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Find the Best 3PL Fulfillment Companies: List of Top Rated Warehouse Services

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  • Location: Baltimore, MD, USA
  • Services Offered: Warehousing
  • Year Established: 1991
  • Deals Closed: 7
  • Number of Reviews: 5

The company has evolved into a premier last-mile provider, offering logistics solutions tailored to the needs of its clients. With a strong... Read more

The company has evolved into a premier last-mile provider, offering logistics solutions tailored to the needs of its clients. With a strong foundation dating back to the late 1980s, they have grown from a regional transportation company to a nationwide network with over 80 locations across 48 states, making over half a million last mile deliveries annually. The company's focus on last mile delivery, warehousing, inventory management, and order fulfillment is supported by advanced logistics technology and a team of trained customer service professionals. From warehousing solutions designed for rapid throughput to real-time inventory tracking and efficient order fulfillment processes, they ensure seamless operations and customer satisfaction. With nationwide coverage and a commitment to reducing logistics complexity, they are positioned as the last mile provider of choice for high-value and hard-to-deliver products across the continental United States.

  • Location: Lancaster, TX, USA
  • Services Offered: Warehousing, Fulfillment, Call Center, 3PL Services
  • Year Established: 1998
  • Deals Closed: 3
  • Number of Reviews: 8

Operating out of a 1.6 million square foot facility in Lancaster, Texas, the company specializes in supply chain execution for consumer retail... Read more

Operating out of a 1.6 million square foot facility in Lancaster, Texas, the company specializes in supply chain execution for consumer retail brands. They offer advanced e-commerce shopping cart integrations, fulfillment services for major platforms like Amazon and Shopify, and comprehensive logistics solutions including warehousing, distribution, and reverse logistics. Their services include logistics management, warehouse management, storage solutions, transloading, API e-commerce shopping cart integrations, business intelligence and warehouse management system analytics, reverse logistics, in-store retail display solutions, assembly and kitting, trailer storage, and seasonal inventory solution With over 35 years of combined experience, they provide kitting, assembly, display pack-out, and trailer storage services. Their business intelligence and WMS analytics offer valuable insights into inventory performance, while their ESG Freight Management focuses on environmental sustainability through efficient route planning and dual-fuel vehicle usage. The company collaborates with clients such as 3M, Bayer, The Home Depot, JCPenney, Kroger, Southwest Airlines, Starbucks, Tesla, Uber, Walmart, and Wayfair. Partnering with them as a 3PL allows businesses to optimize their supply chain operations and fulfill customer promises effectively.

  • Location: Groveport, Ohio, USA
  • Services Offered: Warehousing, Fulfillment, Packaging, Pick and Pack
  • Year Established: 1988
  • Number of Reviews: 4

The company, founded in Ohio in 1988, started with warehousing and transportation services and now offers a wide range of supply chain... Read more

The company, founded in Ohio in 1988, started with warehousing and transportation services and now offers a wide range of supply chain management functions with e-commerce capabilities. Led by experienced executives with nearly 80 years of combined experience, they excel with specialized freight handling systems tailored to customer needs. Their U.S.-wide locations allow them to adjust to customer demands, providing excellent after-sales support and advanced IT solutions for top-notch service and value. Their commitment is to deliver complete solutions and exceptional value for clients' needs.

  • Location: Centreville, IL, USA
  • Services Offered: Warehousing, Fulfillment, Logistics
  • Deals Closed: 12
  • Number of Reviews: 6

The company is a mid-sized logistics service provider that is large enough to handle all business needs while still providing specialized services.... Read more

The company is a mid-sized logistics service provider that is large enough to handle all business needs while still providing specialized services. They prioritize operational efficiency, offering a suite of solutions tailored to simplify supply chain processes while maintaining high quality. They emphasize customer needs in their warehousing and logistics services, catering to contract warehousing, trucking, delivery, and fulfillment requirements. With a family-owned and professionally operated approach, they bring over seven decades of experience to the table, ensuring seamless storage, packaging, and shipping solutions nationwide. Alongside their industry expertise, they are committed to community engagement, working with non-profit organizations and showcasing their dedication to social responsibility.

