ShipBob vs Fulfillment By Amazon (FBA): Pricing & Features
This article is part of a larger series on Retail Management.
Between ShipBob vs Fulfillment By Amazon (FBA), ShipBob offers better pricing and services for ecommerce and multichannel fulfillment while FBA is the better solution for Amazon-focused sellers. Both are included in our top picks for order fulfillment solutions.
ShipBob and FBA are third-party order fulfillment solutions used by ecommerce sellers and other small businesses. Sellers hire them to outsource product storage, inventory management, order processing, shipping, and returns.
We compared Amazon FBA vs ShipBob based on price, functionality, ease of use, and special services to identify the differences between the two and help you choose the best option for your business. We recommend:
- ShipBob: Best overall order fulfillment solution for small and midsize businesses (SMBs)
- FBA: Best order fulfillment solution for Amazon-focused sellers
ShipBob vs Amazon FBA Quick Comparison
4.47 out of 5 | 3.54 out of 5 | |
Monthly Minimum Requirement | $250 minimum spend | None |
Competitive Pricing ($–$$$$) | $ | $$$ |
US Warehouse Locations | 31 | 110 |
International Warehouse Locations | 8 | 75 |
Shipping Partner Options | FedEx, UPS, USPS, DHL, OSM, CDL Last Mile, UDS, LSO, OnTrac | Amazon Logistics, UPS, and DHL |
B2B Fulfillment | ✓ | ✓ |
Batch/Crowdfunding Fulfillment | ✕ | ✕ |
Error Rate | 0.05% | Undisclosed |
Amazon Prime or Seller-Fulfilled Prime (SFP) Eligibility | ✕ | ✓ |
Client Support | Very Good | Poor |
When to Use ShipBob
Pros
- Growth Plan program designed for startups
- Wide network of 31 US and eight non-US fulfillment centers
- Advanced reporting and analytics software
Cons
- High storage fees
- Cannot fulfill Amazon SFP orders
- Reported billing discrepancies and hidden fees
Where ShipBob Beats FBA
- Multichannel fulfillment: Affordable pricing and more shipping options
- Sophisticated software: Easy-to-use online platform with powerful tools
- Connectivity: Prebuilt integrations with all the leading platforms and tools
- Startup-friendly: Growth Plan offers no order minimums plus resources to support growth
- Dropshipping program: Partnerships with big-box retail websites help businesses sell more
- Branding options: Customize your inner and outer packaging plus inserts, notes, and more
- Services for importers: Managed freight program and section 321 advantages
ShipBob is the better choice for multichannel sellers, ecommerce startups, and retail stores expanding into the ecommerce space. Unlike FBA, ShipBob is also a good fit for subscription box sellers, dropshippers, and other nontraditional retailers.
With a wide, global warehouse network and sophisticated fulfillment software, ShipBob brings enterprise-level infrastructure and services to businesses of all sizes.
When to Use Amazon FBA
Pros
- Fast turnaround and shipping times
- Improves Amazon search rankings and ‘Buy Box’ placements
- Hands-off return and refund management
Cons
- Expensive storage fees that fluctuate seasonally
- Low visibility into stock levels, plus inventory pooled between sellers
- No common specialty services like kitting, assembly, or branded packaging
Where FBA Beats ShipBob:
- Customer base: Prime designation provides access to more than 150 million Prime subscribers
- Amazon advantage: FBA users do better in Amazon search results
- Subscribe and Save: FBA users can offer easy-to-enroll automatic reordering
- Outsourced customer service: 24/7 support for your customers at no extra cost
- No minimum requirements: No minimum monthly spend or order volume
- Small and Light program: Scheduled discounts for lightweight, easy-to-ship goods
FBA is the better fulfillment service for competitive, Amazon-focused sellers. The service provides robust advantages to help your Amazon listings rank highly in search results, win sales, ship quickly, and achieve customer satisfaction.
