What a 3PL warehouse does, how fulfillment is priced, which integrations and KPIs to check and the questions to ask before moving your stock.
A third-party logistics (3PL) provider stores your stock and ships your orders. Choosing the right one affects delivery times, costs and customer experience every day. This guide covers what to compare and what to ask before you move your stock.
What a 3PL does
- Inbound: receives and counts your goods, and reports any differences or damage.
- Storage: keeps stock organized by SKU and location.
- Pick and pack: prepares each order with the right packaging.
- Shipping: hands parcels to carriers and returns tracking information.
- Returns: receives, checks and restocks or discards returned products.
- Extras: kitting, labeling, Amazon FBA preparation and more.
How fulfillment is priced
Pricing usually combines several fees:
- Receiving: per hour, per carton, per pallet or per unit.
- Storage: per pallet, per shelf or per cubic meter, per month.
- Pick and pack: per order, often plus a fee per additional item.
- Packaging materials: boxes, filler and labels.
- Shipping: carrier rates, which depend heavily on the 3PL’s agreements.
- Fixed fees: account, setup or minimum monthly fees.
Ask for an estimate based on your real order profile, not a generic price list. Two 3PLs with similar price lists can give very different totals for the same business.
Integrations and visibility
- Store integration: orders should flow automatically from your sales channels.
- WMS access: you should see stock, orders and movements in real time.
- Tracking: sent back to your store automatically.
- Reports: stock, order history, returns and incidents.
KPIs to ask about
- Order accuracy: how often the right items reach the right customer.
- Dispatch time: the cut-off time for same-day shipping.
- Inventory accuracy: how often physical stock matches the system.
- Receiving time: how long it takes until new stock is available for sale.
Questions to ask before signing
- What happens if an order is shipped wrong? Who pays?
- How are damaged or missing goods on receipt handled?
- How are peak seasons handled?
- What notice is required to end the contract and move stock elsewhere?
- Is there insurance for goods in the warehouse?
Location matters
Shipping from a warehouse close to your customers shortens delivery times and often lowers shipping cost. Selling in several regions may justify more than one warehouse, which makes central visibility of stock and orders even more important.
Zyntral connects your store to its WMS and coordinates 3PL operators with centralized orders, stock, fulfillment and tracking. See our warehouse and 3PL service.