3pl

A 3PL (third-party logistics provider) is a company that runs logistics operations on behalf of another business: it receives and stores the brand's inventory, then picks, packs, and ships each order, and typically handles returns. Using a 3PL lets a brand fulfill orders from professional warehouses — often in multiple countries — without owning facilities or employing warehouse staff.

Unlike marketplace-tied programs, a 3PL is channel-agnostic: one inventory pool can serve your D2C store, marketplaces, and even retail replenishment at the same time.

What does a 3PL actually do?

• Receiving and storage. Accepts inbound freight, checks it in, and stores it in racked or binned locations with live inventory tracking.
• Order fulfillment. Picks and packs each order and hands it to carriers, usually at shipping rates negotiated across all the 3PL's clients.
• Returns processing. Receives, inspects, and restocks or disposes of returned items.
• Value-added services. Kitting, bundling, relabeling, marketplace prep (for example FBA inbound prep), and custom packaging.
• Integrations. Connects to your store and marketplaces so orders flow in and tracking flows back automatically.

What a 3PL does not do is own your goods or your obligations: the brand remains the seller and, for cross-border stock movements, the importer — with everything that role implies.

1PL vs. 2PL vs. 3PL vs. 4PL

Level	Who handles logistics	Example
1PL	The business itself, with its own vehicles and warehouse	A brand shipping orders from its own garage or facility
2PL	An asset-based carrier moving the goods	A shipping line, trucking company, or parcel carrier
3PL	An outsourced partner running warehousing and fulfillment operations	A fulfillment center storing your stock and shipping your orders
4PL	An orchestrator managing multiple 3PLs and the supply chain end to end	A partner coordinating your warehouses, carriers, and inventory across markets

3PL vs. FBA: which one, or both?

The practical difference: FBA fulfills only Amazon orders and grants the Prime badge; a 3PL serves every channel from one inventory pool but carries no badge. Fee logic differs too — FBA's size-tier pricing punishes large and slow-moving items, where 3PL storage is often cheaper. Most scaled brands end up hybrid: FBA for fast-moving Amazon SKUs, a 3PL for D2C, other marketplaces, and oversized products.

What does a 3PL cost?

Fee component	What it covers	Typical basis
Receiving	Unloading and checking in inbound freight	Per pallet, carton, or hour
Storage	Warehouse space occupied	Per pallet, shelf, or bin per month
Pick & pack	Assembling and packing each order	Per order plus per additional item
Shipping	Last-mile carrier delivery	Carrier rate card, often discounted via the 3PL's volume
Returns & extras	Returns handling, kitting, special packaging	Per unit or per project

Shipping is usually the largest line by far, which is why warehouse location relative to your customers moves total cost more than any fee negotiation — our guide on reducing e-commerce shipping costs goes deeper. All of it belongs in your landed cost per unit, not in a separate mental bucket.

What do brands get wrong with 3PLs?

• Forgetting the tax footprint of the warehouse. Storing inventory in an EU country triggers a VAT registration obligation there — the same rule that applies to FBA. Adding a second EU 3PL node adds a second registration; the logistics decision is also a tax decision.
• Assuming the 3PL handles the import. A 3PL receives cleared goods. Getting them cleared — customs brokerage, an EORI number, an importer of record, often DDP terms from your factory — remains the brand's problem.
• Signing on price and skipping the SLA. Order accuracy, same-day cut-off times, dock-to-stock speed, and inventory accuracy determine what the "cheap" 3PL really costs in refunds and reviews. Get the metrics in the contract and audit them.
• One warehouse for a two-continent business. Fulfilling EU orders from a US node (or vice versa) means every order crosses a border — slow, expensive, and customs-exposed. Serious two-market brands run inventory on both sides.

FAQ

What is the difference between a 3PL and a freight forwarder?
A freight forwarder moves freight between locations — factory to port to warehouse. A 3PL operates the warehouse end: storage, order fulfillment, and returns. On an international lane you typically need both, plus customs clearance in between.

Is FBA a 3PL?
Functionally it is Amazon acting as a logistics provider, but it only fulfills Amazon orders and prices by Amazon's size tiers. A true 3PL is channel-agnostic and serves your whole business from one inventory pool. Many brands run both in parallel.

Do I need a VAT registration to use a 3PL in Europe?
If you are a non-EU brand storing inventory in an EU 3PL, yes — holding stock in a country creates a VAT registration obligation there, before the first order even ships. This applies per storage country, exactly as it does with Pan-European FBA.

A 3PL ships your orders — but the imports, VAT registrations, and compliance behind every warehouse stay on your desk. eBrands runs fulfillment across Europe and the US and absorbs the legal side as your Merchant of Record — see how it works for physical-goods brands.