Partnering with a fulfillment warehouse allows managers and entrepreneurs to manage large numbers of product shipments. These companies offer inventory solutions like storage, picking, packing, and shipping products once they’ve been purchased. Outsourcing these tasks can help you save time and costs, but not every fulfillment partner offers the same terms.
Many managers work with Fulfillment by Amazon (FBA), a partner that can handle inventory storage, order fulfillment, and customer service. However, FBA can be challenging to work with due to unpredictable fees and rigid compliance requirements. If you’re looking for a more flexible fulfillment option, third-party logistics (3PL) may be a better solution. You can even combine Amazon FBA with 3PL for an ideal blend of fulfillment services.
Key Differences Between FBA and 3PL Fulfillment
When you work with Amazon, you have access to Amazon’s network for support with fulfillment services like storing, picking, packing, and shipping goods. Benefits of FBA include access to fast Prime shipping and the potential to reach more customers because of Amazon’s extensive reach.
By contrast, third-party logistics (3PL) fulfillment is an outsourced business partner that can handle fulfillment services across multiple channels. Similar to Amazon FBA, their services include things like storing products in a warehouse, managing inventory, packing and shipping orders, and handling customer returns.
Managers and entrepreneurs use FBA and 3PL for similar reasons. They want a partner to handle day-to-day logistics so they can focus on other business processes like product development and marketing. Fulfillment partners have experience in storing and shipping goods, and they allow businesses to easily scale product sales without extra trouble.
FBA vs. 3PL for Amazon Sellers: Which Is Better?
If you’re already using a fulfillment service, you may be wondering if there’s a better option. The right fulfillment partner depends on your needs and business goals. To help you choose between FBA and 3PL, here’s a quick comparison of several key factors that matter most to Amazon sellers.
Fulfillment Costs and Fee Structures
When working with FBA, you may notice that their fee schedule can be unpredictable. Costs like storage, fulfillment, and referral vary, making it challenging to plan ahead for business costs. FBA may require a little more planning and monitoring of costs than if you partnered with a 3PL.
On the other hand, most typical 3PLs offer transparent pricing. This can be a significant benefit if you need to know exactly how much you’re spending on business costs each month.
When you work with an independent fulfillment center, they can offer you bundled services or à la carte pricing depending on what works best for your needs. This flexibility is attractive to many business owners who have varied demands.
Inventory Management and Control
Amazon FBA has strict standards for managing inventory. For example, products need to be labeled and packaged before they come to the fulfillment center. Amazon works with a large FBA Inventory Placement Service, so you may have to ship your products to multiple fulfillment centers. This can drive up shipping costs and make the process somewhat complex. Because Amazon is a large company, getting in touch with them about shipments can take some time.
Adversely, 3PLs work for you, the seller. Many of them accept unprepped inventory and allow you to speak directly with a personal account manager. With a 3PL, you often have much more control over product and shipping quality. You won’t have to send shipments to multiple inventory locations, reducing storage fees and simplifying your process.
Shipping, Speed, and Multi-Channel Sales
The best thing about FBA is its shipping speed. Many FBA sellers choose this route because it offers access to a huge, reliable logistics network. Amazon can offer extremely fast shipping, increasing customer satisfaction. If you choose Amazon’s Multi-Channel Fulfillment (MCF) program, you can ship goods from multiple platforms. However, these products all arrive in an Amazon-branded box.
If you’re selling products across multiple marketplaces, working with a 3PL instead can be ideal. Third-party logistics partners can integrate with platforms like Shopify, Walmart, BigCommerce, and others to fulfill orders from a centralized inventory. They’ll ship products in consistently branded packaging and have partnerships with carriers so they can find the best price and delivery speed for you.
Branding and the Customer Experience
With FBA, your customers will receive an Amazon-branded box that’s often oversized and filled with Amazon-branded packaging materials. Although you benefit from your partnership with FBA, they also benefit by getting to promote their brand through your packaging. There’s no opportunity for customization like adding marketing inserts, thank-you notes, or other custom packaging that offers a personal connection with your shoppers.
Working with a 3PL gives you an opportunity to create a self-branded, custom unboxing experience for customers. 3PLs also allow your business to use custom boxes printed with your logo and colors. You can add branded packaging materials like tissue paper, custom packing tape, and other details. Marketing inserts and personal touches can help increase customer loyalty. If your business goals include increasing repeat business, creating a memorable experience, and fostering a strong brand identity, working with a 3PL can help you get there.
Take a Hybrid Approach With 3PL for FBA Prep
There are significant benefits to working with FBA and 3PL fulfillment services. If you’re torn between the shipping speed of FBA and the customization of 3PL, there is a third solution. Why not combine both kinds of services for the best fulfillment option? Work with a 3PL for FBA, allowing you to customize product shipments without sacrificing the speed and dependability you’ll find with FBA.
Known as a 3PL FBA Prep Service, some 3PLs prepare products before they’re sent to an FBA warehouse. This can help you comply with FBA requirements and save costs. Choosing a 3PL for FBA sellers can help you handle complex shipping logistics while still delivering a personal unboxing experience for customers who order through other platforms.
Partner With ProShipper to Scale Your Fulfillment
ProShipper is a 3PL fulfillment partner that offers FBA Prep Services and can help you fulfill sales through additional marketplaces. If you’re selling goods across multiple platforms, we can help you provide consistent shipping and packaging across different channels. With our help, flexibility, and transparency, you can customize packaging to connect and build loyalty with your customers.
When you work with our FBA Prep Service, we can help you ensure compliance with all of Amazon’s fulfillment rules. We’re based in Canada and are the perfect partner for small to medium-sized businesses in both Canada and the United States. If you’re looking for a way to simplify fulfillment processes, ProShipper can help! Contact us today to book a demo and discover the right fulfillment services to meet your needs.
