Choosing the right Amazon 3PL and fulfillment partner is one of those decisions that feels boring until it costs you $100K in lost sales. After building our own fulfillment operation at Marknology and helping 300+ brands navigate Amazon logistics since 2015, I have strong opinions on this topic.
On the Startup Hustle podcast, I talked with Chris from SupplyKick and Conrad from Clearinity about the real operational challenges of Amazon fulfillment. Here is what every brand needs to know.
FBA vs. FBM: It Is Not Either/Or
The brands that win on Amazon use both FBA and FBM. I have been preaching this for years: "One strategy that Marknology always pushes is we want to have a backup to FBA."
FBA gives you the Prime badge, fast shipping, and Amazon handling customer service. FBM (whether through your own warehouse or a 3PL) gives you control, flexibility, and a safety net.
The winning formula for most brands:
- FBA as your primary channel for the Prime badge and shipping speed
- FBM as your backup for when FBA has issues, stockouts, or restrictions
- FBM for oversized or heavy items where FBA fees eat your margin
- FBM for custom or kitted products that need special handling
When You Need a 3PL
You need a 3PL when:
- You are doing $500K+ in annual revenue and spending too much time on fulfillment
- You are selling across multiple channels (Amazon, Shopify, Walmart, retail)
- You need geographic distribution to reduce shipping times and costs
- You need Amazon-specific prep services (labeling, poly bagging, bundling)
- You want to expand to FBM without building your own warehouse
At Marknology, we built Fulfillment by Marknology for exactly these reasons: "We have about eight or nine businesses right now that we're managing everything for, including the EDI connections like Chewy.com and Home Depot."
What to Look for in a 3PL Partner
- Amazon expertise. Not all 3PLs understand Amazon's prep requirements, labeling standards, or inbound shipping rules. Find one that specializes in Amazon.
- Technology. They should have a warehouse management system that integrates with your sales channels and gives you real-time inventory visibility.
- Geographic location. Where are your customers? Your 3PL should be positioned to reach them quickly.
- Scalability. Can they handle your Black Friday volume? Your growth trajectory? Ask about capacity limits.
- Transparency. You should know exactly where every unit is at all times. No black boxes.
- Value-added services. Kitting, bundling, custom inserts, photography. The more they can do, the fewer vendors you manage.
Geographic Strategy Matters More Than You Think
I talked about this on the podcast: "The moves are becoming how do we get off the coast and into the Midwest, or how do we get multi-warehouses where we can ship quicker to customers at a cheaper price."
Shipping from a single warehouse on the West Coast to a customer in New York is expensive and slow. Having distribution points in the Midwest or East Coast cuts transit time and shipping costs significantly.
This ties directly into Amazon SEO as well. As Eddie Wheeler explained on the podcast, Amazon's geo-ranking system favors products with inventory close to the customer. More geographic distribution can literally improve your organic rankings.
3PL Mistakes That Cost Brands Money
- Choosing on price alone. The cheapest 3PL usually has the worst service. A missed shipment or mislabeled product costs more than the savings.
- No SLAs. Get service level agreements in writing. Inbound processing time, order accuracy, shipping speed.
- Ignoring the software. "They came to me with a $15,000 price tag to set up our warehouse management system. I said, I'm going to get my hands dirty and do this myself." Make sure you understand what tech is involved and what it costs.
- Single point of failure. One 3PL in one location means one flood, one labor dispute, or one system outage shuts you down. Consider a backup.
- Not auditing regularly. Visit your 3PL. Check accuracy rates. Review invoices. Trust but verify.
"Shipping and logistics is everything. Do you know your profitability on your shipping? Are you losing sales because you're priced too high, or losing money because you're not charging enough?" — Andrew Morgans, Startup Hustle
Listen to the full episode: How to Manage Your Inventory
Listen to the full episode: Marketplace Expansion
Hear more from Drew on the Marknology Media Hub.
Build a Fulfillment Strategy That Scales
At Marknology, we do not just manage your Amazon listings. We help brands build end-to-end fulfillment strategies that protect revenue and support growth. With $2B+ in managed revenue across 300+ brands since 2015, we have seen what works and what breaks.
Book a free fulfillment strategy call and let's build something resilient.