  • Location: Kansas City, MO, USA
  • Services Offered: Warehousing, Fulfillment
  • Year Established: 2004
  • Deals Closed: 6
  • Number of Reviews: 2

This 3PL provider has over two decades of experience in delivering efficient logistics solutions to businesses and sellers nationwide, offering services like... Read more

This 3PL provider has over two decades of experience in delivering efficient logistics solutions to businesses and sellers nationwide, offering services like warehousing, transportation management, and e-commerce fulfillment. They help businesses scale by managing logistics efficiently, allowing clients to focus on growth. With nationwide locations, they ensure quick distribution across the US, benefiting businesses seeking streamlined supply chain solutions.

  • Location: Bridgeton, MO, USA
  • Services Offered: Warehousing, Fulfillment, Logistics, Shipping, Packaging
  • Year Established: 1986
  • Deals Closed: 1
  • Number of Reviews: 5

This trusted logistics partner provides advanced solutions to fuel business growth in competitive markets. They specialize in tailored services that meet individual... Read more

This trusted logistics partner provides advanced solutions to fuel business growth in competitive markets. They specialize in tailored services that meet individual client needs, supporting their journey to success. From efficient receiving processes to swift order fulfillment and streamlined inventory management, they leverage technology to optimize operations and enhance customer experiences. Their proprietary INFOplus technology forms the backbone of their operations. With a strong commitment to partnership and reliability, they ensure a seamless experience for clients and their customers. Their impressive track record includes shipping over 260,000 orders in 2023 and serving a diverse range of businesses, particularly excelling in handling medical devices and food-grade products. However, reviews of the company are limited and mixed, suggesting that prospective clients should conduct thorough due diligence before proceeding.

  • Location: Parkville, MO, USA
  • Services Offered: Warehousing, Fulfillment, Shipping, Pick and Pack, 3PL Services, Ecommerce Fulfillment
  • Year Established: 2000
  • Deals Closed: 1
  • Number of Reviews: 3

This logistics provider is transforming the way logistics is perceived by offering comprehensive distribution chain management solutions that optimize operations across all... Read more

This logistics provider is transforming the way logistics is perceived by offering comprehensive distribution chain management solutions that optimize operations across all modes of transportation. From LTL to truckload, international freight, parcel services, and specialty deliveries, their approach focuses on continuous improvement and complete visibility. Utilizing advanced technology like eShipManagerยฎ TMS and a dedicated optimization team, the company streamlines processes, optimizes carrier programs, and identifies opportunities for efficiency gains. With locations in various cities across the United States, this warehousing and fulfillment company offers state-of-the-art services tailored to clients' needs. Unlike many competitors, they display their pricing on the website for transparency. Although they have fewer online reviews with a lower overall rating than desired, employee feedback is positive. Their commitment to transparency is evident in their financial and recovery services, providing comprehensive audit and payment solutions for distribution chain spending. This provider is a great option for small businesses seeking high-value services and long-term success in their shipping endeavors.

  • Location: Appleton, WI, USA
  • Services Offered: Warehousing, Fulfillment, Logistics, Warehouse Space, Shipping, Packaging, Call Center
  • Deals Closed: 14
  • Number of Reviews: 6

The company stands out as one of the largest privately held logistics companies in the U.S., boasting a nationwide distribution network and... Read more

The company stands out as one of the largest privately held logistics companies in the U.S., boasting a nationwide distribution network and global logistics reach. Their family of entities includes several specialized divisions that provide comprehensive solutions to clients across industries. These divisions cover areas such as warehouse management, material logistics, fulfillment services, transportation, and freight solutions. Known for their reliability and fair treatment of customers and employees, they also actively contribute to the communities they serve through charitable endeavors. Upholding high standards of integrity and trust, the company seeks to cultivate open and trustworthy relationships with business partners who share its commitment to ethical business practices.

  • Location: Indianapolis, IN, USA
  • Services Offered: Warehousing, Fulfillment, Logistics, Shipping, Packaging
  • Deals Closed: 5
  • Number of Reviews: 1

With over 40 years of outstanding service in logistics, custom kitting, and e-commerce fulfillment, this company ensures businesses can focus on their... Read more

With over 40 years of outstanding service in logistics, custom kitting, and e-commerce fulfillment, this company ensures businesses can focus on their core activities by managing the intricate details of logistics and fulfillment. Located in Indianapolis, IN, they are optimally positioned for nationwide distribution. They adapt to daily and seasonal volume fluctuations, time-sensitive deliveries, and special packaging needs, ensuring projects are completed on time and as promised. Their scalable services include custom retail fulfillment, transportation and logistics, cross-docking and warehousing, managed inventory, reverse logistics, re-ticketing, and custom kitting. The company's dedication to flexibility and customer communication guarantees that products are handled and distributed according to each client's requirements. With flexible and scalable technology solutions, they meet unique customer needs, earning long-term client loyalty across multiple companies. Established in 1981, their commitment to service and adaptability has made them a reliable partner for organizations of all sizes.

