The Amazon 3PL Trap

Let’s face it.

Most everyone knows about Amazon. They’re the leading e-retailer in the United States with over $470 billion in revenue in 2021 alone. Not to mention roughly 150 million Amazon Prime Members, 300 million active customer accounts worldwide, and an average 21% revenue growth year-over-year.

With these numbers, it’s easy to see they are a force to be reckoned with.

If you sell products online, you know Amazon runs a program called FBA (Fulfillment by Amazon). This third-party logistics provider (3PL) service allows other businesses to utilize Amazon’s massive infrastructure to provide ecommerce fulfillment for their own customers.  Amazon is the largest third-party logistics providers (3PL) company in the world.

Basically, with FBA you ship your inventory to Amazon, advertise your products for sale on their platform, and the online powerhouse takes care of the rest: pick, pack, ship, and even customer service.

Seems like a great way for small to medium sized organizations to do business, right?

Well, not so fast. Once you stop and take a closer look, FBA may not be the all-in-one logistics answer you thought it was and here’s why.