Beyond Amazon

Pros and Cons of Using a 3PL vs Amazon FBA

Comparing third-party logistics providers with Amazon FBA for different business scenarios.

What 3PLs Offer

Third-party logistics providers store your inventory, pick and pack orders, and ship them to customers — similar to what FBA does, but independently of Amazon. A 3PL handles fulfilment for your website, eBay, and other channels while you maintain separate FBA inventory for Amazon orders. Some sellers use 3PLs for all fulfilment including prep and shipping to Amazon.

When a 3PL Makes Sense

A 3PL makes sense when you sell significantly across non-Amazon channels, when you need fulfilment capabilities FBA does not offer (custom packaging, kitting, special handling), when FBA storage limits are constraining your business, or when you want to maintain inventory closer to your customers for faster delivery on non-Amazon orders.

Advantages Over FBA

3PLs offer more flexibility — custom packaging, branded inserts, special handling instructions, and the ability to handle multiple channels from one inventory pool. They do not impose restock limits. They can prep and ship to Amazon on your behalf while simultaneously fulfilling direct orders. You maintain more control over the customer experience.

Disadvantages Compared to FBA

No Prime badge (unless you qualify for Seller Fulfilled Prime). No access to Amazon's discounted shipping rates. You must manage the 3PL relationship, which requires communication and oversight. Costs may be higher per unit than FBA for Amazon-destined orders because FBA's scale gives it cost advantages that 3PLs cannot match.

Choosing a 3PL

Evaluate 3PLs on location (proximity to your customers and Amazon fulfilment centres), pricing structure (per-unit fees, storage costs, minimum volumes), technology (order management systems, inventory visibility, integrations), and reliability (delivery speed, error rates, communication quality).

For most Amazon-focused sellers, FBA remains the best option for Amazon orders due to the Prime advantage. A 3PL becomes valuable when your business grows beyond Amazon and needs fulfilment capabilities across multiple channels.

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