What does 3PL stand for?
3PL stands for third-party logistics. The name comes from where the provider sits in the supply chain: the brand is the first party, the customer is the second party, and the logistics company that handles fulfillment on the brand's behalf is the third party.
What does a 3PL do?
A 3PL takes over the physical work of getting orders to customers. A typical provider handles:
- Receiving: checking in and counting inventory that arrives at the warehouse.
- Warehousing and storage: holding your products and tracking stock in real time.
- Pick and pack: selecting the right items for each order and packing them to ship.
- Shipping: choosing carriers and rates, printing labels, and sending orders out.
- Returns: receiving, inspecting, and restocking returned items.
- Value-added services: kitting, bundling, subscription box assembly, Amazon FBA prep, and custom packaging.
How does a 3PL work?
The process is the same cycle every time an order comes in:
- You ship your inventory to the 3PL's warehouse.
- The 3PL receives, counts, and stores it.
- Your store (Shopify, Amazon, and others) connects to the 3PL, so orders flow in automatically.
- The 3PL picks, packs, and ships each order, then syncs tracking.
- Inventory counts update, and low-stock alerts flag reorders.
For a step-by-step version, see how to choose a 3PL provider, or explore how RitePrep runs DTC fulfillment and Shopify fulfillment.
3PL vs other logistics providers
"3PL" is one of several logistics models, numbered by how much of the supply chain the provider owns:
| Type | What it means |
|---|---|
| 1PL | The brand handles its own logistics with no outside help. |
| 2PL | A single asset owner, such as a carrier or a warehouse. |
| 3PL | Outsourced fulfillment: storage, pick and pack, and shipping. |
| 4PL | A manager that coordinates multiple 3PLs and the whole chain. |
| 5PL | Manages entire supply networks, often technology-led. |
Full breakdown: 1PL vs 2PL vs 3PL vs 4PL vs 5PL and 3PL vs 4PL.
When should you use a 3PL?
Outsourcing to a 3PL usually makes sense when:
- Packing orders yourself is eating time you need for growth.
- Order volume is climbing past a few hundred per month.
- You are expanding to new channels like Amazon or retail.
- Shipping speed, accuracy, or costs are becoming a problem.
- You want faster nationwide delivery from a central location.
What does a 3PL cost?
Most 3PLs charge for receiving, monthly storage, and a per-order pick and pack fee, plus the shipping itself. The total depends on your order volume, units per order, storage footprint, and any extras like kitting or FBA prep. We break the models down in the 3PL pricing guide, or you can get a ballpark from our pricing calculator.
3PL vs fulfillment center: are they the same?
Nearly. A fulfillment center is the warehouse where orders are stored, picked, and shipped. A 3PL is the provider that runs that fulfillment and can layer on freight, warehousing, returns, and more. For most ecommerce brands the two words describe the same service.