FBA leverages its vast infrastructure to support rapid fulfillment with unlimited growth. The company works with small businesses regardless of size or order frequency and includes Multi-Channel Fulfillment (MCF) services for non-Amazon sales.
When to Use an Alternative
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ShipBob vs Amazon FBA: Pricing
4.88 out of 5 | 4.44 out of 5 | |
Onboarding and Implementation | $975 for entire implementation package or $0 on the Growth Plan for self-onboarding | $0 (plus monthly Amazon seller fees) |
Inbound Shipping | Discounted rates available | Discounted rates available |
Receiving | $35 first two hours; $40 per person-hour after that | $0 when guidelines are met |
Storage | $40 per pallet/month, $10 per shelf/month, or $5 per bin/month | 56 cents to 87 cents per cubic foot per month from January to September; $1.40 to $2.40 per cubic foot per month from October to December |
Fulfillment Fee | Calculated per-package based on weight and shipping distance | $3.43 to $12.61 per unit for standard-size nondangerous products (up to 20 pounds) $18.13 to $200-plus for oversize nondangerous products (21 to 150-plus pounds) |
Pick and Pack | $0 for the first four items, 25 cents per additional pick | Included in fulfillment fee; each unit charged separately |
Packaging Materials | Free | Free |
Shipping | Included in fulfillment fee (discounted rates available) | Included in fulfillment fee |
Returns | $3 per order (plus label fee) | Equal to original fulfillment fee (plus repackaging fees, if necessary) |
Both ShipBob and FBA have affordable pricing based on usage, so you primarily pay for the services you use. They also share similar pricing structures. But the more affordable option between the two depends on which sales channels you use and what kind of products you stock.
- FBA tends to be the more economical option for Amazon sellers—especially those that qualify for its discounted Small and Light program.
- ShipBob is more affordable for ecommerce stores and multichannel sellers that don’t maintain a focus on Amazon.
Take a look at our ShipBob vs Amazon FBA comparison of each major cost center below.
There’s no charge for onboarding to start using FBA. The same is true of ShipBob’s Growth Plan, which aims to be a cheaper option geared toward startups. With these services, you’ll handle the bulk of stock migration, platform integration, and account setup on your own.
ShipBob’s standard service charges a $975 implementation fee, which employs an implementation specialist who stays with you for 30 days, even after going live, to help with the onboarding process. This option is less affordable but can create a more hands-off experience and help to avoid bumps in the road.
Although FBA doesn’t charge onboarding fees, you will need to start paying seller fees if you’re new to the Amazon marketplace. A professional seller account is $39.99 per month, or individual sellers can opt to pay 99 cents per item sold.
Both ShipBob and FBA’s receiving service includes meeting the delivery driver, inspecting shipments against your purchase orders, unpacking goods, checking them in, organizing them in storage, and reconciling inventory counts.
ShipBob charges for this service by the hour. FBA performs inventory receiving for free as long as packaging and prep guidelines are met—if not, you’ll incur an unplanned prep fee that ranges from 20 cents to $4.20 per unit.
In lieu of handling them yourself, you can opt to have Amazon pack, label, and prep your products upon inbound receiving for a fee. Many third-party logistics (3PL) companies, including ShipBob, offer cheaper FBA prep services, and will send the prepared merchandise to FBA on your behalf.
ShipBob uses storage-optimization technology that can help reduce your bill by continuously assessing, rearranging, and minimizing the space your inventory occupies. Even so, ShipBob’s storage fees are still significantly more expensive than most of its competitors—including FBA during non-peak months.
FBA storage fees vary by season, increasing up to 200% during the months of October–December. Your FBA storage charges also depend on the size of your products and whether they fall into the “dangerous goods” category, which includes batteries and magnets. It also charges pricey long-term storage fees for inventory held longer than 270 days.
ShipBob charges a single fulfillment fee for each order, which includes pick and pack (up to four items), basic packaging materials, and shipping.
FBA uses the same compound fee structure, but a fulfillment fee is charged for each unit in any order. This can make multi-item orders add up quickly.
