Logistics quietly plays a crucial role in maximizing your revenue. It’s not usually the first thing that comes to mind when you’re planning your selling strategy. But once your product starts moving, how it moves makes a huge difference.
Whether you’re fulfilling orders yourself, sending pallets to Amazon FBA, or trying to recover profits from rising storage fees, logistics often determines whether you get a good or bad cut of your margins.
Many sellers turn to 3PL or 4PL providers. If they choose wisely, it’s a smart and strategic move. If not, they risk losing a significant chunk of their profits to the wrong logistics partner.
This guide breaks down the real difference between third-party and fourth-party logistics in the context of Amazon FBA. More importantly, it helps you figure out which model actually fits your business.
What Does a 3PL Do for Amazon Sellers?
A 3PL (third-party logistics provider) takes care of the physical side of fulfillment. That means they handle:
- Warehousing
- Inventory storage
- Order picking and packing
- Shipping to customers or to Amazon
In plain terms, they’re muscles. You store your goods in their facility, and when orders come in, they get them out the door.
For Amazon sellers, especially those using Fulfilled by Merchant (FBM) or managing FBA prep, 3PLs can be invaluable. They can serve as overflow warehouses, FBA prep centers, or local shipping hubs to reduce delivery times.
Real-world examples?
- ShipBob offers distributed warehouses and direct-to-consumer shipping.
- Deliverr (now part of Shopify) integrates seamlessly with Amazon, Walmart, and eBay.
- FedEx Fulfillment supports bulk shipping and eCommerce integration.
Benefits of a 3PL:
- You don’t have to run your own warehouse
- Scalable during peak seasons
- Supports both FBM and FBA inventory strategies
- Costs are predictable and often help reduce Amazon FBA storage costs
Drawbacks:
- Limited visibility into the bigger picture
- You still manage the supply chain yourself
- Communication can become fragmented as you grow
What Is a 4PL and How Is It Different?
A 4PL (fourth-party logistics provider) is not just another warehouse. It’s a full-service supply chain partner that oversees, coordinates, and often owns the relationship with multiple 3PLs and carriers on your behalf.
Think of a 4PL as your logistics architect. Instead of packing boxes, they’re mapping the whole route—from your manufacturer in Shenzhen to Amazon FBA in Kentucky to customer returns in Oregon.
A good 4PL brings tech, oversight, and strategy to your logistics operation. They integrate systems, track inventory in real time, optimize shipping lanes, and help you scale across marketplaces.
Companies like:
- Flexport focuses on end-to-end global logistics
- Project44 provides API-based tracking and visibility
- Some Amazon automation firms now offer 4PL-style services with predictive restocking and Brand Analytics integrations
Benefits of a 4PL:
- You offload the entire supply chain management
- Smarter coordination across channels (Amazon, Shopify, Walmart)
- Unified dashboard and reporting
- Ideal for international expansion
Drawbacks:
- Higher upfront cost
- Less control over day-to-day operations
- Not always necessary if you’re early-stage
Comparison: 3PL vs 4PL in Amazon Logistics
| Feature | 3PL | 4PL |
| Scope | Handles logistics operations | Manages entire supply chain |
| Who They Serve | Works directly with sellers | Works with sellers and their 3PLs |
| Tech Integration | Moderate | High-level, end-to-end |
| Control | You retain control | They manage logistics on your behalf |
| Visibility | Limited to warehouse activity | Full visibility across the entire chain |
| Best For | Growing sellers or FBM users | High-volume FBA sellers, global scaling |
When Does a 3PL Make Sense for Your Amazon Business?
If you’re running a lean operation and doing $10K to $50K in monthly sales, odds are a 3PL will give you the flexibility and control you need without the overhead of a 4PL.
Use cases where a 3PL shines:
- You’re doing FBM and want faster shipping than FBA
- You’re sending inventory to Amazon in waves and want to avoid long-term storage fees
- You sell in seasonal spikes and need temporary warehousing
Example: A private label brand selling $30K/month uses a 3PL to store and prep units, then drip-feeds inventory to Amazon FBA weekly.
