FBA vs 3PL: Which Fulfillment Model Is Right for Your Business?
If you sell on Amazon, choosing between Fulfillment by Amazon (FBA) and a third-party logistics (3PL) provider is one of the biggest operational decisions you'll make. Both get orders to customers — but they differ in cost, control, and how well they support a multi-channel business. Here's a practical comparison from a New Jersey fulfillment center that runs both every day.
What is FBA?
With Fulfillment by Amazon, you send inventory to Amazon's fulfillment centers and Amazon picks, packs, ships, and handles customer service for those orders. Products become Prime-eligible, which can lift conversion.
The trade-off: you pay storage and fulfillment fees, you have less control over packaging, and long-term storage or low-velocity SKUs can get expensive. Your inventory must also be prepped to Amazon's exact requirements before it's accepted — which is where a prep center comes in.
What is a 3PL?
A third-party logistics provider stores your inventory in their warehouse and ships your orders for you — across Amazon (FBM), Shopify, eBay, Walmart, and more. You keep control of packaging, branding, and inventory, and you're not locked into one marketplace.
A good 3PL shines for multi-channel sellers, oversized or slow-moving products, custom packaging, and anyone who wants to avoid Amazon's long-term storage fees.
FBA vs 3PL: the quick comparison
- •Prime badge: FBA yes; 3PL via Seller-Fulfilled Prime only.
- •Channels: FBA is Amazon-first; a 3PL fulfills every channel from one place.
- •Control & branding: limited with FBA; full with a 3PL.
- •Storage cost: FBA penalizes slow movers; 3PL storage is usually simpler and cheaper for those SKUs.
- •Best for: FBA for fast-moving Prime products; 3PL for multi-channel, oversized, branded, or slow-moving inventory.
The hybrid approach most sellers actually use
In practice, the smartest sellers don't pick one — they combine both. Fast-moving SKUs go into FBA for the Prime badge, while a 3PL handles overflow inventory, multi-channel orders, oversized items, and prep/inbound to Amazon.
That's exactly what PackShip does from Fairfield, NJ: we prep and inbound your FBA shipments, and we run your FBM/3PL orders across every channel — so you get the Prime advantage where it matters and full flexibility everywhere else.
Frequently asked questions
Is a 3PL cheaper than FBA?
It depends on the SKU. For fast-moving products, FBA's fees are often worth the Prime badge. For slow-moving, oversized, or multi-channel inventory, a 3PL is usually cheaper because you avoid Amazon's long-term storage fees and per-unit fulfillment costs.
Can I use FBA and a 3PL at the same time?
Yes — and most growing sellers do. Use FBA for top sellers and a 3PL for overflow, multi-channel orders, and prep/inbound. PackShip supports both.
Do I still need a prep center if I use FBA?
Yes. Inventory must meet Amazon's prep requirements (FNSKU labeling, poly bagging, bundling) before it's accepted. A prep center like PackShip handles that and inbounds it for you.