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Finding a Third Party Logistics Company (3PL) for Amazon Fulfillment

Firing The Man · September 15, 2020 · 33 min

Summary

This episode guides Amazon sellers through the critical process of selecting a Third-Party Logistics (3PL) provider for Amazon fulfillment. It highlights the downsides of relying solely on FBA, like inflated Q4 storage fees and limited multi-channel fulfillment, and offers a strategic approach to finding a 3PL that can scale with your business and optimize your supply chain beyond Amazon.

Key takeaways

Themes

amazon & marketplacessupply chain & operationsfounder & leadership

Topics covered

3pl selectionamazon fba alternativesq4 storage feesmulti-channel fulfillmentreturn logisticsseller fulfilled primewarehouse networkslogistics diversification

Episode description

Episode 38 In today’s episode, we will be sharing our story with the audience on how Ken and I found a third-party logistics company to fulfill our Amazon orders (or expand into other marketplaces like Walmart). The background of this episode comes from a conversation that Ken and I had a few weeks ago where we both admitted that finding a 3PL for our Amazon businesses had been on both of our to-do lists for a few months. We decided that we would hold each other accountable for ac...

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Frequently asked about this episode

What does this episode say about amazon & marketplaces?
Diversify fulfillment channels beyond Amazon FBA to mitigate risks like Q4 storage fee hikes and account suspensions, enabling multi-channel selling (e.g., Walmart).
What does this episode say about supply chain & operations?
Prioritize 3PLs that offer return processing services to save on shipping costs and labor, as self-managing returns becomes unsustainable with business growth.
What does this episode say about founder & leadership?
Seek 3PLs with multiple warehouse locations to ensure efficient, cost-effective two-day shipping capabilities across the US, a key factor for maintaining Seller Fulfilled Prime eligibility.
What does this episode say about amazon & marketplaces?
Leverage community recommendations (Facebook groups, masterminds) over blind Google searches to build a list of vetted 3PL prospects and gather authentic user experiences.
What does this episode say about amazon & marketplaces?
When interviewing 3PLs, inquire about order processing automation (manual vs. integrated), warehouse network size, and their ability to consistently meet two-day shipping requirements for Seller Fulfilled Prime.

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