They avoid Amazon’s overage fees and keep tight control over restocking. This approach also supports Amazon listing design consistency by maintaining SKU availability.
When Is a 4PL the Smarter Choice?
If your Amazon business is getting more complex—say, you’re crossing $100K+ per month, selling in multiple countries, or expanding outside of Amazon—then a 4PL becomes the smarter, safer bet.
You might need:
- Coordination between sea freight, customs, domestic trucking, and Amazon FBA
- Forecasting tools to avoid stockouts and reduce dead inventory
- One dashboard to see inventory across Amazon, Walmart, and your own site
Example: A 7-figure brand working across Amazon US, UK, and EU uses a 4PL to coordinate suppliers in China, ocean freight, and localized FBA prep.
The 4PL handles carrier delays, warehouse pickups, and restock alerts—all while feeding data back into the brand’s inventory planning software.
Which One Should You Use as an Amazon Seller?
Let’s make it simple:
- If you’re early-stage or mid-tier, a 3PL gives you speed, savings, and control.
- If you’re scaling and logistics is becoming a full-time job, hand it to a 4PL.
There’s also a hybrid approach. Some sellers start with a reliable 3PL for warehousing and prep, then bring in a 4PL as an overlay to optimize costs, centralize data, and support scaling into the best eCommerce niches.
The real question isn’t “3PL vs 4PL?” It’s: What do you want your logistics to do for you right now?
Where Does Amazon FBA Fit In?
Amazon FBA, while powerful, is only one piece of the logistics puzzle. It functions like a 3PL in that it stores and ships products. But it doesn’t source, prep, or manage your entire chain.
You still need to get your inventory from the factory to an Amazon warehouse, often through a partner that knows Amazon’s strict inbound requirements. That’s where 3PLs and 4PLs step in.
Smart sellers use both:
- FBA + 3PL to store bulk inventory off-Amazon and drip-feed to avoid storage penalties
- FBA + 4PL to automate restocking, manage customs, and track real-time inventory across marketplaces
Need Help Choosing the Right Model?
At Manage Amazon, we don’t just understand logistics. We’ve helped hundreds of sellers make the right call between 3PL and 4PL based on where they are and where they’re headed.
Whether you need a simple prep center with FBA drip-feeding or a fully automated, cross-border supply chain setup, we know what fits. Our team helps you cut the guesswork, save on costs, and build an FBA store that runs on autopilot.
If you’re not sure what’s right for your business, we can show you.
FAQs
Can I manage my Amazon business without 3PL or 4PL support?
Yes, but it gets overwhelming fast. Without 3PL or 4PL, you’ll handle storage, shipping, customer support, and supply chain alone. That eats into time and performance. Manage Amazon helps sellers automate FBA and guide whether 3PL or 4PL is the right move.
How do I know if 3PL or 4PL is better for me?
It depends on how involved you want to be. If you prefer to oversee operations, 3PL works. But if you want someone to manage everything from logistics to strategy, 4PL fits better. A consultation with experts can clear that up fast.
Should I switch to 4PL if I already use 3PL?
Switching to 4PL makes sense when your business scales or global complexity grows. If your team feels stretched or fulfillment gets slow, that’s your cue. Evaluate what’s draining your resources and who can plug that gap smarter.
What happens if you pick the wrong logistics model?
Picking the wrong model can lead to delays, overspending, and poor customer reviews. It also blocks you from scaling. That’s why getting expert help early, like from Manage Amazon, prevents expensive trial and error.
Final Take:
If you’re deciding between 3PL and 4PL for your Amazon business, don’t just ask what you can afford. Ask what’s holding you back right now.
Is it storage costs? FBA restocking delays? Customs headaches? Platform sprawl? Your logistics partner should solve those, not just ship boxes.
Start by mapping your entire logistics journey. Know your chokepoints. Then pick the model that helps you fix those, while freeing up time to grow.
