What Is 3PL and Why Should Growing Businesses Use It?
A plain-English explainer on third-party logistics — what it includes, what it costs, and when to switch.
Third-party logistics — 3PL — is a partner that handles storage, inventory management, order fulfilment, and often transportation on your behalf. You ship stock in; they pick, pack and dispatch every order.
For most D2C brands, the tipping point is somewhere between 300 and 1,000 orders per month. Below that, self-fulfilment is manageable. Above it, a 3PL is almost always cheaper on a fully-loaded basis once you factor in rent, salaries, packaging waste and management time.
A good 3PL gives you real-time inventory visibility, integrations with your storefront and marketplaces, and the ability to add a second location without hiring a single person.