What is a 3PL?

A 3PL (third-party logistics provider) stores your inventory and executes fulfillment: receiving, putaway, pick-pack, shipping and returns, on their warehouse and staff. You pay per activity — receiving fees per pallet or carton, storage per pallet or cubic foot per month, pick-pack per order, plus postage. It differs from a freight broker (who only arranges transport) and from a forwarder (who moves freight internationally).

The switch from self-fulfillment usually makes sense when order volume outgrows your space or time, when you need multi-region inventory for delivery speed, or when peak seasons demand elastic labor. Evaluate 3PLs on receiving accuracy and speed, integration with your sales channels, and the fee schedule's dark corners — storage during peak, oversize surcharges, and return processing.