As an eCommerce or B2B business owner, order fulfillment is a vital part of your organization. While you’re developing strategies to successfully grow your brand, there may come a time when fulfilling customer orders in-house becomes unfeasible. You struggle to meet deadlines, orders get delivered late, and the customer loyalty you worked hard to build gets punished.

That’s where third-party logistics (3PL) saves the day. This guide will teach you everything you need to know about 3PL fulfillment, including how it works, when you might need one, and how to choose a partner that best fits with your business.

What is 3PL Fulfillment?

3PL fulfillment is the outsourcing of critical B2B and eCommerce logistics, including inventory management, warehousing, order fulfillment, and transportation, to a trusted third-party logistics partner.

By handing over these complex supply chain functions, businesses gain the tools, expertise, and infrastructure needed to streamline operations, reduce costs, and scale efficiently.

This allows merchants to essentially automate their order fulfillment by handing over the duties of packing and shipping to a third party, as soon as an order gets processed.

Examples of 3PL Fulfillment

To get a better understanding of how 3PLs work, let’s take a look a few examples of 3PL structures and services.

eCommerce Brand Outsourcing Fulfillment

An online apparel brand partners with a 3PL to store inventory in the 3PL’s warehouse. When customers place orders on their website, the 3PL automatically receives the order details, picks the correct items, packs them, and ships them directly to the customer.

Coast to Coast Fulfillment will even customize the unboxing experience to reflect your brand’s unique identity, using branded materials, inserts, stickers, and packaging that resonate with your audience.

Subscription Box Using 3PL Kitting Services

A monthly subscription box business outsources the kitting and assembly of its boxes to a 3PL. The 3PL receives various components from multiple vendors, assembles each box according to custom specifications, and ships them to subscribers every month.

A Crowdfunding Campaign Fulfillment Partner

A startup launches a crowdfunding campaign to sell a new gadget. Once funding is secured, they use a 3PL to receive bulk inventory from the manufacturer, store it, and fulfill thousands of backer orders efficiently.

International Ecommerce Expansion with Distributed Warehousing

A beauty brand wants to serve customers in Europe, North America, and Australia. Instead of opening warehouses globally, they partner with a 3PL that has a distributed network of fulfillment centers. Inventory is strategically positioned closer to customers, reducing international shipping costs and delivery times.

Retail Drop shipping with 3PL Fulfillment

A brand partners with a 3PL to store its inventory, but instead of selling directly to customers, their products are listed on large retailer websites like Nordstrom or Target. When a customer places an order on the retailer’s site, the order is automatically routed to the 3PL, which then picks, packs, and ships the order directly to the customer, often under the retailer’s branding. This allows brands to expand into major retail channels without needing to manage their own warehousing or fulfillment operations, while keeping control of their inventory at the 3PL’s facility.

Discover more ways a 3PL can help your business.

The 3PL Fulfillment Process

Depending on your business and the 3PL, the scope of services offered will differ greatly. A business transporting foreign luxury automobiles will likely have different needs than a coffee-bean subscription service. However, here are the primary 3PL fulfillment functions that even the most basic 3PLs should offer.

Receiving

Each 3PL has its own process for receiving and storing inventory, such as filling out order forms and providing documentation. You will be responsible for coordinating with your 3PL on inventory prerequisites, however Coast to Coast Fulfillment makes it simple.

Unlike other 3PLs that require complex receiving protocols or advanced shipping notifications, we make it easy. Just send your products directly to our warehouse, using any carrier you prefer, and email us the packing slip. That’s it.

The packing slip helps us know what to expect and ensures we receive and process your inventory accurately, which helps keep your costs down and your operations running smoothly.

Once your inventory has been received, the rest is on us. Our team will unload the shipment, organize your products, and store them in their dedicated locations to ensure everything is accounted for and easy to access.

You’ll receive an email confirming your inventory, and your products will be ready to sell.

Order Processing

You just sold an item! This is where your 3PL earns its keep. First, your 3PL must receive a product order form to know what and where they’re shipping. Depending on the partner, you may be required to manually submit these before order processing can begin. However, a reliable, omnichannel 3PL, like Coast to Coast Fulfillment, should be able to work with any sales channel you use, whether it’s a retailer portal, an EDI connection, or a standard CSV file. We can even integrate directly into your eCommerce shopping cart, enabling automatic order processing as soon as a purchase is made. This ensures that your orders are processed quickly, accurately, and without disruption

Once the order is processed and routed through the system, it’s time to bring it to life with picking and packing.

Picking and Packing

A picklist of items is then created and assigned to a warehouse team to pack the order. Workers will locate the items in the warehouse using the assigned SKU’s and pack the order based on brand or retailer’s specification.

Some retailers’ vendor guidelines require specific labeling to comply with their warehouse configurations. The 3PL will be responsible for meeting these conditions or costly chargebacks from the retail partners

Coast to Coast Fulfillment also offers packaging customizability, allowing brands to instruct how they want their orders designed and constructed, including gift messaging, promotional inserts, and branded packaging. If you can dream it, we can achieve it!

Shipping

Now it’s time to ship the order. 3PLs will usually purchase and print shipping labels on your behalf, leveraging high volume rates with carriers to lower shipping costs. One of the many advantages to 3PL fulfillment is the reduced cost of fulfillment expenses.

