Where is your margin going?
Building a brand on Amazon is a double-edged sword. While it provides massive traffic, its fee structure—Referral fees, Pick & Pack fees, Storage fees, and Return processing—can silently kill your profitability. Many founders discover too late that they are actually losing money on every FBA order while their Shopify orders remain highly profitable.
The 4 Profit Killers
When comparing fulfillment channels, you must account for these four often-hidden expenses:
- Pick & Pack Fees: Amazon charges a flat fee per unit. A 3PL typically charges a smaller base fee plus a per-item "pick fee."
- Storage Rent: Amazon storage is famously expensive, especially during "Peak Season" (Q4). If your stock doesn't move in 30 days, your profit drops significantly.
- Return Processing: Processing a return at a 3PL might cost $2.00. At Amazon, it might involve a removal fee or a complete loss of the item if deemed "unfulfillable."
- Capital Tie-up: Selling via FBA often requires you to keep more stock in an Amazon warehouse, tying up your cash in a single channel.
Pro Tip: The Multichannel Balance
Most successful brands use a "Hybrid" model. They use FBA for their top 10% fast-moving SKUs to get the "Prime" badge, and use a 3PL or Self-Fulfillment for their broader catalog and Shopify orders to maximize profit margins.
How Stash helps with Multichannel Scaling
Stash acts as the bridge between your channels. You can see your total stock levels across FBA and your main warehouse simultaneously. This ensures you never run out of stock on Shopify while your Amazon inventory is overstocked (or vice-versa).
Selling on Amazon & Shopify?
Syncing stock between Amazon and Shopify is the number one pain point for growing brands. Stash simplifies your operations so you can focus on building your brand.
Scale with Stash