3PL vs. freight forwarders for Amazon FBA—find out which solution best fits your business.
A global market size of $1.36 trillion in 2025 and a projected value of $1.78 trillion by 2030 are whooping figures for an industry that only came up about four decades ago in the 1980s.
Then, the Internet exploded in the 2000s, and technological advancements brought the industry the tools it needed to optimize supply chains.
Today’s guide explores the 3PL industry, which has shifted from just an acronym that initially described a new type of warehousing and transportation solution to modern phenomena like 3PL for Amazon FBA.
We’ll see how the sector supports e-commerce through Amazon FBA and the Amazon marketplace in general. We’ll also check out some of the best providers you can use for your business.
Talking of the best shipping service providers, we at Ship4wd stand out with our digital-first and SMB-centered approaches.
We streamline the shipping process for SMBs through innovative solutions such as guaranteed container space allocation at competitive rates, 24/7 human-led customer support, and flexible credit lines.
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What Does 3PL Mean in Logistics?
3PL is an acronym for third-party logistics, referring to a service provider or solution that plans or executes various supply chain management and distribution activities for businesses.
The companies that provide these services are the third-party and are generally called 3PL providers or partners.
In the specific case of selling on the Amazon marketplace, the providers are commonly referred to as Amazon 3PL companies.
Put simply, a 3PL for Amazon ensures your business’s products reach the right buyer following a confirmed order.
Types of 3PL Providers
Third-party logistics providers are usually put into different groups based on their specialization.
Some offer logistics management services or technology, while others handle end-to-end logistics. Others simply transport products or parcels from point A to B.
You may come across the following four major types of 3PL service providers:
1. Transport-Based 3PLs
A transport-based 3PL provider moves finished goods or raw materials from Point A to Point B using its own transportation assets or those of another company.
The providers in this category may offer intermodal or multimodal transport, track-and-trace services, reduced shipping costs, and transport optimization.
2. Distribution/Warehouse-Based 3PLs
The providers in this group offer distribution and warehousing services, such as warehouse and storage optimization and inventory management.
They also offer order fulfillment, inbound and outbound logistics, and reverse logistics.
A provider in this category usually receives your inventory from suppliers or manufacturers, inspects it, and stores it. They can then process and deliver orders on demand as you make sales.
3. Full-Service 3PLs
A full-service 3PL provider offers end-to-end logistics management rather than just one or a few specific solutions within the logistics process.
You can choose the type and level of service your business needs.
Usually, providers in this group have their own transportation assets and transport management tools, platforms, and standard operational processes.
Some key services to expect here include accounting, logistics data and analytics, relationship management with carriers and other stakeholders, and claims management.
4. Forwarder-Based 3PLs
A forwarder-based 3PL or freight forwarder acts as an independent middle person between shippers (businesses), carriers or transportation-based 3PLs, and customers.
Freight forwarders usually negotiate fair prices with carriers, map out cost-friendly routes, optimize transportation modes, and plan for transit services. Some may have their own transportation assets.
You can expect the typical freight forwarder to offer advice on the most favorable shipping options between air freight shipping, FCL freight, and LCL ocean freight service.
Key 3PL Services for Amazon FBA
We’ve mentioned various services offered by 3PL companies in general.
Here are the key Amazon 3PL services to look for, depending on the provider you choose:
- Tracking orders and shipments
- Shipping (via land, sea, or air)
- Data analytics and logistics insights
- Warehousing (storing goods temporarily in their warehouses)
- Inventory management (controlling stock levels and supply quantities)
- Reverse logistics (managing the transportation of returned items)
- Order fulfillment (processing orders by picking, packaging, and delivering goods)
- FBA product prep services (such as quality control, labeling, repackaging, product customization, or assembly and kitting)
- Processing returns (checking the condition of returned products and making decisions for disposal, repair, recycling, or refurbishing)
When you work with a freight forwarder like Ship4wd, you can enjoy logistics solutions such as:
- Flexible credit lines (pay for cargo and shipping up to 90 days from the date your cargo arrives)
- Less-than-container load ocean freight (LCL shipping)
- Full-container load ocean freight
- Digital customs clearance
- Dangerous goods shipping
- Pre-shipment inspections
- Cargo insurance
- Air freight
Create your free Ship4wd account today to see how we can help you streamline all your shipping processes.
Benefits of 3PL for FBA Sellers
As an FBA seller, you can enjoy the following benefits of 3PL services:
- Lower Capital Investment: You don’t have to invest in logistics assets like trucks, labor, warehousing, and technology.
- Increased Supply Chain Efficiency: You save the effort, time, and monetary cost of doing the work yourself.
- Flexibility and Scalability: You can easily adjust your operations in real-time as your business changes without stubborn shipping delays.
- Better Focus on Core Business: You have time and other resources freed up for marketing and strategic planning.
Examples of the Top Amazon 3PL Companies
Let’s check out some of the best 3PL providers for Amazon sellers to work with:
- Fulfillment-Box: With Fulfillment-Box, you can explore services such as 3PL FBA prep, transit, and returns processing. They also offer Amazon 3PL warehouse services in most countries where the marketplace has a presence.
- Red Stag Fulfillment: You can use Red Stag Fulfillment to ship oversized, heavy, or bulky goods. The provider offers kitting and assembly, 3PL fulfillment, pick and pack, and inventory planning.
- Shipfusion: As a multi-industry 3PL fulfillment company for e-commerce brands, Shipfusion offers returns management, Amazon FBA prep, shipment tracking, and inventory management. They also have direct-to-consumer fulfillment.
- AmzPrep: Specializing in e-commerce fulfillment and FBA prep, AmzPrep offers packaging, labeling, and shipping to Amazon FBA warehouses. They also provide direct-to-consumer fulfillment services. You can use their international fulfillment services across Europe, the US, Australia, and Canada.
