Shopify glossaryGlossary5 min read
What Is a 3PL? Third-Party Logistics for Shopify Brands Explained
A 3PL is an outside company that stores your stock and picks, packs and ships your orders. Here is what third-party logistics means, how 3PL fees are built, and how a 3PL plugs into a Shopify store.
Key takeaways
- 3PL stands for third-party logistics: a company you pay to receive, store, pick, pack and ship your inventory, and usually to process returns.
- Unlike dropshipping, you buy and own the stock. The 3PL only does the warehouse and shipping work.
- 3PL pricing is a mix of receiving, storage, pick and pack, and shipping fees, and some providers set a minimum monthly spend.
- In Shopify, a 3PL connects through its app, appears as a fulfillment location, and receives orders as fulfillment requests.
- Who it is for
- Growing Shopify brands
- Time needed
- 5 minutes to read
- What you need
- Your order volume and costs
A 3PL (third-party logistics provider) is a company that runs your order fulfillment for you: it stores your products in its warehouse, then picks, packs and ships each order when a customer buys. Shopify defines third-party logistics as a retailer outsourcing its fulfillment operations.
A 3PL warehouse is simply the building where that work happens, and a 3PL logistics company is the business running it. I connect Shopify stores to warehouses as part of builds, and the Shopify details below were checked on Shopify's help center on 7 November 2026.
How a 3PL works
- You send stock in. You ship inventory from your manufacturer to the 3PL and tell them what's coming, usually with a list of SKUs and quantities.
- They receive and store it. The warehouse counts the goods, checks them against your list and puts them on shelves.
- Orders flow in. When a customer pays, the order reaches the 3PL's system through an app or integration.
- They pick, pack and ship. Staff pick the items by SKU, pack them, print a label and hand the parcel to a carrier.
- Tracking comes back. The tracking number syncs to your store so the customer gets a shipping confirmation.
- Returns go to them. Most 3PLs receive returned parcels, inspect them and put sellable stock back on the shelf.
How 3PL fees are built
Shopify's guide lists the usual cost categories but no standard rates, because every provider quotes differently. Ask for each line in writing.
| Fee | Charged by | Watch for |
|---|---|---|
| Receiving | Per pallet, carton or hour | Extra charges for messy deliveries |
| Storage | Per cubic foot or pallet | Slow sellers that sit for months |
| Pick and pack | Per order and per item | Packaging billed on top |
| Shipping | Per parcel | Markup on carrier rates |
| Setup and minimums | One-off or monthly | Minimum spend in quiet months |
Inserts, gift wrapping and custom packaging are usually extras. Work out a cost per order across all these lines and compare it with what packing yourself really costs, including your time.
1PL, 2PL, 3PL and 4PL
| Term | Who it is | What they do |
|---|---|---|
| 1PL | You | Move and ship your own goods |
| 2PL | A carrier | Transport parcels from A to B |
| 3PL | A fulfillment provider | Store, pick, pack and ship |
| 4PL | A logistics manager | Coordinate several 3PLs and carriers |
Where a 3PL shows up in Shopify
- The app: most 3PLs connect through an app from the Shopify App Store or their own integration.
- Locations: Shopify says third-party logistics services can count as locations. The warehouse appears under
Settings > Locations, with its own stock levels. - Fulfillment requests: orders assigned to the 3PL's location are sent as fulfillment requests, automatically when paid or manually from
Orders > [order] > Request fulfillment. The order shows In progress while the 3PL responds, and goes back to Unfulfilled if they decline it. - Cancelling: before the 3PL accepts, use Cancel request. After that, you request a cancellation and wait for them to confirm.
- Mark as fulfilled: this button isn't available on orders at a fulfillment service location, because the 3PL marks them when they ship.
My guide to using a fulfillment center with Shopify walks through choosing and onboarding one.
Common misconceptions
- A 3PL is the same as dropshipping. No. In dropshipping the supplier owns the stock. With a 3PL, you buy the stock and pay for it to be stored.
- It always cuts shipping costs. A 3PL's carrier rates may beat yours, but storage and pick fees can cancel that out at low volume.
- Any product data will do. The warehouse picks by code, so every variant needs a unique SKU, and many 3PLs also want a barcode.
- Switching later is easy. Moving warehouses means shipping all your stock again and pausing orders, so check contract terms and exit fees up front.
Related terms
- Fulfillment center: the warehouse a 3PL runs.
- Pick and pack: collecting the items for an order and boxing them.
- Dropshipping: the supplier stores and ships, and you never own the stock.
- Last mile: the final delivery leg from the carrier's depot to the customer.
What to do next
- Count your real cost per order today, including packaging, postage and the hours you spend packing.
- Clean your product data. Unique SKUs, barcodes, weights and dimensions on every variant make onboarding faster.
- Get two or three quotes with the same order profile, and compare total cost per order, not storage price alone.
- Review your shipping setup. The Shopify shipping guide covers rates and zones so your checkout matches the 3PL's delivery times.
Free tools
Check your own store
Free, no sign-up. Each one runs a part of this guide for you.
Frequently asked questions
What does 3PL stand for?
3PL stands for third-party logistics. It means a business pays an outside company to store its inventory and to pick, pack and ship its orders, rather than doing that work in-house.
What is the difference between a 3PL and dropshipping?
With a 3PL you buy and own the inventory, and the 3PL stores and ships it for a fee. With dropshipping, the supplier owns the stock and ships it, and you only pay for products once they sell.
When should a Shopify store use a 3PL?
Shopify's guide suggests looking at a 3PL once you ship more than 10 to 20 orders a day, or when you run out of space or can't ship fast enough. Below that, packing yourself is often cheaper.
How much does a 3PL cost?
There is no standard price. Most 3PLs charge for receiving stock, storage per pallet or cubic foot, pick and pack per order and item, and shipping, and some add setup fees or a monthly minimum.
Does a 3PL connect to Shopify automatically?
Most 3PLs connect through an app. Once installed, the warehouse appears as a location in Shopify, and orders assigned to it are sent as fulfillment requests, with tracking synced back when they ship.
Sources
- Third-party logistics (3PL): complete guide, Shopify
- Fulfilling orders with apps and fulfillment services, Shopify Help Center
- Locations, Shopify Help Center
Related services and work
I'm a Shopify developer and CRO specialist. I have built and improved Shopify stores since 2018, completed more than 1,000 projects, and hold a 4.96 average rating across 719 client reviews.
More guides
-
Why Shopify Stores Lose Sales on Mobile: A Practical CRO Checklist
Mobile visitors decide fast, with one thumb and plenty of distractions. Here is how to find the leaks on a Shopify store and fix them in the right order.
-
Shopify CRO Audit Checklist for DTC Brands
The checklist I use to audit DTC Shopify stores, from checking that the data can be trusted to deciding which fixes to ship first.
-
When to Build a Custom Shopify App Instead of Adding Another Subscription
Another subscription is the quickest fix, until you are paying for five apps that still don't match how your business works. Here is how to decide.
-
How to Find Out What Theme a Shopify Store Uses
Every Shopify store names its theme in the page code. Here is where to look, how to read what you find, and what it means for your own theme choice.
-
How to See What Apps a Shopify Store Uses
Apps leave traces in a store's page code: scripts from their own servers, app embed folders and pixel settings. Here is how to read them, and what to do with the list.
-
How to Name a Shopify Store (and Check the Name Is Free)
A store name has to be easy to say, free as a domain and a handle, and clear of other brands. Here is the process I use with clients, and what Shopify lets you change later.
