What Is a 3PL?

What a 3PL Charges For — and What Those Lines Mean

Almost every 3PL quote is built from the same five lines. Understanding what each one is actually paying for makes comparing two quotes possible; without that, you are comparing headline numbers that describe different things.

The line that varies most between providers is receiving. A 3PL that charges per carton received can turn a cheap-looking storage rate into an expensive month, and it is the number sellers most often forget to ask about.

Billable Weight — the Concept That Surprises People

Pick and pack is priced on billable weight: the greater of actual weight and dimensional weight. Dimensional weight is calculated from the package's size, so a light but bulky product is billed on the box it needs rather than what the scale says.

A pillow weighing 0.8 lb in a 16 × 12 × 10 inch box does not fall in the sub-1 lb band. Sellers who priced their shipping from the scale get a surprise on the first invoice — which is why we publish the bands rather than quote an average.

When a 3PL Is the Wrong Answer

Worth saying plainly, because a 3PL is not always the right move:

• Under roughly 100 orders a month. At that volume you can pack from home and the per-order rate is at its highest.
• Handmade or made-to-order products. If the item does not exist until the order arrives, there is nothing to pick from a shelf.
• Very high-value, low-volume goods. Sometimes the right answer is a safe, not a warehouse.
• A single channel with a strong first-party option. If you sell only on Amazon and only through FBA, a 3PL adds a hop you may not need — though it still helps with returns and prep.

Six Questions to Ask Before You Move Stock

1. What does receiving cost, per carton and per pallet? The most commonly hidden line.
2. Is storage billed daily or monthly? Daily billing means a container that clears in sixteen days costs sixteen days, not a month.
3. What is the daily order cut-off? It decides whether today's orders ship today.
4. Do you photograph at receiving? Photographs are the evidence in a supplier dispute months later.
5. How does tracking get back to my sales channel? Manual upload breaks marketplace metrics; automatic posting does not.
6. What will you refuse to handle? Ask for the restricted list before you ship, not after.

Ours are answered on the warehouse operations page, and the restricted list is published.

3PL and FBA Are Not Alternatives

The most common framing — 3PL or FBA — is usually wrong. Most sellers past a certain size run both: FBA for Prime-eligible demand, a 3PL for everything else and for the buffer stock that replenishes FBA.

The reason is capacity. Amazon's storage limits mean sending everything to FBA is not safe; holding reserve stock outside it keeps your listings in stock without paying long-term storage. That is the argument worked through on our 3PL fulfilment page.

Frequently Asked Questions

How much does a 3PL cost?
Five lines: receiving, storage, pick and pack, shipping and value-added work. Ours runs free carton receiving, storage from $5.00 per pallet per day tiering to $2.00, and pick and pack from $3.00 per order by billable weight.

What is billable weight?
The greater of actual weight and dimensional weight. Light but bulky products are billed on the size of box they need, not what the scale reads — which is why a 0.8 lb pillow in a large box is not in the cheapest band.

Can I use a 3PL and Amazon FBA together?
Yes, and most sellers past a certain size do. FBA serves Prime demand; the 3PL holds buffer stock, replenishes FBA on demand and handles every other channel from the same pool.

When is a 3PL not worth it?
Under roughly 100 orders a month, for made-to-order products, or for very high-value low-volume goods. At that point the per-order rate is at its highest and packing yourself is competitive.

What should I ask a 3PL before signing up?
What receiving costs per carton and per pallet, whether storage is billed daily or monthly, the daily cut-off, whether they photograph at receiving, how tracking returns to your channel, and what they refuse to handle.