Choosing between ShipBob and Amazon FBA for your ecommerce fulfillment can significantly impact your business’s growth and profitability. While both services excel at getting products to customers, they differ in crucial ways that affect your costs, control, and customer experience.
ShipBob offers more flexibility and control but requires hands-on management of customer service.
Amazon FBA provides comprehensive services and Prime benefits but comes with higher fees and less brand control.
Your choice depends on specific factors like order volume, product type, and whether Amazon is your primary sales channel.
This guide breaks down exactly how ShipBob and Amazon FBA compare across key areas—from pricing and fulfillment networks to shipping options and returns management—to help you make the right choice for your business.
ALERT: While ShipBob and Amazon FBA excel at fulfilling small items, they’re not equipped for larger products.
Their automated warehouses can’t accommodate larger items efficiently, and if your products are more than 20 lbs or have bulky dimensions, you’ll be paying more than you should.
If you sell large products, you need a 3PL that specializes in big, heavy, and bulky fulfillment.
Red Stag Fulfillment is an industry leader in big, heavy, and bulky fulfillment. Our warehouses and processes are designed for the big stuff, and we’ve negotiated deep discounts with national carriers for shipping big items that most 3PLs can’t match. And if you want to retain the Prime Badge on Amazon, we offer Seller-Fulfilled Prime shipping for large items.
If you sell small stuff, keep reading. ShipBob or Amazon FBA may be a great match.
If you sell large stuff, reach out today to learn how we can streamline your fulfillment.
ShipBob vs. Amazon FBA at a glance
| Feature | ShipBob | Amazon FBA |
|---|---|---|
| Fulfillment network size | 40+ locations across North America and Europe | 175+ fulfillment centers globally |
| Prime eligibility | No | Yes |
| Customer service responsibility | Sellers manage customer service or work with ShipBob’s support | Amazon handles customer service and returns for FBA orders |
| Return management | Sellers manage returns through ShipBob’s platform | Amazon manages returns as part of the FBA service |
| Costs and fees | Transparent pricing, additional fees for some services (like kitting) | Higher fees, including storage surcharges for slow-moving inventory |
| Inventory management tools | Real-time analytics and tracking via its platform | Inventory managed within Amazon Seller Central, with multi-channel fulfillment options available |
When should you use ShipBob vs. Amazon FBA?
ShipBob and Amazon FBA both offer fulfillment solutions—but they have some major differences.
First, Amazon FBA has more fulfillment centers available than ShipBob. While this may lead to faster fulfillment and shipping speeds, it can also result in higher costs and more complexity for sellers, with inventory spread among multiple centers.
Best Amazon FBA use case: Ecommerce businesses with high-volume sales around the globe that help make up for FBA’s higher fees
Best ShipBob use case: A startup or scaling business with low-volume sales and a lower budget
Second, while ShipBob’s support team does offer some assistance, sellers are largely responsible for their own customer service and returns. For FBA sellers, Amazon handles customer service and returns. This offers convenience for sellers—but it’s a trade-off with higher costs and less control.
Best Amazon FBA use case: Established, high-volume brands with the budget to handle higher costs and the need for streamlined customer service and returns processes for convenience and time savings
Best ShipBob use case: A scaling DTC small business that needs greater control over customer service and returns to build its brand and connect with customers better
Pricing models are another area where ShipBob and Amazon FBA differ. ShipBob provides transparent pricing that’s often lower than Amazon FBA’s—though their value-added services can bump up costs overall. While Amazon FBA’s services are more all-inclusive, they do charge higher fulfillment fees that may be cost-prohibitive for low-volume sellers.
Best Amazon FBA use case: Ecommerce businesses with high-volume sales and larger budgets to absorb higher fees
Best ShipBob use case: Startups or growing businesses with lower order volumes that need a cost-effective solution
Key differences in fulfillment models between ShipBob vs. Amazon FBA
| Feature | ShipBob | Amazon FBA |
|---|---|---|
| Shipping flexibility | Access to multiple carriers (USPS, UPS, FedEx, DHL, Shippo, Anvyl) with flexible shipping options, including two-day shipping | Prime-enabled fast delivery, but limited carrier choices |
| Cost structure | Transparent pricing, but costs may increase with value-added services | High storage fees for slow-moving inventory and additional charges for returns |
| Order flexibility and minimums | No strict minimums for order volume, making it suitable for new and growing brands | Often better suited for higher-volume sellers, as fees can become cost-prohibitive for low-order businesses |
| International shipping | Supports international shipping with competitive rates through multiple carriers | Strong global presence with seamless cross-border fulfillment, but shipping internationally through FBA can be expensive due to Amazon’s fee structure |
Should you use ShipBob and Amazon FBA together?