  • Location: Los Angeles, CA, United States
  • Services Offered: Warehousing, Fulfillment, Pick and Pack, 3PL Services
  • Deals Closed: 4
  • Number of Reviews: 3

This logistics company excels in tackling challenges with intelligence and fostering continuous improvement for their clients. Starting as a small delivery service... Read more

This logistics company excels in tackling challenges with intelligence and fostering continuous improvement for their clients. Starting as a small delivery service in Texas, they have grown by solving complex supply chain problems and customizing third-party logistics (3PL) solutions. Their services include small package shipping, dedicated fleet services, air freight, and LTL services, enhanced by warehousing and fulfillment options. They offer 24/7 support to ensure clients' businesses keep moving efficiently. With an emphasis on problem-solving and addressing the needs of small businesses, this company is an excellent option for startups and smaller companies. Their dedication to flexibility and customer communication guarantees that products are handled and distributed according to each client's requirements, making them a reliable partner in the logistics industry.

When searching for the best third-party logistics (3PL) companies, it’s easy to get overwhelmed by lists that claim to rank the top providers in the industry. These rankings often feature well-known names like Shipbob, Red Stag, and Shipmonk, but itโ€™s important to recognize that many of these lists may be influenced by advertising or biased relationships, meaning they may not be the best fit for your business. These companies often dominate โ€œbest ofโ€ lists:

  • ShipBob: ShipBob has transitioned from being a primarily D2C-focused 3PL service to offering B2B services as well. Despite rapid growth fueled by significant venture capital investment, the company faces criticism for overcharging and inconsistent service. Online reviews, including Trustpilot, show mixed feedback. While there has been an increase in positive reviews, negative feedback has risen disproportionately, often highlighting billing issues, lack of personalized support, inventory discrepancies, and order fulfillment errors. Many customers describe the platform as visually appealing but operationally lacking. Peer platforms like Reddit also reveal recurring customer frustrations. Consequently, many users of WarehousingAndFulfillment.com report switching from ShipBob due to these issues.
  • Shipwire: Shipwire, a longstanding player in the 3PL space, struggles with poor reviews and operational complaints. Hidden fees, mismanagement, and recurring billing issues are commonly mentioned in customer feedback. As of this writing, Shipwire holds a 2.2-star rating on Trustpilot from 176 reviews and similarly low ratings on Yelp and Google. Yelpers have marked their listing as closed. Negative experiences, such as fulfillment errors and billing disputes, are frequently detailed at length by customers.
  • Red Stag Fulfillment: Red Stag Fulfillment specializes in high-volume and heavy-product fulfillment. The company has a strong reputation for meeting service level agreements (SLAs) and receives consistently positive reviews. However, its focus on heavy and high-volume products excludes many small and startup businesses. Additionally, Red Stag’s growing exclusivity towards higher-volume clients limits its appeal for smaller shippers. The companyโ€™s credibility is somewhat diminished by its self-promotion in the form of a โ€œtop 3PL companiesโ€ list on its website, which ranks Red Stag as โ€œthe best.โ€ This approach may be better suited for independent review platforms.
  • ShipNetwork (Formerly Rakuten Super Logistics): Rakuten Super Logistics, now operating as ShipNetwork, manages a large fulfillment network but has faced ongoing criticism for service quality. While recent reviews suggest some improvement under the ShipNetwork brand, overall feedback remains sparse and mixed. For instance, their Trustpilot rating of 4.2 stars is based on only seven reviews, including two 1-star ratings. The companyโ€™s focus on larger volume shippers may make it less suitable for startups and smaller businesses.
  • Whitebox (Now Ware2Go): Whitebox Fulfillment has been acquired by Ware2Go and now exclusively offers digital marketing services. References to its former 3PL operations on โ€œtop 3PL listsโ€ are outdated and should be disregarded.
  • ShipMonk: ShipMonk, a tech-oriented 3PL with 12 global locations, focuses on D2C fulfillment. Its rapid growth, driven by significant financial backing, has led to a mix of positive and negative reviews. While many customers praise its functionality, the percentage of negative feedback is notable (e.g., 19% 1-Star reviews on Trustpilot). Common complaints include shipment delays, hidden fees, service inconsistencies, and impersonal customer support. ShipMonk is geared toward high-volume shippers, with companies shipping fewer than 1,000 orders per month potentially better served by smaller 3PL providers offering dedicated account management.

