What is a 3PL?
A 3PL (third-party logistics provider) is a company that handles the physical side of selling online for you. You send your inventory to the 3PL's warehouse, and when a customer places an order, the 3PL picks the products, packs them and ships them, usually within the same or next business day.
Instead of packing boxes in a garage or running your own warehouse, you outsource storage, order fulfillment and shipping to a team that does it all day, every day, with the systems, staff and carrier relationships to do it at scale.
What does a 3PL do?
Most ecommerce 3PLs handle the full journey from your supplier's truck to your customer's door:
- Receiving: checking in inventory as it arrives, counting it and putting it away.
- Storage and inventory management: keeping stock organized and tracking counts in real time, so your store always shows what's available.
- Pick and pack: pulling the right items for each order and packing them securely, with your branding or inserts if you use them.
- Shipping: choosing the right carrier and service, printing labels and getting packages out on time.
- Kitting and bundling: assembling gift sets, multipacks and subscription boxes.
- B2B and retail orders: shipping wholesale and retail orders alongside your direct-to-consumer (D2C) orders.
Many 3PLs also handle returns and marketplace prep work, such as preparing inventory for Amazon FBA.
How does 3PL fulfillment work?
- Connect your store. The 3PL integrates with your sales channels (Shopify, Amazon, Walmart, TikTok Shop and others) so orders flow in automatically.
- Send your inventory. Your products ship to the 3PL's warehouse, where they're received and scanned in.
- Orders ship. Each new order is picked, packed and shipped with the best carrier for speed and cost.
- Tracking syncs back. Tracking numbers post to your store automatically, and your customer gets their shipping notification.
- You see everything. Live inventory counts and order status let you plan restocks without guessing.
Curious what outsourcing would cost for your brand?
Get a free quoteBenefits of using a 3PL
Faster delivery
A 3PL with more than one warehouse can store inventory closer to your customers. Boxio, for example, ships from Springville, Utah and Jacksonville, Florida, so West Coast and East Coast customers both get their orders sooner.
Lower shipping costs
Carriers charge more the farther a package travels. Shipping from a warehouse closer to the customer means fewer shipping zones per package. 3PLs also ship enough volume to negotiate carrier rates most individual brands can't get on their own.
Room to scale
Product launches, holiday peaks and viral moments don't require you to hire and train extra staff or find more space. Your 3PL scales with demand.
Time back for growth
Every hour spent taping boxes is an hour not spent on product, marketing or sales. Outsourcing fulfillment gives that time back.
Signs it's time for a 3PL
- Packing and shipping takes up a big chunk of your week.
- You're running out of space for inventory.
- Shipping mistakes or late orders are creeping in.
- You're adding channels like Amazon, TikTok Shop or wholesale accounts.
- Customers far from you wait too long for deliveries.
- Holiday peaks or launches overwhelm your current setup.
Weighing your options? Read our comparison of 3PL vs. in-house fulfillment.
How to choose a 3PL
Not every 3PL is the right fit. Before you sign, ask:
- Where are the warehouses? Locations close to your customers mean faster, cheaper shipping.
- Do they integrate with your channels? Look for native integrations with the platforms you sell on. See Boxio's 65+ integrations.
- What's their accuracy and on-time rate? Mistakes cost you refunds and reviews. Boxio runs at 99.99% order accuracy and 99.97% on-time shipments.
- Can they handle B2B as well as D2C? If you sell wholesale or to retailers, you want one partner for both. See B2B fulfillment.
- How do they communicate? When something comes up, can you reach a real person quickly?
- How is pricing structured? Make sure you understand every fee. Our 3PL pricing guide breaks it down.
How Boxio works as your 3PL
Boxio is a tech-enabled ecommerce 3PL with fulfillment centers in Utah and Florida. We pick, pack and ship for growing D2C brands selling on Shopify, Amazon, Walmart and TikTok Shop, plus B2B and wholesale orders, all from one inventory. Clients get live inventory visibility and a real team on chat with an average response time under 1 hour.
Frequently asked questions
What does 3PL stand for?
3PL stands for third-party logistics. A 3PL is a company that stores your inventory and handles order fulfillment for you, from receiving stock to picking, packing and shipping orders.
What's the difference between a 3PL and a fulfillment center?
A fulfillment center is the warehouse where orders are packed and shipped. A 3PL is the company that runs fulfillment for you, often across one or more fulfillment centers, along with the technology, integrations and carrier relationships behind it.
Is a 3PL the same as Amazon FBA?
No. FBA only fulfills Amazon orders from Amazon's warehouses. A 3PL fulfills orders from every channel you sell on, including your own website, marketplaces and B2B, and can also prep and send inventory into FBA.
How do I know if my business needs a 3PL?
Common signs: packing orders takes over your week, you've run out of space, shipping mistakes are creeping in, you're adding sales channels or wholesale accounts, or customers on the other side of the country wait too long for deliveries.