Amazon FBA vs 3PL? Which fulfillment strategy actually drives better results for your business? In this guide, Megaficus will break down how each model works, when to use them, and which delivers better outcomes for different business types and growth stages.
Quick summary:
| Factor | Amazon FBA | 3PL |
|---|---|---|
| Channels Supported | Amazon only | Multi-channel |
| Prime Eligibility | Yes | Only via SFP |
| Branding | Amazon-branded | Customizable |
| Costs | Fixed fees (can be high) | Negotiable, varies |
| Storage | Limited + long-term fees | Flexible |
| Customer Data | Amazon controls | Seller controls |
| Scalability | Easy on Amazon | Easy across platforms |
| Risk | High dependence on Amazon | More independence |
What Is Amazon FBA (Fulfillment by Amazon)?
Amazon Fulfillment, commonly known as FBA (Fulfillment by Amazon), is a comprehensive service that helps e-commerce sellers manage their inventory and orders more efficiently.
Through this program, sellers store their products in Amazon’s fulfillment centers, and when customers place orders, Amazon handles the entire process, including picking, packing, shipping, customer service, and returns.
This integrated system eliminates the need for sellers to maintain their own warehouses or hire processing staff, allowing them to focus on product development and marketing while reducing operational costs and saving time.
What Is A 3PL?
3PL (or third-party logistics) refers to outsourcing your supply chain management activities to specialized organizations that handle operations across the entire logistics network. These providers offer customizable solutions, including warehousing, transportation, inventory management, order fulfillment, and freight shipping based on your specific business needs and market conditions.
Key Differences Between Amazon FBA vs 3PL
Let’s examine how Amazon FBA and 3PL compare across critical business factors to help you determine which fulfillment strategy aligns with your specific needs and objectives.
Business Size And Scale
This aspect examines which fulfillment option aligns better with your company’s current operations and growth trajectory.
Amazon FBA
FBA works best when you’re selling high volumes on Amazon, typically 1,000+ units monthly, because the fees make economic sense at scale and Prime eligibility significantly boosts visibility in search results.
For example, a seller moving 5,000 standard-sized items per month benefits from Amazon’s infrastructure handling peak holiday rushes without hiring additional staff or renting warehouse space. However, small sellers with under 500 monthly units often find FBA fees consuming 30-40% of their margins.
3PL Fulfillment
3PLs accommodate businesses at any scale, from startups shipping 50 orders monthly to established brands fulfilling thousands across multiple channels. They excel for businesses with specialized needs like custom packaging, kitting services, or products requiring climate control, which are services that Amazon either doesn’t offer or charges premium rates for.
Conclusion
Amazon FBA is better suited for high-volume Amazon sellers who can leverage economies of scale and Prime benefits, while 3PL is ideal for businesses of any size with specialized product requirements or those needing customized fulfillment solutions across multiple sales channels.
Pricing And Fees
When it comes to cost structures, Amazon FBA and 3PL operate on completely different pricing models.
Amazon FBA
Amazon charges multiple fees that can accumulate significantly:
- Monthly storage fees: $0.78 per cubic foot (January-September), $2.40 per cubic foot (October-December peak season)
- Fulfillment fees: Approximately $5.06 per standard item
- Referral fees: Often 15% of the sales price
- Aged inventory surcharges: Starting at 181 days
- Additional costs: Returns processing and long-term storage penalties
>>> Read more: Amazon FBA Fees: Complete Guide To All Costs & How To Save
3PL Fulfillment
3PL providers offer more flexible and negotiable pricing:
- Pick and pack fees: $0.20 – $2.00 per item, with average costs around $3.25+ per order
- Storage costs: $5 to $15 per pallet per month
- Customizable rates: Based on volume, product type, and specific service needs
- Flat-rate storage: Many 3PLs maintain year-round pricing without seasonal increases
Conclusion
Amazon FBA is better suited for businesses with fast-moving inventory that can absorb higher seasonal costs in exchange for Prime eligibility benefits, while 3PL is ideal for companies seeking negotiable, transparent pricing with flat-rate options and customized fee structures tailored to their specific fulfillment needs.
Delivery Speed And Reliability
The fulfillment method you choose directly impacts how quickly customers receive their orders and overall delivery consistency.