- Amazon Multi-Channel Fulfillment (MCF) and Amazon FBA: You can also use Fulfillment by Amazon (FBA) to ship orders made on Amazon.com. However, the service is only for the marketplace’s orders. You can use the MCF option instead, which accepts orders made beyond Amazon.com on your website or other e-commerce channels.
How to Choose a 3PL Provider
Choosing among top Amazon 3PL partners becomes easy when you consider factors such as:
- Proximity to FBA Fulfillment Centers: The distance between their Amazon 3PL warehouse and Amazon’s FBA fulfillment centers matters. Shorter distances generally mean lower shipping costs.
- Range of FBA Services: Look for 3PL partnerships that offer as many services as possible. You’ll want to consider services like receiving inventory from suppliers, inspecting goods, packaging, labeling, transport, and returns handling.
- Compliance with Amazon FBA Requirements: Ensure the provider is dedicated to high levels of compliance with FBA requirements to avoid additional fees and unwanted delays.
- Cost-Friendliness: Your provider’s services should be priced fairly to reduce your costs and maximize your profits.
- Scalability: Ensure the provider can accommodate fast growth as your sales increase. For example, check if they serve other countries in case you wish to expand to new markets.
Challenges with 3PL and How to Overcome Them
Despite technological advancements, the 3PL industry still grapples with critical internal challenges.
You may experience the following problems:
1. Frequent Delays
Non-compliance with customs requirements can lead to customs clearance and shipment delays.
In the case of Amazon FBA, delays usually stem from poor inventory prep or non-compliance with FBA standards.
Choosing a provider with enough knowledge and expertise in these areas can help avoid this challenge.
2. Service Limitations and Hidden Costs
Some 3PL providers fail to disclose the full range of their services, making customers assume that they offer them, yet they don’t.
Others have complicated pricing structures or additional fees they don’t disclose upfront.
Due diligence during the search for the best provider can help minimize or eliminate the burden of hidden costs or paying for non-existent services.
3. Reduced Supply Chain Visibility
Some 3PL services may lack enough tracking capabilities. As a result, you have reduced access to real-time tracking data.
Keeping your customers updated becomes a problem that may cost you future business if they leave.
Ask the provider upfront if they offer real-time shipment tracking and if you can access the information independently from an app or online portal. If they don’t, you can look for other options.
4. Poor Communication and Customer Service
Not all 3PL services prioritize proper communication and customer support. You may be left to your own devices when your shipment runs into problems.
Check that your preferred provider offers prompt progress updates and has dedicated round-the-clock customer service. You can check their reviews online to understand how they offer problem resolution.
3PL vs. Freight Forwarder for Amazon FBA
3PL services and freight forwarders generally differ in how they handle the supply chain. A 3PL provider typically manages the entire chain, from inventory and warehousing to order fulfillment and shipping.
On the other hand, a freight forwarder typically focuses more on transportation. They help you with shipment booking, cargo consolidation, customs clearance, documentation, and route planning.
If you choose a freight forwarder for Amazon FBA, check how well the provider is conversant with FBA requirements, their geographical reach, and the range of services relevant to FBA.
Why Choose Ship4wd for Your Shipping Needs
Here are some compelling reasons why you should choose us as your freight forwarder:
- We can inspect your goods before shipping to ensure compliance and that they are of the right quality.
- We offer different transit options, including ocean and air freight, to suit your needs.
- We guarantee container space allocation at favorable prices even during busy seasons (the only provider to offer this).
- We have additional services like cargo insurance, which many 3PL providers often lack.
- Our global reach extends to countries where Amazon operates and more.
- We offer exceptional customer service led by real shipping experts.
- Our pricing and invoicing are transparent, with no hidden fees.
Whether you are an Amazon seller or run an online business on another platform, we can help optimize your supply chain and shipping processes. Register a free Ship4wd account today.
Frequently Asked Questions (FAQs)
Here are some questions to wrap up the discussion:
Can You Use Both FBA and a 3PL Provider for Order Fulfillment?
Yes, you can use both FBA and a 3PL provider to fulfill orders.
The strategy diversifies risk and cushions you against problems such as delays, hidden costs, and poor shipment visibility.
What’s the Minimum Order Volume for a 3PL?
The minimum order volume for a 3PL can vary significantly depending on the provider, destination of the shipment, and space availability.
It’s always advisable to talk to your preferred provider to find out their on-demand or monthly requirements.
Is a 3PL Worth It for Small and Medium-Sized Amazon Sellers?
A 3PL can be worth it for small and medium-sized Amazon sellers who want to streamline their shipping operations to focus more on growing their business.
Outsourcing logistics services is also essential for saving money that would otherwise go into capital-intensive independent shipping, order fulfillment, and warehousing.
How Does Amazon 3PL Pricing Compare to FBA Fees?
Amazon 3PL usually has lower and more flexible pricing than Amazon FBA.
Amazon FBA is typically inflexible because Amazon sets the pricing structure based on the weight and size of products.
You might end up paying too much with FBA in some situations, such as when you have complicated shipping needs or ship large volumes.
Conclusion
The third-party logistics industry is a lifesaver for small and medium businesses as they can outsource their supply chain needs to focus more on business growth.
Whether you need a 3PL for Amazon FBA or other sales channels, finding the right provider can make a huge difference in your bottom line.
You’ll want a cost-friendly provider so you can maximize your take-home amount.
The provider should also offer as many services as possible, including shipment insurance, real customer support, transportation, and more.
With Ship4wd, you can enjoy these and more services. We even guarantee our customers container space allocation at favorable prices for both domestic and international shipping.
Sign up for a free account today to enjoy reliable shipping services across different sales channels.