Coast to Coast Fulfillment ensures you’re getting the most affordable pricing possible across multiple carriers to maximize profits. Our advanced system evaluates factors like shipping speed, cost, and destination to choose the optimal carrier, guaranteeing customers receive their orders quickly and affordably.

For LTL & FTL orders, 3PL’s will schedule and route truck pickups at their warehouse and ship each order to its correct destination, finally concluding the fulfillment process.

Coast to Coast Fulfillment takes it a step further and utilizes its omnichannel fulfillment model to provide tracking updates to customers as soon as orders are shipped. Our system automatically sends out tracking information, allowing your customers to monitor their deliveries in real time.

The key takeaway is that this process happens behind the scenes, giving you full visibility without the stress.

Why You Need A 3PL

There are many advantages to partnering with a 3PL that can contribute to a sustainable business model.

Scalable Warehousing

As your business grows, so does your need for storage. A 3PL gives you access to warehouse space that can scale up or down based on your inventory levels. You don’t have to commit to long-term leases or scramble for space during busy seasons. As your business grows, a strategic fulfillment partner should be able to grow with you.

Shorter Delivery Times

Even if you’re able to ship faster than the best 3PL, location plays a big role in shipping speed. With a well-positioned warehouse, orders can ship quickly to a large portion of customers without needing multiple facilities.

For example, Coast to Coast Fulfillment is strategically located in the densely populated Northeast Corridor of the United States, a region allowing one-day shipping to over 60 million people.

Cost Savings

One of the biggest advantages of using a 3PL is the ability to tap into shared resources. Because 3PLs serve many clients at once, they get access to bulk discounts on shipping rates, packaging materials, and even labor costs that wouldn’t be possible on your own.

And best of all? You skip the major upfront costs of leasing warehouse space, hiring staff, and investing in shipping technology. It’s a smarter way to scale without overspending.

Easier Returns

Returns can be a headache, but some 3PLs, like Coast to Coast Fulfillment, offer something called reverse logistics services. This means they handle the entire return process for you. This includes receiving the returned items, inspecting, repackaging, restocking, or disposing of them as needed.

By leveraging 3PL’s returns management services, you can significantly reduce the time and resources needed to invest in managing returns and instead focus on core business activities, such as product development, marketing, and sales.

Commonly Asked Questions/FAQ

Third-party order fulfillment is when a brand outsources the entire process of inventory management, storage, picking, packing, and shipping orders to a specialized logistics provider.
Instead of investing in warehouses, staff, equipment, and technology to handle fulfillment in-house, businesses partner with 3PLs who already have that infrastructure in place. This allows businesses to focus on growing sales and marketing while the 3PL handles the heavy lifting of fulfillment and logistics.
3PL (Third Party Logistics)
A 3PL provider handles the operational side of logistics. They physically store your inventory, pick and pack orders, and ship products directly to your customers. They often offer additional services like inventory management, freight negotiations, kitting, and return processing.
4PL (Fourth Party Logistics)
4PL provider operates at a higher, more strategic level. A 4PL doesn’t typically own warehouses or trucks; instead, they manage and coordinate multiple logistics partners (which can include 3PLs, carriers, and suppliers) on behalf of the business.
A 3PL handles day-to-day execution, while a 4PL oversees the entire supply chain as a single point of accountability, optimizing every part of the logistics network to improve efficiency, cost, and scalability.
A fulfillment center is a physical warehouse where orders are stored, picked, packed, and shipped directly to customers. It’s focused primarily on order fulfillment operations. A 3PL, however, encompasses a much broader set of logistics services, of which fulfillment is just one part.
While every 3PL operates fulfillment centers, not every fulfillment center offers the full range of services that a 3PL provides.
The cost of working with a 3PL varies based on your business needs, order volume, product type, and services required. Common costs include receiving fees (per carton), storage fees based on pallet or bin space, order processing, and pick and packing fees. Postage costs are often pre-paid and variable based on package weight, destination, and preferred service level.
Some 3PLs, like Coast to Coast Fulfillment, even offer transparent, à la carte pricing, meaning you only pay for the services you actually need, with no hidden fees or unwanted charges.
Reverse logistics refers to all the processes involved when products move backward through the supply chain, from the customer back to the seller, 3PL, or manufacturer. This includes functions such as handling returns, processing exchanges, restocking inventory, repairing or refurbishing products, and disposing of unsellable or defective goods.

How Can 3PL Fulfillment Work for You?

At Coast to Coast Fulfillment, we take a personalized approach with each individual client. With us, you’re partnering with an experienced omnichannel 3PL, meaning you’re set up to scale seamlessly across diverse sales channels, including eCommerce, wholesale, and retail. Our personalized, hands-on approach goes beyond simply shipping orders; we offer expertise, flexibility, and support to help your business grow strategically.

Need a customized subscription box packed with pink crinkle paper? Or support with EDI compliance as you expand into dropshipping with major retailers? Whatever it may be, Coast to Coast Fulfillment will work with you to make it happen.

Because your success is our success.

To learn more about strategies to optimize your 3PL fulfillment, get in contact with one of our specialists today.

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What is 3PL Fulfillment? Third-party Logistics Process and Solutions

What is 3PL Fulfillment?