Avoid relying solely on rankings. Instead, focus on finding 3PL providers that match your specific requirements and can handle the complexities of your business. We connect businesses of all sizes with fulfillment providers that match your unique needs, saving you time and effort by comparing your criteria against our network of trusted 3PL companies.

Our Curated List of the Best 3PL Companies & Warehouse Services

Our network includes carefully vetted companies, from smaller niche providers to large scale ecommerce order fulfillment services. What sets us apart is our commitment to objectivity. We donโ€™t accept payments to feature companies in our network. Every recommendation is based solely on performance, capability, and alignment with your criteria. We screen providers, considering their technology, accuracy, shipping rates, and customer service, so you donโ€™t have to.

  • WSI (Warehouse Specialists, Inc.): Established in 1966, WSI is a reliable logistics provider with 10 distribution centers across the U.S. They focus on maximizing efficiency and minimizing costs by offering freight brokerage and warehousing services under one roof, making them a dependable choice for businesses seeking large-scale fulfillment and distribution services.
  • FW Logistics: Since 1949, FW Logistics has offered mid-sized logistics services with a strong emphasis on customer relationships and cost-effective solutions. They balance personalized service with the capacity to meet a wide range of logistics needs, including warehousing, transportation, and fulfillment.
  • MKM Distribution Services, Inc.: Founded in 1981 and based in Indianapolis, MKM specializes in retail and e-commerce logistics. They provide warehousing, distribution, and transportation services tailored to the needs of brick-and-mortar and online retailers. With a focus on retail supply chains, they handle fulfillment, packaging, and shipping.
  • eShipping: Based in Kansas City, eShipping is a third-party logistics provider that arranges transportation and distribution without owning its own trucks or warehouses. Their core services include domestic and international shipping across LTL, TL, and Parcel, as well as outsourced warehousing and distribution. They also provide transportation management systems (TMS) to help businesses coordinate logistics.
  • Expak Logistics: Founded in 1966, Expak specializes in LTL (Less-Than-Truckload) services and other delivery solutions. They focus on small business needs and problem-solving, making them a great option for startups and companies with growing logistics requirements.

These companies represent a sample of the diverse providers in our network. To find the 3PL company that best meets your unique requirements, complete our online form or contact us today for a personalized match.

How to Find 3PL Fulfillment and Warehousing Services

Finding a warehouse solution often means browsing online listings or working with brokers, which can be complicated, expensive, and time-consuming. Research providers by reviewing their track record, services, and customer feedback, focusing on those with strong inventory management and order tracking capabilities. Narrow your options by comparing their reliability, ability to meet your needs, and overall value.

WarehousingAndFulfillment.com simplifies this process by connecting you with trusted providers for renting, leasing, co-warehousing, pallet storage, and 3PL services. Complete a brief form to get connected with our expert-vetted providers.

What to Look For in a 3PL Fulfillment Company

Each company will have its strengths and weaknesses. Here is a summarized list of factors to consider, or see our in-depth article on how to choose a 3PL.