Amazon FBA
Amazon offers guaranteed 2-day or same-day delivery through Prime membership, which directly increases conversion rates since Prime members spend significantly more than non-Prime customers. Moreover, Prime eligibility is automatic with FBA, giving your products the coveted “Prime” badge that appears in search results and product pages, dramatically improving click-through rates and buy box ownership.
Furthermore, when seasonal demand spikes during Black Friday or holidays, FBA automatically scales to handle millions of orders without delays because Amazon’s fulfillment network operates 24/7 across hundreds of warehouses nationwide. However, this speed advantage only applies to orders placed through Amazon’s marketplace.
3PL Fulfillment
3PL delivery times depend entirely on warehouse location and your chosen service level, ranging from 1-2 days for nearby customers to 5-7 days for distant regions. Although some 3PLs offer expedited shipping at additional cost, they can only achieve Prime eligibility through Amazon’s Seller Fulfilled Prime (SFP) program, which requires meeting strict performance metrics, including 99% on-time delivery and less than 1% cancellation rate.
Nevertheless, their main advantage lies in multi-channel capability, fulfilling orders from your Shopify store, Amazon, eBay, and other platforms simultaneously from the same inventory pool.
Conclusion
Amazon FBA is better suited for businesses prioritizing guaranteed Prime eligibility and fast delivery to maximize Amazon sales, while 3PL is ideal for companies needing to fulfill orders across multiple sales channels with flexible shipping options, though Prime access requires meeting SFP requirements.
Scalability And Growth Flexibility
How you handle capacity expansion is the most fundamental difference between Amazon FBA vs 3PL.
Amazon FBA
FBA supports businesses scaling exclusively on Amazon’s marketplace by automatically handling increased order volumes. However, Amazon imposes strict inventory limits based on your IPI (Inventory Performance Index) score, which can restrict stock levels even during critical peak seasons.
For example, if your IPI drops below 500, Amazon may limit your storage capacity right when you need to stock up for Q4, forcing you to either improve metrics quickly or lose sales opportunities. Additionally, FBA inventory cannot be used to fulfill orders from other sales channels, thereby limiting your ability to expand beyond Amazon’s ecosystem.
3PL Fulfillment
3PL providers offer unlimited scalability that adapts to your growth across all sales channels, allowing you to increase or decrease storage space and fulfillment services based on actual demand rather than performance scores.
Similarly, when you experience seasonal spikes or expand into new marketplaces, 3PLs can quickly allocate additional warehouse space without approval processes or performance requirements.
Most importantly, the same inventory pool can fulfill orders from multiple platforms simultaneously, including Amazon, Shopify, eBay, Walmart, and others, enabling true omnichannel growth without inventory fragmentation.
Additionally, as your product line diversifies with items requiring special handling, 3PLs can customize their services rather than forcing you to fit within standardized systems.
Conclusion
Amazon FBA is better suited for businesses committed to growth exclusively within Amazon’s ecosystem who can maintain high performance scores, while 3PL is ideal for companies expecting diversified expansion across multiple channels or requiring flexible capacity adjustments without platform-imposed restrictions.
Brand Control And Customization
The level of brand customization available through your fulfillment strategy plays a crucial role in shaping customer perception and building lasting brand loyalty.
Amazon FBA
FBA packages arrive in Amazon-branded boxes with Amazon’s logo, return labels, and standard packaging materials. Consequently, your brand identity becomes secondary to Amazon’s, creating a generic unboxing experience that doesn’t differentiate your products from competitors.
Moreover, customers receive no branded inserts, thank you notes, or promotional materials, missing opportunities to build direct relationships or encourage repeat purchases outside Amazon. Additionally, all customer service interactions go through Amazon’s support team using their scripts and policies, not your brand voice.
3PL Fulfillment
In contrast, 3PL providers offer complete customization of packaging, inserts, and customer communications to match your brand guidelines. As a result, you can create premium unboxing experiences with custom boxes, tissue paper, thank you cards, product samples, and QR codes linking to your website or social media.
Conclusion
Amazon FBA is better suited for businesses prioritizing operational simplicity over brand building, while 3PL is ideal for companies focused on creating memorable brand experiences and building direct customer relationships.
Customer Data Ownership And Control
Who controls customer information determines your ability to build direct relationships and implement long-term marketing strategies.
Amazon FBA
Amazon owns all customer data from FBA orders, including names, addresses, purchase history, and contact information. Consequently, you cannot access customer email addresses, phone numbers, or detailed analytics about buying patterns, preventing you from building email lists or retargeting campaigns.
