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What is 3PL, 3PF, FBS/FBM, rFBS, FBO and why is it important?

There are a number of different terms in the e-commerce lexicon that are important to know in order to build the optimal structure for your company's online operations.

3PL (3rd Party Logistics)- - usually entrusts you with all office duties as well as managing the physical storage of inventory

and shipment of your orders.

3PF (3rd Patry Fulfilment)- 3PF services oversee a much larger part of the supply chain, and they include services such as e-commerce, marketing and program administrative support, which are usually done in-house. 3PF service providers essentially become an extension of your operations, allowing you to focus on top-level strategy and growth, with the assurance that each order will be fulfilled as promised.

FBS (Fulfilment by Seller), FBM (Fulfilment by Merchant) - A method of selling on marketplaces where the seller places their products on marketplaces, but manages storage, delivery and customer support themselves (or through third parties).

rFBS (real FBS) - FBS when using your own warehouse, not 3PF (not using someone else's warehouse). It is possible to use 3PL.

FBO - A marketplace sales method in which the seller (or the seller's supplier) sends their product directly to marketplace warehouses. The Operator then stores the product and ships it directly to the customer (often with 2-day Prime shipping). They also handle customer support.