As a business owner, choosing the right fulfillment partner is one of the most critical decisions you’ll make. The way your products are stored, packed, and shipped directly impacts customer satisfaction and your bottom line. Two popular options are partnering with a third-party logistics (3PL) provider like Medallion Fulfillment or using Amazon FBA. While both get your product to the customer, they offer very different experiences.

Let’s break down the key differences to help you decide which path is the right one for your business’s growth.

The Power of Amazon FBA

Fulfilled by Amazon (FBA) is a powerhouse for a reason. By storing your inventory in Amazon’s warehouses, you gain access to its world-class logistics network.

The biggest advantages include:

Prime Badge: Products sold through FBA are eligible for the Amazon Prime badge, offering customers fast, free shipping. This is a massive conversion driver on the Amazon marketplace.
Hands-Off Logistics: Amazon handles everything from picking and packing to shipping and customer service inquiries, including returns. This frees up your time to focus on sales and marketing.

However, these benefits come with significant trade-offs that can hinder a growing brand.

The Limits of Amazon’s Approach

Amazon FBA operates on a massive scale, which creates rigidity and a lack of personalization that can be challenging for small to medium-sized businesses.

The main drawbacks are:

Complex and High Fees: FBA’s fee structure is notoriously complicated. You’ll face fulfillment fees, monthly storage fees, long-term storage penalties for slow-moving inventory, and various other charges. These costs can be unpredictable and quickly reduce your profit margins.
No Branding Control: Every order ships in an Amazon-branded box. You lose a crucial marketing opportunity to create a memorable unboxing experience that reinforces your brand identity and encourages customer loyalty.
Strict Requirements: FBA has inflexible rules for labeling, packaging, and receiving inventory. Failing to meet these standards can result in penalties or refusal of your shipment, causing costly delays.

The Medallion Advantage: A Partnership for Growth

Working with a dedicated fulfillment partner like Medallion Fulfillment offers a fundamentally different, more personalized approach. We act as an extension of your team, providing the flexibility and control you need to build your brand.

Cost Control and Predictable Pricing

Unlike the complex fee structure of FBA, we provide clear, straightforward pricing. You get a transparent view of your fulfillment costs without worrying about hidden charges or long-term storage penalties. This predictability allows for better financial planning and protects your margins, helping you scale your business sustainably.

Enhance Your Brand with Custom Packaging

We believe the customer experience shouldn’t end at checkout. Medallion empowers you to own the post-purchase journey.

Custom Branded Boxes: Ship your products in packaging that reflects your brand’s unique identity.
Promotional Inserts: Include thank-you notes, special offers, or other marketing materials to delight customers and drive repeat business.
Personalized Service: Create a memorable unboxing experience that transforms a simple delivery into a powerful brand touchpoint.

Flexible Solutions and Dedicated Support

Your business is unique, and your fulfillment solution should be too. We don’t believe in a one-size-fits-all model. Our team works with you to understand your specific needs and tailor our services accordingly. When you have a question or need to make a change, you can speak directly with a dedicated support contact who knows your business—a level of personalized service you simply won’t find with FBA.

Making the Right Choice for Your Business

Amazon FBA is an effective solution if you sell exclusively on the Amazon marketplace and want a hands-off approach.

However, if you are building a brand, selling across multiple channels, and value cost control and the customer experience, a fulfillment partner is the superior choice. Medallion Fulfillment provides the tailored solutions and expert support needed to help your business thrive.

Ready to take control of your fulfillment and build a stronger brand? Contact us at Medallion Fulfillment & Logistics to learn more about our customized, cost-effective solutions.

Is Amazon FBA Right for My Business?

As someone who’s worked with countless ecommerce businesses at Medallion Fulfillment, I’ve seen firsthand how the choice of fulfillment services can make or break a company’s growth trajectory. Amazon FBA has become incredibly popular, but is it the right fit for your business? Let me walk you through what you need to know.

Amazon’s Fulfilled by Amazon (FBA) program allows sellers to store their products in Amazon’s fulfillment centers. When customers place orders, Amazon handles the picking, packing, shipping, and customer service. It sounds straightforward, but the reality is more complex.

Understanding Amazon FBA Basics

Amazon FBA works well for businesses selling primarily on Amazon’s marketplace. Your products get the coveted Prime badge, which can significantly boost sales since Prime members prefer fast, free shipping. Amazon handles customer service inquiries, returns, and refunds—removing a major operational burden.

However, FBA comes with strict requirements. Your products must meet specific packaging standards, labeling requirements, and inventory restrictions. Amazon charges storage fees based on cubic footage, which can become expensive for bulky items that don’t sell quickly.

Control and Flexibility: Where FBA Falls Short

Here’s where I see many of my clients struggle with Amazon FBA—the lack of control. You can’t choose your shipping carriers, customize packaging with your branding, or control the customer experience beyond the initial product listing. Everything ships in Amazon-branded boxes, and you have no say in delivery methods.

For businesses that value brand identity and customer relationships, this can be problematic. You’re essentially handing over your customer experience to Amazon, which may not align with your brand values or service standards.

Storage Costs and Hidden Fees

Amazon’s fee structure is notoriously complex. While they advertise a simple per-item fulfillment fee, there are numerous additional charges: long-term storage fees, removal fees, return processing fees, and seasonal storage surcharges. These costs can quickly eat into your profit margins.

I’ve worked with businesses that discovered their Amazon FBA costs were 30-40% higher than expected due to these hidden fees. For companies with seasonal inventory or slower-moving products, storage costs can become particularly burdensome.

Shipping and Branding Limitations

With FBA, you lose control over the unboxing experience—a crucial touchpoint for building customer loyalty. There’s no opportunity for branded packaging, personalized notes, or promotional inserts that could drive repeat purchases.

Additionally, Amazon’s shipping methods may not align with your sustainability goals or customer preferences. You can’t choose eco-friendly packaging options or work with local carriers who might offer better service in specific regions.

Recommendation Based on Business Needs

Amazon FBA makes sense if you’re exclusively selling on Amazon, have small, lightweight products, and prioritize hands-off operations over brand control. It’s particularly effective for high-volume sellers who want to leverage Amazon’s massive logistics network.

However, if you sell across multiple channels, have larger products, want to maintain brand identity, or prefer predictable pricing, consider alternative ecommerce fulfillment solutions. At Medallion Fulfillment, we’ve helped many businesses transition away from FBA to achieve better cost control, enhanced branding opportunities, and improved customer relationships.

Making the Right Choice for Your Growth

The best fulfillment solution depends on your specific business model, growth goals, and priorities. Amazon FBA isn’t inherently good or bad—it’s about finding the right fit for your unique needs.

Before committing to any fulfillment service, carefully evaluate your current and projected order volumes, product characteristics, sales channels, and brand objectives. Consider speaking with fulfillment experts who can provide unbiased guidance based on your specific situation.

Ready to explore your fulfillment options? Contact our team at Medallion Fulfillment to discuss how we can support your business growth with flexible, cost-effective solutions tailored to your needs.

Tag: Amazon FBA