Fulfillment by Amazon (FBA) vs Rakuten Super Logistics

Fulfillment by Amazon (FBA) vs Rakuten Super Logistics

Ecommerce has revolutionized the way we shop and sell. However, the backbone of every successful ecommerce business is its fulfillment strategy. Fulfillment entails storing, packaging, and shipping products to customers. This article compares two popular ecommerce fulfillment services: Fulfillment by Amazon (FBA) and Rakuten Super Logistics. We will explore how they work, costs, benefits for small businesses, customer service, shipping times, handling of returns, international shipping options, security measures, pros and cons, how to choose between them, success stories, expert opinions, and a final recommendation for businesses.

How FBA and Rakuten Super Logistics Work

Both FBA and Rakuten Super Logistics provide comprehensive warehousing and shipping solutions:

• FBA: Stores your inventory and fulfills orders from Amazon fulfillment centers. When you create a listing, you can choose Amazon to handle fulfillment or do it yourself.
• Rakuten Super Logistics: Stores your inventory in their warehouses. Upon receiving an order, you forward it to their system, where they pick, pack, and ship it to your customer.

One key difference between FBA and Rakuten Super Logistics is their pricing structure. FBA charges fees based on the size and weight of your products, as well as the time they spend in storage. Rakuten Super Logistics, on the other hand, charges a flat rate per order, which can be more cost-effective for smaller businesses or those with lower-volume sales. Additionally, Rakuten Super Logistics offers a 2-day delivery guarantee for orders shipped within the continental United States, providing fast and reliable shipping for businesses.

Cost Comparison: FBA vs Rakuten Super Logistics

Cost is a crucial factor when choosing a fulfillment service:

• FBA: Charges storage fees based on the volume and duration of storage, with fees increasing during the holiday season. Fulfillment fees depend on the size and weight of the item. However, FBA offers the "Fulfillment by Amazon Small and Light" program for products weighing less than 10 ounces, providing lower fees.
• Rakuten Super Logistics: Charges storage fees based on SKU count and space occupied, along with per-order, pick-and-pack, and shipping fees. They do not offer a program similar to FBA's Small and Light.

Regarding returns, FBA charges a return processing fee for each returned item, while Rakuten Super Logistics does not. This makes Rakuten more cost-effective for businesses with high return volumes.

Which is More Beneficial for Small Businesses?

Small businesses need fulfillment services that are affordable, accessible, and efficient:

• FBA: Offers comprehensive features such as shipping discounts, promotional tools, and advanced inventory tracking.
• Rakuten Super Logistics: Provides more flexible pricing options, making it ideal for startups and small businesses with limited sales history.

Consider your specific needs and goals. For businesses prioritizing fast and reliable shipping, FBA may be better due to its extensive warehouse network and shipping carriers. For those valuing cost-effectiveness and scalability, Rakuten Super Logistics is a suitable choice. Research and compare both options before deciding.

Customer Service Comparison

Customer service is vital for ecommerce businesses:

• FBA: Offers 24/7 customer support via phone and email, with a user-friendly interface and a large support team, leading to shorter wait times. Additionally, FBA provides a self-service option for managing orders and returns.
• Rakuten Super Logistics: Also provides 24/7 support with an intuitive platform and knowledgeable staff. They offer a more personalized approach with dedicated account managers, handling orders and returns on behalf of clients.

Both companies ensure accurate tracking and prompt issue resolution, but the choice may depend on whether you prefer more control (FBA) or personalized service (Rakuten).

Shipping Time Comparison

Shipping time impacts customer satisfaction and retention:

• FBA: Benefits from an extensive warehouse and carrier network, offering same-day and two-day shipping options.
• Rakuten Super Logistics: While having a longer turnaround time, they offer same-day shipping cutoff times and more customizable shipping options, allowing businesses to choose preferred carriers and packaging materials.

FBA is generally faster and more efficient, but Rakuten allows for more personalization in shipping, which can lead to cost savings and a unique customer experience.

Handling Returns and Refunds

Returns are inevitable in ecommerce:

• FBA: Facilitates easy returns and offers hassle-free refunds, handling returns on behalf of the seller. They offer free return shipping for certain products but have stricter policies on the condition of returned items.
• Rakuten Super Logistics: Provides a simple and flexible returns process, allowing customers to initiate returns directly through their website. They do not charge return processing fees and offer more leniency on the condition of returned items, as long as they are usable.

Choose the service that aligns with your return policy and customer service strategy.

International Shipping Options

International shipping is crucial for global businesses:

• FBA: Offers a more extensive network of shipping carriers and provides customs clearance support, making it better suited for businesses expanding internationally.
• Rakuten Super Logistics: Limited in international shipping options, best for businesses operating primarily within the US. However, they offer faster and more reliable shipping within the country.

Consider your target market's geographical reach when choosing between the two.

Security Measures

Protecting against data theft and fraud is essential:

• FBA: Utilizes Amazon's secure cloud infrastructure and the latest encryption technologies.
• Rakuten Super Logistics: Employs SSL (Secure Socket Layer) encryption and a secure data sharing platform.

Both conduct regular security audits, train employees on data security best practices, have strict access controls, and offer insurance options against theft or damage during shipping and handling.

Pros and Cons of FBA vs Rakuten Super Logistics

• FBA:
  • Pros: Fast and efficient shipping, comprehensive features, ease of use.
  • Cons: More expensive, especially during peak seasons, and potential limitations on certain aspects.
• Rakuten Super Logistics:
  • Pros: Cost-effective, flexible, ideal for small businesses with limited budgets.
  • Cons: Longer turnaround times, limited international shipping, fewer advanced features compared to FBA.

Choosing Between FBA and Rakuten Super Logistics

Consider the following factors when deciding which platform suits your business:

• Order volume
• Budget
• Shipping times
• Geographical reach
• Future growth plans

FBA is suitable for businesses with high sales volumes, international expansion plans, and a need for advanced features. Rakuten Super Logistics is ideal for startups or small businesses seeking cost-effective solutions with adequate fulfillment capabilities.

Success Stories

Both FBA and Rakuten Super Logistics have empowered numerous businesses to achieve their ecommerce goals:

• FBA: Companies like FlyByrd Apparel and Riversong Guitars have scaled and grown their businesses with FBA's support.
• Rakuten Super Logistics: Businesses such as Danzia and Smoking Vapor have saved on fulfillment costs and improved efficiency.

Expert Opinions on Each Platform

Experts in the ecommerce industry provide varied insights:

• FBA: Praised for its comprehensive features, fast delivery times, and established reputation. However, criticized for high fees and limited international shipping flexibility.
• Rakuten Super Logistics: Lauded for cost-effective pricing, flexibility, and scalability. Concerns include longer turnaround times and limited international shipping options.

Conclusion: Which Platform is Best-Suited for Your Ecommerce Fulfillment Needs?

Both FBA and Rakuten Super Logistics offer reliable and efficient fulfillment services. FBA is ideal for businesses with established sales volumes, international expansion plans, and a need for advanced features. Rakuten Super Logistics is best for startups or small businesses with limited budgets seeking cost-effective fulfillment solutions. Regardless of the choice, prioritizing customer service and satisfaction, maintaining adequate inventory levels, and ensuring fulfillment accuracy remain essential for success.