Amazon Buy Shipping vs External Software: Which is Cheaper for FBM?

The FBM Shipping Decision

As an Amazon FBM (Fulfillment by Merchant) seller, you have two main shipping options:

Amazon Buy Shipping - Purchase labels directly in Seller Central

External Software - Use Atoship, Pirate Ship, etc.

Which one actually saves you money? Let's find out.

Amazon Buy Shipping: How It Works

Buy Shipping is Amazon's built-in label purchasing system.

The Process:

Go to Orders → Manage Orders

Click "Buy Shipping"

Select from available rates

Purchase label

Print and ship

Available Carriers:

• USPS (Commercial rates)
• UPS (Amazon-negotiated rates)
• FedEx (limited)
• Amazon Shipping (some areas)

Price Comparison: Real Numbers

We shipped identical packages using both methods:

Test Package 1: 1 lb, Zone 5, USPS

Test Package 2: 3 lb, Zone 7, UPS Ground

Test Package 3: 5 lb, Zone 4, USPS Ground Advantage

Why Amazon Buy Shipping Isn't Always Cheapest

Misconception: "Amazon has huge volume, so their rates must be best."

Reality:

• Amazon's rates are good, but not always best
• They don't pass all their volume discounts to sellers
• External software aggregates from multiple sources
• Competition keeps external rates sharp

The VTR Factor: Why Buy Shipping Has One Advantage

Valid Tracking Rate (VTR) is critical for Amazon sellers:

• Target: 95%+ VTR
• Below 95%: Account health warnings
• Way below: Account suspension risk

Buy Shipping Advantage:

• Tracking auto-uploads to Amazon
• Guaranteed "valid" tracking
• No delays or sync issues

External Software Requirement:

• Must integrate with Amazon
• Tracking must upload within 24 hours
• Use software that auto-syncs (like Atoship)

Feature Comparison

When to Use Amazon Buy Shipping

✅ Use Buy Shipping when:

• You only sell on Amazon
• You ship <20 orders/day
• You want maximum simplicity
• You don't have time for setup

When to Use External Software

✅ Use External Software when:

• You sell on multiple channels
• You want lowest possible rates
• You ship 20+ orders/day
• You need automation features
• You want advanced analytics

Setting Up Atoship for Amazon FBM

Step 1: Connect Amazon Store

Create Atoship account

Go to Integrations → Amazon

Authorize MWS access

Orders sync automatically

Step 2: Configure Settings

• Set default package sizes
• Create automation rules
• Configure label format

Step 3: Process Orders

Orders appear in dashboard

Select orders to ship

Compare rates across carriers

Purchase and print labels

Tracking auto-uploads to Amazon

Calculating Your Savings

Monthly Savings Calculator:

Orders per month: ___
Average saving per label: $1.50-3.00
Monthly savings: Orders × Avg Saving
Example:
500 orders × $2.00 average = $1,000/month savings

Hybrid Strategy: Best of Both

Some sellers use both:

Use Atoship for:

• Heavy packages (bigger UPS savings)
• Multi-channel orders
• Complex shipments
• Rate shopping

Use Buy Shipping for:

• Quick single orders
• When rates are similar
• Issues with integration

Real Seller Results

Case Study: Electronics Seller

• 800 FBM orders/month
• Switched from Buy Shipping to Atoship
• Average savings: $2.15/label
• Monthly savings: $1,720
• Annual savings: $20,640

Case Study: Apparel Seller

• 400 FBM orders/month
• Mixed use: 70% Atoship, 30% Buy Shipping
• Average savings: $1.40/label
• Monthly savings: $560

VTR Protection with External Software

Ensuring 95%+ VTR:

Use integrated software - Atoship auto-syncs tracking

Ship within handling time - Don't delay label purchase

Use valid carriers - USPS, UPS, FedEx only

Verify tracking works - Test scan before shipping

Atoship VTR Features:

• Automatic upload within 1 hour
• VTR monitoring dashboard
• Alerts for tracking issues
• Guaranteed Amazon compliance

Making the Switch

Day 1-2:

• Sign up for Atoship (free)
• Connect Amazon store
• Process a few test orders

Day 3-7:

• Ship 50% via Atoship
• Compare rates and experience
• Monitor VTR compliance

Day 8+:

• Switch to primarily Atoship
• Keep Buy Shipping as backup
• Enjoy the savings

The Verdict

For most Amazon FBM sellers, external software like Atoship saves $1-3 per package while maintaining full VTR compliance.

Amazon Buy Shipping is fine if you only sell on Amazon and prioritize simplicity over savings.

Our recommendation: Start with Atoship (it's free), compare rates on your actual shipments, and let the savings speak for themselves.

Try Atoship free today and see how much you can save on your FBM shipping.