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How to Sell on Amazon Without FBA

Time: Sep 17,2025 Author: SFC Source: www.sendfromchina.com

Many Amazon sellers assume that Fulfillment by Amazon (FBA) is the only way. But there are robust alternatives, and sometimes they make more sense — especially if you want more control, lower costs, or are operating from abroad (like China).

In this article, we’ll explore how to sell on Amazon without FBA — what options are available, what costs you avoid, how SendFromChina can help you, and what risks you need to manage.

1. Understanding Amazon Fulfillment Options: FBA vs FBM vs SFP

When you sell on Amazon, choosing the right fulfillment method is one of the most critical strategic decisions. It affects cost, speed, customer satisfaction, brand control, and scalability. Below, I break down each option more deeply, compare them, and point out key operational and performance requirements.

FBA (Fulfillment by Amazon): You send your inventory into Amazon’s warehouses; Amazon handles storage, packing, shipping, returns, and customer service.

FBM (Fulfillment by Merchant): You, or a contracted partner, store, pick, pack, ship orders, handle returns and customer service. The product listing is still on Amazon.

SFP (Seller-Fulfilled Prime): A subset of FBM. You fulfill Prime orders (with the Prime badge) from your own warehouse or via a trusted logistics partner, meeting Amazon’s delivery performance standards.

Each has advantages and disadvantages. What drives the decision is usually cost, operational capability, exposure & conversion, and control/branding.

2. Why Some Sellers Skip FBA (and What Costs They Avoid)

Choosing not to use FBA can bring certain advantages. Here are some of the commonly cited reasons and what savings/control you may gain:

Lower or more predictable fulfillment/storage costs: FBA has storage fees (monthly, long-term), handling fees, and fees based on weight, size, season, etc. Sellers of bulky, heavy, or slow-moving inventory often get hit with high storage and long-term inventory fees.

Greater control over packaging & branding: With FBM/SFP/3PL (third-party logistics), you can decide packaging, inserts, branding touches that Amazon’s standard packaging would strip away.

Better control over inventory management & shipping logistics: For example, you may reduce risk of overstock or stockouts by having more flexibility in where inventory is held and how quickly it can be moved.

Ability to handle niche, large, or special items: Some products are expensive to store in Amazon’s network, or Amazon imposes restrictions. For such items, merchant-fulfilled options are more viable.

Flexibility and margin retention: If your own logistics (or third-party logistics-3PL) costs are lower than FBA for your profile, you can retain more margin. Also, you avoid unexpected surcharges or changes from Amazon.

3. Key Alternatives to FBA

Here are the main ways to sell on Amazon without using FBA. Some require more infrastructure; others are easier to implement.

FBM (Fulfilled by Merchant) — You do everything, or outsource with a 3PL (third-party logistics provider).

SFP (Seller Fulfilled Prime) — You fulfill your own but meet Prime standards to get Prime badge.

Multichannel Fulfillment via 3PL — Use a 3PL that can serve Amazon orders, plus other sales channels (Shopify, Walmart, your own store).

Hybrid / Split Inventory — Some SKUs or geographic zones use FBA, others use FBM or SFP. This lets you optimize per SKU or market.

Third-Party Warehousing & Fulfillment — Using specialized eCommerce 3PLs in China or in target markets (US, EU) who pick, pack, ship on your behalf, integrate with Amazon’s APIs.

4. Amazon FBA Costs

To compare alternatives properly, you need to know what kinds of costs FBA imposes. Here are the major cost categories and what sellers should watch out for. (Figures are illustrative — they change by country, category, size, weight.)

Cost Type	What It Covers	What to Watch / Common Surprises
Referral Fees	A percentage of sale price for each item sold, varies by category (often between ~8-15%, sometimes more)	High referral fees on electronics, apparel, etc. Must include that in your margin model.
Fulfillment Fees	Picking, packing, shipping from Amazon FC to customer, plus customer service & returns for FBA items. Heavier or oversized items cost more.	The “standard-size vs oversized” division. Weight and dimensions matter.
Monthly Storage Fees	Amazon charges for storing your inventory in its FCs. Based on cubic feet, product size, season (peak vs non-peak)	Especially expensive in peak season; long-term storage penalties kick in after certain weeks.
Long-Term Storage Fees / Aged Inventory Surcharge	If stock sits unsold for long periods, usually over 365 days or in certain weeks, extra fees apply.	Makes slow-moving products especially risky under FBA.
Unplanned Service Fees	Labeling, prep, packaging issues, removal or disposal of inventory, returns processing, etc.	If your items arrive without proper prep, Amazon charges extra. Some of these are avoidable but require careful planning.
Inbound Shipping / Transport to FCs	Costs to send inventory to Amazon’s fulfillment centers; international shipping if from abroad. These are your responsibility.	Including customs, duties, delays. Also coordinate with packaging and labeling so that Amazon accepts your shipment without extra fees.

