A 3PL (third-party logistics provider) is a company that manages warehousing, inventory, and shipping on behalf of ecommerce businesses and brands. Instead of storing products in your own facility and packing orders yourself, you hand those operations to a specialist thus freeing you to focus on sales, product development, and customer acquisition.
Most growing ecommerce companies hit a wall around 500–1,000 orders per month. At that volume, your garage, spare office, or small storage unit becomes a liability: inventory gets lost, packing mistakes spike, and you’re spending 40+ hours a week on logistics instead of growing the business. A 3PL solves this by taking that entire operation off your plate.
This guide covers what 3PLs actually do, when you need one, what services they offer, and how their warehouse operations work. We’ll skip the consultant jargon and focus on outcomes: what changes for your business, how much it costs, and what separates a good provider from one that’ll damage your reputation.
3PL Meaning
3PL stands for “third-party logistics provider.” The “third party” refers to the fact that it’s a separate company between you (the seller) and your customers—handling the physical supply chain so you don’t have to.
You’ll also hear these terms used interchangeably:
- 3PL Provider: The company itself offering logistics services.
- 3PL Warehouse or Fulfillment Center: The physical facility where your inventory lives and orders ship from.
- 3PL Fulfillment: The full service (receiving, storage, picking, packing, shipping, and returns processing).
- Logistics Partner: A broader term covering transportation, warehousing, and supply chain coordination.
- Fulfillment House: Older terminology for the same concept; less common today.
The distinction matters because some providers call themselves “3PLs” but only handle shipping (drop-shipping middlemen). Real 3PLs own or operate actual warehouse space and take custody of your inventory.
What Does a 3PL Do?
A 3PL receives your inventory, stores it, picks and packs customer orders, ships them out, and handles returns. They own the warehouse software, labor, and last-mile relationships—you don’t.
More specifically, a 3PL gives you four primary outcomes:
- Inventory removed from your business: No more garage or closet storage; no more capital tied up in shelf space.
- Orders shipped faster: 3PLs have multiple warehouses across the country (or globe), so customers receive orders in 2–3 days instead of 5–7.
- Fewer packing errors: Professional pick/pack operations with barcode scanning and QC checkpoints catch mistakes before they reach customers.
- Time freed up for growth: You stop being a warehouse worker and start focusing on marketing, product launches, and customer retention.
| Service | What It Covers | Why It Matters |
|---|---|---|
| Warehousing | Secure storage, climate control (if needed), inventory organization | Inventory is protected, insured, and accessible 24/7 |
| Inventory Management | Real-time tracking, cycle counts, stock-level alerts | You never oversell, and you know exactly what you have |
| Pick & Pack | Order fulfillment with barcode verification | Orders go out fast and accurate; reduces customer complaints |
| Shipping | Label generation, carrier negotiation, shipment tracking | Lower per-unit shipping costs due to provider’s volume discounts |
| Returns Processing | Receiving returned items, quality checks, restocking or disposal | Returns don’t pile up in your garage; inventory is recycled back into sellable stock |
Why Do You Need a 3PL?
You need a 3PL when the cost of operating your own fulfillment becomes higher than outsourcing it, or when you physically can’t scale without one.
The inflection point: Most businesses that ship 500+ orders per month spend at least 20 hours weekly on logistics work. That’s time spent packing boxes, managing carriers, resolving shipping errors, and coordinating inventory—not growing the business. Once logistics labor, facility costs, and error rates start climbing together, outsourcing to a 3PL almost always costs less than doing it yourself. The exact crossover depends on your product size, order complexity, and location, but the pattern is consistent: in-house fulfillment gets more expensive per order as you grow, while 3PL pricing gets cheaper per order as volume increases.
Speed matters: If you’re in consumer goods, home décor, or outdoor equipment, delivery speed directly drives retention. Customers expect 2-day shipping. Operating a single warehouse in Montana costs you East Coast customers a 4–5 day ship time. A 3PL with hubs in multiple regions delivers to the majority of US homes in 2 days, cutting returns due to slow delivery and boosting repeat purchase rates.
Seasonality and peak seasons: If you run a holiday gift business or sell seasonal products, your inventory needs spike 3–4x in November–December. Renting extra warehouse space just for Q4 is wasteful; a 3PL scales space on-demand.
Product complexity: If you sell heavy items (fitness equipment, furniture, appliances), ship hazardous materials, or need kitting (bundling multiple SKUs), most in-house setups can’t handle it safely or cost-effectively. Specialized 3PLs absorb that complexity.
Returns are a money pit: Processing returns in-house means sortation, inspection, restocking decisions, and reshipment logistics. A 3PL automates return intake and either restocks good inventory or disposes of damaged goods, freeing hours every week that you’d otherwise spend on reverse logistics.