Additionally, FBA charges higher fulfillment fees for MCF orders. This refers to any order coming from a marketplace or website other than Amazon. As shown below, MCF increases your fulfillment costs significantly. Because of this, FBA is recommended for sellers who make 80% to 90% or more of their sales on Amazon.
Item: Tablet Case Shipping Weight: 2.88 oz | Amazon Order FBA Fulfillment Fee | MCF Order FBA Fulfillment Fee |
---|---|---|
$3.22 | Standard: $7.15 | |
Expedited (Two-day): $9.37 |
Source: Amazon
FBA charges greater fulfillment fees for certain product categories as well. This includes apparel, collectibles, and grocery items. Read more about FBA fee categories here.
Conversely, ShipBob charges fulfillment fees at the same rate regardless of sales channel or product category. Pricing is determined by parcel dimensions, weight, and shipping speed.
But it’s important to note that ShipBob cannot fulfill Amazon Prime or SFP orders, so you won’t be able to boast the sales-boosting Prime badge (even if you pay for expedited shipping.)
Users of both ShipBob and FBA report that the services generally are easy to use, but FBA has a steeper learning curve. This is largely because of the strict packaging and labeling requirements that result in penalty fees if not met.
ShipBob vs Amazon FBA: Quality/Functionality
5 out of 5 | 2.85 out of 5 | |
Reported Error Rate | .05% | Undisclosed |
Order Turnaround Time | Very good | Good |
Shipping Partner Options | 9 | 3 |
B2B Fulfillment | ✓ | ✓ |
Number of US Warehouses | 31 | 110 |
Number of International Warehouses | 8 | 85 |
Volume Discounts | ✓ | ✓ |
Prebuilt Native Integrations | 75 | 28 |
International Cross-border Shipping | ✓ | ✓ |
Delivery Duty Paid (DDP) Shipping | ✓ | ✕ |
ShipBob
Amazon FBA
ShipBob vs Amazon FBA: Special Services
3.25 out of 5 | 3.78 out of 5 | |
Amazon SFP Eligibility | ✕ | ✓ |
Boosts Amazon Visibility | ✕ | ✓ |
FBA Prep Service | ✓ | ✓ |
Freight Management | ✓ | ✕ |
Reporting and Analytics | Excellent | Very good |
Packaging Customization Options | ✓ | ✕ |
Gift Notes | ✓ Branded | ✓ Unbranded |
Branded Confirmation Emails and Tracking | ✓ (Through third-party integration) | ✕ |
Post-sale Servicing | ✕ | ✓ |
ShipBob and FBA offer very different special services. ShipBob delivers better customization options as well as useful tools for importers while FBA offers unique services that benefit Amazon sellers. Ultimately, Amazon FBA wins in this category, largely thanks to its hands-off customer service solutions and automatic Prime designation.
ShipBob
Amazon FBA
ShipBob vs Amazon FBA: Ease of Use
4.23 out of 5 | 4.03 out of 5 | |
Minimum Monthly requirements | $250 minimum spend | None |
Packaging Requirements | ✕ | ✓ |
Flexible Special Services | ✓ | ✕ |
Software Functionality and Interface Usability | Excellent | Good |
Billing Format | Visibility by line item | Visibility by line item |
Hidden Fees Reported by Users | ✓ | ✓ |
Termination of Services | Easy | Easy |
Communication Channels | Phone, live chat, and email | Online ticket form |
Hours of Availability | Monday to Friday, 9 a.m. to 5 p.m. Central time | Undisclosed |
Average Response Time | 1.2 hours | 24 to 48 hours* |
Dedicated Account Service Rep | ✕ | ✕ |
*FBA support’s exact response time is not published. Estimate reported by users and third-party reviewers.
ShipBob is the easier service to use thanks to its simplified billing structure, powerful software, and effective customer service. We also found that FBA has a steeper learning curve for new users due to its strict packaging and labeling requirements, complex fees, and inaccessible support.
