If you sell online, someone has to store your products and get them to customers. There are three main ways to do it, and the right one depends on where you sell, how much control you want, and your margins. Here’s the honest comparison.

The three models in one line each

• FBA (Fulfillment by Amazon): Amazon stores, picks, packs, ships, and does customer service for your Amazon orders.
• FBM (Fulfilled by Merchant): You (or a partner) fulfill your own Amazon orders instead of using Amazon’s centers.
• 3PL (Third-Party Logistics): An independent fulfillment company stores your inventory and ships your orders across all your channels — your own store, Amazon, wholesale, everywhere.

These aren’t mutually exclusive. Many brands run a mix.

FBA: fast and hands-off, but you give up control

Strengths: Prime badge and eligibility, Amazon-speed delivery, Amazon handles customer service and returns, strong for winning the Buy Box.

Trade-offs: Storage and fulfillment fees that rise over time, long-term storage surcharges on slow-moving stock, strict prep requirements (see Amazon FBA Prep), commingled inventory concerns, and near-zero control over packaging or unboxing experience. Your brand is invisible inside an Amazon box.

Best for: Fast-moving products where Prime eligibility drives sales and you don’t need brand-differentiated packaging.

FBM: control and margin, more work

Strengths: You control packaging and branding, you can use your own or a 3PL’s fulfillment, and you avoid some FBA fees. With strong performance, you can qualify for Seller Fulfilled Prime and still show the Prime badge.

Trade-offs: You’re responsible for hitting Amazon’s delivery-speed and performance metrics yourself. Fall short and your listings suffer. It’s more operational load unless you use a 3PL to run it.

Best for: Brands that want branded packaging, have slower-moving or oversized products where FBA fees bite, or want to unify Amazon fulfillment with the rest of their channels.

3PL: one operation for every channel

Strengths: A single inventory pool and one operation serving your website, Amazon (via FBM), wholesale, and marketplaces. Branded packaging. Often better economics on storage and oversized items. And critically for cross-border sellers, a 3PL can handle bulk import, customs, and duties — the parts Amazon won’t touch.

Trade-offs: You choose and manage the partner relationship, and quality varies between providers (which is why vetting matters — see How to Choose a Fulfillment Partner).

Best for: Multi-channel brands, cross-border sellers who need customs handled, and any brand that wants control of its inventory and customer experience across everywhere it sells.

How the cross-border angle changes the decision

Since the US ended de minimis (see The End of De Minimis), importing inventory now means formal customs entry and duties regardless of value. Amazon won’t act as your importer or customs broker — so if you’re an international seller going straight to FBA, you still need someone to bulk-import and clear customs first.

This is where a 3PL earns its place even for Amazon sellers: it lands your inventory, clears customs, preps to FBA spec, and forwards it in — while also fulfilling your non-Amazon channels from the same stock. Many brands run FBA and a 3PL together for exactly this reason.

A simple way to choose

• Sell only on Amazon, fast-moving product, want hands-off? → FBA
• Sell on Amazon but want branding or better economics on heavy/slow items? → FBM (often run through a 3PL)
• Sell across multiple channels, or ship cross-border, or want full control? → 3PL (often alongside FBA)

FAQ

What’s the difference between FBA and FBM?
FBA means Amazon fulfills your orders from its own centers; FBM means you fulfill your Amazon orders yourself or through a third party. FBA is more hands-off; FBM gives you more control over branding and cost.

Is a 3PL better than FBA?
Neither is universally better. FBA is best for hands-off, Prime-eligible, fast-moving Amazon sales. A 3PL is better for multi-channel brands, branded packaging, and cross-border sellers who need customs handled. Many brands use both.

Can I use a 3PL and FBA together?
Yes, and many brands do. A common setup uses a 3PL to bulk-import, clear customs, prep to FBA spec, and forward inventory into Amazon — while the same 3PL fulfills the brand’s website and other channels.

Which model is cheapest?
It depends on product size, turn speed, and channels. FBA fees favor small, fast-moving items; a 3PL often wins on heavy or slow-moving inventory and on multi-channel operations. Calculate landed and fulfillment cost per unit for each.

Does FBA handle customs for international sellers?
No. Amazon won’t act as your importer of record or customs broker. International inventory has to be imported and cleared before it reaches an Amazon facility, which is why cross-border FBA sellers often use a 3PL for the import step.

Not sure which model fits — or need the import and customs piece handled before FBA? TXG fulfills across every channel and manages the bulk import and customs that Amazon won’t. Get a fulfillment quote →