3PL Services
3PLs offer a modular menu of services. You don’t have to use all of them—some clients use only warehousing and shipping; others add returns processing and kitting. Here’s the full breakdown:
Warehousing & Storage
Your inventory arrives at the 3PL’s facility and is logged into their warehouse management system (WMS). Each SKU gets a bin location, and the WMS tracks quantity, expiration dates (if food/pharma), and location in real-time. Temperature-controlled storage is available for perishables or sensitive goods (electronics, cosmetics). You pay a monthly storage fee based on the space your inventory occupies—typically calculated per pallet, per cubic foot, or per bin. Rates vary widely depending on location, climate requirements, and how much space you use.
Inventory Management & Control
The 3PL’s WMS is the source of truth. You integrate via API, Shopify app, or CSV uploads so that when you sell on Amazon, your own store, or a wholesaler’s platform, your inventory counts stay synced. Cycle counts (physical counts on a schedule) catch shrinkage and discrepancies before they cause stockouts or overships. Many 3PLs offer real-time dashboards so you see inventory levels, location, and movement data in your own app or theirs.
Pick, Pack & Ship (Order Fulfillment)
When a customer places an order on your site, the order file flows to the 3PL’s WMS. A warehouse worker (or automation system, at larger 3PLs) “picks” the items from their bin locations, scans them to verify, and packs them into a box. The 3PL prints a shipping label (selecting the fastest/cheapest carrier for that destination), applies it, and hands the box to FedEx, UPS, or DHL. Most 3PLs guarantee shipment within 24 hours of order receipt.
LTL & FTL Freight
For heavy or bulky items (furniture, exercise equipment, aggregate materials), standard parcel shipping is prohibitively expensive. 3PLs offer Less-Than-Truckload (LTL) shipping—your item shares a truck with other businesses’ shipments—or Full-Truckload (FTL) for large wholesale orders. LTL pricing depends on freight class, weight, and distance; FTL pricing depends on route and total weight. In both cases, a 3PL’s carrier relationships and shipping volume give you access to rates you’d never get booking direct—the discount is significant, especially for heavy goods.
Returns Processing & Reverse Logistics
Customers ship items back to the 3PL’s return address. The 3PL receives the package, inspects it, decides whether to restock it (for resale), return it to you, or dispose of it per your rules. They update your inventory in real-time so you know what’s sellable again. This is the silent killer of in-house operations: returns create chaos. A 3PL removes that.
Kitting & Co-Packing
If you sell bundles (e.g., a “home gym starter pack” with a barbell, bench, and plates), the 3PL can assemble those kits in-house and ship them as a single SKU. This is useful for seasonal bundles, gift sets, or wholesale lots. Co-packing goes further: the 3PL can assemble, repackage, or even relabel products.
Same-Day & 2-Day Shipping
Some 3PLs offer same-day or next-day shipping on orders placed before a cutoff (usually 2 PM). This requires warehouse locations in major metros. Red Stag, for example, offers same-day shipping from their facilities and reaches 96% of US homes in 2 days due to multi-location network strategy.
Ecommerce Platform Integration
The 3PL connects directly to Shopify, WooCommerce, BigCommerce, or custom APIs so orders auto-sync, inventory updates live, and tracking data flows back to your customer. No manual CSVs or email back-and-forth; it’s fully automated.
Reporting & Analytics
Modern 3PLs provide dashboards showing order volume, shipping costs, inventory turnover, fulfillment speed, error rates, and carrier performance. This data informs your pricing, marketing spend, and inventory buying decisions.
Specialized 3PL Services
Not all 3PLs are created equal. Some specialize in specific product categories or handling requirements:
Cold Chain / Temperature-Controlled
If you ship fresh food, supplements, or temperature-sensitive pharma, the 3PL must maintain cold storage (36–46°F) and document temperature throughout the supply chain. Failure risks spoilage and FDA violations. Cold chain 3PLs charge a significant premium over ambient storage because of refrigeration equipment, energy costs, and compliance overhead. Choose one only if your product requires it; general 3PLs can’t do this safely.
Hazmat & Flammable Goods
Batteries, aerosols, paint, chemicals, and cleaning products require hazmat certifications and specialized packaging. Non-specialist 3PLs will refuse these shipments or quote prices so high they’re not viable. A hazmat-certified 3PL has DOT training, proper storage (segregated, ventilated), and carrier relationships that accept flammable goods. If hazmat is your business, this is non-negotiable.
Heavy & Bulky Items
Furniture, fitness equipment, appliances, and lawn equipment are heavy, take up space, and often damage in transit. Most standard 3PLs are optimized for small parcels (under 50 lbs) and charge by cubic footage, making heavy goods economics terrible. Heavy/bulky specialists have dock equipment, LTL carrier relationships, and expertise in protecting oversize items. If you ship items over 50 lbs regularly, a specialist dramatically reduces your per-unit shipping cost and damage claims compared to a generalist 3PL.
Food & Beverage
Food products require HACCP or SQF certification, allergen segregation, and shelf-life tracking. A food-specialized 3PL has inspected facilities, can handle allergen cross-contamination issues, and manages expiration dates so you never sell expired stock. General 3PLs cannot legally store food.
How Do 3PL Warehouses Work?
