Prep centers focus on Amazon FBA compliance — receiving, labeling, and shipping to fulfillment centers — while 3PLs handle complete ecommerce fulfillment for multiple platforms. This post breaks down key differences, pricing models, and how prep centers can eventually scale into full 3PL operations.
If you’re an Amazon or ecommerce seller, you’ve probably heard both terms — prep center and 3PL (third-party logistics provider). They sound similar, but they aren’t quite the same thing.
Prep centers were born from the Amazon FBA ecosystem, helping sellers handle product inspection, labeling, and packaging before inventory goes to Amazon.
3PLs, on the other hand, are full-service logistics companies that handle storage, fulfillment, and shipping for all kinds of ecommerce businesses — not just Amazon sellers.
👉 If you’re considering starting your own operation, check out our Complete Guide to Starting a Prep Center or read Prep Center Startup Costs to see how the models compare financially.
A prep center specializes in getting products “Amazon-ready.”
Typical services include:
Some prep centers also handle returns, storage, or light fulfillment, but their main purpose is compliance and speed — making sure sellers meet Amazon’s strict packaging standards.
A third-party logistics provider (3PL) offers a much broader range of services. These companies store inventory, pick and pack customer orders, manage shipping carriers, and often integrate directly with ecommerce platforms like Shopify, Walmart, or eBay.
Common 3PL services include:
While a prep center focuses on getting inventory to Amazon, a 3PL manages getting products to the end customer.
👉 As you grow, you might evolve from a prep center into a 3PL — but the capital, staffing, and software requirements are very different.
Category
Prep Center
3PL
Core Service
FBA preparation and compliance
Warehousing + fulfillment
Primary Clients
Amazon FBA sellers
Multi-channel brands (Shopify, eBay, Walmart, etc.)
Inventory Turnover
Fast (short-term handling)
Slower (long-term storage + daily orders)
Software Needs
Basic tracking or FBA tools
Full Warehouse Management System (WMS)
Pricing Model
Per-unit fees + storage
Fulfillment + shipping cost per order
Staffing
Small teams (2–5 people)
Larger operations (10–50+)
Goal
Prep inventory for Amazon
Fulfill customer orders directly
👉 For a deeper look at setup costs and scalability, visit our post on Budgeting for Garage, Warehouse, and 3PL Setups.
As prep centers grow, many realize they already have the space, staff, and logistics workflows to expand into full fulfillment.
Adding 3PL capabilities can:
However, it also means higher overhead:
That’s why it’s crucial to master your prep SOPs and automation first — before adding 3PL operations. (See our SOPs & Systems Guide for process templates.)
If you are…
Start as a…
Why
Solo operator or small team
Prep Center
Lower startup cost, quick turnaround, easier to manage.
Experienced warehouse manager
Hybrid Model
Offer prep + light fulfillment.
Funded logistics company or scaling 3PL
Full 3PL
High volume, broad client base, advanced software.
Most new operators should start small. A prep center can reach profitability with just 5–10 steady clients, while a 3PL usually needs significant capital and staffing to break even.
How you describe your business matters as much as what you offer.
👉 For guidance on positioning and outreach, read our Prep Center Marketing Guide covering social media and SEO strategies.
Yes — many large 3PLs have added FBA prep as a service.
However, sellers often prefer smaller prep centers for:
3PLs tend to serve bigger brands that need nationwide fulfillment rather than specialized Amazon compliance work.
Consider expanding when:
Transition slowly — start by offering fulfillment for a few clients before investing in full 3PL software and infrastructure.
Prep centers and 3PLs share DNA — both exist to help ecommerce sellers scale.
But while they overlap, their business models, margins, and client bases differ.
Start lean with a prep center, build reliable systems, then expand into 3PL territory if and when it makes sense.
👉 Continue learning with:
Each post walks you through the next step of scaling your logistics business.
Amazon FBA expert and consultant with over 5 years of experience helping sellers optimize their operations and maximize profits.