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The Benefits of Using a 3PL for Amazon FBA

By Rachel Go

With Fulfilled by Amazon (FBA), vendors can hand off some of the burden of selling to Amazon, which handles warehousing, fulfillment, and customer service for returns in the program. The platform’s fulfillment services also cost less compared to building infrastructure to meet the two-day delivery requirements for the Prime badge, meaning FBA can increase sales across any market, and that doesn’t even cover the benefits of 3PL for Amazon FBA.

That being said, readying products for Amazon and managing FBA fees, inbound shipments, and sales rates can be a challenge that many sellers don’t have the bandwidth to tackle. As a result, more and more brands are contracting FBA prep services to oversee the final stage of product handling and preparation for all the benefits of 3PL for Amazon FBA has to offer. When you partner with a 3PL for Amazon FBA, you’re able to discuss your needs for packaging, choose services like whether the provider will replenish FBA stock for you automatically, and collaborate to create an FBA supply chain that runs as smoothly as possible.

Why to use a 3PL for Amazon FBA

When you move to a 3PL for Amazon FBA, you step back from your products, and in some cases, you may no longer handle them at all. Instead, you ship incoming pallets from your supplier or manufacturer directly to your 3PL’s warehouse, and they do the rest.

Professional 3PL for Amazon FBA prep

A professional FBA prep solution like MyFBAPrep can step in to provide first-rate product prep for Amazon. Your 3PL for Amazon FBA will handle:

  • Repackaging (boxes, poly bags, etc.)
  • Branded box inserts
  • Sticker removal
  • Barcoding (e.g., switching to FNSKU barcodes so your products aren’t confused with your competitors’)
  • Setting up GTIN for multipacks and kits without a manufacturer barcode
  • Warning/Set labels
  • Shipment packing and labeling with FBA box and pallet ID labels

All of that demands significant hands-on labor, so you need a robust partner that can take products out of manufacturer packaging, inspect them for quality, remove old labels, repackage in FBA-approved packaging (along with any customizations you’ve agreed upon), and add the appropriate FBA labels.

With a 3PL for Amazon FBA, you gain access to a professional warehouse that can accommodate FBA prep requirements, including packaging and labeling machines, warehouse management, and more. This setup is designed to automate as much of the process as possible, saving time and improving quality at every stage.

Receiving and prep in one warehouse

If you have to receive goods yourself and then forward them to a prep center because you don’t have in-house labeling and boxing capabilities, this adds an extra step to your supply chain. In turn, that increases the chances of mistakes occurring. A 3PL for Amazon FBA, on the other hand, can receive goods directly from manufacturing, break down pallets for you, and even process distribution across multiple retail channels or Amazon regions to cut down on time and expenses.

Custom boxing and box inserts

A 3PL for Amazon FBA can help you customize your boxing while still adhering to FBA’s rules, which boosts both your bottom line and brand. Whether you want to display your logo, brand your void fill, or add a unique insert, a 3PL can carry out your demands with ease to create a memorable unboxing experience for customers.

With a professional logistics company overseeing your FBA prep, you also enjoy a wider selection of materials and packaging options to lower the cost of packing. You can look into better protection for products as well by choosing materials that suit different goods. In addition, with rising sustainability concerns, a 3PL for Amazon FBA can help you reduce your carbon footprint and improve your recycling and returns processes.

Managed shipments and distribution

Selling on FBA entails managing inventory, shipments, and supply chains to keep inventory moving as quickly as possible. The higher your throughput, the less you’ll pay Amazon in fees. However, you’ll have to balance that with replenishment and inbound placement fees, supply and shipping fees, and other expenses. A 3PL for Amazon FBA can help you find the sweet spot to minimize costs while keeping as much of your investment capital out of active stock as possible so you can do more with your business.

Retail replenishment

As previously stated, working with a 3PL means you can send all of your inbound goods to one place where your provider will break down pallets to send to all of your retail and eCommerce outlets. That’s true whether you sell on Amazon and your own store or have a presence in Walmart, Walgreens, etc. A 3PL can distribute those goods to outlets on demand so your goods stay in stock without you having to manage products throughout the fulfillment process.

Reduced costs

A 3PL for Amazon FBA can save you money at almost every step of your supply chain. For example, providers commonly have:

  • Staff on hand to process and prep orders so you won’t need expensive labor every time shipments come in
  • Machinery to automate and optimize boxing, labeling, and shrink-wrapping to reduce total costs
  • Expertise in prepping products for FBA and shipping them, meaning you can take advantage of their knowledge for strategy and planning across shipments, distribution, and packing
  • Multiple clients, which reduces packaging and supplies expenses thanks to economies of scale
  • An in-house fleet or deals with carriers to handle package shipments as well as FTL and LTL inbound shipments to Amazon. When a 3PL works with multiple FBA clients, you save on inbound costs by splitting goods across trucks rather than paying for the full truck yourself
  • Software to manage inventory and warehousing so you stay on top of reorder points, lead times, and prep time to avoid stockouts and missed sales

A 3PL for Amazon FBA can save you money by delivering professional fulfillment designed to meet the demands of FBA. In addition, moving to a 3PL eliminates the need to set up and maintain logistical infrastructure in-house, which can be expensive even on a small scale.

Wrapping up — Get started with a 3PL for Amazon FBA

The right 3PL for your business has to know the rules for Amazon FBA prep inside and out, as well as provide any other services you need. That could be receiving, packaging, branding, replenishment to other outlets, quality assurance, or value-added services like kitting and bundling.

You need a 3PL for Amazon FBA that can work with your organization as a partner, which involves offering quality customer service and accommodating any customizations you desire, even if it’s specialized machinery. Pinpoint your demands for a 3PL for Amazon FBA, reach out to desirable candidates and review their capabilities, and then work with your chosen provider to integrate your data and supply chain to centralize your entire fulfillment process.