Frequently asked questions
1. What is Amazon FBA (Fulfillment by Amazon)?
Amazon FBA is a service where sellers send inventory to Amazon warehouses, and Amazon handles storage, order fulfillment, shipping, customer service, and returns for sales made on the Amazon marketplace.
2. What is a 3PL (Third-Party Logistics Provider)?
A 3PL is an independent company that manages fulfillment, storage, shipping, and logistics for ecommerce sellers across multiple sales channels—including Amazon, Shopify, Walmart, and more.
3. What is FBM (Fulfillment by Merchant)?
FBM means merchants handle storage, packaging, and shipping themselves or via a chosen 3PL, rather than outsourcing to Amazon FBA.
4. What are the key differences between FBA and 3PL?
FBA is tightly integrated with Amazon and offers Prime eligibility, fast nationwide shipping, and Amazon-branded packaging. A 3PL offers more customization, flexible costs, multi-channel fulfillment, and branded packaging.
5. What are the typical costs for Amazon FBA vs. a 3PL?
Amazon FBA charges fulfillment and storage fees (including penalties for aged inventory). 3PLs typically bill for receiving, storage, pick & pack, and shipping, often with more transparent and customizable pricing.
6. Can I use both FBA and a 3PL at once?
Yes, many sellers use FBA for fast-moving or Prime SKUs and a 3PL for multi-channel fulfillment, slow-moving inventory, or products needing custom packaging.
7. How do I transition off Amazon FBA to a 3PL?
To switch, move your inventory to the 3PL, set up integrations for sales channels, and configure your shipping and return policies. Many 3PLs offer onboarding support for the transition.
8. Why do sellers switch from FBA to a 3PL?
Common triggers include expanding beyond Amazon, managing high storage fees, seeking control over branding and packaging, and improving customer experience across channels.
9. What is Seller Fulfilled Prime (SFP)?
SFP allows sellers to earn the Prime badge and offer fast shipping while fulfilling orders themselves or via a 3PL (after meeting strict Amazon criteria).
10. How does FBA packaging differ from 3PL packaging?
Amazon FBA uses standardized, Amazon-branded packaging. 3PLs offer custom and branded packaging options, including inserts and gift wrapping to enhance brand identity.
11. Can a 3PL help with Amazon FBA prep services?
Yes, many 3PLs provide FBA prep (labeling, packaging, bundling, compliance checks), especially as Amazon phases out some prep services in 2026.
12. Which option is better for international fulfillment: FBA or 3PL?
FBA provides global Prime reach but has higher import fees and limited flexibility. A 3PL often offers lower costs, more flexibility, and multi-channel global shipping.
13. Is FBA or 3PL cheaper for small businesses?
For businesses selling mainly on Amazon with high-volume SKUs, FBA can be cost-effective due to scale. If selling across channels or needing flexible storage, a 3PL is often more economical.
14. How do I find 3PL or FBM warehouses near me?
Search for “3PL near me” or “fulfillment center near me.” Most 3PLs have nationwide or regional networks and will offer location-specific storage and fulfillment options.
15. How do FBA and 3PL compare in terms of inventory control?
FBA provides Amazon-specific visibility but limited flexibility post-inbound. 3PLs usually offer real-time dashboards and more granular management over inventory, bundling, and reordering.
16. What are the branding advantages of using a 3PL?
A 3PL enables branded, personalized packaging and inserts for all sales channels, which is not possible using Amazon’s FBA service.
17. Can a 3PL fulfill for Shopify, Walmart, and other channels?
Yes, 3PLs specialize in multi-channel fulfillment, supporting Amazon plus other marketplaces and your own website.
18. How does outsourcing to a 3PL reduce Amazon seller burnout?
A 3PL can automate time-consuming logistics, reduce stress from managing shipping and returns, and free up founders to focus on growth and marketing.
19. What are the best 3PL providers for Amazon sellers?
Choose based on your location, channel mix, volume, and need for FBA prep. Look for providers with experience supporting Amazon sellers and offering custom integrations.
20. When is the right time to sell or exit my Amazon FBA business?
Sellers often consider an exit or transition when they face rising FBA fees, policy changes, or plan to diversify sales across channels. 3PLs can support the transition and continuity during a sale.
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