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Alternatives to Buy With Prime for DTC Websites

edwardnickerson · September 12, 2024 ·

Why Consider DTC Fulfillment Alternatives to Buy with Prime?

Opting for an alternative to Buy with Prime can help merchants avoid the potential downsides of handing over customer relationships to Amazon. By working with 3PL providers, merchants can:

Maintain brand identity: Fulfillment alternatives like ShipBob and SFN allow you to keep your branding front and center, helping you build stronger, long-term relationships with your customers.

Greater control over fees: Many 3PLs offer clearer, more competitive pricing structures compared to the potential high margins Amazon may seek to impose with Buy with Prime.

Flexibility with integrations: Providers like Deliverr and Rakuten offer seamless integrations with multiple ecommerce platforms, helping sellers maintain an omnichannel presence without being locked into one ecosystem.

Reduce risk of inventory limitations: By using multiple fulfillment options, sellers avoid the risk of running into Amazon’s inventory limit constraints and receiving delays, which can significantly impact both Amazon and DTC sales.

What Are Alternatives to Buy with Prime for DTC?

Momentum Warehousing: A Strong Alternative to Amazon’s Buy with Prime for DTC Fulfillment

Momentum Warehousing offers several value-added services that make it a compelling alternative to Amazon’s Buy with Prime for direct-to-consumer (DTC) merchants. While Amazon’s Buy with Prime may seem attractive for its convenience, many DTC sellers are wary of losing control over customer relationships and brand identity. Momentum Warehousing presents a tailored, flexible solution with key advantages for ecommerce businesses.

1. Customized Fulfillment Services

Momentum Warehousing distinguishes itself by offering highly personalized fulfillment solutions that cater to the unique needs of DTC brands. Unlike Amazon, which operates on a one-size-fits-all model, Momentum Warehousing works closely with businesses to create a custom fulfillment process. This includes options for kitting, packaging, and labeling that reflect your brand identity, helping build customer loyalty and reinforcing the DTC brand experience.

Momentum Warehousing’s approach allows you to retain control over the customer journey from order to delivery, ensuring that each touchpoint is aligned with your brand values and image.

DTC Fulfillment Solutions for Online Sellers

2. Flexibility and Scalability

Where Amazon’s Buy with Prime can lock sellers into strict inventory limits and rigid shipping practices, Momentum Warehousing offers flexibility in warehousing space and fulfillment services. As your business grows, you can easily scale your storage and logistics operations without worrying about restrictive caps on inventory or long receiving delays. This flexibility allows DTC brands to scale their business with confidence, knowing that their fulfillment partner can accommodate evolving needs.

Moreover, Momentum Warehousing offers fulfillment options for products that are oversized, fragile, or require special handling, unlike Amazon’s FBA, which has more rigid requirements that don’t fit every type of product.

3. Protect Brand Ownership by Exploring Alternatives to Buy With Prime

One of the biggest concerns for DTC merchants using Buy with Prime is losing ownership of the customer relationship. Amazon’s branding and checkout experience take center stage in Buy with Prime, which can diminish the DTC brand’s identity and lead customers to prioritize Amazon over the seller.

With Momentum Warehousing, your brand remains front and center throughout the entire fulfillment process. Customers interact directly with your brand, from placing orders to receiving packages that carry your distinct branding. This not only builds customer trust but also increases the likelihood of repeat purchases, as shoppers associate the entire experience with your brand, not a third party.

Scaling Online Fulfillment for Ecommerce Brands

4. Transparent Pricing and Reduced Costs

While Amazon charges premium fees for its fulfillment services, which can significantly reduce profit margins, Momentum Warehousing offers transparent pricing that’s designed to support DTC sellers in maintaining profitability. Without the heavy commissions and fulfillment fees that Amazon imposes, Momentum helps brands keep more of their revenue while still benefiting from fast and efficient logistics services.

Additionally, Momentum Warehousing doesn’t impose hidden fees for things like inventory storage or customer returns, giving businesses more control over their operating costs and better visibility into their profit margins. In this way, we build trust through transparency. And when you can trust our fixed costs, that lets you look ahead to forecast into the future.

5. Multichannel Fulfillment Capabilities

Momentum Warehousing seamlessly integrates with various ecommerce platforms, making it easier for DTC sellers to manage their orders across multiple sales channels, including Shopify, WooCommerce, and other popular platforms. This multichannel integration ensures that all orders, regardless of where they’re placed, are handled with the same level of care and efficiency.

