Amazon FBA vs. 3PL: Which is right for your business?
Amazon FBA (Fulfillment by Amazon) is Amazon’s own fulfillment service. A 3PL (third-party logistics provider) is an independent company that stores, picks, packs, and ships your orders. FBA gives you Prime eligibility and Amazon’s audience. A 3PL gives you more control over branding, carriers, and sales channels. Many sellers use both.
The term “Amazon 3PL” can mean two things: Amazon’s own services (FBA and Multi-Channel Fulfillment), or a third-party provider that fulfills your Amazon orders. This guide covers both. It compares FBA and 3PLs on fees, Prime, branding, channels, and control, then helps you decide and shows how to run them together.
For the basics of each, see our Amazon FBA guide and our explainer on what a 3PL is.
Amazon FBA vs 3PL at a glance
| Amazon FBA | 3PL | |
|---|---|---|
| Who it is | Amazon’s own fulfillment service | An independent fulfillment company you choose |
| Prime eligibility | Yes, for eligible products | Only through Seller Fulfilled Prime, if the 3PL can meet Amazon’s standards |
| Sales channels | Amazon, plus other channels through Multi-Channel Fulfillment | Most channels, including your own website and marketplaces |
| Fees | Selling plan, referral, fulfillment, storage, and inbound fees, with a 3.5% fuel and logistics surcharge since April 17, 2026 | Varies by provider: often setup, receiving, storage, pick and pack, packaging, and shipping charges |
| Branding and packaging | Amazon-branded packaging, no custom inserts | Custom packaging, inserts, and kitting at many providers |
| Customer service and returns | Handled by Amazon | Varies: some handle returns, and you usually keep customer contact |
| B2B and wholesale | Built for consumer orders | Many 3PLs also ship pallets and retailer orders |
| Support | Through Seller Central | Often a dedicated account manager |
| Storage limits | Tied to your IPI score | Set by your contract |
| Best for | Fast-moving products sold mainly on Amazon | Multichannel sellers and brands that need control |
What is Amazon FBA?
With FBA, you send inventory to Amazon’s fulfillment centers. When a customer orders, Amazon picks, packs, and ships the order and handles customer service and returns. FBA offers are eligible for Prime shipping, and you can use Multi-Channel Fulfillment to ship orders from your own website and other channels using the same stock.
FBA fees are published and Amazon offers a revenue calculator, but they change often. Amazon raised fulfillment fees on January 15, 2026 and added a 3.5% surcharge on April 17, 2026. See Amazon FBA fees explained for the full breakdown.
What is a 3PL?
A 3PL receives and stores your inventory, then picks, packs, and ships your orders to customers. Many also manage returns, kitting, and custom packaging, and some handle B2B shipments. You choose the provider, so you can pick one with warehouses near your customers and a service level that suits your products.
Fees vary widely by provider and by what you ship. Our guide to how much a 3PL costs explains the typical pricing models.
Pros and cons of Amazon FBA
Pros of FBA
- Prime and reach. FBA products are Prime eligible, appear to a huge audience, and have a better chance at the Buy Box.
- Customer service and returns handled. Amazon manages support, returns, and refunds for FBA orders, which saves time.
- Fast delivery. Amazon’s network delivers at the speed shoppers expect without you building one.
- Multi-Channel Fulfillment. You can fulfill orders from other channels using your FBA stock. See Amazon MCF.
- Prime promotions. FBA offers can be included in seasonal Prime deals and events.
- Published fees. Fees are public and a calculator helps you estimate profit per product.
Cons of FBA
- Rising fees. Amazon changed its fees twice in 2026, and storage and fulfillment fees rise over the holidays.
- No custom packaging. Orders ship in Amazon packaging with no branded inserts, so customers feel they bought from Amazon.
- Amazon may compete with you. In some categories, Amazon sells similar products of its own.
- Limited support. FBA sellers usually get help through Seller Central rather than a dedicated account manager.
- Hard to build a brand. You have limited control over the experience, your customer data, and your marketing.
- Storage limits and prep. Storage limits depend on your IPI score, and Amazon stopped prepping and labeling inventory at US fulfillment centers on January 1, 2026.
Pros and cons of working with a 3PL
Pros of a 3PL
- More control. You choose where inventory sits and can plan your fulfillment strategy with the provider, including new markets.
- Personal attention. Many 3PLs assign an account manager who helps with strategy, growth, and problems.
- Customization. Branded packaging, inserts, bundles, and kitting help you create a memorable unboxing experience.
- Carrier choice. A 3PL can offer several carriers and rates it has negotiated for volume.