  • Capabilities & Technology: Make sure the 3PL can handle all aspects of your logisticsโ€”from warehousing to shipping, returns, and specialized services. The company should invest in modern technology (Warehouse Management Systems, or WMS, RFID, barcode scanning, and real-time tracking technologies), using it efficiently across departments. Top-tier technology is only valuable if properly integrated into day-to-day operations.
  • Specialization: Does the 3PL have experience with your specific product type or industry? A companyโ€™s specialization can make or break its ability to handle your goods properly, especially if your products require specific handling or storage conditions.
  • Location & Coverage: Geographic location is critical for efficient shipping. Choose a 3PL located near major transportation hubs to enable faster deliveries. Additionally, ask about their disaster recovery plans to mitigate any risks posed by natural events in the area.
  • Trained Staff: The warehouse staffโ€™s training is vital to smooth operations. Make sure the 3PL regularly updates employee training to reduce downtime caused by lack of knowledge or inefficiency. A well-trained workforce means fewer errors and faster processing.
  • Customer Feedback & Referrals: A strong track record with positive customer referrals indicates reliability. Look for 3PLs that have demonstrated long-term success and partnerships, as this is a good indicator they can meet your needs.
  • Reputation & Performance: Research the companyโ€™s reputation, not just in terms of services offered but also in how they handle challenges. Strong management that is adaptable and forward-thinking is crucial for long-term success, especially if the 3PL is committed to updating its technology and services.
  • Error Rates & Problem Resolution: Even the best 3PLs will encounter issues, but the key is how they handle them. Ensure your provider has a near error-free record and is known for resolving problems quickly and effectively.
  • Pricing Transparency: Pricing can be tricky, as many 3PLs have hidden fees. Ask for a detailed breakdown of all potential costs, including a mock bill based on a typical monthโ€™s usage. This will help you compare quotes accurately and avoid surprises later.
  • Flexibility & Scalability: Your businessโ€™s needs will change over time, and your 3PL must be able to adapt. Make sure they can scale operations during peak seasons and provide additional services when needed, such as custom packaging or freight consolidation.
  • Partnership Potential: You want more than just a service providerโ€”you want a true partner. Choose a 3PL that aligns with your companyโ€™s values and long-term goals. Trust your instincts when evaluating potential partners, as youโ€™ll be in constant communication with them.

Weโ€™ll Help You Find the Right Warehousing Solution

At WarehousingAndFulfillment.com, we take the guesswork out of finding the right 3PL partner. Instead of relying on broad, impersonal lists, we connect you directly with providers that are best suited to your specific needs.

By leveraging our network, you can save time and avoid the hassle of sifting through 3PL providers on your own. Weโ€™ll help you get matched with companies that not only fit your operational needs but are also dedicated to supporting your business growth. Fill out our form or contact us today to get started.

Warehouse Management & 3PL Fulfillment Options

Source: This table presents cost benchmarks from our Annual Warehouse Costs & Pricing Survey. Figures are industry averages and should be used as a reference, not an absolute pricing guarantee.
3PL Fulfillment Center TypeDescriptionPros and ConsEstimated Cost
Traditional 3PL Fulfillment CentersStores products in a warehouse and ships them when orders are received. Best for businesses with large inventories needing secure storage.Pros: Secure storage for large inventory; allows businesses to handle operations as needed.

Cons: Must handle packing, shipping, and customer service in-house, which can be time-consuming.
$2-$5 per order
Pick, Pack, and Ship CentersOffers additional services like product packing and labeling. Orders are automatically transmitted and shipped directly to consumers (B2C).Pros: Professional packaging and labeling; ideal for eCommerce; reduces internal workload.

Cons: Higher costs; businesses still responsible for handling customer service and returns.
$2.50 per order PLUS $.68 per item fulfilled
Climate Controlled StorageProvides temperature and humidity-controlled environments for sensitive products. Typically more expensive due to specialized storage conditions.Pros: Essential for sensitive products like perishables; maintains quality.

Cons: Higher costs due to environmental controls.
$25-$35 per pallet per month
Smart WarehousesUses technology such as AI, robotics, and automation to manage inventory, packing, and shipping efficiently.Pros: Faster and more efficient order fulfillment; ideal for businesses needing high-tech solutions.

Cons: Requires investment in tech integration; typically higher costs due to advanced infrastructure.
$2.67 per bin per month
Big and Bulky Item Storage and ShippingSpecializes in storing and shipping large or heavy items with specialized equipment and trained personnel.Pros: Expertise in handling oversized or heavy products; reduces risk of damage.

Cons: Not suited for smaller, more standard-sized inventory; higher costs due to specialized equipment.
$1.15 per square foot per month

