What is a 3PL?
A third-party logistics provider, or 3PL, is a company that takes over logistics tasks for other businesses. For e-commerce brands, that usually means receiving stock, storing it, picking and packing orders, shipping them and handling returns, all from the 3PL’s warehouse and with the 3PL’s staff and systems.
The brand keeps control of its products, prices and customers, and pays the 3PL per activity: per pallet or shelf stored, per order picked, per parcel shipped. That turns warehouse costs from fixed to variable.
Core principle: A 3PL lets you sell from a warehouse you don’t own. You pay for what you use, and can add countries without signing leases or hiring staff.
1PL to 4PL
| Type | Who does the logistics | Example |
|---|---|---|
| 1PL | The brand itself | Packing orders in your own storeroom |
| 2PL | An asset-based carrier | A parcel carrier or shipping line |
| 3PL | A provider running warehousing and fulfilment for you | An e-commerce fulfilment centre |
| 4PL | A provider managing several logistics partners on your behalf | A lead logistics provider coordinating 3PLs and carriers |
What a 3PL typically does
- Inbound: receiving containers, pallets and cartons, checking them against the advance shipping notice and putting stock away, measured as dock-to-stock time
- Storage: on pallets, shelves or bins, with stock levels synced to your shop
- Fulfilment: pick and pack, kitting, inserts and branded packaging
- Shipping: negotiated carrier rates, labels and tracking, up to last-mile delivery
- Returns: receiving, grading and restocking returned items, part of reverse logistics
- B2B: pallet and carton shipments to retailers and marketplaces, including FBA prep
When to use a 3PL
3PL vs in-house
In-house fulfilment gives full control but ties up money in space, staff and systems. A 3PL makes sense when packing orders takes too much of your time, when you want faster delivery in new countries, or when volumes swing with seasons and campaigns. See 3PL vs in-house fulfilment: costs in Europe compared.
How 3PLs charge
Typical fees include onboarding or setup, receiving per pallet, carton or hour, storage per pallet, shelf or cubic metre per month, a first pick and additional pick per order, packaging materials, shipping per parcel, and returns handling. Some 3PLs charge a monthly minimum. Read more in All you need to know about fulfilment costs.
Example: A US skincare brand selling 400 orders a month in Europe sends one container a quarter to a 3PL in the Netherlands. The 3PL stores eight pallets, picks and packs orders from the brand’s Shopify store the same day, and ships them to 1–3-day delivery across Western Europe, so the brand has no European staff or warehouse.
Waredock offers e-commerce fulfilment from warehouses in six EU countries.
Frequently asked questions
What does 3PL stand for?
Third-party logistics: a provider that runs logistics tasks such as warehousing, fulfilment and shipping for other businesses.
What is the difference between a 3PL and a 4PL?
A 3PL runs warehousing and fulfilment operations. A 4PL manages and coordinates several logistics providers on your behalf.
How many orders do I need to use a 3PL?
It depends on the provider. Some accept start-ups with a few orders a day, while others set monthly minimums.
Does a 3PL own my stock?
No. You keep ownership of your inventory. The 3PL stores and handles it under a service agreement.
