled within their expected shipping timeframe.
- FBA Multichannel Fulfillment costs make your pricing uncompetitive. Your margins will suffer if you have price parity across your channels.
- Your customers aren't expecting Amazon-branded packaging when they order outside of Amazon.
If you're wondering why your eBay, Jet.com, Walmart Marketplace and webstore sales are flagging, this is your intervention; FBA Multichannel Fulfillment is killing your multichannel business.