FBA vs 3PL Fulfilment in Australia: When to Use Both

The decision between Fulfilment By Amazon (FBA) vs Third-Party Logistics (3PL) fulfilment is becoming more complex for Australian ecommerce sellers as Amazon's reach continues to expand. Amazon Australia reached 7.9 million shoppers in the 12 months to June 2024.

That growth puts pressure on sellers to position inventory where it converts, while managing fulfilment costs across multiple channels. FBA offers Prime eligibility and operational simplicity, but storage fees, prep rules, and platform dependency push many sellers toward a 3PL or a hybrid model.

This article compares both fulfilment models on cost structure, channel fit, and when running each makes sense.

   

        

   

     

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FBA vs 3PL Fulfilment in Australia: Quick Summary

• Prime badge eligibility: FBA provides automatic Prime eligibility on Amazon.com.au, which improves conversion rates. A 3PL does not provide Prime unless the seller qualifies for Seller Fulfilled Prime.
• Branding control: FBA uses Amazon packaging with no customisation. A 3PL allows branded packaging, inserts, and customer-facing materials.
• Inventory prep rules: FBA requires FNSKU labelling and strict inbound compliance. A 3PL can handle prep and labelling for both direct orders and FBA shipments.
• Storage cost exposure: FBA applies monthly storage fees with higher Q4 rates and aged inventory surcharges starting at 181 days. A 3PL typically charges flat pallet-based monthly storage.
• Multichannel fulfilment: FBA primarily serves Amazon orders, with additional fees for Multi-Channel Fulfilment. A 3PL fulfils Shopify, eBay, and direct orders from one inventory pool.
• Customer data ownership: FBA limits access to customer data. A 3PL allows full ownership of customer relationships and post-purchase data.

For sellers managing multiple channels or slow-moving inventory, explore Couriers & Freight’s 3PL service.

How FBA and 3PL Fulfilment Actually Work

FBA vs 3PL: Which Option Fits Your Business

When to Choose Amazon FBA

FBA works for sellers focused on Amazon with fast-moving, standard-sized products. The Prime badge directly impacts purchase behaviour. According to Jungle Scout,  75% of Prime members said they would shop on Amazon if they could only purchase products from one store.

FBA is the right option for sellers who:

• Sell standard-sized products with consistent demand
• Operate primarily on Amazon.com.au
• Do not require branded packaging
• Can meet Amazon prep and labelling requirements
• Maintain inventory turnover within 90 to 180 days

When to Choose a 3PL

A 3PL works for sellers operating across multiple channels or carrying inventory that does not move quickly. Amazon introduced aged inventory surcharges that begin at 181 days, increasing storage costs for slow-moving stock.

A 3PL is the right option for sellers who:

• Sell on Shopify, eBay, TikTok Shop, or direct-to-consumer channels
• Carry slow-moving or seasonal SKUs
• Stock oversized or bulky products
• Require branded packaging and customer experience control
• Need access to customer data for retention

When to Use Both: The Hybrid Model

The hybrid model splits inventory based on sales velocity and channel requirements. Fast-moving SKUs are placed in FBA for Prime eligibility, while slower or multichannel inventory is stored with a 3PL.

The operational link between both models is inbound freight. Sellers ship stock from the supplier or warehouse to Amazon's Australian fulfilment centres using freight services that manage booking, routing, and compliance with Amazon delivery requirements.

The hybrid model is the right option for sellers who:

• Sell across Amazon and at least one additional channel
• Manage both fast and slow-moving inventory
• Want Prime eligibility without storing all inventory in FBA
• Replenish Amazon stock in smaller, controlled batches

Cost Comparison: FBA Fees vs 3PL Pricing in Australia

FBA and 3PL pricing differ in structure rather than a single comparable rate. Amazon charges fulfilment fees based on size and weight, monthly storage fees, and additional surcharges during Q4. Note that aged inventory surcharges apply to stock held beyond 181 days.

3PL providers in Australia typically charge pallet-based monthly storage, per-order pick and pack fees, and outbound freight based on carrier rates.

Pricing varies by provider and service scope rather than fixed national rates.Additional fees via MCF

How Couriers & Freight Supports Both Amazon FBA and 3PL Fulfilment

Sellers using a hybrid model need to ship inventory from suppliers or warehouses into Amazon fulfilment centres while meeting inbound compliance requirements. This process includes freight booking, carrier selection, and shipment tracking.

Couriers & Freight provides a platform to compare carrier rates, book deliveries to Amazon fulfilment centres, and track inbound shipments. Sellers preparing inbound shipments to Amazon FBA warehouses can use this guide to the FBA shipping process.

For sellers requiring storage, pick and pack, and multichannel fulfilment across Shopify, eBay, and direct-to-consumer channels, Couriers & Freight's 3PL service ships orders from Australian warehouse locations.

Book 3PL fulfilment through Couriers & Freight.

   

        

   

     

Get 3PL Fulfilment Quotes for Your Ecommerce Business

     

Book storage, pick and pack, and multichannel fulfilment from Couriers & Freight's Australian warehouse locations.

     Get a Quote Now