3rd-party logistics fulfillment partners help businesses scale and thrive within today’s fast-paced e-commerce environment. Outsourcing your warehousing, order processing, and shipping to a third-party provider frees you to focus on growing your brand. A 3rd party logistics fulfillment provider like RitePrep Fulfillment manages inventory storage, packing, and shipping, ensuring orders reach customers accurately and on time.
This article covers everything from the basics of third-party fulfillment to its benefits, processes, and how to choose the right provider. It also explains key differences between 3PL services and Amazon’s Fulfillment by Amazon (FBA) program so you can make an informed decision.
What is 3rd Party Logistics Fulfillment?
3rd party logistics fulfillment (often called 3PL fulfillment) means outsourcing your supply chain functions to a specialized company. A 3PL company handles the storage, management, and movement of your products in its warehouses. Instead of managing your own warehouse and shipping operations, you rely on the 3PL’s expertise. This includes receiving inventory from suppliers, storing it safely, and then picking, packing, and shipping orders to your customers.
Third-party logistics companies deliver end-to-end supply chain solutions, outsourcing warehousing, inventory management, delivery, and order fulfillment needs. In essence, 3rd party fulfillment lets you scale your business without the capital investment of running your own logistics.
Benefits of a 3rd Party Fulfillment Solution
Working with a 3rd party fulfillment provider offers many advantages. We will share the following key benefits of third-party logistics fulfillment:
1. Cost Efficiency
Avoid building or leasing warehouses and hiring extra staff. You pay-as-you-go with a 3PL, converting fixed costs into variable ones. 3PLs already have warehouses, technology, and staff in place.
2. Scalability
Easily expand storage and shipping capacity during peak seasons without buying new facilities. A good 3PL can quickly accommodate large inventory volumes as your business grows.
3. Faster Shipping
By using multiple warehouse locations and negotiated carrier rates, 3PLs enable quicker delivery. For example, RitePrep is a US-based 3PL with fulfillment centers in key regions to reach customers faster (supporting next-day or 2-day shipping).
4. Advanced Technology
Benefit from real-time inventory tracking, analytics, and order management software provided by the 3PL. You get dashboards to monitor stock levels and orders automatically.
5. Focus on Growth
With warehousing and shipping off your plate, you can concentrate on product development, marketing, and customer service. Outsourcing logistics frees you to build your brand.
In short, a 3rd party fulfillment solution reduces overhead and complexity while improving delivery speed and customer satisfaction. You leverage the 3PL’s infrastructure and expertise rather than building it yourself.
The 3PL Order Fulfillment Process
Every 3PL order fulfillment workflow includes four main steps. Though details vary by provider, the core process is the same:
| Step | Description |
| Receiving | 3PL receives, checks, and stores your incoming inventory in their warehouse. |
| Picking | When an order is placed, items are picked from storage based on an order list. |
| Packing | Picked items are securely packed into boxes or envelopes for shipment. |
| Shipping | Orders are labeled and shipped via carriers (UPS, FedEx, USPS, DHL, etc.). |
1. Receiving
Your products arrive at the 3PL’s warehouse. The 3PL verifies quantities, inspects for damage, and logs everything into their inventory system.
2. Picking
When a customer order comes in, the 3PL software assigns a pick list. Warehouse staff collect (pick) the required SKUs from the shelves.
3. Packing
The picked items are packed into boxes or envelopes. 3PLs often allow custom packaging or inserts if you request them.
4. Shipping
Finally, shipping labels are printed, and packages are handed off to chosen carriers. Tracking information is generated so you and your customers can monitor deliveries automatically.
This process ensures orders move smoothly from your inventory to your customers’ doors. Many 3PLs, including RitePrep, also handle returns processing as part of the workflow.
3rd Party Distribution & Warehousing
Major 3PL companies often operate multiple 3rd party logistics fulfillment warehouse locations nationwide to serve different markets. Third-party warehousing refers to storing your inventory in the 3PL’s facility. At its simplest, it is renting extra warehouse space and having the 3PL staff manage inventory. More advanced warehousing services include receiving shipments from your suppliers, performing quality checks or repackaging, and keeping track of stock levels in real time.
The second phase is third-party distribution: sending those goods to customers. After an order is packed, the 3PL uses its carrier network to ship the package. Distribution can include standard ground shipping or expedited options (even overnight air freight). In many cases, 3PLs like RitePrep negotiate volume discounts with DHL, UPS, FedEx, and pass those savings to you.
Effective distribution means your customers get fast, trackable delivery. By outsourcing both warehousing and distribution, you gain an end-to-end fulfillment operation without owning a single truck or warehouse. In practice, a reliable 3PL partner handles safe storage, inventory replenishment, and efficient multi-carrier shipping on your behalf.
3rd Party Shipping Services
Once orders are packed, 3rd party shipping takes over. A 3PL will have shipping software to compare rates and carriers. Typically, the 3PL prints your shipping labels and hands parcels to carriers. Many providers automatically choose the cheapest or fastest option for you. After each shipment, tracking updates are automatically sent back to your store or customers. This means you (and your customers) can track packages in real time without manual effort. Whether you need standard ground delivery or express shipping (like Amazon’s Prime 2-day service), a good 3PL can arrange it.
1. 3rd Party Shipper
Essentially, the transportation arm of a 3PL. A 3rd party shipper focuses on moving goods (by air, ocean, or ground) to your customers. These providers leverage their carrier networks and freight contracts to deliver orders efficiently.
2. 3rd Party Shipment
Each order parcel (shipment) is managed end-to-end by the 3PL’s system. The provider arranges carrier pickup, tracks the package, and updates the status so you don’t have to handle each shipment manually.
