What Is 3PL? A Beginner's Guide to Third-Party Logistics
If you've started an ecommerce business or are shipping products regularly, you've probably heard the term 3PL (Third-Party Logistics).
3PL stands for Third-Party Logistics, which simply means outsourcing warehousing, inventory management, packing and shipping operations to a specialist provider.
Instead of storing products in your garage or operating your own warehouse, a 3PL provider manages processes such as warehouse storage, pick and pack services, and ecommerce fulfilment.
What Does A 3PL Company Do?
A 3PL provider typically handles:
- Receiving inventory
- Warehouse storage
- Inventory tracking
- Pick and pack services
- Packaging
- Order dispatch
- Returns processing
- Integration with ecommerce systems
At 3PL Sunshine Coast, orders can automatically flow from systems such as Shopify, WooCommerce, and integrated ecommerce platforms through our warehouse systems.
How Does 3PL Work?
1. Inventory arrives
Products are shipped directly into a warehouse facility where stock can be received, checked and allocated to storage.
2. Inventory is stored
Products are stored in pallet locations, cartons or bins depending on their size, quantity and fulfilment requirements.
3. Orders are received
Customer orders automatically enter the warehouse system from ecommerce platforms where supported.
4. Orders are picked and packed
Warehouse staff select the required products, scan items where required, and prepare them for shipment.
5. Orders are dispatched
Orders are shipped to customers Australia-wide using suitable courier and freight options.
Who Uses 3PL Services?
Typical businesses that benefit from outsourced logistics include:
- Shopify stores
- WooCommerce stores
- Alibaba importers
- Subscription box businesses
- Wholesale suppliers
- Growing ecommerce brands
- Marketplace sellers
Benefits Of Using 3PL
- Lower operating costs
- Reduced staffing requirements
- No warehouse lease required
- Scalable growth
- Faster dispatch times
- Improved customer experience
- Less administration
- Access to structured fulfilment systems and reporting
Is 3PL Right For My Business?
Businesses usually start considering a 3PL provider when inventory starts taking over their home, office or warehouse space.
If you are spending increasing time packing orders rather than growing your business, outsourcing logistics can often improve efficiency.
You can also review our pricing guidelines or visit our 3PL FAQ page to better understand how storage, pick and pack, fulfilment and dispatch services are usually structured.
Ready To Simplify Your Fulfilment?
Learn more about our 3PL services, warehouse storage, and pick and pack solutions.