What is a Third-Party Logistics Provider (or 3PL)?

Understanding Third-Party Logistics Providers and how they can help your small business
3PL or third-party logistics provider
Written on:

As your eCommerce business grows, it might be a challenge to keep fulfillment in-house. When that time comes, you may want to think about outsourcing fulfillment to a third-party logistics provider (or 3PL, as they are commonly called).

What Does a Third-Party Logistics Provider (3PL) Do?

A third-party logistics provider takes on the packaging, kitting, postage purchasing, and shipping of your product(s). These companies generally offer a suite of services. Such services include kitting (putting your products into shipping containers, such as boxes, mailers, or on pallets) all the way down to providing discounted shipping quotes. Some of these partners will even deliver your products to your customers! However, you should keep in mind that most 3PL’s use USPS to complete their last mile delivery.

Here at Shipping School, we’re big fans of keeping your fulfillment in-house for as long as possible. That way, you gain valuable experience and the knowledge to effectively communicate with a 3PL when you choose to start outsourcing fulfillment.

Last Updated:
Share on Facebook Share on Twitter Share on Reddit Share via Email

No Comments

Be the first to comment!

Post a Comment

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Shipping Guides