The ecommerce fulfillment solution you choose plays a critical role in your business’s ability to scale, grow profits, and satisfy customer expectations.
When deciding between ShipMonk and Amazon FBA, the right choice depends on several key factors, such as order volume, sales channels, product type, and control requirements. There’s no right or wrong answer across the board. Rather, the best decision depends on the unique needs and objectives of your company.
This guide compares the key differences between ShipMonk and Amazon FBA to help you make an informed choice. We’ll also cover why an alternative third option may be better suited to your fulfillment requirements.
TL;DR:
Key takeaways
ShipMonk is better for small and emerging businesses or brands that want to retain more control over their omnichannel logistics processes.
Amazon FBA is better for high-volume Amazon sellers who prefer to outsource all aspects of their operations, from inventory management to customer service.
Both options are suitable choices for small items, but for bulky/heavy goods and more dedicated customer support, consider Red Stag Fulfillment as a reliable alternative.
What you’ll learn
The differences between how ShipMonk and Amazon FBA handle inventory management, order fulfillment, and the customer experience
Which fulfillment provider is better for you based on the specific needs of your business
Why an alternative, Red Stag Fulfillment, may be the best solution for some specialized needs
What is ShipMonk?
ShipMonk is a third-party logistics (3PL) company that provides ecommerce and B2B fulfillment services. They enable businesses of all sizes to outsource key responsibilities, including order processing, inventory management, and shipping.
ShipMonk’s global fulfillment network helps merchants expand locally and internationally with 12 owned and operated fulfillment centers across the United States, Canada, Europe, the United Kingdom, and Mexico. Clients can also access their Virtual Carrier Network (VCN) to secure the best shipping rates from a wide variety of carriers.
The ShipMonk 3PL software platform supports businesses selling through more than 10 channels, including Amazon, eBay, and Walmart Marketplace. It offers real-time visibility and reporting for inventory management, omnichannel order management, shipping, and sales performance, making it a popular solution for multichannel retailers shipping more than 500 orders per month.
Related reading:
What is Amazon FBA?
Fulfillment by Amazon (FBA), also known as Amazon FBA, is a third-party fulfillment service for Amazon Marketplace sellers that meet specific criteria covering product restrictions, inventory requirements, and product packaging requirements.
It allows Amazon merchants to outsource their inventory storage, order fulfillment, shipping, and customer service responsibilities while leveraging Amazon’s vast network of fulfillment centers across North America, Europe, the Asia-Pacific region, the Middle East, and North Africa.
Amazon FBA also includes automatic eligibility for Amazon Prime services and provides FBA sellers with the Prime badge to attract a larger customer base of Amazon Marketplace users.
Read More: 7 pitfalls of Amazon FBA
ShipMonk vs. Amazon FBA: Key differences
Both ShipMonk and Amazon FBA are ecommerce fulfillment providers with global shipping networks. However, they differ in the services they offer, the types of customers they serve, and how they operate.
Amazon FBA is specifically made for businesses selling on the Amazon Marketplace platform. It has strict requirements for the types of products, packaging, and inventory volumes it manages. These policies aim to maintain a fair and trustworthy platform for buyers and sellers that’s consistent regardless of the merchant.
On the other hand, ShipMonk is an omnichannel ecommerce fulfillment provider, meaning they support businesses selling through multiple sales channels, including Amazon.
Unlike Amazon FBA, ShipMonk customers are not automatically eligible for Amazon Prime shipping. However, ShipMonk is much more flexible in terms of packaging, inventory, carrier selection, and customer service, allowing sellers to retain more control over their operations and branding.
NOTE: ShipMonk also offers Amazon FBA prep services to ensure that labeling, packaging, and inventory meet the necessary criteria. This allows sellers to benefit from the advantages of Amazon FBA without worrying about Amazon compliance.
Inventory management
When comparing inventory management features, both providers use automated warehousing solutions like mobile robots, barcode scanners, and smart storage to ensure accuracy and fast picking times.
ShipMonk typically charges storage monthly based on the storage location used, e.g., per bin, per shelf, or per pallet. Amazon FBA inventory storage is charged per cubic foot per month, which can become quite expensive for bulky items that don’t sell quickly.
Amazon FBA typically has higher storage fees than other fulfillment providers and offers less flexibility around inbound requirements. That is, packaging, labelling, and shipping must meet specific criteria to avoid extra fees or shipment refusals.
ShipMonk is more flexible, with fewer hidden inventory costs. However, sellers are responsible for maintaining inventory levels, making it a more hands-on solution.
PRO TIP: Choose Amazon FBA if you want to spend less time managing inventory levels. Choose ShipMonk if you prefer to retain more control and visibility.
