June 24, 2022

What Is 3PL? Three-party logistics (3PL) is a supply chain management solution that allows shippers to outsource transportation and delivery services.

what is 3pl
what is 3pl

3PL is the perfect answer for companies who want to focus on their core competencies while still providing customers with fast, reliable shipping.

The essential guide to 3PL explains what this type of logistics service includes and how it can help your company grow its sales and profits.

What is 3PL?

3PL stands for third-party logistics, described above. The term has many different meanings depending on the setting and industry but it often includes warehousing services as well as order processing including shipping to customers’ doorsteps or distribution centers where they will pick up their product themselves at no cost whatsoever!

This is all done through various facilities that are run by 3PIs (third party industries) like Amazon Web Services whose data centers can store large amounts of information without ever getting crowded out because other companies’ storage needs take over its capacity; this means faster retrieval times when someone wants to access your photos again instead of waiting an eternity just hoping one amongst 10 million was found after doing some light rummaging around online.

Third-party logistics (3PL) basics

Third party logistics (3PL) basics
Third-party logistics (3PL) basics

Third-party logistics providers manage inbound and outbound transportation for their clients as well as warehousing. They provide an essential service to companies by taking care of all aspects related to receiving orders, storing products on shelves so that they can be found when needed (to fulfill customer demands), picking items from these stores according to a set schedule or order quota determined beforehand based upon inventory levels & demand forecasts; then packing those ordered goods into boxes before shipping them off at client expense.

With the right logistics partner, your business can grow without hiring more staff. A 3PL warehouse will handle the extra volume and work with you on ways to reduce delivery times for an eCommerce fulfillment experience that is tailored just for them!

The third-party logistics process

The third-party logistics process
The third-party logistics process

eCommerce platform integration

Ecommerce businesses are not just about selling products. Most of the time, they need to stock and ship your items for you as well so that can be done promptly with ease of mind – which requires strong IT support from fulfillment companies! These partners must have seamless integrations across all major sales channels or offer APIs where customers would then receive real-time updates on their order status dashboard whenever available through each delivery platform used by them (i.e., UPS).

FTL and LTL freight shipping and receiving

Shipping large orders can be expensive, and it is often beneficial to outsource your logistics. If you’re looking for a cost-effective way of shipping products or inventory that would otherwise stay in storage space near each other then freight services may just be what’s needed! Your outsourced company will help find which type (FTL/LTL) and service level suits best against customer demand – all while saving money through discounts from major carriers such as UPS® Global merchants program membership card discount rates!

Inventory management

When you partner with a third-party logistics company, they can offer valuable insight into managing your inventory. Your account representative will be able to apply lessons learned from working on many eCommerce companies and provide advice about restocking levels that are best for seasonal needs.

When it comes down to selecting an appropriate level or types of goods needed in store at any given time – this part is key! It’s also nice having someone else take care of some aspects like providing new arrivals when necessary; otherwise maintaining these supplies becomes too much work by yourself (not mentioning all those wasted dollars). A good provider should know exactly how fast things sell out based on historic data analyzed using different metrics.

Picking, packing, and shipping

Your order fulfillment is our pride and joy. From beginning to end, we’re committed to getting it right the first time so you can focus on what’s important – running your business! When a customer places an itemized shipment through one of our sales channels (like website or app), they are immediately taken off the shelves by pickers who find exactly what was requested in their inventory records before delivering those products directly into specially designed boxes depending upon size requirements determined during packing process at packer stations using criteria such as weight limits already applied onto labels which also include correct shipping rates calculated for each destination country where a product may be sent.

Same-day shipping

Same-day shipping is the best way to beat your competition. For example, Red Stag Fulfillment offers two levels of same-day service: one with a 3 pm cutoff and another that will ship orders as late as 5 pm on the same day they are received! This means faster delivery for customers who want their items now more than ever before – it also helps them keep up satisfied standards by keeping those high expectations just within reach at all times.

Reverse logistics

To optimize inventory turnover and reduce returns, you must know how to manage your eCommerce fulfillment center. Reverse logistics is a process that analyzes returned items for damages or eligibility so they can be restocked more efficiently than before with less time spent on inspection by staff members who would otherwise have been busy doing other tasks during those hours when customers were coming through the door looking at products online but not purchasing anything yet because sometimes people are tempted into buying something else while browsing amazon all day long even though there was nothing really necessary.

3PL services vs. drop shipping

There is no need to worry when adopting an eCommerce business model, as third-party suppliers such as Amazon Prime Logistics will take care of all logistics for you. The major difference between using 3rd party supply and having someone new come in depends on what they offer specifically: if it’s just dropped shipping then there may not be much more than price differences between them; however, hiring employees with specialized skillsets can help cut down time spent managing orders by making certain tasks easier or even automate some processes entirely through AI/robots!

Q&A about 3PL

Q&A about 3PL
Q&A about 3PL

Are 3rd-party logistics the same as order fulfillment?

Third-party fulfillment services are often a much cheaper alternative to drop shipping when it comes time to deliver your product. These companies store products in their warehouses and ship them right away, which means you don’t have to wait weeks for delivery!

