"Should I use FBA or a 3PL?"
It depends on your volume, product size, and how many channels you sell on. Here's the actual math.
The Short Answer
| Scenario | Winner | |----------|--------| | Under 500 orders/month, Amazon-only | FBA | | Over 1,000 orders/month | 3PL | | Multi-channel (Amazon + Shopify + TikTok) | 3PL | | Oversized or heavy products | 3PL | | Need Prime badge, low volume | FBA |
Real Cost Comparison: 1,000 Orders/Month
Let's compare actual costs for a brand shipping 1,000 orders/month with an average product size of 1 lb, 8" x 6" x 4".
Amazon FBA Costs
| Fee Type | Cost | |----------|------| | Fulfillment fee (per unit) | $3.22 | | Monthly storage (1,000 units, standard) | $0.87/cubic ft × 100 cu ft = $87 | | Inbound shipping to FBA | ~$0.50/unit = $500 | | Monthly total | $3,807 |
3PL Costs (Industry Average)
| Fee Type | Cost | |----------|------| | Pick & pack (per order) | $2.50 | | Per-item fee | $0.50 | | Monthly storage | $20/pallet × 3 pallets = $60 | | Shipping (passed through) | ~$4.50/order = $4,500 | | Monthly total | $7,560 |
Wait — FBA looks cheaper?
Not so fast. This comparison is missing the hidden costs.
The Hidden Costs That Change Everything
FBA Hidden Costs
| Fee | When It Hits | Cost | |-----|--------------|------| | Long-term storage (over 180 days) | Slow-moving SKUs | $6.90/cubic ft per month | | Aged inventory surcharge (over 365 days) | Slow SKUs | $0.50-$6.90 per unit | | Removal fees | Pulling inventory | $0.97-$1.95 per unit | | Return processing | Customer returns | $2.12-$5.00+ per unit | | Low inventory fee | Stock under 28 days | $0.32-$0.97 per unit | | Inbound placement fee | Split shipments | $0.27-$1.58 per unit |
3PL Hidden Costs (Bad 3PLs)
| Fee | When It Hits | Cost | |-----|--------------|------| | Monthly minimum | Every month | $500-$3,000 | | Peak surcharge | Q4 | 10-30% markup | | Receiving complexity | Containers | $50-$75 per container | | Tech/platform fee | Monthly | $200-$1,000 |
A good 3PL doesn't charge most of these. That's the difference.
When FBA Actually Wins
FBA is cheaper if:
- You sell under 500 orders/month
- You only sell on Amazon (not Shopify, TikTok, Walmart)
- Your products are small, light, and turn over fast
- You need the Prime badge and can't do Seller Fulfilled Prime
- You don't want to manage logistics at all
The Prime badge alone can increase conversion 25-50%. For small sellers, that revenue lift outweighs the cost difference.
When 3PL Actually Wins
3PL is cheaper if:
- You sell over 1,000 orders/month (3PL economies of scale kick in)
- You sell on multiple channels (Amazon + D2C + TikTok + Walmart)
- You have oversized, heavy, or slow-moving products
- You need custom packaging or kitting
- You import containers (need prep before FBA)
- Your products sit longer than 180 days (FBA storage penalties destroy you)
3PLs negotiate 20-40% lower carrier rates than individual merchants. At scale, shipping savings alone cover the fulfillment cost difference.
The Hybrid Approach: Best of Both
Most brands over $1M revenue use both:
- Top 20% of SKUs (fast movers) → FBA for Prime badge
- Everything else → 3PL for storage, kitting, non-Amazon channels
Typical split: 70% of inventory in 3PL, 30% in FBA.
Added cost: 15% higher than single-model fulfillment due to inventory management complexity. But the risk reduction and multi-channel flexibility is worth it.
Real Example: D2C Brand, 3,000 Orders/Month
A skincare brand doing 3,000 orders/month across Amazon (40%) and Shopify (60%):
FBA-only model:
- FBA for Amazon orders: $4,200/month
- Self-fulfillment for Shopify orders: $8,100/month (including labor)
- Total: $12,300/month
3PL model:
- All orders through 3PL: $9,800/month
- Lost some Prime conversions: -$500/month revenue
- Net: $10,300/month
Savings: $2,000/month ($24,000/year)
Plus: one inventory pool, one integration, no hiring packers.
Bottom Line
- Under 500 orders/month, Amazon-only: Use FBA
- Over 1,000 orders/month or multi-channel: Use 3PL or hybrid
- In between: Do the math with YOUR actual product dimensions and order patterns
Ready to Compare Costs?
Get a custom quote based on your actual order volume and product mix. We'll show you exactly what 3PL costs vs. what you're paying now.
