What is 3PL Fulfillment? Everything You Need to Know About Third Party Logistics

As your eCommerce store grows, so do the challenges of shipping, storing inventory, and keeping up with customer expectations. That’s where 3PL fulfillment comes in. 

A third-party logistics (3PL) provider helps eCommerce sellers manage warehousing, inventory, order fulfillment, and shipping—so you can focus more on growing your business and less on packing boxes.

In this guide, we break down what 3PL fulfillment is, how it works, and why it might be the missing piece for scaling your store.

What is 3PL Fulfillment?

3PL fulfillment means outsourcing storage, picking, packing, and shipping to a logistics partner. A 3PL handles the full backend of order fulfillment so you don’t need your own warehouse or shipping staff.

• It's designed to help small and medium-sized businesses save time, reduce costs, and grow faster. 
• By removing repetitive tasks and logistics headaches, 3PLs make scaling possible—even with limited resources.
• 3PLs use smart logistics technology to automate shipping workflows. You get access to advanced tools for inventory tracking, multi-carrier shipping rates, and order updates, without building them yourself.

What are the Core 3PL Fulfillment Services

• Warehousing and inventory management. 3PLs store your products in strategically located warehouses and track stock levels in real-time.
• Order fulfillment: picking, packing, and shipping. Once a customer places an order, the 3PL team picks the items, packs them according to your preferences, and ships them with your chosen carrier.
• Returns management and reverse logistics. 3PLs handle returns, restocking, and even repackaging—an often overlooked but critical part of the customer experience.

Process 8x more shipments per day with a 3PL with Easyship!

Understanding the 3PL Fulfillment Process

A reliable 3PL takes care of the entire fulfillment cycle—from receiving your inventory to delivering orders and managing returns. 

Think of this as a relay race. You generate the sales, then hand off the baton to your 3PL partner who gets it across the finish line (your customer’s doorstep) fast and accurately.

1. Inventory Receiving and Storage

The process begins when you ship your inventory to the 3PL’s warehouse. Upon arrival, your products are scanned, checked for damage, and logged into their inventory system. This step ensures real-time inventory visibility, so you can monitor stock levels from anywhere without manual updates or spreadsheets.

2. eCommerce Store Integration

Next, your eCommerce store is connected to the 3PL’s fulfillment software. Most modern 3PLs integrate directly with major platforms like Shopify, Amazon, WooCommerce, and TikTok Shop. This integration ensures new orders flow into the system automatically, eliminating the need for time-consuming CSV uploads or manual order entry.

With Easyship, you can easily integrate with some of the major eCommerce platforms like Shopify, Etsy, Ebay to name a few. A few clicks and sync orders directly from your store and use the multi-carrier benefits for your business!

3. Automatic Order Sync and Processing

When a customer places an order, the 3PL receives the details instantly. The system identifies the correct warehouse location (based on customer proximity or inventory availability) and queues the order for fulfillment. No action is needed on your end.

4. Pick and Pack Fulfillment

The 3PL warehouse team picks the item(s) from storage shelves and packs them according to your requirements. Many 3PLs offer these pick-pack services including custom packaging, inserts, or branded materials—so even though you’re outsourcing, the unboxing experience still feels on-brand for your customer. 

5. Shipping and Real-Time Tracking

After packing, the order is handed off to a shipping carrier like USPS, FedEx, UPS, or DHL. A shipping label is printed using the most cost-effective or fastest service available. Tracking numbers are automatically sent to both you and the customer, reducing WISMO (Where Is My Order?) requests. 

Check out Easyship’s tracking feature that allows you to track your customer’s package and reduce customer tickets. 

6. Returns and Reverse Logistics

If a customer returns a product, the 3PL also handles returns management. Items are inspected for damage, restocked if they meet your criteria, or flagged for disposal. You can define the return policy, and many 3PLs offer return portals or automation tools to streamline this process for both you and your customers.

Why 3PL Fulfillment Matters for Growing eCommerce Brands

Imagine a Shopify seller scaling from 500 to 2,000 monthly orders. She is likely to partner with a 3PL, reducing time spent on logistics and cutting shipping costs. 

It’s like switching from doing dishes by hand to using a high-speed dishwasher—you free up your evenings and get better results.