Will your business benefit from third-party logistics?

Outsourcing fulfillment is the best way to save time and money. If you’re running your eCommerce business on the side, without outsourcing shipping services it can become very expensive in no-time flat! Remember that third parties handling packages for example UPS or FedEx will take care of all those pesky customer service issues too – like when someone wants their package reshipped (and they didn’t pay enough attention at packing!).

Benefits of third-party logistics

Lower cost of goods sold

Buying in bulk is a great way to get the most out of your money. By buying products wholesale and selling them individually, you can make more profits while still maintaining low costs per unit or item sold!
I love buying items for my business when they’re on sale because it helps me save some serious cash each month–and not only do I come away looking like an entrepreneur who knows how to shop wisely but my customers also don’t have any doubt about where their goods came from either.

Greater flexibility in product sourcing

When you use an eCommerce fulfillment business model, your orders can ship with products from one or more suppliers in the same box. This saves on shipping costs and ensures accuracy for customers who want their items promptly delivered without any delays!

More control over your logistics operations

Once you’ve chosen a fulfillment partner, they will provide the services that customers expect and give you more time to focus on growing sales.

Faster order fulfillment

The world is a busy place and it can be hard to keep up with everything. That’s why we have invented our own third-party logistics solution that will help you pick from among the many shippers available, all while being able to provide faster order fulfillment through warehouse locations around the globe!

Easier returns processing

The 3rd-party logistics warehouse that shipped your products can provide customer service and seamlessly process any returns. This improves the overall experience for customers, letting you put their product back into inventory more quickly than ever before!

3 valuable services 3PLs offer

3 valuable services 3PLs offer
3 valuable services 3PLs offer

Inventory management

A 3PL should be able to provide you with the tools and assistance that allow for efficient inventory management. They can sync your products’ availability in real-time, view current inventory levels at each fulfillment center as well as proactively re-order when necessary so stockouts do not occur. To ensure this service comes without any hiccups during shipping day itself, some companies will also push out updates about what’s available through their eCommerce platform immediately following purchase orders being processed by vendors.

Two-day shipping

The following stats are enough to make your blood boil: 73% of shoppers expect affordable, fast deliveries. 44% of online buyers who abandon their carts do so because shipping and handling costs were too much; 24 percent canceled an order due to slow shipping that cost more than expected-combine these trends with popular retailers offering two day or even free delivery options at the click o a button (74%), it’s clear customers want both!

When your business needs to ship products in a hurry, working with the right 3rd Party Logistics company is key. By partnering up and strategically choosing an efficient warehouse location for its operations you can offer 2-day shipping at prices that will fit any budget!

Distributed inventory

When working with a 3PL that has several warehouse locations, you can ship orders from the fulfillment center nearest your customer. This model is called distributed inventory and works well when combined alongside powerful algorithms which route each order to an optimal location without missing any deadlines because of delays in shipping or other factors out of our control!

By distributing inventory across different fulfillment centers, you can offer guaranteed two-day shipping to customers in the surrounding areas. This is much cheaper than expedited air shipping and also puts your products closer to where they’ll be shipped!

Top 3PL and eCommerce shipping companies

Choose a 3PL shipping company that’s right for your business. When looking at the top eCommerce logistics providers, always remember to choose one with features and services suited specifically towards small-scale retailers like yourself! These are just some of our favorites:

  • ShipBob – For those who need help getting their orders out as soon as possible or have high volume demands on their supply chains.
  • FedEx Supply Chain – Great if you’re sending smaller packages all over town; they specialize in local deliveries around the Metro Detroit area where I live (I know my city better than anyone).
  • Rakuten Logistics has got great customer service representatives but beware.

3PL is a shipping and logistics service that provides the transportation of goods from one location to another. The best part about this service is it can be outsourced, so you don’t have to worry about hiring someone or building an infrastructure for your company.

Outsourcing also has its perks because there are companies out there with expertise in different areas such as intermodal transport, air freight services, warehousing and distribution centers, trucking, and more. Find out if outsourcing will work well for your business by contacting us today! We’ll help you find the perfect fit for your needs at a cost-effective price point.

Everything You Must Know About 3PL | 20Cube Logistics


What is a 3PL operation?

It is a logistics operation that a company outsources to a third party, also known as a 3PL. 3PL operation is a logistics operation that a company outsources to a third party, also known as a 3PL.

Why do companies use 3PL?

3PL are people who are contracted by companies to help them with their supply chain. This is done because it is not feasible for companies to handle the entire supply chain by themselves. 3PL are contracted for a variety of reasons, but the most common is to help with the supply chain, to lower costs, and to help with the distribution process. In a recent study, it has been found that companies are experiencing problems with their supply chain and require a third party to help with the distribution process.

How do 3PL companies make money?

3PL companies make money in a variety of ways, but the most common is by charging a fee per shipment, by charging a monthly storage fee, or by charging a per-item fee.


In conclusion, 3PL is a great way to take care of your company’s logistics. You can reduce costs by outsourcing your shipping and warehousing. In addition, you can focus on the areas of your company that are most important to you.

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