This contrasts with Buy with Prime, which focuses exclusively on Prime members and Amazon’s network, potentially limiting the reach of your business. Momentum’s multichannel capabilities ensure that you’re not reliant on one platform and can expand your brand’s presence across various marketplaces and sales channels.

Trust Worthy Warehouse Pricing

6. Alternatives to Buy With Prime Promise Faster Receiving Times and Inventory Management

Amazon FBA often suffers from long delays in receiving inventory, which can negatively affect both Amazon and DTC sales. Momentum Warehousing addresses this challenge with faster receiving times and efficient inventory management systems that ensure your stock is readily available for fulfillment. This reduces the risk of stockouts and lost sales, particularly during high-demand periods, and helps keep your DTC store running smoothly without the bottlenecks associated with Amazon’s systems.

7. Alternatives to Buy With Prime Include Dedicated Customer Support

Another critical value add from Momentum Warehousing is its personalized customer service. Unlike the often impersonal and automated nature of Amazon’s support, Momentum provides dedicated account managers and a support team that understands the unique needs of your business. Whether it’s solving logistical challenges, managing returns, or ensuring fast shipping, the team at Momentum Warehousing offers a human touch that prioritizes your success.

8. Geographic Reach and Shipping Options

Momentum Warehousing has strategically located facilities to provide fast shipping to most regions. They can handle national and international fulfillment, ensuring that you can serve a global customer base without the need for Amazon’s network. This broad geographic reach is particularly important for DTC merchants who want to maintain control over shipping times and costs, while still offering competitive delivery speeds.

Additionally, Momentum allows DTC merchants to select a variety of shipping carriers, enabling businesses to choose the best option based on cost and delivery time, which is far more flexible than Amazon’s predetermined shipping routes and methods.

3PL Fulfillment Warehouse, Customer Support

If You’re Intersted in Learning More about the Pro’s and Con’s of “Buy with Prime” feel free to check out other posts that discuss Buy with Prime below:

Read more about the PROS of “Buy with Prime”
Read more about the CONS of “Buy with Prime”

Cons for Buy With Prime with Online Brands

edwardnickerson · September 12, 2024 ·

What Are the Cons to “Buy with Prime”?

Buy with Prime might look like a convient solution for securing sales on your webiste, but there are many cons for Buy with Prime that should be considered first. While Buy with Prime offers a convenient solution for DTC merchants’ fulfillment and checkout needs, this ease comes with a cost. Sellers aiming for independence or following a multichannel strategy benefit from keeping distance from major marketplaces, and adopting Buy with Prime may blur those boundaries, risking more than they stand to gain.

In this article, we will discuss three cons to working with “Buy with Prime” as a online DTC seller. First, we’ll explore how integrating this check out process can snag a sale, but concedes control to Amazon – ultimately putting customer loyalty into question. Additionally, Sellers will need to pay to play with Buy with Prime. Amazon is sure to charge an exorbinant amount of money to process, pick, pack and ship your order the client. That’s cash in the trash for sellers. Lastly, we’ll look at the inventory limitations component of this equation. If you drive alot of traffic to your site, but Amazon doesn’t have the inventory to fulfill sales – this may spell trouble. Let’s review all three cons to “Buy with Prime” and see if they are a good fit for your online brand.

Warning For Ecommerce Sellers
Warning For Ecommerce Sellers

A Con to Buy with Prime is that Amazon Steals Ownership of Your Customer

If Amazon’s branding becomes a part of your checkout process and the conversion occurs because the buyer trusts Amazon, who ultimately owns that customer? Worse, will the customer even stay on your website? This is a serious con to consider when flirting with Buy with Prime.

Many DTC sellers have built their brands independently to distance themselves from Amazon’s controversial business practices. By owning the customer relationship, they cultivate long-term loyalty, which leads to repeat business and improved customer lifetime value, forming the cornerstone of profitability.

However, the con with Buy with Prime is incorporating Amazon into the equation and risking undoing all the effort DTC sellers have invested in fostering these unique customer relationships. While faster, free shipping might boost new customer acquisition, Amazon’s branding could nudge shoppers to visit their platform for price comparisons or to explore competing offers. Considering that over half of product searches begin on Amazon, do you really want to give customers a reason to leave your site for the ecommerce giant after you’ve invested in attracting them?