- Brand-building freedom. You can run your own website, marketing, and customer communication.
- Channels and B2B. Most 3PLs can fulfill all your sales channels, and many also handle wholesale orders.
Cons of a 3PL
- Setup and minimum fees. Many 3PLs charge onboarding fees, monthly minimums, or both, which can be hard at an early stage.
- Capacity limits. Some providers struggle with large seasonal spikes, so ask about peak capacity before you sign.
- Possibly slower shipping. A 3PL with one or two locations may not match Prime-level delivery speeds.
- No marketplace traffic. A 3PL doesn’t bring you shoppers or Amazon’s trust. You earn both through your own website, reviews, and marketing.
- More to manage. You need to connect the 3PL to your sales channels and keep inventory in sync.
Can you use both Amazon FBA and a 3PL?
Yes, and many growing sellers do. A common setup looks like this:
- FBA for fast-moving products that sell mainly on Amazon and benefit from Prime.
- A 3PL for your website and other channels, for bulky or slow-moving items, for kitting and custom packaging, and for B2B orders.
- A 3PL as a prep and shipping partner. Since Amazon stopped prepping inventory on January 1, 2026, many sellers use a 3PL to prep, label, and send inbound shipments to Amazon. Some 3PLs also fulfill FBM orders and can meet Seller Fulfilled Prime standards. See our guide to Seller Fulfilled Prime.
The challenge with a mixed setup is stock. With inventory split between FBA, a 3PL, and your own warehouse, every sale needs to update counts everywhere or you risk overselling. Linnworks connects to 100+ native channel integrations and syncs stock across them in under 10 minutes. Rules can route orders between your own warehouse, Amazon FBA, 3PLs, and drop-ship vendors. See how multichannel selling and inventory management work together.
Which is right for my business?
- Choose FBA if most of your sales are on Amazon, your products are small and fast moving, and you value Prime and hands-off returns.
- Choose a 3PL if you sell across several channels, want custom packaging and customer relationships, ship B2B orders, or need control over carriers and locations.
- Use both if you sell on Amazon and elsewhere and want each to do what it does best.
Outsourcing doesn’t suit every business. Proprietary products that need in-house production, very large items, and businesses without steady demand may be better off fulfilling in house for now. Our guides on 3PLs for startups and when you need a 3PL cover when it makes sense to outsource.
How to choose a 3PL for Amazon sellers
- Does it integrate with Amazon and your other sales channels?
- Can it prep, label, and ship inbound shipments to FBA?
- Can it meet Seller Fulfilled Prime standards if you want the Prime badge on FBM orders?
- Does it have warehouses close enough to your customers for two-day delivery?
- Is its pricing clear, with a full rate card and no surprises?
- Can it handle your peak season volume?
- Will you get a dedicated contact?
For a full evaluation framework, read our guide to choosing a 3PL provider, and browse our list of ecommerce fulfillment services.
Whichever you choose, keep one view of your inventory
Whether you choose FBA, a 3PL, or both, your fulfillment strategy works best with inventory management software at the center. It keeps stock counts accurate across every channel and location, and gives you the sales data to plan your next order.
Get a Linnworks demo: manage FBA, 3PLs, and every channel in one place
See how Linnworks keeps stock and orders accurate across Amazon FBA, your 3PLs, your own warehouse, and every other channel you sell on.
Frequently asked questions
Yes. Amazon FBA is Amazon’s own fulfillment service, so it works like a 3PL for sellers who use it. The difference is that FBA is tied to Amazon’s marketplace, while independent 3PLs can fulfill orders from any sales channel.
With FBA, Amazon stores, ships, and handles customer service for your orders and makes them Prime eligible. With a 3PL, an independent provider fulfills your orders from any channel, with more control over packaging, carriers, and customer contact, but without Amazon’s traffic or Prime.
It depends on your products and volume. FBA has no setup fee but charges referral, fulfillment, storage, and inbound fees. A 3PL may charge setup and minimum fees but lower per-order costs at volume. Compare the total cost per order for each.
Yes. Many sellers use a 3PL for their own website and other channels, and to prep and ship inbound shipments to Amazon. Some 3PLs also fulfill Amazon FBM orders.
A 3PL, in most cases. It lets you use custom packaging and inserts, run your own website, and keep direct contact with your customers. FBA ships in Amazon packaging and limits your customer relationship.
A 3PL can fulfill Prime orders through Seller Fulfilled Prime if it can meet Amazon’s delivery performance standards, which include on-time delivery, tracking, and cancellation requirements.