Third-Party Logistics (3PL) providers are companies that handle warehousing, inventory management, order fulfillment, and shipping on behalf of ecommerce brands. Instead of managing their own warehouse and shipping operations, brands outsource these functions to 3PL specialists.
Popular 3PLs include ShipBob, Deliverr, and Red Stag Fulfillment. They offer scalability (easily handle volume spikes), geographic distribution (faster shipping via multiple warehouses), and expertise that would be expensive to build in-house.
3PL costs typically include storage fees (per pallet or bin), pick-and-pack fees (per item handled), and shipping costs (often discounted due to volume). Brands evaluate 3PLs on cost, accuracy, speed, technology integration, and customer service.