Amazon Stealing Sales

High Amazon Fees for “Buy With Prime”

In Q4 2021, Amazon generated $30.3 billion in revenue from third-party seller services, which include commissions, fulfillment, and shipping charges. Although the fee structure for Buy with Prime hasn’t been fully disclosed, all signs suggest that Amazon aims to make this the next Amazon Web Services (AWS). In recent years, the company’s core retail business has been a loss leader, while AWS and its advertising arm deliver substantial profits. This is a con of Buy with Prime – the high cost of pay to play Amazon’s game here.

AWS began as an internal service for Amazon before being offered externally, and Amazon FBA has followed a similar trajectory. Initially created for Amazon’s own orders, FBA was later extended to third-party sellers, and now it’s being made available to DTC merchants. It’s likely that Amazon is targeting high margins with this service, potentially rivaling AWS’s 60%+ operating margin.

For DTC merchants, this means tighter profit margins. While the Prime badge may drive more conversions, the associated fees could reduce profitability. If the additional revenue doesn’t translate into higher net income, is Buy with Prime truly worth it?

High Fulfillment Fees for Online Sellers

FBA Inventory Limitations

For multichannel sellers balancing Amazon and DTC sales, all inventory is pooled together within FBA, meaning orders from both Buy with Prime and Amazon come from the same stock. Why is this an issue?

While this simplifies inventory management, this is a big con to Buy with Prime. Amazon is notorious for imposing restrictive FBA inventory limits and experiencing long delays in processing inbound shipments. By relying exclusively on FBA, sellers make themselves vulnerable to sudden changes in inventory restrictions or prolonged delays in receiving stock.

These frequent changes to FBA inventory limits continue to frustrate sellers. If a receiving delay depletes your inventory, it doesn’t just hurt your Amazon sales rank; it can also undermine your DTC store’s SEO and advertising efforts. Despite Amazon’s attempt to position Buy with Prime as a comprehensive solution for DTC merchants, depending entirely on FBA could prove detrimental in the long run. Diversifying your fulfillment strategy is essential to protect your business from Amazon’s unpredictability.

If You’re Intersted in Learning More about the Benefits of Buy with Prime or the Alternatives to it – feel free to check out other posts that discuss Buy with Prime below:

Read more about the PROS of “Buy with Prime”
Read more about the Alternatives to “Buy with Prime”

Buy with Prime for DTC Websites – A Sellers Guide

edwardnickerson · September 9, 2024 ·

What is “Buy with Prime” for online brands?

April 21st, 2022, Amazon introduced a new offering: Buy with Prime for DTC websites. This service allows third-party ecommerce retailers to leverage Amazon’s vast logistics network to handle orders from their own websites for a fee. Essentially, it extends Amazon’s fulfillment services to direct-to-consumer (DTC) platforms. In addition, 3rd party websites utilizing “Buy with Prime” can display the Prime badge next to items eligible for free 2-day or 3-day shipping (which will encompass most products), likely increasing their conversion rates.

Moreover, Amazon Prime members purchasing from third-party sites using “Buy with Prime” will see their payment and shipping details pre-filled during checkout, streamlining the purchasing process and reducing abandoned carts. In this article, we’ll outline the key details of the service and explore its advantages, disadvantages, and alternatives for fulfillment.

How Does “Buy with Prime” Impact DTC Websites

Amazon is specifically targeting Buy with Prime at sellers operating DTC stores. Although Amazon previously offered its multi-channel fulfillment (MCF) service to DTC sellers, this new program seems to be a direct replacement, and we expect MCF to gradually phase out as Buy with Prime becomes the go-to option. Currently, Buy with Prime is invite-only, but the promotional website for the program clearly showcases who Amazon believes will benefit most. As highlighted in the image below, the service is pitched as a growth tool for DTC merchants.

The message is clear: if you’re a DTC seller, you can shift your focus away from fulfillment concerns and delight customers with fast, free shipping by partnering with Buy with Prime. And in doing so, you can expect to pay a handsome set of fees to Amazon for their automated FBA system. This is cash out of seller’s pockets, and into Amazon’s for the hard work you did to get clients to your page.

Amazon aims to position Buy with Prime as the primary fulfillment solution for DTC sellers. Amazon’s voracoius posture to consume competition and bring all DTC under its purview is much more aggressive than other platforms. We don’t foresee competitors like Walmart or Target adopting Buy with Prime anytime soon, and it will be interesting to see whether a significant number of Shopify or BigCommerce sellers switch to Amazon’s new service.

