Logistics & Fulfillment

Third-Party Logistics (3PL)

Also known as: 3PL, 3PL provider

Definition

Third-party logistics (3PL) is the outsourcing of warehousing, fulfillment, and shipping to an outside provider. A 3PL stores a company's inventory, then picks, packs, and ships orders on its behalf, so the business does not have to run its own warehouse.

Third-party logistics, almost always shortened to 3PL, means handing your warehousing and order fulfillment to an outside company. The 3PL stores your inventory, then picks, packs, and ships orders for you.

What a 3PL handles

  • Receiving and storing inventory
  • Picking and packing orders
  • Shipping and carrier management
  • Returns processing (reverse logistics)

When to bring fulfillment in-house

3PLs are convenient early on, but per-order fees, storage charges, and long-term contracts add up as you scale. Many growing brands hit a point where running their own space gives them better margins, faster turnaround, and full control of inventory and branding.

That is where a flexible small warehouse makes sense. WareSpace gives ecommerce and distribution businesses their own all-inclusive space with loading docks and HVAC, on short-term leases that scale with you. Compare the trade-offs in our cost-to-rent guide or book a tour.

Frequently asked questions

What does a 3PL do?
A 3PL handles logistics on a company's behalf: receiving and storing inventory, picking and packing orders, shipping, and often returns. Businesses use 3PLs to scale fulfillment without owning warehouse space or staff.
Is a 3PL cheaper than renting your own warehouse?
It depends on volume and control. 3PLs charge per-order and storage fees that add up as you grow, and you give up direct control of inventory. Renting a small warehouse can be more economical and flexible once order volume is steady.

Last updated June 24, 2026

A small business owner packing products inside a WareSpace unitWareSpace tenant Prepfort operating inside its warehouse unitWareSpace tenant RoboChef working with production equipment inside its unitWareSpace tenant UniBeauty preparing products inside its warehouse unitWareSpace tenant team members picking inventory inside their unitA WareSpace tenant working among inventory and packing supplies

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