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FSA Store vs Amazon: What to Know

By: Author Francis Walshe

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FSA Store vs Amazon: What to Know
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Amazon has a finger in just about every pie there is at this stage. There are very few industries the retail behemoth hasn’t entered. If you’re an FSA holder, there’s a specific section on Amazon you can use to shop for eligible items.

FSA Store is a more specialized outfit. As the name suggests, it’s an online retailer that only sells items eligible for tax relief under the plan.

I’ve used both FSA Store and Amazon’s FSA-eligible section, and I’ve laid out my views on both of them here.

The Quick Version:

FSA Store is generally the option I recommend for regular FSA shoppers. 

Its focus on eligible items means it’s generally hassle-free. While it can’t match Amazon’s prices or the sheer selection, its streamlined shopping experience more than makes up for this. Plus, you don’t have to worry about anything being mislabeled as it can be on Amazon.

FSA Store vs Amazon: Head to Head

Let’s dive deeper into how the two retailers stack up.

1. Categorization 

Everything listed on FSA Store is guaranteed to be FSA-eligible, so it has a definite upper hand when it comes to categorizing eligible goods. 

While there is an “Amazon FSA Store” landing page, and while the platform does label eligible items, it doesn’t offer the same level of accessibility or convenience. Because Amazon sells such a vast range of products, and because it often falls to the seller to tag items correctly, there can be confusion. 

Amazon’s system also does not deal with prescription requirements, so they warn that those items requiring prescriptions (while “FSA eligible,”) might need extra documentation in order for buyers to access their tax refunds. There are plenty of Reddit threads with reports of healthcare providers refusing to cover Amazon-purchased items that were supposedly eligible; don’t say I didn’t warn you. 

You won’t encounter this problem with the FSA Store. 

Verdict: FSA Store is the clear winner here.

2. Price

There’s a reason why Amazon has bullied so many smaller retailers out of business. It often can’t be beaten on price, and its FSA-eligible section is no exception. It generally offers the cheapest FSA-eligible items on sale anywhere. 

FSA Store is at the other end of the scale. It’s often criticized for being too pricey on certain items, particularly more niche products that aren’t available everywhere. You’re essentially paying for the convenience and certainty around eligibility; a worthwhile expense, in my view.

Amazon is particularly cost-effective for smaller purchases, especially if you’re a Prime user. If you urgently need a box of Band-Aids or a bottle of ibuprofen pills, this is very convenient. FSA Store imposes a $50 minimum order for free delivery, which isn’t ideal in such situations. 

Verdict: Amazon offers the cheapest FSA-eligible items you’ll find anywhere; if you’re hunting for bargains above all else, you don’t need to look any further. 

3. Selection

FSA Store has over 2,500 products in inventory, ranging from everyday health essentials to more specialized medical devices. It has aggressively expanded its range of items over the last number of years, and now offers everything from massage guns to Oura rings to prescription sunglasses. 

It has also kept up with legislative changes in the FSA space; the likes of OTC medication and female sanitary products became FSA-eligible without a letter of medical necessity under the CARES Act of 2020. FSA Store now has a large range of these items for sale. 

Essentially, if it’s FSA-eligible, chances are the FSA Store sells it.

Amazon’s selection, of course, is practically unlimited. However, because it does a relatively poor job of categorizing its eligible products, I think this is more of a hindrance than anything else. It will often offer dozens of products that address a very similar need, with some being eligible and others ineligible. This essentially just means more admin work for you.

Verdict: Even though Amazon arguably wins on paper here, I’m going with the FSA Store. Its selection is as good as it needs to be; the extra options you get with Amazon only make the process of determining eligibility more difficult.

4. Bugs

A lot of FSA shoppers have reported issues when trying to process payments on Amazon with their FSA debit cards. There are different theories as to the reasons for this; some believe items are being presented as FSA-eligible in error, and that this only triggers an issue at the checkout stage. While the company has reportedly made efforts to address this problem, it does remain a concern. 

Amazon’s customer service infrastructure unfortunately does not do a good job of providing solutions to problems like this, which makes things worse.

As it exists solely to cater to the FSA shopper, FSA Store is more adept at dealing with issues like these. When problems do arise, the company is quick to address them via its 24/7 customer care service. This level of service is one of the key advantages of buying from smaller retailers in general. There are also relatively few reports of payment processing issues from FSA Store shoppers. 

Verdict: If reliability is a priority for you, stick with FSA Store. 

5. Loyalty Program/Rewards

If you’re the type of shopper who appreciates getting points or cash back, you’ll enjoy FSA Store’s built-in loyalty program. The “FSA Perks” scheme lets you earn points on every purchase, which can later be redeemed for discounts on the site. If you’re using the site regularly, these can add up quickly.

Additionally, FSA Store sometimes partners with employers or benefit providers to offer exclusive coupons or integrations. You can also access extra points for leaving reviews after buying from the store.

Amazon does offer certain rewards for shoppers who use its credit card, and there are often special offers available to Prime users as well. However, it doesn’t have an FSA-specific rewards program.

Verdict: FSA Store’s loyalty program is a big benefit for regular shoppers.

What’s the Ultimate Verdict?

Both Amazon and FSA Store offer convenient ways to spend your pre-tax healthcare dollars online, but they cater to slightly different priorities. If you’re chasing the lowest possible prices, Amazon is probably the place for you. Additionally, if you’re in need of a small item on short notice, free delivery through Prime is very convenient.

However, because of the more streamlined overall experience, I recommend FSA Store to most people. It’s hard to beat the eligibility guarantee and level of customer service on offer, especially given how tricky it can sometimes be to claim FSA refunds.

I would also note that FSA Store’s sister website, HSA Store, caters to shoppers who use HSA rather than FSA. There’s a lot of overlap between the two programs, and HSA Store offers all the same benefits as FSA Store in terms of eligibility and customer support, so I’d recommend checking that out if you have a HSA.