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What is a 3PL? 3PL vs FBA vs shipping yourself

A 3PL (third-party logistics provider) stores your inventory and picks, packs and ships your orders for you. Here's what it costs, how it compares with Amazon FBA and shipping orders yourself, and the signs you're ready to switch.

Last updated: · 7 min read

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The short version

  • A 3PL (third-party logistics provider) stores your stock in its warehouse, then picks, packs and ships each order for you, for any sales channel.
  • Amazon FBA does the same for Amazon orders, with Prime eligibility, but its storage fees triple from October to December and it can't use your own packaging.
  • Shipping yourself is cheapest while orders are few. Industry rules of thumb put the switch to a 3PL somewhere between 500 and 1,000+ orders a month.
  • Many growing sellers mix them: FBA for Amazon, a 3PL or their own shelf for Etsy, Shopify and wholesale.
US$6-12typical 3PL cost per order, all in
US$2.40FBA storage per cubic foot, Oct-Dec
500+orders a month, a common 3PL starting point

What is a 3PL?

A 3PL, or third-party logistics provider, is a company that runs your order fulfillment for you: it receives your inventory, stores it, and picks, packs and ships every order, usually from several warehouses. Your store or marketplace sends it the orders automatically, and you pay for receiving, storage and each order shipped. Some 3PLs also handle returns, kitting (assembling bundles) and wholesale shipments to retailers.

3PL vs FBA vs shipping yourself

Ship yourselfAmazon FBA3PL (e.g. ShipBob)
Who packs ordersYouAmazonThe 3PL
Sales channelsAnyAmazon (other channels through Amazon MCF, at extra cost)Any: Shopify, Etsy, Amazon, wholesale
Main costsYour time, packaging, postage, spaceFulfillment fee per unit, monthly storage, inbound placement and low-inventory feesReceiving, storage per bin, shelf or pallet, pick and pack, postage
PackagingYour ownAmazon's (unbranded)Usually your own branded packaging is possible
Prime badgeNo (unless Seller Fulfilled Prime)YesNo, except for some programs
Good fitFewer than a few hundred orders a month, custom or made-to-order itemsAmazon-first sellersMulti-channel sellers who outgrow their spare room

How much does a 3PL cost?

Most 3PLs, including ShipBob, quote by account, so ask for a quote with your real order volume and product sizes. Typical line items, from ShipBob's own fulfillment cost guide:

FeeTypical range
ReceivingAbout US$35 for the first 2 hours of unloading, then about US$45 an hour
StorageAbout US$5 a bin, US$10 a shelf or US$40 a pallet per month
Pick and packUS$0.20 to 1.00 per item picked
All in, per orderAbout US$6 to 12, compared with about US$8 to 14 doing it in-house

Industry ranges as of October 2026 (ShipBob and ShipMonk cost guides). Postage is extra and depends on weight, size and destination.

How much does Amazon FBA cost in 2026?

FBA fees rose by an average of US$0.08 per unit from January 15, 2026, and a 3.5% fuel and logistics surcharge applies to FBA fees in the US and Canada since April 17, 2026. Storage is US$0.78 per cubic foot a month for standard-size items from January to September, and US$2.40 from October to December. There are also inbound placement fees, a low-inventory fee if you run short, and an aged-inventory surcharge on stock older than 181 days. Our Amazon seller fees guide walks through a full example.

When should you switch to a 3PL?

There's no official number. ShipMonk puts the point where a 3PL starts to compete at around 500 orders a month, and a Red Stag estimate quoted by Shopify puts break-even at 1,000 to 3,000. The practical signs matter more:

Do the math first

Work out your cost per order today, including your own time at a fair hourly rate. Compare that with a 3PL quote for the same orders, not with zero.

ShipBob stores your stock and ships orders for Shopify, Amazon and other channels, from fulfillment centers in the US, Canada, the UK, the EU and Australia. Quotes are free.

Get a ShipBob quote

How to keep shipping yourself for less

Below 3PL volume, the biggest savings come from cheaper labels and less time per order:

Compare courier rates and print labels with Easyship →

Running Amazon ads too? Check whether each campaign pays for itself.

Open the free ACoS calculator

Frequently asked questions

What does 3PL stand for?

3PL stands for third-party logistics. A 3PL company stores your products and picks, packs and ships your orders for you.

Is Amazon FBA a 3PL?

In a sense, yes: Amazon stores and ships your products. But FBA is built for Amazon orders, while a general 3PL ships orders from any channel and usually allows your own packaging.

How many orders do you need for a 3PL?

There's no fixed minimum, and many 3PLs don't publish one. Industry rules of thumb say a 3PL starts to make sense around 500 orders a month and clearly pays off from about 1,000.

How much does ShipBob cost?

ShipBob quotes each account individually. Its cost guide lists typical ranges of about US$5 a bin, US$10 a shelf and US$40 a pallet per month for storage, plus receiving, pick and pack, and postage.

Can a 3PL receive shipments from China?

Yes. Many sellers have their forwarder deliver straight to a 3PL's warehouse. You still need an importer of record and must label the cartons the way the 3PL asks.

What is the difference between FBA and FBM?

With FBA (Fulfilled by Amazon), Amazon stores and ships your products. With FBM (Fulfilled by Merchant), you or your 3PL ship Amazon orders yourselves.

Tools we recommend

ShipBob →Hand off storage, packing and shipping once orders pile up.Easyship →Compare courier rates and print labels for international shipments.

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General information as of October 6, 2026. 3PL prices are quoted per account and Amazon fees change; get quotes and check Seller Central for current rates. Not affiliated with Amazon.