Marketplace Logistics Programs vs Your Own Freight: When Running It Yourself Wins
Every major marketplace now sells logistics. Amazon has Amazon Global Logistics for freight from China. TikTok Shop routes inventory into Fulfilled by TikTok through partner carriers. Temu's fully managed model takes logistics off your hands entirely. These programs are genuinely convenient. They're also priced for convenience, and as you grow, that price becomes one of your biggest margin leaks.
What marketplace logistics programs actually do
At their core, platform programs solve one problem: getting cartons from a warehouse in China into the platform's own network. They're built around the platform's schedule, its receiving warehouses, and one rate card for every seller.
What they don't do
- They don't check quality. Defective units travel with the good ones and come back as returns and negative reviews.
- They don't consolidate your suppliers. Three factories usually means three separate inbound shipments.
- They don't prep your goods. Labels, polybags, and bundles are left to the supplier, and in the US Amazon no longer preps inventory at its fulfillment centers.
- They don't serve your other channels. Stock in one platform's program can't easily feed your other marketplaces or your own store.
- They don't price your lane. A seller shipping a container a month pays the same rate card as a seller shipping a pallet a year.
Where the money actually goes
The freight rate is the visible part. Scaling sellers usually lose more to the costs around it:
- Paying a convenience rate on every carton instead of a rate for your lane and volume.
- Many small shipments instead of one consolidated booking.
- Relabeling, repacking, and receiving delays caused by prep mistakes.
- Returns and lost ranking from defects nobody inspected.
- Shipping everything by air to avoid stockouts, instead of planning sea base stock with air top-ups.
When a platform program makes sense
Platform logistics is a reasonable choice when:
- You ship rarely and in small volumes.
- You work with one supplier who already preps correctly.
- Your product is simple and low-risk for quality issues.
- You sell on only one channel and don't plan to add more.
When your own logistics wins
Running your own supply chain usually pays off once:
- You ship every month, or several times a quarter.
- You buy from two or more suppliers.
- You sell on more than one marketplace, or on a marketplace plus your own store.
- Your products need inspection, compliance checks, or careful packaging.
- Your volume is high enough that lane pricing beats a published rate card.
"But isn't running my own logistics hard?"
This is the myth that keeps sellers on platform programs long after they've outgrown them. Running your own logistics doesn't mean managing trucks and customs brokers yourself. It means choosing a partner in China who runs the operations while you make four decisions:
- What to ship, and from which suppliers.
- Which route and quote to approve: sea, air, express, or a split.
- The shipment plan in your seller account.
- Whether to release the goods after inspection.
Everything else, including pickup, consolidation, inspection, prep, export documents, carrier booking, customs, and tracking, is the partner's job. That's the model behind our marketplace seller service.
How to compare properly: landed cost per sellable unit
Don't compare freight rates. Compare what it costs to get one sellable unit into the destination warehouse:
Landed cost per sellable unit = (freight + duties and taxes + prep + inspection + platform inbound fees + rework) ÷ units received in sellable condition
Run this for your current setup and for the alternative, on the same SKU and lane. Defects and receiving problems shrink the denominator, which is why a slightly higher freight rate with inspection can still produce a lower landed cost.
How to switch without risk
- Pick one steady-selling SKU and one lane.
- Get a side-by-side quote for the same cartons and destination.
- Run one shipment through your own logistics while keeping the platform program as a backup.
- Compare landed cost per sellable unit and transit time, then move the next SKUs.
Platform-specific details are in our playbooks for Amazon FBA, TikTok Shop, Temu, and Shopify and WooCommerce stores.
Frequently Asked Questions
Is Amazon Global Logistics cheaper than a freight forwarder?▼
It depends on volume, lane, and what is included. AGL is convenient for simple shipments, but it doesn't include inspection, prep, or supplier consolidation. For sellers shipping regularly from several suppliers, a forwarder quoting your specific lane is often cheaper in landed cost per sellable unit. Compare both on the same shipment.
What is landed cost?▼
Landed cost is the total cost of getting a product into the destination warehouse ready to sell: purchase price plus freight, duties and taxes, prep, inspection, platform inbound fees, and any rework. Dividing by the number of sellable units received gives the most honest basis for comparing logistics options.
Can I keep using a platform program for some shipments?▼
Yes. Many sellers keep a platform program as a backup or for very small urgent shipments, and move regular replenishment onto their own lanes.
Protect Your Supply Chain with On-Ground Verification
Our team works directly in China with suppliers, factories, and logistics networks. We reduce uncertainty through supplier audits, inspections, and FBA preparation support.
