FBA storage costs eating into your sales margins? Store your inventory in a 3PL warehouse instead.

The Fulfillment by Amazon (FBA) program has proved itself to be a helpful tool for online sellers, offering streamlined order fulfillment services that alleviate workloads for businesses. But it comes at a cost — packaging, prep, and even storage come with added fees that can stack up quickly.

Inventory storage can be one of the top costs of working with FBA. Amazon’s warehouse spaces charge a premium for storage – especially in the long term. Long-term storage fees at the six and 12-month marks can drastically increase the cost to store inventory with Amazon. That’s on top of their normal rate fluctuations that occur yearly.

Luckily, you don’t have to store your inventory with Amazon to take advantage of FBA. If you’re looking for cost-cutting opportunities, storing with a 3PL could help.

3PL Warehouse Storage Can Improve Your Bottom Line with FBA

Storing with a third-party warehouse is often a more cost-effective strategy than opting for Amazon storage.

For starters, 3PLs often offer stable, competitive pricing. Even a modest discount compared to Amazon can add up quickly for your sales margins month over month. Plus, you can avoid long-term storage fees.

Rather than storing all of your inventory at an Amazon facility, you can store product long-term elsewhere and send smaller shipments to Amazon as they’re needed. This type of strategy offers the stability of long-term storage and competitive pricing while still using FBA’s fulfillment benefits.

Finally, 3PL storage offers the opportunity to work with real people and build strong relationships. Smaller warehouse operations can create individualized solutions like FBA package preparation.

Talk to Scarbrough Warehousing About FBA Storage Solutions

Scarbrough Warehousing is here to help you navigate the challenges of selling with Amazon. Whether you’re looking for an alternative to FBA storage or want to start an FBM (Fulfilled by Merchant) strategy, our team is ready to lend a hand. Contact Scarbrough Warehousing today to learn more about FBA storage and take advantage of our all-new, fully racked 3PL facility.