Guides to choosing and running a 3PL
Plain-English guides to 3PLs: what they do, what they cost, how to choose one and the warehouse and freight terms you will meet along the way.
Choosing and paying
3PL Pricing: Every Fee, 2026 Rates and Your Cost per Order3PL pricing fee by fee: receiving, storage, pick and pack, minimums and postage, with 2026 rate ranges, a full 3,000-order invoice and how to compare quotes.
3PL WMS: What It Does, Features to Check and How to Test ItA 3PL WMS runs many brands' stock in one building. See the features that matter to a client, the X12 EDI messages it trades and 8 tests to run before you sign.
FBA Prep: What It Is, Amazon's Rules and Who Does It NowFBA prep means bagging, labeling and boxing units to Amazon's rules. Amazon stopped doing it for US sellers on January 1, 2026. Here are the rules and costs.
How to Choose a 3PL: The 7-Step Process and the Red FlagsHow to choose a 3PL in 7 steps: write your order profile, shortlist 3 to 5 providers, price one sample month, tour the building and read the liability clause.
3PL basics
3PL vs 4PL: The Difference, the Costs and Which You NeedA 3PL runs your warehouse and shipping; a 4PL manages your 3PLs and carriers. Compare them in 8 rows, see how each one bills, and when a brand needs a 4PL.- 3PL Warehousing: How It Works, Costs and How to Choose3PL warehousing means renting space, labor and systems instead of building them. See 7 warehouse types, shared vs dedicated terms and a sample storage bill.
- What Is a 3PL? What It Does, Costs and When You Need OneA 3PL receives, stores and ships your inventory for a set of fees. See what it takes on, what stays with you, a sample 1,500-order bill and when to switch.
- What Is a Fulfillment Center? How It Works and Who Needs OneA fulfillment center receives, stores, picks, packs and ships online orders, often the same day. Follow 1 order hour by hour, then weigh a 3PL, FBA or in-house.
Freight and inbound
Bonded Warehouse: How It Works, Rules, Classes and CostsA bonded warehouse holds imports with the duty unpaid for up to 5 years. See how goods move in and out, the CBP classes, withdrawal rules and when bond pays.- Cross-Docking: How It Works, What It Costs, When It FitsCross-docking moves freight from inbound to outbound trucks with no storage step. See the 5 dock steps, the fee lines, and when storing the freight wins.
Drayage: What It Is, How It Works and What Drives the CostDrayage is the short truck move of a container between a port or rail ramp and a warehouse. See how a move runs, the fee lines and the 30-day D&D invoice rule.
Transloading: Container to Trailer, Costs and When It PaysTransloading moves import freight from ocean containers into 53-foot trailers near the port. See the steps, the fees and why the 80,000-pound limit decides it.
Fulfillment operations
Co-Packing: Services, Costs and When a 3PL Can Do the JobCo-packing hands your packaging to an outside firm. See 7 service types, a costed run of 8,000 club packs, and which jobs a 3PL can take on instead of a plant.- Dimensional Weight: Formula, Carrier Divisors and ExamplesDimensional weight bills a box on its size: L x W x H divided by 139. See the UPS, FedEx and USPS rules, 1 item priced in 3 boxes, and how a 3PL cuts it.
- Ecommerce Fulfillment: Process, Models and Cost per OrderEcommerce fulfillment runs in 5 steps, from receiving stock to returns. Compare in-house, 3PL and FBA on 1 worked 2-unit order, plus the SLAs to write down.
- Kitting in Fulfillment: Process, Kit SKUs and Kitting FeesKitting turns several SKUs into 1 ready-to-ship unit. See how the process runs, when a kit needs its own GTIN, and what a 3PL charges for a 1,200-kit run.
- Order Fulfillment: Steps, Statuses, FTC Timing and MetricsOrder fulfillment moves an order from checkout to the doorstep in 6 steps. See what each status means, the FTC 30-day rule, and 5 metrics from 1 sample month.
- OTIF (On-Time In-Full): Formula, Targets and Retail FinesOTIF measures deliveries that arrive on time and complete. See the formula, 1 purchase order scored 3 ways, Walmart's 3% fine, and which misses a 3PL owns.
- Pick and Pack Fulfillment: Methods, Accuracy and 3PL FeesPick and pack is where a wrong item gets into the box. Compare 5 picking methods, see how 3PLs bill on a worked 2,000-order month, and set an accuracy SLA.
- Reverse Logistics: Process, Returns Grading and 3PL FeesReverse logistics takes returns back through inspection, grading and resale. See the 5 steps, a 4-grade disposition rule and a 3PL returns bill for 400 parcels.