Fulfillment
Amazon’s fulfillment network is considerably larger than ShipMonk’s, boasting over 175 fulfillment centers worldwide. This is what enables Amazon FBA to provide Prime one-day and two-day shipping promises.
Though smaller, ShipMonk’s fulfillment centers are strategically located to support global coverage across key North American and European markets.
Both providers offer global shipping services. However, shipping internationally with Amazon FBA can be expensive due to its complex fee structure. Whereas, ShipMonk offers added services like Delivered Duty Paid (DDP) to provide your customers with a seamless shipping experience.
Amazon FBA has tighter controls and restrictions on how goods are shipped. Orders are delivered in Amazon-branded packages, and the seller has no control over carrier choice. However, you can control shipping speed with tiered pricing options.
ShipMonk allows sellers to choose from a variety of carriers, shop for the best rates based on pre-defined rules, and provide branded packaging experiences. This gives you more control over the customer experience and enables you to optimize your shipping to suit your preferences.
PRO TIP: Choose Amazon FBA if you want a faster fulfillment process with more reach. Choose ShipMonk if you want customized packaging, more carrier options, and fewer restrictions.
| Feature | ShipMonk | Amazon FBA |
|---|---|---|
| Fulfillment centers | 12 | 175+ |
| Carrier options | Flexible | Restricted |
| Packaging options | Branded and non-branded | Amazon-branded |
| International shipping | Yes | Yes |
Customer service
Customer support is notoriously difficult for Amazon FBA sellers. It relies heavily on a ticket system that often provides support through automated responses rather than human interaction.
On the other hand, ShipMonk’s customer support is a major strength. Sellers are assigned a dedicated account manager who serves as a direct point of contact, making it easy to get fast and helpful responses when you need them.
That being said, Amazon FBA shines when it comes to support for your customers. Amazon handles 100% of customer service inquiries related to FBA orders, such as providing tracking updates and managing returns.
With ShipMonk, end-customer support is entirely in the hands of the seller. You remain responsible for all communications relating to customer orders. While this means more operational effort for the seller, it also means more control over the customer experience.
PRO TIP: Choose Amazon FBA if you want to free up more time and let someone else handle customer inquiries. Choose ShipMonk if you want more reliable support and more control over the end-customer experience.
Pricing
ShipMonk’s pricing structure is quite straightforward. You pay separate fees for receiving, storage, order picking, and shipping. This makes it easier to forecast costs and strategically plan for future sales.
Amazon FBA, on the other hand, has a complex and opaque cost structure. While it appears simple on the surface (a single fulfillment fee covers picking, packing, and shipping), myriad hidden costs make it difficult to predict profit margins and allocate budgets accordingly.
Furthermore, Amazon charges a mandatory referral fee for all sales. This is an 8–10% commission on every sale that can dig into your profit margins and hinder growth.
NOTE: The Amazon referral fee still applies to ShipMonk users selling through Amazon Marketplace, but only for sales made on Amazon.
Scalability
Comparing scalability between ShipMonk and Amazon FBA isn’t easy. Although Amazon’s vast fulfillment network is designed to support unpredictable order volumes, it’s limited by seller performance. Your Inventory Performance Index (IPI) and restock limits dictate how much inventory you’re able to store, restricting growth for some sellers.
However, Amazon FBA’s fulfillment network is much larger than ShipMonk’s, which means it has a higher ceiling in terms of upward growth and expansion.
ShipMonk specializes in helping small consumer brands grow from a few orders a month to a few thousand. It also supports large enterprises looking to reduce operational efforts to focus on more strategic goals. But scaling up or down to optimize fulfillment based on drastic shifts in demand requires careful, advanced planning with a ShipMonk account manager.
PRO TIP: Choose Amazon if you’re selling products in a particularly volatile market where demand can drastically change throughout the year. Choose ShipMonk if you want a supportive growth partner to help your business scale.
When should you use ShipMonk vs. Amazon FBA?
The best solution for you depends on the priorities and needs of your business.
Amazon FBA and ShipMonk both offer unique advantages for specific services, but they both have drawbacks in other areas.
