A 3PL for Amazon FBA is a third-party logistics company that stores your inventory, preps and labels it to Amazon’s standards, and sends it into Amazon’s fulfillment centers in batches. Many US sellers now need one even if they never did before, for three reasons: FBA capacity limits cap how much you can store with Amazon, storage and aged inventory fees punish holding too much there, and Amazon stopped offering FBA prep and item labeling services in the US on January 1, 2026.
The alternative many sellers compare against is Amazon’s own warehousing service, AWD. I’ll cover when a 3PL makes sense, how AWD compares, what I’d ask a 3PL, and how to keep the setup simple.
Why FBA sellers use a 3PL
Capacity limits. Since March 1, 2023, Amazon sets a monthly capacity limit per storage type. Amazon says the limits are influenced by your IPI score and factors such as sales forecasts, shipment lead time and fulfillment center capacity. When you buy in bulk, the limit can be smaller than your order. Annoying. Common. Stock tied up in transfers or checks still sits in the network, which our guide to Amazon FBA reserved inventory explains.
Fees for holding too much, and too little.
- Aged inventory surcharge. From January 16, 2026, stock stored 181 to 210 days costs an extra $0.50 per cubic foot, rising in steps to $7.90 per cubic foot (or $0.35 per unit, whichever is greater) beyond 455 days. Clothing, shoes, bags, jewelry and watches are excluded.
- Low-inventory-level fee. Since April 1, 2024, Amazon charges it when both your 30-day and 90-day historical days of supply fall under 28 days. Products auto-replenished through AWD are exempt.
- Inbound placement fee. Since March 1, 2024, a fee per unit applies to inbound shipments depending on how they are split across the network.
The squeeze is real, in my view: store too much with Amazon and you pay aging surcharges, keep too little and you pay low-inventory fees. A 3PL or AWD holds the bulk and feeds FBA steadily.
Prep and labeling. With Amazon’s US prep and item labeling services ending on January 1, 2026, sellers whose suppliers do not label units need someone else to do it. Our guide to Amazon FBA prep centers covers that side. If you label in-house, see the best label printer for Amazon FBA.
AWD vs an independent 3PL
Amazon Warehousing and Distribution is Amazon’s low-cost bulk storage that distributes inventory to FBA and to non-Amazon channels. It monitors stock levels in fulfillment centers and triggers replenishments, and its pricing covers FBA inbound placement, so there is no separate placement charge.
When we checked Amazon’s AWD page in October 2026, it listed:
| AWD charge | Listed rate |
|---|---|
| Storage, base (per cubic foot per month) | $0.48, or $0.57 on the West Coast |
| Processing | $1.40 per box inbound and $1.40 per box outbound |
| Transportation to FBA | $1.40 per cubic foot |
Lower storage rates apply for Amazon’s smart storage and Amazon-managed options. Rates change, so I’d check the page before planning.
| AWD | Independent 3PL | |
|---|---|---|
| Feeds FBA automatically | Yes (auto-replenishment) | You or the 3PL send shipments |
| Inbound placement fee | Covered | You pay it on shipments into FBA |
| Low-inventory-level fee | Exempt when auto-replenished | Applies as normal |
| Prep and labeling | Check current AWD requirements | Usually offered as a service |
| Other channels | Can distribute to non-Amazon channels | Usually ships Shopify, wholesale and retail orders too |
| Flexibility | Amazon’s rules and network | Negotiable, custom work |
My view: for an Amazon-first brand with standard-size products, AWD is often the simplest answer, because of the placement fee coverage and the low-inventory exemption. A 3PL wins when you sell heavily on other channels, need custom prep, kitting or inspections, or want a warehouse you can call.
Do you need a 3PL? A quick decision path
- Are capacity limits blocking your restocks? Yes: you need bulk storage, AWD or a 3PL. No: continue.
- Do your units arrive without FNSKU labels or need prep? Yes: you need a prep provider, since Amazon’s US prep service has ended.
- Do you sell on Shopify, Walmart or wholesale too? Yes: a 3PL that ships all channels, or Amazon’s Multi-Channel Fulfillment, which provides pick, pack and ship for non-Amazon channels. No: AWD may cover you. Some sellers simply ship those orders themselves; see what FBM means.
- Is your product oversized, fragile or seasonal? Yes: talk to a 3PL about storage and custom handling before peak season.
If you answered no to all four, FBA alone is probably fine for now. Don’t add a warehouse you do not need. Honestly, I’d keep it that simple for as long as possible.
What to ask a 3PL before signing
- Amazon experience: do they prep and label to FBA requirements, and how many FBA clients do they serve?
- Receiving time: how many business days from dock to available stock?
- Pricing: storage per pallet or cubic foot, receiving, pick and pack, prep per unit, and any monthly minimum.
- Inbound to Amazon: do they book small parcel and LTL shipments, including through Amazon’s Partner Carrier program?
- Software: does their system connect with your inventory tools and Seller Central workflow?
- Location: near your port of entry or your main customers; a West Coast importer has different needs from an East Coast one.
- Insurance and liability for damaged or lost stock.
I’d ask for a full cost quote based on one real month of your volume, not a rate card. Fees that look small per unit add up across receiving, storage and outbound.
Keep the setup simple
- One source of truth for stock. Use inventory software that sees the 3PL and FBA together.
- Replenish on a schedule, weekly or biweekly, so FBA never runs low enough to trigger low-inventory fees. My preference is weekly in peak season.
- Watch aging monthly. Remove or discount slow stock before the 181-day surcharge starts. When you spot a slow SKU early, you have options; late, you only have fees.
Our guide on how to calculate Amazon FBA storage fees helps with the math. If you’d like storage and logistics handled for you, see our storage service and our Amazon account management service, which covers replenishment planning.
FAQ
What is a 3PL for Amazon FBA?
A third-party logistics company that stores your inventory, preps and labels it to Amazon’s standards, and ships it into Amazon’s fulfillment centers as needed.
Do I need a 3PL if I use FBA?
Not always. You likely need one if capacity limits block your restocks, your units need prep or labeling, or you sell on other channels too.
Is AWD better than a 3PL?
For Amazon-first sellers, AWD is often simpler: it auto-replenishes FBA, covers the inbound placement fee, and exempts auto-replenished products from the low-inventory-level fee. A 3PL is more flexible for other channels and custom work.
Does Amazon still prep and label FBA inventory in the US?
No. Amazon ended prep and item labeling services for FBA shipments in the US marketplace on January 1, 2026.
What is the aged inventory surcharge?
An extra monthly charge on stock stored over 180 days. From January 16, 2026, it starts at $0.50 per cubic foot for 181 to 210 days and rises with age.
Can a 3PL ship my Shopify orders too?
Most can. Alternatively, Amazon’s Multi-Channel Fulfillment ships non-Amazon orders from your FBA inventory.
Last updated: October 4, 2026. Amazon fees and programs change often; several figures here come from Amazon staff announcements in the Seller Forums because Seller Central help pages require a login. Sources: Amazon, Warehousing and Distribution; Amazon, FBA capacity limits announcement; Amazon, inbound placement and low-inventory-level fees; Amazon, aged inventory surcharge 2026; Amazon SP-API, US FBA prep and labeling services ending; Amazon, Multi-Channel Fulfillment; Amazon, Partner Carrier program.