Depending on your company’s needs, you might not have to choose between ShipBob or Amazon FBA. In some situations, using them together may actually be more beneficial and efficient.
If you sell through other marketplaces or channels besides Amazon, you can use FBA for Amazon orders and ShipBob for all other orders. A hybrid approach allows you to:
- Improve inventory management.
- Reduce dependence on one fulfillment model.
- Use the most cost-effective solution on a case-by-case basis.
This kind of approach might make sense if your ecommerce business sells a wide range of products, especially seasonal items. You might use Amazon FBA for high-volume products and a 3PL, like ShipBob or Red Stag Fulfillment, for slow-moving or seasonal products.
You’ll avoid paying long-term storage fees for products that don’t move as quickly, while also taking advantage of Amazon’s comprehensive service offerings.
How Red Stag Fulfillment may fit in as an ideal alternative
If neither of these solutions sound like a good fit for your business, there are plenty of viable Amazon FBA and ShipBob alternatives, like Red Stag Fulfillment. Depending on your company’s fulfillment needs, Red Stag’s features might offer a perfect fit.
Bridging the gap between control and scalability
At Red Stag, we combine scalability with customization, giving sellers the best of both worlds. You’ll retain more control over your brand than Amazon FBA offers—and enjoy the efficiency that ShipBob and other tech-enabled 3PLs provide.
Our fulfillment centers are designed to handle seasonal surges and other changes in demand. So we’re an ideal solution for growing companies that want to maintain brand control. When you partner with us, you also get:
- Consistent storage fees
- Guaranteed access to inventory when you need it
- Transparent pricing with no unexplained charges
Precision fulfillment for bulky products
Many fulfillment providers have difficulty managing heavy, large, or bulky items efficiently—and that can lead to higher costs for your business and damaged items due to packaging or shipping problems. Red Stag specializes in fulfilling fragile or bulky products with precision handling.
Our customized solutions include a zero-shrinkage guarantee—we cover the wholesale price of any products that are lost or damaged. If your business sells fragile or bulky items, this provides peace of mind, improves the customer experience, and reduces revenue loss.
Customer service designed for complex needs
The right customer support can have a big impact on your ecommerce business. Amazon’s standardized approach may not offer adequate support if your brand has complex needs, potentially resulting in reduced customer satisfaction and sales.
Both ShipBob and Red Stag offer dedicated account managers, providing a personalized customer support approach. Red Stag’s dedicated account management allows your ecommerce business to maintain control without the burden of handling direct fulfillment.
A tailored option for FBM sellers
If you’re an Amazon Fulfilled by Merchant (FBM) seller, you don’t have to work with FBA. In fact, Red Stag may be a better option for you, depending on your needs. Our support for FBM sellers includes:
- Custom packaging for fragile or bulky items
- Reliable shipping (and lower shipping costs compared to FBA) for better customer satisfaction
- Inventory management services
Working with Red Stag also means that your FBM business can avoid Amazon FBA’s fees and limitations—while maintaining fast deliveries and high standards of customer service. And if you do want to take advantage of FBA, we also offer FBA prep services, where we get products ready and ship them to FBA for you.
NOTE: A reminder that Red Stag offers Seller Fulfilled Prime (SFP) for large products. With this option, you get the advantages of Amazon Prime branding, boosting brand recognition and leading to more sales.
Red Stag has just two warehouse locations—a location on each coast for better efficiency. This comes with notable advantages, such as:
- Eliminating the complexity that can come from spreading products among fulfillment centers
- Lower costs for transportation, upfront inventory, and 3PL services
TO SUMMARIZE:
Consider Amazon FBA if you sell a high volume of small products, want to maximize Amazon as a sales channel, and are okay with FBA fees and requirements.
Consider ShipBob or a similar 3PL alternative if you don’t plan to use Amazon as a primary sales channel or you want to avoid FBA’s higher fees and storage costs.
Consider Red Stag if you need affordable shipping rates and specialized handling for large or bulky items and/or want to optimize for Amazon with Seller Fulfilled Prime.
Making the right fulfillment choice for your business growth
If your ecommerce business is comparing 3PL options to find one with lower fees and no strict minimum order volumes, ShipBob may be the right choice. But if your business has high order volumes and you need to keep fulfillment as quick and streamlined as possible, Amazon FBA might be a better option.
Need a 3PL provider with the right experience and expertise to handle large or bulky items safely and efficiently? Red Stag offers an alternative for ecommerce businesses with unique order fulfillment needs.
Reach out to us to get more information about our 3PL services.
