3PL vs. Amazon | How to Choose the Right Fulfillment Partner

Deciding on the right eCommerce fulfillment partner can be a difficult task. You must consider the pros and cons of each service to determine which one will be best for your business and its shipping needs.

Amazon is very effective at fulfilling orders, but when it comes to fulfillment partners, there are other ones you might want to consider, including 3PLs, also known as third-party logistics providers.

FBA (FULFILLMENT BY AMAZON)

By sending all of your inventory to Amazon, they will handle your shipments by storing items in large warehouses, packing and delivering products to customers, and handling customer support and returns.

Pros 

• Products are sold and fulfilled quickly, increasing customer satisfaction
• Handles customer service and returns, saving you time
• Allows higher volume of sales, boosting total revenue
• Transparent fees to easily calculate costs
• Includes international fulfillment
• Products receive additional exposure to Prime promotions

Cons

• May not deliver the same product you shipped to them
• Little to no order customization
• Higher storage fees (usually rise higher during holidays)
• Lack of company branding (products shipped in Amazon box)

3PL (THIRD-PARTY LOGISTICS PROVIDER)

Some companies use third-party fulfillment services to outsource fulfillment, distribution, and other services.

Pros

• Support multiple sales channels
• Allows choice of multiple shipping carriers
• Storage costs are usually cheaper
• Packaging material is specific to company's brand
• Allows frequent communication before and after product launch
• Can handle B2B and B2C fulfillment

Cons

• Companies pay per month and per product
• Finding a trustworthy 3PL can be time-consuming
• An inefficient 3PL provider can reflect badly on your company

Whether you choose Amazon's fulfillment services or go with a 3PL, you have taken a big step towards advancing your eCommerce business. By allowing a fulfillment partner to house and handle your orders and shipping, you will be more able to focus on production and branding. You'll worry less about overhead costs or not being able to meet demand.

At eShipper, we are fully committed to providing you with the best rates on shipping to all Amazon Fulfillment centers. We will also be launching eShipper+, our very own fulfillment service designed for eCommerce businesses. For more about our shipping solutions, feel free to contact us and get an instant quote today.