When you add up all these, for some products the total FBA cost may exceed what you can comfortably price for.

5. How to Sell on Amazon without FBA

If you’ve decided FBA isn’t the best fit (or you want to mix models), here are concrete steps to sell on Amazon without using FBA:

Step 1: Evaluate Your Products and Margins

Analyze weight, size, dimensions, turn rate (how fast items sell), storage needs (temperature, fragility). Heavy, large or slow moving items are often poor fits for FBA.

Estimate all costs: shipping to customers, returns, packaging, duty/taxes, warehousing, labor. Compare with what you currently pay or what FBA would charge.

Project margins both with FBA and with alternative fulfillment options. Include “hidden” costs like inventory spoilage, damage, seasonal storage, or handling fees.

Step 2: Decide Which Alternative(s) Fit Your Business

If you have the capability or capital, maybe go with FBM plus a 3PL in target markets.

If maintaining Prime badge is important, explore applying for SFP (if available in your marketplace).

Consider a hybrid model: maybe small, fast-selling SKUs via FBA; larger or infrequent SKUs via your own or 3PL fulfillment.

Step 3: Find and Negotiate with the Right Logistic Partners

For brands in China: look for 3PLs that handle export, customs, international shipping as well as import and last-mile in the destination market. SendFromChina could be precisely that kind of partner.

Key things to check: reliability, shipping speed, international duties and taxes, tracking, packaging standards, returns processing.

Ensure integration with Amazon’s seller tools: order sync, tracking updates, returns info.

Step 4: Set Up Proper Fulfillment Infrastructure

Acquire warehousing (your own, or via a partner) with enough capacity & geographic coverage.

Use good packaging & labeling to meet Amazon’s requirements (both in terms of image & durability).

Build systems (or use software) for inventory management: keeping track of stock, replenishment, damage, returns.

Step 5: Apply for Seller-Fulfilled Prime (if applicable)

If you want Prime badge without using Amazon’s warehouses, apply for SFP and meet trial-period requirements. Amazon typically requires metrics like on-time delivery, valid tracking, low cancellation rates.

Ensure shipping carriers used can meet Amazon’s required delivery windows. Logistics partners must be up to the task.

Step 6: List Products & Optimize Listings

Your product listings should clearly state your shipping promise. If you have Prime via SFP, leverage the badge. If FBM, try to offer fast shipping or free shipping.

Optimize product titles, bullet points, images. Since customer reviews and seller metrics matter heavily, ensure quality from first sale.

Step 7: Monitor Performance & Iterate

Track metrics like shipping times, on-time delivery, customer satisfaction, returns. Amazon penalizes late or problematic orders even under non-FBA models.

Monitor costs: shipping rates, packaging costs, warehousing. Adjust logistics partners or regions if some places are too expensive.

Adjust listing price if needed to absorb extra shipping or handling costs. Consider charging shipping separately if priced in.

6. What Makes FBM Better than FBA

FBM (or merchant-fulfilled models) has advantages in certain cases. Here are situations and traits that make FBM better than FBA:

Lower Fixed Costs / Lower Overhead for Some Products

Especially for bulky, heavy, or slow-moving items where FBA storage and fees are high. If you can negotiate good shipping and warehousing rates, FBM can be much cheaper.

Control Over Packaging and Branding

If unboxing experience, brand packaging, custom inserts, special labeling, etc., matter, FBM gives you full control.

Flexibility in Inventory Management

You can store inventory where you choose, manage stock levels, reduce overstock or dead stock without Amazon penalizing you.

Multi-Channel Fulfillment

If you sell on multiple channels (your own site, Shopify, other marketplaces), FBM or a 3PL approach lets you consolidate operations. FBA only handles Amazon orders (unless you use their multichannel fulfillment, but that has its own fees).