Here are a few benefits of going for a 3PL fulfillment partner:

1. Helps you reclaim time and reduce manual work

For many small to mid-sized eCommerce businesses shipping 100 to 2,500 orders a month, manual tasks like printing labels and packing orders quickly become overwhelming. 3PLs like Easyship automate these repetitive processes through direct integrations with platforms like Shopify or Etsy. This frees up hours each week to focus on sales, product development, or marketing. 

2. Improves your bottom line through discounted carrier rates

3PL fulfillment also reduces costs, especially on shipping. Since 3PLs manage shipping for thousands of businesses, they get discounted bulk rates from couriers like FedEx and UPS. Businesses can save up to 91% with providers like Easyship when compared to retail shipping prices. For small sellers, this can significantly improve profit margins and competitiveness. 3PLs often negotiate lower shipping rates due to bulk volume, passing savings on to you.

3. Supports better customer experiences

Finally, working with a 3PL can boost customer satisfaction. Orders are fulfilled faster and more accurately, with real-time tracking sent automatically. Many 3PLs operate warehouses across the country, offering 2-day shipping to most U.S. regions. This improves reviews, reduces support tickets, and increases repeat sales. In short, a good fulfillment partner ensures your back-end runs smoothly so your brand stays focused on growth.

Types of eFulfillment for Your eCommerce Business

Choosing the right fulfillment strategy is essential for eCommerce success. The method you use to store, pack, and ship your products directly affects your costs, delivery speed, and customer satisfaction. Depending on your business size, product type, and growth goals, you can choose from four main fulfillment models:

In-house fulfillment (seller handles everything)

In this model, the seller is responsible for the entire order fulfillment process—storing inventory, picking, packing, and shipping orders. It offers full control and is often used by small businesses just starting out. However, it can be time-consuming and hard to scale as order volumes grow.

Third-party fulfillment (outsourced to a 3PL)

With third-party fulfillment, eCommerce sellers partner with a 3PL provider that manages warehousing, picking, packing, and shipping. This model saves time, reduces manual work, and is ideal for growing businesses that need to scale operations efficiently without building their own logistics network.

Dropshipping (supplier ships directly to customer)

In dropshipping, the seller doesn’t hold inventory. Instead, when a customer places an order, the supplier ships the product directly to them. It’s a low-risk model with minimal upfront costs, but offers less control over shipping speed, packaging, and quality.

Hybrid fulfillment (mix of two or more models)

Hybrid fulfillment combines multiple strategies—for example, managing bestsellers in-house while outsourcing other items to a 3PL, or using dropshipping for seasonal products. This flexible approach lets sellers optimize for cost, control, and speed based on their business  needs.

When Should You Use a 3PL eCommerce Fulfillment?

• You’re shipping more than 100 orders per month. This is the threshold where DIY fulfillment starts to hurt growth.
• You’re running out of time or space. If you're using your garage or spending weekends packing boxes, it's time to outsource.
• You want to grow without adding operational complexity. 3PLs act as your logistics department so you can focus on sales and marketing.

Challenges of 3PL Fulfillment (and How to Avoid Them)

While 3PL fulfillment offers big advantages for growing eCommerce brands—like saving time, lowering costs, and improving delivery—it’s not without a few hurdles. Handing over part of your operations to a third party means adapting to new processes, pricing models, and tech systems.
Here’s what to watch for and how to stay ahead.

1. Loss of Control

Handing off logistics to a 3PL can feel like giving up control over the quality and timing of your shipments. To avoid surprises, work with a provider that offers real-time dashboards, custom SLAs (service-level agreements), and dedicated account support. 

Solution: Ask for example reports on order accuracy, on-time delivery rates, and inventory audits. Schedule monthly performance reviews so you can spot issues early, adjust processes, and ensure your brand standards are always met.

2. Minimum Order Volumes & Fees

Many 3PLs set a minimum number of orders per month or charge base fees that don’t fit every small seller’s budget. Before signing up, map out your average shipments—say 150 orders/month—and compare that with each provider’s fee structure. 

Solution: Look for flexible plans that let you tier up as you grow (for example, paying per pallet stored or per pick/pack instead of a flat monthly rate). Negotiating a trial period or a low-volume startup rate can also help you test the service without committing to high fixed costs.