Advantages of Using a 3PL

  • Increased Speed and Delivery: 3PL providers offer faster, more reliable shipping through their well-established networks of warehouses, technology, and trained staff. They handle large-scale shipments efficiently and are equipped to manage international shipping and unforeseen challenges.
  • System Connectivity: 3PLs are more likely to integrate with your existing systems, such as ERP software and POS, automating processes like inventory tracking and shipment management. This improves efficiency, reduces errors, and allows you to focus on core business activities.
  • Cost Savings: By leveraging economies of scale, 3PLs offer lower storage, fulfillment, and shipping costs. They bundle shipments and offer better rates than traditional carriers, converting fixed costs into variable ones, which can greatly benefit growing businesses.
  • Improved Customer Service: With faster shipping and fewer errors, 3PLs help businesses meet customer demands more effectively. 3PLs offers transparent communication, quick problem-solving, and dedicated customer support for handling issues like shipment delays, returns, or inventory discrepancies. They also provide value-added services like repacking and gift-wrapping, which can boost customer satisfaction and retention.
  • Better Coverage: A 3PLโ€™s network provides broader geographical coverage, allowing businesses to expand into new markets without having to invest in their own infrastructure. This enables growth without diverting financial resources from core operations.
  • Flexibility and Scalability: 3PLs offer scalable solutions, enabling businesses to adjust warehouse space and labor according to demand, such as during holiday peaks. This flexibility ensures youโ€™re not overpaying for unused resources during slower periods.

Disadvantages of Using a 3PL

  • Loss of Control: Outsourcing logistics means youโ€™ll have less direct control, which can lead to concerns about service quality and responsiveness. You rely on the 3PLโ€™s handling of your products, which may not always align with your preferences.
  • Hidden Fees: Some 3PL contracts include additional fees for services not covered in the initial agreement, leading to unexpected costs. Itโ€™s important to carefully review the contract to avoid surprises.
  • Integration Challenges: Integrating a 3PLโ€™s systems with your own can be complex and may cause operational disruptions, especially if the systems are not compatible or the 3PL lacks the necessary tech support.
  • Confidentiality Risks: Sharing sensitive business information with a 3PL poses a risk to confidentiality. Data security concerns arise when external parties have access to critical information, which can lead to potential breaches.
  • Challenges for Smaller Businesses: Large 3PL companies often prioritize bigger clients, making it harder for small to mid-sized businesses to meet the requirements for service. Smaller businesses may find it difficult to negotiate favorable terms or access the same level of service as larger competitors.

Connect with Trusted Warehouse Services

Donโ€™t rely on search rankings aloneโ€”many top listings are paid placements, not the best options. Our curated network, built on unbiased reviews since 2005, connects you with reliable warehouse services in Florida. Fill out our form or call us to get your tailored matches today.

3PL Frequently Asked Questions

What is a 3PL, and what services do they provide?

A third-party logistics (3PL) provider handles shipping, warehousing, and fulfillment for businesses that donโ€™t want to manage logistics in-house. Some 3PLs specialize in e-commerce, others in freight and distribution, and some cover everything, from inventory storage to returns processing.

What matters is not all 3PLs are built the same. Some will be a great fit for your business, and others will be an expensive headache.

Questions to ask when evaluating a 3PL:

  • Do they handle your order volume and product type?
  • Can they integrate with your e-commerce system?
  • Whatโ€™s their pricing structure, and where do hidden fees tend to creep in?
  • How do they deal with mistakes, including wrong shipments, lost inventory, or delays?

Why do businesses use 3PLs?

Some businesses use 3PLs to scale quickly without buying warehouses and hiring staff. Others outsource to avoid the complexity of shipping and fulfillment.

Signs you might need a 3PL:

  • Youโ€™re spending too much time managing shipping and inventory.
  • Your warehouse (or garage) is overflowing with products.
  • Orders are delayed, or customers complain about slow shipping.
  • You want to offer faster delivery but donโ€™t have distribution centers in key regions.

Not every business benefits from a 3PL. If you have low order volume or highly customized fulfillment needs, you might be better off handling logistics in-house.

What kinds of businesses use 3PLs?

Any business that struggles with storage, shipping, or order fulfillment might turn to a 3PL. If fulfilling orders slows down growth or eats into profits, outsourcing to a 3PL is often the next step. The most common are:

  • E-commerce brands that outgrow backrooms and garages may need a 3PL to store inventory and ship orders as they come in.
  • Retailers & wholesalers that donโ€™t want to deal with packing or coordinating large shipments across multiple locations.
  • Subscription box companies that require kitting, custom packaging, and shipments that go out on a fixed schedule.
  • Manufacturers & suppliers that need bulk storage, freight coordination, or help navigating international shipping.

How do 3PLs handle e-commerce fulfillment?

