FBA vs 3PL: which is better?

Amazon FBA and third-party logistics are the two most common fulfillment models for ecommerce. Both handle warehousing and shipping, but they work very differently — and choosing wrong can cost you thousands.

How FBA works.

You send inventory to Amazon's fulfillment centers. When a customer orders on Amazon, Amazon picks, packs, and ships it. You get the Prime badge and Amazon handles customer service for those orders.

The upside: Prime eligibility and fast shipping. The downsides: fees that increase every year, limited branding control, and total dependency on Amazon's system.

How 3PL works.

You send inventory to a third-party warehouse (like TTM Group). When a customer orders from any channel — Shopify, Amazon, Walmart, anywhere — the 3PL ships it. You maintain control over packaging, branding, and the customer experience.

The key advantage is flexibility. You sell on every channel from one inventory pool and build your brand, not Amazon's.

When to use both.

The best strategy for many brands is both simultaneously. Use FBA for Amazon sales to maintain Prime eligibility, and a 3PL for DTC orders, Walmart, retail, and FBA prep. Many of our clients do exactly this — we handle their DTC fulfillment and prep their FBA shipments from the same warehouse.