What is a 3PL? A Beginner's Guide for Ecommerce Brands

If you’re running an ecommerce business and feeling overwhelmed by packing boxes, printing shipping labels, and handling returns, it might be time to meet your new best friend: the 3PL.

In this beginner’s guide, we’ll break down what a 3PL is, how it works, and why growing ecommerce brands turn to third-party logistics partners to scale operations, cut costs, and improve customer satisfaction.

📦 What Does 3PL Mean?

3PL stands for “third-party logistics.” It refers to outsourcing your order fulfilment process -including warehousing, picking, packing, shipping, and returns, to a specialised logistics company.

Instead of handling everything in-house, you partner with a 3PL provider that stores your inventory and manages the logistics for getting orders to your customers.

✅ A 3PL takes care of your backend fulfilment so you can focus on growing your business.

🚚 What Services Does a 3PL Offer?

Most 3PL providers offer a full suite of fulfilment and shipping services, including:

• Inventory storage (in strategically located warehouses)

• Order picking and packing

• Shipping and delivery

• Returns and reverse logistics

• Kitting, bundling, and subscription box fulfilment

• Real-time inventory tracking and analytics

• Ecommerce platform integrations (e.g., Shopify, WooCommerce, Amazon)

Some 3PLs even provide custom packaging, carrier rate shopping, and customer support to help streamline your brand experience.

🧠 Why Do Ecommerce Brands Use a 3PL?

Here’s why more ecommerce brands outsource fulfilment to 3PLs as they scale:

1. Save Time Spending hours packing boxes and standing in line at the post office? A 3PL automates and streamlines this entire process.

2. Lower Shipping Costs 3PLs negotiate bulk shipping discounts with carriers like Australia Post, TNT, and Couriers Please - savings they pass on to you.

3. Faster Delivery With warehouses strategically located in prime logistics locations, 3PLs help you offer quick despatch, boosting customer satisfaction.

4. Scale Easily Whether you’re shipping 50 orders a week or 5,000, a 3PL helps you scale without hiring more staff or renting premium warehouse space.

5. Focus on Growth Fulfilment is important, but it’s not why you started your brand. Let a 3PL like Packitle handle the backend while you focus on marketing, product development, and customer experience.

🔄 How Does 3PL Fulfilment Work?

Here’s a simplified 3PL process flow:

1. You send inventory to the 3PL’s warehouse.

2. Customer places an order on your website.

3. The 3PL’s system receives the order automatically via platform integration.

4. A warehouse team picks, packs, and ships the order using your preferred branding and packaging.

5. Tracking info is sent to your customer (automatically).

6. The 3PL also handles returns and restocks returned items as needed.

   
   

🔍 3PL vs. In-House Fulfilment: What’s Better?

Feature	In-House	3PL
Control	High	Medium
Cost	High (for growth)	Scales better
Time Investment	Very high	Low
Flexibility	Low	High
Tech & Automation	Manual or limited	Advanced systems
Shipping Speed	Depends on location	Fast fulfilment

If you’re just starting out, DIY fulfilment may work. But once you hit consistent sales or want to expand, a 3PL will save you time, money, and headaches.

🧩 Is a 3PL Right for Your Brand?

Ask yourself:

• Are you packing more than 100 orders/month?

• Are you running out of space at home or in your office?

• Are you losing time to packing, shipping, and returns?

• Are your shipping costs hurting your margins?

• Do customers expect faster shipping options?

If you answered yes to any of the above, it might be time to talk to a 3PL.

🚀 Next Steps: How to Choose the Right 3PL

Choosing the right logistics partner is critical. In upcoming posts, we’ll cover:

• How to evaluate 3PL pricing

• Questions to ask before signing a contract

• The best 3PLs for Shopify, WooCommerce, and Amazon sellers

💬 Final Thoughts

A 3PL isn’t just a warehouse, it’s a growth partner. By outsourcing fulfilment, ecommerce brands free up time, reduce costs, and scale more efficiently. Whether you’re a DTC brand shipping candles or a growing fashion label expanding globally, a 3PL like Packitle can help you stay focused on what matters most: building a great brand.

📣 Need Help with Fulfilment?

Packitle helps fast-growing ecommerce brands streamline fulfilment, improve delivery speed, and scale smarter.👉 Talk to our team today!

Let's Chat 3PL