Warehousing, Logistics, FBA Prep Support for Amazon FBA sellers, and MultiChannel Fulfillment for MFN Sellers

How Does “Buy with Prime” Affect DTC Websites – like Shopify?

Shopify, after scaling back its fulfillment network ambitions, is now pursuing the acquisition of a competing logistics service. If Shopify invests heavily in its own fulfillment system, it’s likely to block Amazon from its user base. As of now, whether Shopify merchants will gain access to Buy with Prime remains uncertain.

We’ll continue monitoring developments, as sellers utilizing multiple channels know the headaches that arise from managing various fulfillment services. While Amazon is making a strong push to expand FBA across the ecommerce space, their competitors aren’t standing idly by.

Conclusion

For DTC merchants looking for a reliable, flexible, and cost-effective alternative to Buy with Prime, Momentum Warehousing offers a robust fulfillment solution. With personalized services, transparent pricing, and multichannel integration, Momentum helps ecommerce businesses scale without sacrificing brand control or profitability. By working with a fulfillment partner like Momentum Warehousing, you can maintain control over your customer relationships, ensure a seamless brand experience, and optimize your supply chain to meet the unique demands of your business.

If You’re Intersted in Learning More about the Pro’s and Con’s of “Buy with Prime” feel free to check out other posts that discuss Buy with Prime below:

If You’re Intersted in Learning More about the Pro’s and Con’s of “Buy with Prime” feel free to check out other posts that discuss Buy with Prime below:

Read more about the Alternatives to “Buy with Prime”
Read more about the CONS of “Buy with Prime”

Golden Week in Shipping – The Chinese Holiday & Logistics

momentumwh · September 6, 2024 ·

What is Golden Week in Shipping?

Golden Week is an annual celebration commemorating the founding of the People’s Republic of China. It kicks off a 7-day Golden Week festival, including parades, ceremonies, and other displays. Golden Week can have a profound impact in Shipping and supplychains.

Where Is Golden Week Celebrated?

Chinese National Day Golden Week (October 1–7): Celebrates the founding of the People’s Republic of China on October 1, 1949. This is the most significant Golden Week in China, and people enjoy a week-long break. During this period, there are large-scale national celebrations, with activities such as parades, fireworks, and cultural performances.

This is not to be mistaken with Golden Week in Japan. Where a collection of four national holidays that occur in close succession from the end of April to the beginning of May, making it one of the longest holiday periods in the country.

Golden Week in China - How it Affects Shipping
Golden Week in China – How it Affects Shipping

When Is Golden Week in Shipping?

Golden Week is usually celebrated from October 1-7 (sometimes the holiday will be longer to include “Mid-Autumn Festival”, which is based on the Lunar calendar). Factories will be closed for the holiday week, with operations resuming on the day after the holiday. This pauses supply chains from the source. Utimately it has a whiplash affect down the road into American Warehouses.

How Will Golden Week Impact Supply Chains?

As October 1 approaches, importers rush to complete production and secure shipments before Golden Week, which tightens freight space and drives up prices for both ocean and airfreight. With carriers more overbooked than usual, cargo may be rolled to later departures.

Additional impacts include:

  • Trucking services: Increased demand will raise trucking prices at origin.
  • Blank sailings: With factories closed, carriers may announce blank sailings post-holiday to optimize vessel usage.

Golden Week is comparable to Chinese New Year, where a similar rush to ship goods creates higher demand and reduced capacity, leading to surcharges like Peak Season Surcharge (PSS) and General Rate Increase (GRI) on spot rates.

Backed Up Supplychain in Container Yard

How to Prepare For Golden Week in Shipping?

To ensure your shipments arrive in time for the winter holidays during Golden Week, it’s important to prepare early. For ocean shipments, booking should be done 3-4 weeks before Golden Week, while air shipments need to be booked at least 1 week in advance. This early planning is essential to avoid delays during the holiday period when shipping capacity becomes tight.

Peak Season Shipping Tips

For peak season shipping, working closely with your logistics team is key. Share your shipping forecasts as early as possible and secure space in advance. Prioritize your most urgent shipments and maintain consistency in your shipping patterns, as this helps carriers give preference to your cargo. Additionally, be flexible by considering alternate ports or services with slightly longer transit times, and explore transloading options. For urgent shipments, airfreight is a viable, though expensive, option due to high demand and limited capacity. From there, your goods should arrive in time for fulfillment during the Black Friday and the American holiday season.

