What Is a 3PL Warehouse? Services, Benefits, and How It Works

What Is a 3PL Warehouse?

A 3PL warehouse is a facility operated by a third-party logistics provider that stores, processes, and ships inventory on behalf of businesses. Instead of leasing their own space and managing fulfillment in-house, ecommerce brands and retailers outsource to a 3PL warehouse to reduce costs, increase speed, and scale operations more efficiently.

In short, a 3PL warehouse becomes your backend operations hub—handling everything from storage to shipping.

Core Services of a 3PL Warehouse

Most third-party logistics warehouses offer much more than just space. Here’s what you can expect from a full-service 3PL:

1. Warehousing & Storage

3PLs store inventory for ecommerce and B2B brands in organized, optimized layouts—often with pallet racking, bins, and slotting systems for fast access.

2. Pick and Pack Fulfillment

The 3PL team picks, packs, and labels orders for shipping as they come in. The process includes box selection, dunnage, and label generation—often automated by warehouse management software (WMS).

3. Inventory Management

Advanced 3PLs provide real-time inventory tracking, low-stock alerts, and SKU-level visibility. This helps prevent overselling and ensures smooth reorder cycles.

4. Shipping & Freight Coordination

A 3PL warehouse handles carrier relationships, rate shopping, and booking for parcel, LTL, or FTL shipments. Many offer discounted shipping rates thanks to high volume.

5. Kitting & Assembly

The 3PL team assembles products that requires kitting or bundling—like subscription boxes or multi-SKU kits—in-house before shipping.

6. Retail & B2B Fulfillment

Fulfillment for retailers often includes compliance services, label matching, pallet building, and ASN generation for smooth delivery to big-box stores and marketplaces.

Benefits of Using a 3PL Warehouse

Outsourcing to a 3PL warehouse comes with clear advantages:

Scalability: Add or remove inventory space as needed—no long-term leases.


Speed: Same-day shipping, regional locations, and efficient picking mean faster delivery.


Savings: Avoid the overhead of leasing space, hiring staff, and managing carriers.


Technology: Access tools like WMS software, real-time tracking, and analytics.


Expertise: Work with professionals who specialize in shipping, logistics, and retail compliance.

How a 3PL Warehouse Works

Inbound Receiving: Your inventory is shipped to the 3PL’s warehouse, where it’s checked, labeled, and stored.


Storage: Items are organized by SKU, lot, or serial number using racking systems or bins.


Order Processing: When a customer places an order, the system automatically sends it to the warehouse for picking, packing, and shipping.


Outbound Shipping: Packages are labeled, handed off to a carrier, and shipped with tracking.


Returns: Some 3PLs offer return processing, inspections, and restocking.

How 3PL Center’s Warehouses Help Brands Grow

At 3PL Center, we design our warehouse operations to deliver flexibility, speed, and accuracy. With multiple warehouses nationwide, we help brands reach customers within 2 days without paying for express shipping. Here's what sets our 3PL warehouses apart:

WMS with Full Visibility: Track inventory, shipments, and order status in real time.


Pallet-Level Barcoding: Every pallet is scanned and visible throughout our system.


Retail & Ecommerce Support: We handle DTC orders, retail compliance, subscription boxes, and more.


Secure, Scalable Storage: Our VNA racking systems, motion-sensor lighting, and flexible storage plans support both short-term and long-term growth.

Whether you’re a growing ecommerce brand or an established B2B seller, we built our 3PL warehouses to support your success.