What is a 3PL?

A 3PL (third-party logistics provider) is an external company that manages logistics and fulfillment operations for an ecommerce business.

A 3PL can handle tasks such as:

• Warehousing and storing inventory
• Picking and packing orders
• Shipping products to customers
• Inventory management
• Returns processing
• Shipment tracking
• Kitting and other specialized fulfillment services

For example, a Shopify merchant can send inventory to a 3PL warehouse. When a customer places an order, the 3PL picks, packs, and ships the product on the merchant’s behalf, while fulfillment and tracking information can be synchronized with Shopify.

Using a 3PL allows merchants to outsource fulfillment operations, reduce the need for their own warehouse infrastructure, and scale order processing as their business grows.