Sea freight shipping of FCL Full Container Loads
Sea freight shipping of FCL Full Container Loads

Golden Week in Shipping – Conclusion

Ensure all goods arriving before or during Golden Week are paid for in advance to avoid storage charges. Shipments that are not released in time may incur additional costs.

Read OUr Guide on Black Friday in Ecommerce here

FBA Guide to Black Friday for 2024

momentumwh · August 26, 2024 ·

Q4 Holidays for Ecommerce Sellers

Black Friday and Cyber Monday are the biggest shopping days of the year. For Amazon FBA sellers, this is a prime time to boost sales. However, the competition is fierce. Being ready is crucial. Planning needs to start early. In this FBA Guide to Black Friday, Momentum Warehousing shares tips to help you succeed during these key shopping events. Learn how to stand out on Amazon and maximize your profits.

When Is Black Friday and Cyber Monday in 2024?

This FBA Guide to Black Friday starts with a look at our calendars to provide us context on timing. In 2024, Black Friday falls on November 29th, with Cyber Monday following on December 2nd. Black Friday happens the day after Thanksgiving, and Cyber Monday kicks off the next Monday. Both days offer massive discounts on everything from electronics to home essentials. At Momentum Warehousing, we understand the importance of these key shopping events for our clients.

Black Friday and Cyber Monday (BFCM) bring in huge sales, so stocking up is crucial. Begin planning 7-9 weeks ahead to ensure you’re ready. Work closely with your suppliers to secure enough lead time. This allows you to find the best deals and get your inventory delivered on time.

Why Plan for Black Friday and Cyber Monday?

For Amazon sellers, BFCM is a prime chance to increase sales and profits. But it also brings tough competition and extra challenges. Being well-prepared is essential for the biggest time of year. Often times, sellers model their entire product portfolio around seasonal products this time of year. There is a ramp up, anticipation, and a launch for the full send into the holidays.

Here, we’ll highlight why Amazon sellers need to plan ahead for Black Friday and Cyber Monday. We’ll also cover the common obstacles they might encounter. By getting ready early, sellers can tackle these challenges and make the most of this critical shopping season. FBA Prep Centers can be the difference maker in making sure sellers are ready to succeed during BFCM.

FBA Guide to Black Friday: Proper Planning Predicts Profitable Product Sales

Increase in FBA Sales

BFCM is one of the year’s biggest shopping events. Amazon sellers can expect a huge spike in sales. In 2023 alone, sellers on Amazon generated over $9.8 billion during Black Friday and Cyber Monday.

New Customers Boost Brand Exposure

BFCM is a prime time to attract new customers. Many shoppers flock to Amazon for deals on a variety of products. It’s an ideal opportunity to expand your customer base.

Increased Profits

During BFCM, Amazon sellers can significantly boost their profits. Higher sales volumes and new customers drive this increase. Offering discounts, coupons, and special deals can further enhance your earnings.

Challenges of Black Friday and Cyber Monday

Increased Inventory Demand

During Black Friday and Cyber Monday (BFCM), Amazon sellers face heightened pressure to have enough inventory to meet the massive surge in demand. This challenge is particularly tough for those selling popular or trending items, as stock can deplete quickly. Sellers should review last year’s sales data and take into account current market trends when forecasting needs. Additionally, leveraging inventory management tools like forecasting software and real-time stock tracking can help sellers avoid stockouts or overstocking, both of which can hurt profitability and customer satisfaction.

Increased Shipping Demand

BFCM also brings a significant spike in shipping demand, which can lead to delays and logistical bottlenecks. Amazon strongly urges Fulfillment by Amazon (FBA) sellers to stock up well in advance, ensuring that inventory reaches fulfillment centers by late October to handle the seasonal rush. For Fulfillment by Merchant (FBM) sellers, it’s crucial to maintain close communication with shipping partners, ensuring efficient and timely deliveries. Sellers may also want to explore multiple shipping options or carriers to mitigate the risk of delays, which could lead to negative customer reviews and lost sales.

Increased Competition

Competition becomes particularly intense during BFCM, with countless sellers vying for shoppers’ attention. To stand out, Amazon sellers need to offer not only competitive deals but also exceptional customer service. Strategic pricing, appealing discounts, and limited-time offers can help attract buyers, while providing fast shipping, prompt customer support, and smooth returns will enhance the overall shopping experience. Effective advertising campaigns and optimizing product listings with high-quality images and detailed descriptions can further increase visibility in a crowded marketplace.

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