Furthermore, when customers have issues or questions, they contact Amazon directly, not your brand, eliminating opportunities to provide personalized support or gather feedback. As a result, this data restriction makes it impossible to identify your most valuable customers or create targeted marketing campaigns based on purchase behavior.
3PL Fulfillment
Conversely, with 3PL fulfillment, you maintain complete ownership of all customer data across every sales channel. Therefore, you can access detailed customer information, purchase histories, and behavioral analytics to build comprehensive customer profiles for marketing and product development.
Moreover, this data ownership enables you to create segmented email campaigns, retargeting ads, loyalty programs, and personalized product recommendations.
Conclusion
Amazon FBA is better suited for businesses focused solely on immediate sales without long-term customer relationship strategies, while 3PL is ideal for companies building direct customer relationships and data-driven marketing campaigns across multiple touchpoints.
When To Choose Each Option: Amazon FBA Vs 3PL
Knowing when to use Amazon FBA vs 3PL depends on your business model and fulfillment priorities. Neither option is universally “better” – the right choice depends on your specific business circumstances and future goals.
When To Choose Amazon FBA?
Amazon FBA is ideal in situations where speed, Prime eligibility, and Amazon marketplace dominance take priority over multi-channel flexibility. If your business circumstances align with any of the following, FBA could be the better option:
You’re entering highly competitive Amazon categories where Prime is mandatory
Categories like electronics, supplements, or beauty products have 80%+ of top listings using Prime, making non-Prime offers nearly invisible. In these markets, a new wireless earbuds brand cannot compete against established sellers without FBA because customers filter search results to show only Prime-eligible products.
You’re a product-focused seller testing new items on Amazon
FBA removes all fulfillment complexity so you can focus 100% on product research, sourcing, and Amazon advertising. For example, a product researcher launching 5-10 test products monthly can quickly validate winners without building any logistics infrastructure, then scale successful items immediately using Amazon’s network.
You operate seasonally and need massive temporary capacity
Holiday-only sellers benefit from FBA’s ability to handle 10x order volume spikes without long-term commitments. For instance, a Halloween costume seller ships inventory in August, sells 50,000 units in October, then goes dormant until next year without maintaining year-round warehouse contracts or staff.
When To Choose 3PL
3PL fulfillment is ideal in situations where multi-channel sales, brand control, and customization take priority over Amazon-exclusive benefits. If your business circumstances align with any of the following, 3PL could be the better option:
You’re a Shopify-first brand using Amazon as a secondary channel
Brands generating 60%+ revenue from their own website need fulfillment that prioritizes their direct channel. For example, a skincare company can create Instagram-worthy unboxing experiences with custom packaging for website orders while still fulfilling basic Amazon orders from the same inventory, thus maintaining brand consistency where it matters most.
You’re selling subscription boxes or recurring shipment products
Monthly subscription businesses require custom kitting, variable box contents, and membership management that Amazon cannot support. Specifically, a coffee subscription service assembling different bean varieties, brewing guides, and samples each month needs 3PL flexibility to personalize each shipment based on customer preferences.
You’re a B2B seller with wholesale and retail distribution
Businesses shipping pallets to retailers alongside individual ecommerce orders need versatile fulfillment. For instance, a food manufacturer ships cases to grocery stores, individual orders to consumers, and sample packs to distributors, all requiring different packaging, labeling, and documentation that 3PLs handle but Amazon’s consumer-focused system does not.
FAQ About Amazon FBA And A 3PL
Yes, you can switch between FBA and 3PL as your business grows. Many businesses start with FBA and transition to 3PL when expanding to multiple sales channels or requiring specialized fulfillment services.
The main benefit of using Amazon FBA over a 3PL is gaining access to Amazon’s vast fulfillment network, which includes Prime eligibility, fast shipping, and increased visibility on Amazon, helping boost sales and customer trust.
Amazon FBA is ideal for businesses selling primarily on Amazon, seeking Prime eligibility, high-volume sales, and a turnkey fulfillment solution.
Get Professional Help from Megaficus
In general, if you want guaranteed Prime delivery and automated Amazon scaling, go with FBA. If you need multi-channel flexibility and customized brand experiences, 3PL is your best bet. The choice between Amazon FBA vs 3PL ultimately depends on your business model and growth goals.
Still need further help deciding on or optimizing your fulfillment strategy? Contact Megaficus for expert support with Amazon FBA vsolutions.
