Third-Party Logistics
Third-party logistics (3PL) is outsourcing warehousing, picking, packing, and shipping to a specialized provider.
What third-party logistics is
Third-party logistics, or 3PL, is outsourcing storage and shipping: the provider warehouses your inventory, picks and packs orders, and hands them to carriers.
The store keeps selling; the 3PL does the moving.
Why 3PL matters
Fulfillment scales badly in a garage. A 3PL brings warehouse space, negotiated carrier rates, and multi-location stock placement that shortens delivery times, all without the store building any of it.
What a 3PL handles
- Receiving and storing inventory
- Picking, packing, and shipping orders
- Returns processing
- Integrations that sync orders and stock levels
Frequently asked questions
When should a store move to a 3PL?
When order volume crowds out the actual business: packing eats the day, storage overflows, or shipping errors climb. The math is time and error cost versus the 3PL’s fees.
What does 3PL pricing look like?
Usually per-unit receiving, monthly storage, and per-order pick-pack-ship fees, plus carrier costs. The structure rewards steady volume and clean, well-labeled inventory.