An e-commerce 3PL stores your inventory, packs orders, and ships them when a customer buys. The best ones sync with your e-commerce platform so stock updates in real-time, orders are processed automatically, and tracking is available without delays. Hereโ€™s how it works:

  • Inventory storage โ€“ You send products to the 3PLโ€™s warehouse, where they organize and track stock.
  • Order processing โ€“ When a customer places an order, the 3PLโ€™s system receives it instantly (if integrated with your store).
  • Picking and packing โ€“ Warehouse staff pick the items, pack them based on your specifications, and label them for shipping.
  • Shipping โ€“ The 3PL buys postage, prints labels, and hands off packages to carriers like UPS, FedEx, or USPS. Some can also handle inbound freight forwarding as well.
  • Tracking updates โ€“ Most 3PLs provide real-time tracking, automatically updating customers and merchants.
  • Returns management โ€“ If a customer sends an item back (returns and product recalls), the 3PL handles receiving, restocking, or disposing of the product (reverse logistics).

What types of products are best suited for 3PL storage?

Products that sell consistently, take up too much space, or require specialized handling are the best candidates for 3PL storage. If your products require constant customization, are low-margin, or rarely sell, storing them in a 3PL can add unnecessary costs. Businesses typically use 3PLs for:

  • High-turnover products โ€“ Items that move fast and need constant restocking, like apparel, electronics, and beauty products.
  • Bulky or oversized goods โ€“ Large items that are expensive to store and ship from a small business location.
  • Fragile or regulated items โ€“ Goods that need temperature control, security, or compliance with shipping regulations, like perishables or pharmaceuticals.

Does outsourcing to a 3PL actually save money?

It can. But only if your order volume is high enough to offset 3PL costs. A 3PL makes financial sense when order volume is steady enough to balance the costs. If orders are irregular or margins are thin, in-house fulfillment might be the better option.

How businesses save money with a 3PL:

  • Avoiding the cost of renting warehouse space.
  • Reducing labor expenses for packing and shipping.
  • Getting bulk shipping discounts through a 3PLโ€™s carrier relationships.

Where businesses lose money:

  • Paying for storage when inventory sits too long.
  • High pick-and-pack fees for small or complex orders.
  • Extra charges for returns, handling, and โ€œunexpectedโ€ surcharges.

How does 3PL pricing work?

3PL pricing is typically a mix of fixed and variable fees based on how much space you use, how many orders you ship, and any extra services required. Businesses with slow-moving or low-margin products need to be especially careful about storage and handling costs. More in-depth information on 3PL Costs.

Common 3PL Costs:

  • Storage fees: Charged per pallet, bin, or cubic foot, usually monthly.
  • Pick & pack fees: Per order or per item, covering labor to retrieve and package products.
  • Shipping costs: Based on carrier rates, package weight, size, and destination.
  • Receiving fees: Charged when your inventory arrives at the warehouse.
  • Returns processing: Fees for handling and restocking returned items.
  • Account management: Some 3PLs charge monthly service fees for software access and support.

How to avoid unexpected costs:

  • Ask for a full pricing breakdown: Some 3PLs bundle fees, while others charge separately for every step.
  • Request a sample invoice: Use your estimated order volume to see actual costs.
  • Understand storage fees: Long-term inventory storage can become expensive if products donโ€™t move quickly.

How much do 3PLs charge?

Costs vary depending on order volume, storage needs, and services required. Getting a detailed quote based on your actual order volume is the best way to compare providers. Hidden fees for returns, long-term storage, or special handling can add up, so review the full cost breakdown by requesting a sample invoice. Hereโ€™s a general pricing breakdown based on our annual warehousing costs survey:

  • Setup fees: $120 to $550 (one-time).
  • Storage fees: $8 to $40 per pallet per month (typically $15-$25).
  • Pick & pack fees: $1 to $3 per order, plus handling per item.
  • Shipping costs: Based on carrier rates, weight, and delivery speed.

What contract terms should I watch for with a 3PL?

Many 3PLs lock businesses into long-term agreements with fees for early cancellation, slow-moving inventory, or exceeding order limits. These contract terms can drive up costs if youโ€™re not careful. Hereโ€™s what to look for:

  • Minimum order volumes: Some 3PLs require a set number of orders per month. Falling below that can trigger penalties or higher rates.
  • Storage commitments: Long-term storage fees can pile up if products donโ€™t move fast enough. Some 3PLs also charge for unused reserved space.
  • Service level agreements (SLAs): Outline delivery accuracy, fulfillment speed, and what happens if the 3PL misses targets. If they fail, is there a refund or credit?
  • Hidden fees: Extra charges for peak season storage, returns processing, labeling, or โ€œspecial handlingโ€ can inflate costs fast.

