Is Shopify Fulfillment Network the next Amazon FBA?

By Oleg Mikhailenko
Published in Solutions
June 10, 2022
2 min read
Is Shopify Fulfillment Network the next Amazon FBA?

The Amazon fulfillment service is considered a gold standard among sellers for its all-in-one approach. It’s not hard to see why- Amazon’s ecommerce marketplace is one of the largest on the planet, and by taking advantage of their fulfillment Amazon has the ability to get your products into the hands of thousands of customers within two days or less. On the other hand, though, the Amazon fulfillment cost can be a bit stiff for some sellers. FBA not only takes a selling fee for each unit sold (although this can be condensed down with a professional plan), they also take a cut of the profits as well. There’s nothing wrong with this- after all, if you were to organize your own warehousing, it would also cost money- but sellers are starting to wonder if they can’t perhaps do better.

Enter the Shopify fulfillment service. An up-and-coming competitor to FBA, the network was introduced in 2019 in a bid to keep Shopify shipping in-house. Although the service has yet to gain the same amount of monumental traction in the three years since its release, investors and merchants alike are still hopeful that it could carve out a significant niche for itself, especially in the shadow of the Covid 19 ecommerce boom. So which network should an aspiring entrepreneur sign up for when it comes to Shopify vs Amazon FBA?

Amazon FBA vs Shopify

By now, most merchants are aware of how FBA operates. Have your merchandise transported to a receiving facility, and Amazon handles the rest from there. The Shopify fulfillment services (SFN) work roughly the same way. Have your products shipped into your nearest convenient Shopify warehouse, and the company handles distribution, picking, packing, and delivery from there on out. SFN automatically chooses the best shipping options to get the best rates possible, although a method for guaranteeing 2 day delivery isn’t yet available. In a post-Prime world where customers frequently expect their items within that specific 2 day time period, it’s one of SFN’s major drawbacks.

Meanwhile, although the number of Shopify fulfillment centers is growing, it’s still dwarfed by Amazon’s massive network of facilities. Between the wider distribution net and the guarantee of 2 day delivery with Prime, although the Shopify logistics service is promising, it’s not quite “there yet” to the point where we would recommend it over FBA. Given another couple of years to finish cooking, SFN could be a serious contender, and is one we’ll watch eagerly as time goes on.

In conclusion

So is Shopify the next Amazon? Well, not yet. In the question of Amazon vs. Shopify we’d probably still recommend FBA. But that’s not to say it’s not an option entirely. If your main ecommerce selling channel is through Shopify, it may very well be worth it to take the plunge. But it’s not the only option at your disposal. If you want to sell through both, P2Pseller’s got your back. By offering direct Shopify Amazon integration, we enable you to sell through all your favorite marketplaces, wherever your customers happen to be browsing. Register a free account with us today to browse our offerings with absolutely no commitment required on your end. We’re excited to show you exactly what we can do.


Tags

#shopify#amazon#fba#fulfillment
Previous Article
What happens at the fulfillment center: picking, packing, and shipping

Oleg Mikhailenko

Co-Founder, CEO P2Pseller

Related Posts

The total beginner’s guide to ecommerce fulfillment
June 22, 2022
2 min
P2PSeller Logo
LinkedinTwitter
© 2022, Modern Trading Technologies, Inc. USA, California. All Rights Reserved.