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What Are The Differences Between 3PL And FBA?

ShipHack | 3PL Warehouse & Fulfillment Center in New Jersey > Fulfillment > What Are The Differences Between 3PL And FBA?

You have multiple options to deliver your orders to your customers. You can decide which one to choose after reading our article. We will tell you about the differences, advantages, and disadvantages between FBA and 3PL.

What Is 3PL And What Exactly Does It Do?

3PL is used as an abbreviation for third-party logistics. It means that a third company carries out a company’s shipping and order fulfillment processes. It is widely used among companies dealing with e-commerce. 

You save time and money when you work with 3PL instead of preparing orders yourself. Thanks to fast and affordable deliveries, your customer satisfaction increases exponentially. 3PL companies offer you these opportunities thanks to their expertise and experience.

Another Alternative: What Is FBA?

FBA is the logistics facility that Amazon offers to sellers. Companies working with Amazon can transfer their logistics business to Amazon FBA. It emerges as a frequently preferred method in e-commerce. 

FBA has some rules, and if you do not follow them, you cannot work with Amazon FBA. They pack the products in their packaging.

What Do You Gain By Working With 3PL?

Working with a 3PL company has many positive sides. Shiphack.co is one of these companies and offers very affordable packages to their clients.

  • It doesn’t matter how many sales channels you use: You may be selling different products in different applications. 3PL companies store, pack and ship it all for you. The opportunity to sell in various markets will bring you more satisfied customers.
  • You can use the packaging you want: Do you want your company to be prominent and remembered? The first way to do this is with the packaging because the customer first sees its packaging. Working with a system like Amazon FBA will not make your brand stand out.
  • It is easier to make changes and customize with 3PL companies: If your company needs any change, 3PL companies will quickly adapt. Amazon FBA is incomplete in this regard because it deals with too many companies.
  • 3PL companies will never upset you when it comes to price: Many order fulfillment companies offer discounts on a particular order. Especially for small businesses, this is a significant opportunity, as Amazon FBA can be expensive most of the time.
  • 3PL companies deliver at least as fast as Amazon Prime: As Shiphack.co, we usually deliver your products within two days, depending on the customer’s region. 3PL companies currently provide services as fast as Amazon Prime and offer it at more affordable prices.

The 3PL Experience Can Also Have Downsides

While companies get used to each other and are in the setup phase, problems may arise in 3PL companies.

  • Not all 3PL companies can deliver the results you want: You may need to do a lot of research until you find the right company. While Amazon FBA is just one, 3PL companies are incredibly diverse. Shiphack.co is an example of an accurate 3PL company.
  • Wrong choices can lead to wrong results: You chose a 3PL company and realized that the company was the wrong choice. You may have lost many customers by the time you realize this. Shiphack.co appoints a representative to each of its customers to avoid such problems.
  • There may be some problems during the setup phase: Creating a new working environment is always costly. This negativity also applies to Amazon FBA. However, the returns you will receive will make you happy.

Amazon FBA Also Has Benefits

Amazon FBA can be very useful for small companies that want to start e-commerce.

  • Amazon FBA takes care of customer service and returns: Amazon FBA can be extremely useful if you do not have a staff member handle issues such as returns and customer satisfaction.
  • Amazon Prime is a substantial benefit: Amazon Prime is a high-speed logistics system, and you might want your products to be Amazon Prime eligible. It will be advantageous if you meet the conditions.

Let’s Take A Look At The Negative Features Of Amazon FBA

As with every system, there are downsides to Amazon FBA.

  • You may want your brand to stand out, but Amazon uses its packaging: One of the first steps to gain loyal customers is to introduce your brand to customers using your packaging. If you work with Amazon, you cannot do this because they pack the products in their packaging. All you can do is use general packaging, but they charge extra for that. Moreover, this packaging will not be specific to your brand.
  • Amazon charges higher on holidays: Amazon FBA charges considerable fees for storage and shipping. Especially on holidays, these fees increase and can force small businesses.

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