How to avoid contract traps:

  • Negotiate flexible terms: If you’re unsure about future order volume.
  • Ask about penalties upfront: Some 3PLs charge to cancel, while others require notice.
  • Review their dispute resolution process: In case fulfillment errors start costing you money.

Should I choose a 3PL close to my business?

The location of your 3PL should match your shipping needs, not your business address. A nearby 3PL only makes sense if youโ€™re handling local deliveries or picking up inventory yourself. For most businesses, customer location matters more than proximity. Hereโ€™s when location matters:

  • If you ship mostly to a specific region (e.g., the East Coast), a 3PL in that area will keep transit times low and reduce shipping costs.
  • If you have customers nationwide, a centrally located 3PL (e.g., in Dallas or Chicago) helps balance shipping times across different zones.
  • If you import goods from overseas, choosing a 3PL near a major port (e.g., Los Angeles, New Jersey, Vancouver) can cut costs on inbound freight.
  • If you use Amazon FBA or other fulfillment services, a 3PL near their warehouses may reduce transfer costs.

Where are the major 3PL hubs?

Choosing a location should be based on where your customers are and how you receive inventory, not just where the 3PL is based. Hereโ€™s how key locations in the U.S. and Canada actually impact fulfillment decisions.

United States:

  • Los Angeles & Long Beach, CA: If your products come from Asia, Los Angeles and Long Beach is where they land. 3PLs here specialize in breaking down ocean freight, clearing customs, and getting inventory moving before it clogs up expensive port storage.
  • Dallas, TX: Sitting at the intersection of major trucking lanes, Dallas works if you need fast transit to both coasts without paying premium East or West Coast rates. Great for brands shipping high volumes across the country.
  • New Jersey & Eastern Pennsylvania: A no-brainer if your customers are concentrated on the East Coast. These New Jersey and Pennsylvania 3PLs are built for speedโ€”quick port access, proximity to millions of customers, and direct rail links into the Midwest.
  • Chicago, IL: The countryโ€™s biggest rail hub. If your products move by train, theyโ€™ll likely pass through here. A Chicago-based 3PL makes sense if youโ€™re distributing nationwide from a single location.
  • Atlanta, GA: A sweet spot for Southeast U.S. shipping. Atlanta is cheaper than the Northeast, provides faster transit to Florida and Texas, and is well-connected by highways and air freight.

Canada:

  • Toronto & Mississauga, ON โ€“ If youโ€™re shipping within Canada and crossing into the U.S., Toronto/Mississauga is your spot. Strong road connections, customs expertise, and warehouses designed to serve both countries.
  • Vancouver, BC โ€“ Canadaโ€™s Pacific gateway. If your inventory comes from China or Japan, using a 3PL in Vancouver can speed up inland distribution to both Canada and the U.S.
  • Montreal, QC โ€“ The best Canadian option for shipping into the Northeast U.S. French-speaking Montreal market support is an added benefit if youโ€™re selling in Quebec.

How is a 3PL different from a fulfillment company?

3PL (Third-Party Logistics provider): A 3PL offers a range of logistics services, including warehousing, freight coordination, and order fulfillment. Some 3PLs focus on bulk shipping and distribution, while others handle direct-to-customer shipping. Furthermore, Public warehousing provides short-term, flexible storage for multiple businesses, allowing them to rent space as needed. Contract warehousing, on the other hand, involves a long-term agreement with one business, offering dedicated space and more customized services to meet specific operational needs. Public warehousing works well for businesses with fluctuating storage demands, while contract warehousing is ideal for those seeking more control and consistency over their logistics.

Fulfillment Companies: A fulfillment company specializes in storing inventory, packing orders, and shipping to customers. They are a type of 3PL but focus on e-commerce and direct order fulfillment rather than broader logistics services.

The difference: All fulfillment companies are 3PLs, but not all 3PLs are fulfillment companies. If you only need storage and shipping, a fulfillment provider is enough. If your logistics go beyond that, a 3PL is the better fit:

  • Choose a 3PL if you need help with freight, inventory distribution, or managing multiple warehouses.
  • Choose a fulfillment company if your main need is storing products and shipping orders as they come in.

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