ShipBob
Amazon FBA
ShipBob vs Amazon FBA: Expert Score
ShipBob
Amazon FBA
ShipBob vs Amazon FBA Frequently Asked Questions (FAQs)
FBA often turns out to be more expensive than ShipBob. This is because of its complex fee structure that includes steep penalties for improperly prepared items and seasonal increases in storage costs.
Plus, not all items cost the same to fulfill through FBA. Apparel products cost 6% to 10% more, while “dangerous goods” like products with lithium batteries or magnetized materials cost up to 25% more. It’s important to note that Amazon sellers must also pay seller fees and referral fees on top of their FBA charges.
ShipBob has a simpler fee structure that is affordable for businesses of all sizes. However, its storage fees are somewhat steep, so it’s more economical for small, manageable items.
ShipBob and Amazon FBA are 3PL providers that businesses hire to perform outsourced order fulfillment. But ShipBob is designed to work for a variety of ecommerce channels whereas FBA is geared specifically toward selling on Amazon.
ShipBob isn’t eligible to fulfill Amazon Prime orders, and it doesn’t give you the same sales-boosting Amazon perks that FBA does. However, ShipBob is much more affordable when it comes to fulfilling non-Amazon orders, and it offers a variety of services that FBA doesn’t (like kitting/bundling, importing programs, and branding options).
Selling through Amazon FBA has the potential to be much more profitable than dropshipping, although it takes a greater investment of time and money.
Dropshipping is easier to start and requires very little capital, but you have much less control over your profits. Plus, a dropshipping operation can’t scale like an Amazon business selling your own inventory through FBA
For more information read our complete guide to starting your own dropshipping business in 10 steps.
How We Evaluated ShipBob vs Amazon FBA
To help small businesses find the best order fulfillment and shipping partner for their store, we compared ShipBob and FBA on pricing, functionality, specialty services, and ease of use. Our retail and ecommerce experts also weighed in and evaluated each service.
20% of Overall Score
This category examines the providers’ pricing transparency, billing transparency, and billing predictability. ShipBob scored higher thanks to its simple pricing structure that doesn’t have seasonal fluctuations or complex added fees like that of FBA.
30% of Overall Score
In this category, we evaluated the quality of service and functionality of each company by weighing critical details like order turnaround time, shipping partner options, size of fulfillment center network, integrations list, and accuracy rate. ShipBob’s superior accuracy rate helped it take the lead in this section, along with its extensive list of integrations.
15% of Overall Score
We awarded points for the availability of special services like climate control, international shipping, custom packaging elements, Amazon features, and different types of assembly. Being crucial to ecommerce operations, return handling and reporting/analytics were prioritized. Amazon FBA was the winner in this category thanks to its superior options for Amazon sellers, including valuable advantages that boost visibility on the platform.
15% of Overall Score
This score considered customer service accessibility along with scalability, software usability and operational transparency. ShipBob earned a better score, thanks to its user-friendly fulfillment software and accessible customer support team with fast response times.
20% of Overall Score
This score combined our retail and ecommerce experts’ final evaluation of value, usability, and standout features with scores from real-world users on trusted third-party review sites. ShipBob was the winner here, earning points for its overall value, usability, and stand-out services. Both companies have their share of negative reviews and overall popularity with room for improvement.
Bottom Line
ShipBob and FBA are two strong options for outsourcing your ecommerce order fulfillment and making room for growth. Between Amazon FBA vs ShipBob, the option that’s best for you depends on your specific business needs.
Since it’s owned and operated by Amazon, FBA functions differently than most fulfillment providers. It’s designed to serve and prioritize Amazon customers, so multichannel orders don’t receive the same affordability or special services. If you’re an Amazon seller, FBA offers many competitive advantages that can help your business succeed.
ShipBob’s services and platform are built to work well for any sales channel, but the company can’t fulfill Amazon Prime orders, so it’s best for non-Amazon sellers.
To find more fulfillment options that fit your business, visit WarehousingAndFulfillment.com. It’s a brokerage service that matches you with compatible providers, and it’s completely free to use.