3. Integrations & Tech Complexity

A 3PL’s software stack should slip seamlessly into your existing setup—Shopify, WooCommerce, Amazon, and any other marketplaces you use—without custom coding. Seek out partners with native plug-ins or API-based connectors that install in minutes, not weeks. 

Solution: Ask for a sandbox demo to test how orders sync, how inventory updates push back to your storefront, and how returns flow through. Choosing a tech-friendly 3PL will eliminate developer bills and keep your workflows smooth as you scale.

How to Choose the Right 3PL Fulfillment Partner

Choosing the right third-party logistics (3PL) partner can make or break your eCommerce growth. The right partner helps reduce costs, improve delivery times, and ensure a seamless customer experience. Below are the key factors to consider when evaluating a fulfillment partner for your business.

Location of Fulfillment Centers

The location of your 3PL’s warehouses directly impacts delivery speed and shipping costs. Choose a partner with fulfillment centers close to your customer base. For example, if most of your shoppers are in Canada or the U.S. (LA, Chicago), storing inventory nearby ensures faster, more affordable delivery.

Easyship Warehousing Fulfillment offers strategically placed warehouses across Canada, U.S., Netherlands, Germany, Singapore, Hong Kong, and Australia. This global network helps you scale internationally while keeping shipping times short.

Specialized Experience in Your Product Category

Not all 3PLs are created equal—many focus on certain product categories. If you sell beauty products, supplements, electronics, or apparel, look for a fulfillment partner with proven experience in your niche. Easyship works with diverse product categories, ensuring your items are stored, packed, and shipped according to best practices.

Some categories (e.g., supplements or electronics) require strict compliance with shipping regulations. Easyship’s warehouse partners are experienced in handling sensitive goods, minimizing risk of delays or rejected shipments.

Support, Reporting, and SLAs

Your 3PL should function as a true partner, not just a warehouse. Reliable partners provide responsive support teams to handle urgent issues like delayed shipments or stock discrepancies.

Performance dashboards: Access to real-time data on orders, inventory, and delivery performance helps you make smarter business decisions.

Service-level agreements (SLAs): Ensure your 3PL guarantees accuracy rates, timely fulfillment, and delivery standards. This protects your business and your customer experience.

Checklist:

• Do they integrate with your store?
• Do they offer real-time tracking?
• Are shipping rates competitive?
• Is their pricing transparent?

3PL Fulfillment Can Power Your eCommerce Growth

3PL fulfillment offers growing eCommerce stores a way to save time, lower shipping costs, and deliver a better customer experience—without having to build a warehouse from scratch.

With rising customer expectations and intense competition, outsourcing logistics to a reliable 3PL can give you the edge needed to scale profitably.

If you’re doing more than 100 shipments a month and spending your evenings printing labels or dealing with shipping headaches, it might be time to explore your 3PL options.

Ready to streamline fulfillment and focus on growing your store?

Whether you choose in-house, dropshipping, or a hybrid approach, third-party fulfillment gives you the flexibility and scale to meet customer expectations. With Easyship as your 3PL partner, you can automate warehousing, reduce shipping costs, and never worry about packing another box. You make the process from selling to delivery a breeze, thereby reducing friction in the form of late deliveries and complaints between the buyer and the merchant. 

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From syncing orders and selecting the best couriers to auto-generating labels and sending details to the warehouse for daily fulfillment—Easyship handles it all.

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Talk to us today!

FAQs

1. What is fulfillment in 3PL?
Fulfillment in 3PL refers to the process where a third-party logistics provider handles storage, picking, packing, and shipping orders on behalf of an eCommerce seller.

2. What does 3PL stand for?
3PL stands for Third-Party Logistics, a service that manages supply chain functions like warehousing, inventory, and shipping for businesses.

3. How does a 3PL make money?
A 3PL makes money by charging fees for services such as storage, order fulfillment, shipping, and value-added logistics like kitting or returns management.

4. What are the 4 types of fulfillment?
The four types of fulfillment are:

• In-house fulfillment (seller handles everything)
• Third-party fulfillment (outsourced to a 3PL)
• Dropshipping (supplier ships directly to customer)
• Hybrid fulfillment (mix of two or more models)

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