3PL vs. Amazon AWD: Which Storage Strategy is Right for Your Business?

Introduction

For Amazon and e-commerce sellers, choosing between third-party logistics (3PL) providers and Amazon Warehousing & Distribution (AWD) can be a make-or-break decision.

• 3PL offers multichannel fulfillment, customization, and value-added services.

• AWD provides low-cost, upstream bulk storage that seamlessly replenishes FBA inventory.

This guide compares 3PL vs AWD vs FBA, explains fees, control, and flexibility, and shows why a hybrid model (3PL + AWD + FBA) often delivers the best results.

As an Amazon SPN partner supporting Amazon Ship Track, Zbao Logistics can implement the hybrid strategy end-to-end.

Related reading :
• Amazon FBA Logistics & Delivery
• Customs Clearance Services
• Sea Freight from China to USA

What Is a 3PL?

A 3PL (third-party logistics provider) manages key parts of your supply chain beyond storage, including:

• Warehousing & Receiving – unloading containers, palletization, and FBA prep.

• Inventory Management (WMS) – stock visibility, cycle counts, and alerts.

• Order Fulfillment – shipping B2C, B2B, and marketplace orders.

• Transportation – international freight and domestic trucking at negotiated rates.

• Reverse Logistics – handling returns, refurbishing, and recycling.

• Value-Added Services – kitting, bundling, inserts, relabeling, rework.

Keywords: amazon 3rd party logistics, amazon 3pl services, third party fulfillment amazon, 3pl warehouse for amazon sellers

Best for: multichannel sellers who need flexibility, customization, and control.

What Is Amazon AWD?

Amazon Warehousing & Distribution (AWD) is Amazon’s own upstream bulk storage solution, designed to keep FBA stocked at lower storage costs.

• Primary function: store large volumes of inventory and auto-replenish FBA.

• Not designed for: kitting, bundling, perishables, hazmat, or multichannel fulfillment.

Official resources:
• Amazon AWD overview
• Seller Central AWD fees & policies

Best for: Amazon-only sellers with large, predictable inventory volumes who want hands-off replenishment.

3PL vs AWD vs FBA — Side-by-Side Comparison

Keywords: amazon fba vs 3pl, amazon awd vs fba, amazon warehousing services vs 3pl

Pros & Cons

3PL — Pros

• High control & visibility over inventory.

• Multichannel fulfillment for Amazon + Shopify + B2B.

• Custom solutions like kitting, inserts, labeling.

• Scalability for seasonal peaks.

3PL — Cons

• Pricing can be complex (inbound, storage, outbound, VAS).

• Requires due diligence when choosing providers.

AWD — Pros

• Lower storage costs vs FBA.

• Automatic FBA replenishment reduces manual management.

• Deep integration with Amazon systems.

AWD — Cons

• Limited flexibility (no multichannel, no bundling).

• Restrictions on product types and sizes.

• Dependent on Amazon policies/fees which can change anytime.

Pricing Explained

Note: AWD and FBA fees change frequently. Always confirm with Seller Central.

3PL Pricing

• Inbound fees: unloading, receiving, put-away.

• Storage fees: per pallet, cubic foot, or item (may include minimums).

• Outbound fees: pick & pack, shipping.

• Value-added services: kitting, relabeling, returns management.

Hidden cost checklist: minimums, seasonal surcharges, fuel, oversize/overweight fees, extra storage charges.

Keywords: 3pl storage rates, amazon 3pl pricing, cheapest 3pl in usa, 3pl price comparison

AWD Fees

• Storage fee – charged monthly per cubic foot.

• Processing fee – per box when transferring from AWD to FBA.

• Transportation fee – per cubic foot for AWD → FBA transfer.

• Integrated rate eligibility – discounts apply when using Amazon Global Logistics or Partnered Carrier programs.

Keywords: amazon awd fees, amazon warehousing and distribution fees, awd services

Which Sellers Should Choose What?

• Amazon-only, predictable demand, large bulk stock → AWD + FBA

• Multichannel sellers needing customization → 3PL + FBA

• Scaling brands, seasonal fluctuations → 3PL hub + AWD buffer + FBA frontline

Keywords: 3pl for amazon sellers, 3pl for amazon fba, amazon 3rd party fulfillment, awd vs ltl shipment

Hybrid Strategy: 3PL + AWD + FBA

Workflow:

1. Factory (China) → 3PL (receiving, QC, FBA prep, kitting).

2. 3PL → AWD: send buffer inventory for low-cost storage.

3. AWD → FBA: Amazon auto-replenishes stock.

4. 3PL → Multichannel: Shopify, Walmart, B2B orders.

Why this works:

• Cost savings from AWD.

• Control & flexibility from 3PL.

• Prime delivery power from FBA.

Why Zbao:

• Amazon SPN partner (officially certified).

• Supports Amazon Ship Track (real-time visibility).

• In-house customs brokerage (fewer clearance delays).

• Owned trailer fleet in North America (control last-mile).

• Direct OA alliance pricing (better freight rates).

• One team, one invoice (simplified management).

FAQs

Q1: What does 3PL mean? Is Amazon a 3PL?
A: 3PL = third-party logistics. Amazon provides 3PL-like services (FBA, MCF, AWD), but an independent 3PL offers multichannel flexibility and customization.

Q2: Amazon AWD vs FBA — what’s the difference?
A: AWD = upstream storage + replenishment. FBA = customer-facing fulfillment.

Q3: What are AWD fees vs 3PL storage rates?
A: AWD fees = storage, processing, transportation. 3PL = inbound, storage, outbound, VAS. Always compare by the same unit (per pallet, per cubic foot, per order).

Q4: AWD vs LTL shipment to FBA — what changes?
A: LTL FBA shipments must follow FBA prep + appointment rules. AWD is designed for bulk upstream transfers.

Q5: What is the cheapest 3PL in the USA?
A: Cost alone isn’t enough. Review hidden fees, SLAs, and service scope. The “cheapest” provider often costs more in delays or poor compliance.

Q6: Can a 3PL handle customs clearance and ocean freight?
A: Yes. A certified 3PL/NVOCC with in-house customs brokerage can manage factory-to-Amazon end-to-end.

Why Zbao Logistics

Zbao Logistics is an Amazon SPN partner and supports Amazon Ship Track. With in-house customs brokerage, our own trailer fleet, and direct pricing from the OA shipping alliance, we provide end-to-end, one-stop solutions for FBA sellers.

Get started today: Request a Free Consultation