Amazon 3PL Pricing: A Complete Guide for Sellers

Amazon’s fulfillment and logistics ecosystem is vast, and while Fulfillment by Amazon (FBA) is the most commonly used service, many sellers opt for third-party logistics (3PL) providers to handle their supply chain needs. If you’re considering using a 3PL for your Amazon business, understanding Amazon 3PL pricing is crucial to optimizing costs and maximizing profitability.

In this blog, we will break down the various costs associated with Amazon 3PL Pricing, compare them with Amazon’s fulfillment options, and offer strategies to reduce expenses.

What is Amazon 3PL?

A third-party logistics (3PL) provider is a company that offers warehousing, order fulfillment, inventory management, and shipping services. Many Amazon sellers use 3PL providers to supplement or replace FBA, especially when dealing with large inventory volumes, oversized products, or products that require special handling.

Using a 3PL can help sellers reduce storage fees, improve fulfillment speed, and provide more flexible inventory management. However, pricing structures vary significantly among providers, making it important to understand how costs are calculated.

Key Factors Affecting Amazon 3PL Pricing

1. Storage Fees

Amazon 3PL Pricing, providers charge storage fees based on the volume of space your inventory occupies in their warehouse. These fees can be structured in different ways:

• Per Pallet Storage: Charges based on the number of pallets stored per month.
• Per Cubic Foot Storage: Fees calculated based on the cubic footage your inventory takes up.
• Fixed Monthly Storage Fees: Some providers offer a fixed fee for a set amount of storage space.

Comparison with FBA: Amazon FBA charges monthly storage fees based on cubic footage, with significantly higher fees during Q4 (October-December). A 3PL may offer lower storage costs, especially for long-term storage.

2. Receiving Fees

When your inventory arrives at a 3PL warehouse, they charge receiving fees for unloading and processing it. These can be structured as:

• Per Pallet Received: A flat fee per pallet received.
• Per Carton Received: Charges based on the number of cartons or boxes received.
• Hourly Labor Fees: If significant handling is required, some providers charge an hourly labor rate.

Cost Consideration: Receiving fees can add up, so choosing a 3PL with competitive pricing in this area is essential.

3. Pick and Pack Fees

Pick and pack fees cover the cost of selecting an item from inventory, packing it, and preparing it for shipping. These fees may be structured as:

• Flat Per-Order Fee: A set fee per order, regardless of the number of items.
• Per Item Fee: A charge per item picked and packed.
• Tiered Pricing: Discounts applied as order volume increases.

Amazon FBA also has per-unit fulfillment fees, so comparing these costs is crucial.

4. Shipping Fees

3PL providers typically offer discounted shipping rates through major carriers like UPS, FedEx, and USPS. Shipping fees depend on:

• Package Size and Weight: Heavier and bulkier packages cost more.
• Shipping Destination: Domestic vs. international shipping rates vary.
• Delivery Speed: Expedited shipping costs more than standard shipping.

Some 3PLs provide rate shopping, where they automatically select the most cost-effective carrier for each order.

5. Returns Processing Fees

If your 3PL handles customer returns, there may be additional fees for:

• Receiving Returns: Checking returned items and restocking or disposing of them.
• Inspection Fees: Evaluating the condition of returned products.
• Repackaging Fees: Reboxing or refurbishing returned items.

Amazon FBA charges a return processing fee for certain product categories, so evaluating how 3PL return fees compare is essential.

6. Customization and Special Handling Fees

Some 3PL providers offer additional services, such as:

• Kitting and Assembly: Combining multiple items into a single package.
• Labeling Services: Applying Amazon FNSKU labels or custom branding.
• Fragile Handling: Special care for breakable or high-value items.

These services can increase costs but offer value-added benefits like better branding and improved customer experience.

7. Account Management Fees

Some 3PL providers charge a monthly account management fee for dedicated support, reporting, and analytics. These fees vary widely but can range from $50 to $500 per month, depending on the level of service.

Comparing Amazon FBA vs. 3PL Pricing

When is Amazon FBA More Cost-Effective?

• Small, lightweight products with high turnover.
• Products that qualify for Amazon’s free or discounted fulfillment programs (e.g., Small and Light Program).
• Sellers who want a hands-off fulfillment process with Prime eligibility.

When is a 3PL More Cost-Effective?

• Large or heavy products with high FBA storage fees.
• Products with slow turnover that would incur long-term FBA fees.
• Businesses with multi-channel fulfillment needs (selling on Shopify, Walmart, etc.).
• Seasonal products that require flexible storage options.

How to Choose the Right 3PL Provider for Amazon Fulfillment

1. Evaluate Pricing Transparency

Some 3PL providers have complex pricing structures with hidden fees. Choose a provider that offers clear, upfront pricing.

2. Compare Total Costs

Instead of just looking at individual fees, calculate the total cost per order, including storage, pick and pack, shipping, and additional services.

3. Assess Integration with Amazon

Ensure the 3PL provider integrates seamlessly with Amazon’s Seller Central, so inventory levels and order tracking update automatically.

4. Consider Customer Support and Reliability

Reliable order fulfillment is crucial. Look for providers with good customer reviews and responsive support teams.

5. Look for Multi-Channel Fulfillment Support

If you sell on multiple platforms, a 3PL that can fulfill orders across Amazon, Shopify, Walmart, and other marketplaces may be the best choice.

Conclusion

Amazon 3PL pricing varies based on storage, receiving, fulfillment, and shipping fees. While FBA is convenient, a 3PL can provide cost savings and flexibility for certain businesses. By carefully comparing pricing structures and service offerings, you can choose the best fulfillment strategy to optimize costs and improve your Amazon business operations.