Avoiding Amazon’s Storage & Hidden Fees

Particularly useful during off-peak seasons when storage fees surge; avoid long-term storage fees; avoid prep/labeling fees and removal fees.

For Sellers Outside Key Geographies

When shipping from China or overseas, or for products with customs or regulatory complexity, arranging your own fulfillment (or via 3PL) can reduce risk and delays, especially if Amazon’s FCs are far.

Better Margins on Low-Ticket Items

When product value is low, Amazon’s fixed fees eat a larger percentage of margin. FBM allows you to keep more of each sale.

7. Risks and Challenges for FBM

FBM isn't without its trade-offs. If you go this route, you need to be aware of the risks:

No Automatic Prime Badge

Many Amazon shoppers filter by Prime or prefer it; lack of Prime can reduce conversion & Buy Box competitiveness. Unless you qualify for SFP.

Logistics & Shipping Complexity

You need reliable carriers, systems to pack, label, track, fulfill quickly. If anything fails (late shipment, damage, incorrect packaging), it reflects on your seller metrics.

Returns & Customer Service Burden

Amazon customers expect high service. You’ll need to handle returns, refunds, complaints, damaged items etc. This takes time, cost, and processes.

Scaling Challenges

As order volume increases, doing FBM manually or inhouse can become inefficient. You may need to invest in warehousing, staff, software.

Cost Uncertainty

Sometimes your own or third-party warehousing & shipping costs rise (fuel, carrier surcharges, tariffs), or unexpected costs (customs, duties, delays) hurt margins.

Inventory & Storage Costs Elsewhere

While you avoid Amazon’s storage fees, you still incur storage costs somewhere—warehouses, handling, maybe international shipping chain. If inventory turnover is slow, these can still be large.

Compliance & Requirements

Must follow Amazon’s packaging & prep rules if listing, especially if using SFP or trying to compete for Buy Box. Also, cross-border regulatory, customs, labeling, safety standards, VAT/tax differences etc.

8. How SendFromChina Can Help

Since SendFromChina is positioned to assist with third-party logistics from China, here are ways we add value for clients wanting to sell without FBA:

Export logistics & customs compliance: Ensuring goods shipped out of China have correct documentation, labelling, and comply with import rules of target country.

Partnered warehouses / fulfillment centers abroad: Warehousing in key markets (USA, EU, etc.), receiving goods from China, storing, packaging, shipping to customers or Amazon (if hybrid model).

3PL services for FBM & SFP: Operating under tight lead times, being able to meet Amazon standards for SFP (tracking, delivery speed, low damage rate).

Cost modeling & consulting: Helping sellers estimate all costs end-to-end (manufacture, export, storage, shipping, returns) vs FBA, to see where profit lies.

Tech / integration support: Syncing inventory, updating order status, integrating with Amazon Seller Central so that FBM or SFP orders have correct tracking etc.

9. Conclusion

Selling on Amazon without FBA is not only possible, but for many sellers, it’s smarter. If your products are heavy, bulky, slow-moving, or if you want brand control, or are operating cross-border from China, FBM or SFP (or a hybrid) can give you better margins, more control, and fewer surprises. The trade-off is that you must manage logistics, customer service, and quality more tightly.

10. FAQs

1. Can I still win the Buy Box if I use FBM?

Yes, but it’s harder. Prime badge helps a lot. If you qualify for Seller Fulfilled Prime, that gives you better chances. Otherwise you’ll need competitive pricing, good performance, fast shipping, good reviews.

2. Is FBM more work than FBA?

Yes — you or your partner must handle storage, packing, shipping, returns, customer service. It requires more operational discipline.

3. Are shipping costs from China higher if I do FBM?

They can be, depending on shipping method, weight, service speed, carrier. But using a good 3PL (like SendFromChina) helps you get better rates, consolidations, efficient routing.

4. What are the main metrics Amazon cares about for SFP or FBM?

Order defect rate, late shipment rate, on-time delivery, cancellation rate, valid tracking. You must keep these within Amazon’s thresholds to maintain good standing.

5. When does it make sense to switch part of my SKUs to FBA and part to FBM/SFP?

When you have a mix of fast-moving and slow-moving products; large vs small/bulky items; when Prime badge matters more for certain products; when storage fees get high; or if international shipping or customs make FBA more complicated. Splitting lets you optimize.

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