In short, good 3PLs act as your outsourced shipping team – from bulk freight pickup at your supplier to last-mile delivery at your customer’s door.
Amazon 3PL vs Fulfillment by Amazon (FBA)
Many Amazon sellers wonder how 3PL fits with Amazon operations. Amazon offers its own fulfillment programs (FBA, Supply Chain by Amazon, or Multi-Channel Fulfillment), but these are Amazon’s in-house services. An independent 3PL is a 3rd party logistics fulfillment provider that you hire separately and can serve all your sales channels (Amazon, Shopify, eBay, etc.).
Below is a quick comparison of using a 3PL versus Amazon’s FBA program:
| Aspect | Third-Party Logistics (3PL) | Fulfillment by Amazon (FBA) |
| Inventory Location | Stored in your 3PL’s warehouses near major markets. | Stored in Amazon’s fulfillment centers. |
| Order Channels | Supports all sales channels (Shopify, Amazon, eBay, etc.) | Primarily handles Amazon orders (can do other channels via MCF, but still through Amazon’s system). |
| Customization | High – you can customize packing, inserts, branding, and returns policies. | Limited – Amazon has strict packaging/co-mingling rules and handles returns per its policy. |
| Shipping Options | Flexible – you choose carriers and speeds (ground, expedited, international). | Defined by Amazon (Prime 2-day, standard options within the FBA network). |
| Costs | Fees paid to the 3PL vary by usage (storage space, pick/pack, shipping). | FBA fees cover storage, picking/packing, and Prime shipping (transparent fee tiers). |
Both models store your inventory and fulfill orders, but the user experience differs. A 3PL gives you more control over branding and multi-channel fulfillment, while FBA makes it easy to tap into Amazon’s Prime customer base. As one source puts it, 3PLs provide more flexibility and control to product owners, while FBA provides access to Prime users with an established, transparent fee structure.
Using a 3PL does not exclude selling on Amazon. A 3rd party fulfillment solution can also serve your Amazon store. You ship your products to the 3PL’s warehouse, and they handle delivering them either to Amazon’s warehouses or directly to your customers. This effectively becomes an Amazon 3rd party shipping strategy: your 3PL acts as your outsourced Amazon logistics.
For example, RitePrep Fulfillment can receive your Amazon-bound inventory and send it to Amazon centers, or fulfill Amazon orders itself. Even if you sell on Amazon, you can use your own carrier, which is known as 3rd party shipping Amazon (using a 3PL instead of FBA).
Choosing a 3rd Party Logistics Fulfillment Company
With many 3rd party logistics fulfillment providers available, how do you pick the right one? Look for a partner that offers:
1. Real-Time Technology
A 3PL should provide a dashboard or portal to monitor orders and stock anytime. Look for features like automated order syncing and reporting.
2. Multiple Warehouses
Ideally, the 3PL has U.S.-based warehouses in key regions. A US-based provider (like RitePrep Fulfillment) will ensure faster shipping to American customers and compliance with domestic shipping standards. RitePrep, for instance, has fulfillment centers in California and Texas to cover the West and Central/East efficiently.
3. Platform Integrations
The provider should integrate with your sales platforms (Shopify, Amazon, eBay, etc.) so orders flow automatically. For example, RitePrep’s 3rd party shipping services integrate with Shopify and Amazon storefronts, automatically syncing orders for fulfillment. They also offer specialized 3PLs for Shopify solutions and advanced inventory management services to keep your stock levels accurate in real time.
4. Transparent Pricing
The 3PL should quote clear per-item pick/pack fees and storage rates. Beware of hidden charges; a reputable provider will be open about discounts and any additional costs.
5. Customer Support
You want a provider that acts like an extension of your team. Responsive communication, dedicated account managers, and good error handling (in case of damaged shipments or returns) are essential.
In short, choose a US-based 3PL company that can scale with you. Read reviews and ask about their fulfillment accuracy. RitePrep Fulfillment, for example, combines robust tech with 24/7 support, ensuring that whether your orders come from Shopify or Amazon, they’re fulfilled smoothly.
Ready to streamline your fulfillment? Contact RitePrep Fulfillment today to discuss how a 3rd party fulfillment provider can transform your supply chain and boost your business efficiency.
FAQs
What is third-party fulfillment?
Third-party fulfillment means outsourcing the entire order fulfillment process to an external logistics provider (a 3PL). Instead of you handling picking, packing, and shipping orders in-house, the 3PL receives your inventory, stores it in their warehouse, and fulfills orders on your behalf. In other words, a 3PL takes over your warehousing and delivery tasks so you don’t have to build your own fulfillment infrastructure.
What is the 3PL order fulfillment process?
The 3PL fulfillment process typically has four steps: receiving, picking, packing, and shipping. When inventory arrives at the 3PL, it is checked and stored in their warehouse. As orders come in, the 3PL picks the required items, packs them for shipment, and then hands them to carriers. Labels are printed, and tracking is generated, so packages get delivered to your customers.
What is the difference between fulfillment and 3PL?
Fulfillment is the broad term for the process of getting orders from your hands to the customer’s door. It can be done in-house or by various providers. A 3PL (third-party logistics) specifically refers to outsourcing that process to an outside company. In other words, fulfillment is what happens, and 3PL is who does it. Using a 3PL means another company handles warehousing, shipping, and inventory management for you, rather than you running it internally.
What is the difference between 3PL and FBA?
3PLs and FBA both store inventory and ship orders, but they operate differently. A 3PL provider supports all your sales channels and offers more flexibility and control (custom packaging, etc.), whereas FBA is Amazon’s in-house program focused on Amazon orders. In practice, 3PLs give you greater control and customization, while FBA gives access to Prime shipping with fixed fees.
