Introduction

As an Etsy seller, you’ve likely explored various ways to streamline your order fulfillment process. One option that might not immediately come to mind is Amazon’s Fulfillment By Amazon (FBA) service. Fulfillment by Amazon is a service offered by Amazon that allows e-commerce sellers to fulfill their orders through Amazon warehouses. Typically, this service is used by those hoping to sell products directly on Amazon. However, it is possible for Fulfillment by Amazon (FBA) to fulfill from other channels such as Etsy, known as Multi-Channel Fulfillment.

In this comprehensive guide, we’ll dive into how FBA can serve as a secondary warehouse for your Etsy shop, the nitty-gritty of integrating FBA with your Etsy orders, and how specialized third-party logistics (3PL) providers might be an even better fit for your Etsy Store.

Jump right in: Managing Peak Season Fulfillment: 5 Strategies for the Holidays

• Why Etsy Sellers Could Consider Amazon FBA
• How to Ship Etsy Orders via Amazon FBA
• Potential Downsides of Using Amazon FBA for Etsy Orders
• Why a 3PL May be a Better Choice
• Summary

Why Etsy Sellers Could Consider
Amazon FBA

Easy Setup

Amazon FBA simplifies the complex logistics involved in shipping and storing products, freeing up your time and mental space to focus on running your Etsy shop.

Potential for Increased Profits

Amazon FBA provides discounted shipping rates, particularly when shipping in bulk, which could translate into higher profits.

The Secondary Warehouse Advantage

If you’ve run out of stock in your primary storage but have inventory in Amazon’s FBA, you can fulfill your Etsy orders directly from Amazon’s warehouse. This can result in cost savings and faster shipping times.

How to Ship Etsy Orders via Amazon FBA

Once you ship your Etsy inventory to Amazon either by yourself or with the help of an FBA prep service, you’re ready to fulfill Etsy orders through Fulfillment by Amazon (FBA).

Want to use Amazon to ship an Etsy order once your inventory is at an FBA warehouse? Easy. Just set up a ‘merchant fulfilled order’ on Amazon for what your Etsy customer bought. When it ships, pop the tracking info into the Etsy order.

Step-by-Step Guide to create a Merchant Fulfilled Order

1. Navigate to Your Manage Inventory Page: Log into your Amazon Seller Central account and go to your Manage Inventory page.
2. Select Items: Choose the items that align with your Etsy order.
3. Initiate Fulfillment Order: Click on “Create Fulfillment Order,” which is often found at the top of the page or within each product’s dropdown menu.

Potential Downsides of Using Amazon FBA for Etsy Orders

Etsy Orders Arrive in Amazon-Branded Packaging

When you fulfill an Etsy order using Amazon FBA, the package arrives in Amazon-branded boxes or envelopes. For Etsy customers who value a unique and personalized shopping experience, this can be jarring and potentially decrease customer satisfaction.

Lack of Customization

Amazon FBA is all about efficiency, but that often comes at the expense of personalized touches like custom packaging, thank-you cards, or free samples. Such personal touches are one of the most unique aspects of the Etsy experience and something you forfeit when you opt for FBA.

Fees and Hidden Costs

While Amazon FBA can look cost-effective on the surface, there are various fees to consider like long-term storage fees, returns processing fees, and other costs that may not be immediately obvious. These can add up and eat into your profit margins, making the financial aspect of using FBA less attractive than it initially appears. However, one positive is that Amazon’s 15% commission fee doesn’t apply since the sale originated on Etsy, not Amazon. Etsy’s fees will also still apply when fulfilling from Amazon.

Why a Specialized 3PL May Be a Better Solution for Your Etsy Fulfillment

Branding and Customer Experience

One of the major advantages of using a specialized 3PL for Etsy fulfillment, such as eFulfillment Service, is the ability to provide a personalized, brand-aligned customer experience. Unlike Amazon FBA, which ships products in Amazon-branded packaging, a specialized 3PL allows you to curate the unboxing experience, adding branded touches like custom packaging, inserts, and thank-you notes that resonate with Etsy’s customer base.

Cost Transparency

While Amazon FBA’s pricing might look appealing at first glance, additional fees for long-term storage, oversized items, and other hidden costs can add up. With a specialized 3PL, you get a clear, upfront cost structure, allowing you to more accurately forecast your expenses and manage your budget.

Inventory Flexibility

3PLs that focus on Etsy can offer more flexible inventory solutions, especially for handmade or unique items that may not meet Amazon’s stringent warehousing requirements. This can be particularly advantageous if your Etsy shop offers custom or made-to-order products.

Compatibility with Etsy’s Ethos

Etsy is known for its focus on unique, handcrafted, and vintage items. A specialized 3PL is generally better aligned with this ethos, understanding the nuances of handling such specialized products. This can translate into better care and storage of your items, something that a generalized solution like Amazon FBA may not provide.

Multi-Channel Fulfillment Options

Many specialized 3PLs offer solutions that extend beyond Etsy, enabling you to seamlessly integrate your operations across multiple online platforms. While Amazon FBA can also fulfill orders from other platforms, its primary focus is clearly on Amazon sales, which could limit or complicate your multi-channel options.

Turnaround Time

While Amazon is renowned for its rapid fulfillment, a specialized 3PL can offer competitive, if not faster, shipping options, especially if they have multiple distribution centers. With closer proximity to your customer base, you may find that a 3PL can provide equally rapid delivery times.

No Co-mingling of Inventory

Some sellers have concerns about Amazon FBA’s practice of co-mingling inventory from different sellers. This occurs when two or more sellers sell the same exact product. With a specialized 3PL, your inventory is your own, reducing the risk of sending customers incorrect or counterfeit items.

Wrapping It Up: What’s Your Best Choice for Etsy Fulfillment?

So, you’ve got options when it comes to fulfilling your Etsy orders. Amazon FBA is tempting—easy setup, discounted shipping, and it can act as your backup warehouse. But don’t forget, it’s not perfect for everyone. You’re trading off those custom, brand-aligned touches that Etsy shoppers often look for. Plus, those hidden fees can sneak up on you.

This is where specialized 3PLs like eFulfillment Service can jump in. They get the Etsy vibe. You can go full-on brand experience with custom packaging and even throw in a handwritten thank-you note. No hidden fees, and they’ll treat you like a VIP, not just another seller in the crowd. So make sure you decide what is most important for you and your Etsy business before choosing to use Amazon FBA to fulfill your Etsy orders. Happy selling!