Here’s a helpful chart for comparing the strengths of ShipMonk vs. Amazon FBA:
| Feature | ShipMonk | Amazon FBA |
|---|---|---|
| Control and branding | More seller control, customization, and carrier options | Highly restrictive with minimal options for customization or branding |
| Inventory storage | Fees are charged based on storage solution | Fees are charged based on volume (cubic feet) |
| Prime eligibility | No | Yes |
| Fulfillment network | 12 fulfillment centers globally | 175+ fulfillment centers globally |
| Scalability | Supports the growth of businesses from emerging brands to large enterprises, but requires more planning | Highly capable of scaling up or down based on demand, but with added costs and performance-based restrictions |
| Customer support | Dedicated account manager for the seller, but the seller is responsible for order inquiries and resolutions | Difficult and frustrating support system for sellers, but order inquiries are entirely handled by Amazon on the seller’s behalf |
| Visibility | Real-time inventory, order fulfillment, and warehouse analytics that integrate with most major ecommerce platforms | Centralized seller hub with real-time performance analytics for Amazon sales |
In short, choose ShipMonk if you’re looking for more control over the customer experience, predictable costs, and a personable seller-provider relationship. Choose Amazon FBA if you’re looking to reduce seller-managed administration or require a solution capable of scaling up or down with minimal advanced planning.
Why you should consider Red Stag Fulfillment as an alternative
If you’re not confident that either of these solutions is a perfect fit for your business, there are plenty of ShipMonk and Amazon FBA alternatives to consider.
Red Stag Fulfillment is a third-party fulfillment provider that specializes in large or bulky items and offers custom services for Amazon sellers. We prioritize our clients’ success, providing dedicated local support to ensure problems and inquiries are handled immediately.
Two-location solution that balances speed with costs
While a vast network of fulfillment centers sounds like a major benefit, we believe that more complex doesn’t always mean more practical. Sometimes, less is more.
When your inventory is stored across dozens of facilities, it’s harder to maintain optimal stock levels, keep inventory carrying costs down, and provide a consistent customer experience.
At Red Stag Fulfillment, we intentionally focus on two locations that can deliver to 96% of the United States in two days with ground shipping. This approach balances cost and speed with simplicity, making it easier to manage inventory levels and avoid split shipments that lead to confused customers.
Unbeatable local customer support
There’s nothing more frustrating than spending three hours trying to reach customer support, only to find out you need to log a ticket into a complex online system or repeat an entire conversation with another employee.
Red Stag Fulfillment provides a customer-focused service that prioritizes your needs. Our Client Success team is based in the United States and has a direct line to the warehouse floor, ensuring all your problems are solved quickly and professionally.
Experts in large and bulky third-party fulfillment
If you sell large, heavy, or bulky items, you already know how challenging it is to manage inventory and shipping without going over budget or running out of storage space.
Red Stag Fulfillment was recently recognized by Fulfill.com as a top 3PL for big and bulky fulfillment, and with good reason. Our company was founded by a pair of ecommerce sellers struggling to optimize fulfillment and storage for their oversized inventory items.
As such, we offer specialized fulfillment services for big, heavy, and bulky products, backed by a deeply experienced team and industry-leading carrier rates for large shipments. Our warehouses are specifically built to handle oversized goods, and our staff knows what it takes to keep storage costs down regardless of product size.
Custom solutions for FBM and FBA sellers
Red Stag Fulfillment offers a wide range of specialized Amazon fulfillment services.
We’ve got you covered whether you’re looking for help prepping your inventory and shipping it to an FBA fulfillment center, getting Seller Fulfilled Prime eligibility for large and heavy items, or optimizing your Fulfillment by Merchant (FBM) process.
Our Amazon FBA prep services take care of everything from ensuring your products meet the latest criteria for FBA fulfillment to synchronizing inventory and order fulfillment visibility between multiple sales channels.
Our guarantees
At Red Stag Fulfillment, we’re committed to building trust through accountability and reliable fulfillment services. We take accountability for your success and your customers’ satisfaction.
That’s why we offer fulfillment service guarantees, so you know your inventory is in safe hands:
01
No shrinkage: Our zero-shrinkage policy means that if a single item is lost or damaged, we’ll make it right.
02
On time, every time: We promise to minimize the time it takes for your customers to receive their orders, and we’ll compensate you for every late delivery in accordance with your service-level agreement.
03
Perfect order accuracy: Accurate fulfillment is a top priority, and we’ll provide compensation for any mistake in addition to covering any extra shipping costs.
Choosing the best fulfillment option for your business
Finding the right fulfillment provider requires careful thought and consideration.
If you want more flexibility, visibility, and control over your operations, then ShipMonk could be the right choice. If you want to reduce your administration time and focus on growing Amazon sales, then Amazon FBA could be a good fit for your business.
If you’re looking for a solution that offers the best of both worlds, specially designed to handle large and heavy items with superior customer support, consider Red Stag Fulfillment.
Speak to one of our friendly in-house experts today to learn more about how Red Stag Fulfillment can help you cut costs, boost customer satisfaction, and optimize your fulfillment process.
