3PL (Third-Party Logistics) refers to a company that manages the physical supply chain operations — warehousing, inventory receiving, pick and pack, and carrier handoff — on behalf of ecommerce brands and sellers.
Amazon FBA is technically a form of 3PL, but the industry typically uses "3PL" to mean independent providers that are not marketplace-owned.
What a 3PL Handles
- Inbound receiving: Accepting manufacturer shipments and checking them into inventory
- Storage: Warehousing units in racked or bulk storage
- Pick and pack: Pulling individual items for each order and packing them per brand specs
- Shipping: Passing parcels to carriers (UPS, FedEx, USPS, DHL)
- Returns processing: Inspecting, repackaging, or disposing of returned units
- Kitting and bundling: Assembling multi-unit packs or promotional bundles
FBA vs. 3PL
| Amazon FBA | Independent 3PL | |
|---|---|---|
| Prime badge | Yes (automatic) | Only via SFP |
| Fee predictability | Amazon rate card (changes annually) | Negotiated contract |
| Multi-channel support | Limited (MCF has surcharge) | Native |
| Branding | Amazon-branded boxes | Custom packaging possible |
| Hazmat flexibility | Restricted | Varies by provider |
| Return control | Amazon process | Full control |
When Sellers Use Both
Many brands use a hybrid model: FBA for Prime-eligible Amazon sales, plus a 3PL for their Shopify store, Walmart marketplace, and B2B wholesale orders. The 3PL receives the manufacturer shipment, inspects and preps inventory, ships FBA-bound units to Amazon FCs, and handles all other channels directly.
Choosing a 3PL
Key questions: Does the 3PL have FBA prep services? What are their software integrations (Shopify, WooCommerce, ShipStation)? What are their per-order costs for your SKU profile? Do they handle international shipping? Where are their warehouses relative to your customer base?