A 3PL warehouse is a choreographed sequence: receive → store → pick → pack → ship. Here’s the flow:
1. Receiving & Intake
Your inventory shipment (a pallet, carton, or truck) arrives at the 3PL’s dock. A receiving associate scans the tracking number and cross-references it against your pre-notification (a shipment manifest you uploaded to the WMS a day before). The WMS tells them what to expect. They count and inspect each SKU, checking for damage, and then scan barcodes to confirm quantities match your manifest. If discrepancies exist, they alert you before putting anything into storage. This step typically takes 24 hours; most 3PLs commit to receiving within 48 hours of delivery.
2. Putaway & Storage
Once verified, the WMS assigns each SKU a bin location based on a putaway logic (FEFO = First Expiration, First Out for perishables; FIFO for most other goods). An associate physically moves the inventory to that location—which might be a shelf 15 feet high or a pallet position in deep storage. The WMS updates in real-time so your inventory count reflects the new location. You see it in your dashboard immediately.
3. Inventory Management & Cycle Counts
The WMS tracks every unit: location, quantity, status (available, quarantined, damaged). A good 3PL performs cycle counts on a schedule (weekly, monthly, or quarterly) to ensure physical counts match system counts. If a discrepancy surfaces (shrinkage, misplacement, data entry errors), they investigate and adjust. This prevents the nightmare scenario where your system says you have 500 units but you actually have 480.
4. Order Receipt & WMS Trigger
When a customer orders on your site, the order data flows to the 3PL’s WMS via API or Shopify integration. The WMS reserves inventory, preventing overselling, and assigns a pick wave (a batch of orders to be fulfilled together, usually once or twice per day). The system prints pick lists or sends work to mobile devices.
5. Picking
A warehouse associate grabs a pick list and a cart. They navigate to the bin locations the WMS specifies, scan the SKU barcode to confirm they’re picking the right item, and place it in the cart. The WMS ensures they pick the correct quantity and tracks their progress. Some 3PLs use zone picking (one associate picks all items for orders in aisle A; another picks aisle B, etc.) to speed throughput; others use batch picking (one person picks all items for multiple orders). Either way, the barcode scans prevent human error.
6. Packing
Once all items for an order are picked, an associate moves them to a packing station. They place items in a box, add packing material (bubble wrap, air pillows, crinkle fill), and create a mailing label. The WMS can also suggest box size based on items and weight, reducing waste. A quality check associate scans the order one more time to ensure all items are in the box and the address is correct. At 3PLs with high accuracy guarantees (like Red Stag’s 100% order accuracy guarantee, which includes $50 per error reimbursement), this QC step is non-negotiable.
7. Shipping & Handoff
The 3PL prints a carrier label (USPS, UPS, FedEx, DHL, LTL carrier—their algorithm selects the best option for speed and cost). The box is placed on a conveyor or skid. At the end of the day, carriers pick up palletized shipments. The WMS updates your system and your customer’s tracking number in real-time, so customers see tracking within minutes of shipment.
8. Returns & Reverse Logistics
When a customer initiates a return, they ship it back to the 3PL’s facility (or a dedicated returns center). Upon arrival, the 3PL scans the return, inspects the item, and follows your return rules: restock it (if condition is good), send it back to you, or dispose of it. The WMS updates your inventory immediately, so you know whether you’ve recovered sellable stock or taken a loss.
Security & Compliance
Throughout this flow, a good 3PL maintains physical security (cameras, locked doors, restricted access), data security (encrypted WMS, SOC 2 compliance for ecommerce platforms), and insurance coverage (general liability and cargo insurance). Your inventory is protected from theft, damage, and data breaches. Most 3PLs provide certificates of insurance upon request.
The WMS (Warehouse Management System)
The heartbeat of the entire operation is the WMS—specialized software that tracks every item, every location, every transaction, and every movement. When you integrate via API, your inventory visibility is real-time. You know current stock, location, age (FIFO), and movement trends. This data is your lifeline: you can see which SKUs are stagnant, which are moving fast, and when to reorder. Without it, you’re flying blind.
3PL vs. Dropshipping
Dropshipping and 3PL are fundamentally different ownership models, not just variations on the same service. With dropshipping, you never touch inventory—the supplier ships directly to customers. With 3PL, you own the inventory, store it in a partner’s warehouse, and they handle fulfillment on your behalf.
| Comparison | 3PL | Dropshipping |
|---|---|---|
| Inventory Ownership | You own inventory | Supplier owns inventory |
| Upfront Costs | Storage + receiving fees; no capital tied up in inventory | Near zero—pay per order |
| Profit Margins | Higher—control wholesale pricing | Lower—limited negotiating power with suppliers |
| Fulfillment Speed | 1-2 days typical; can ship same-day from multiple locations | 3-7 days; supplier-dependent delays common |
| Quality Control | Full control over product, packaging, returns | Limited—supplier controls quality and presentation |
| Returns Handling | You manage—full visibility and data | Supplier handles; difficult to track or influence |
| Best For | Brands with product-market fit, repeat customers, margin-sensitive businesses | Testing new products, minimal initial capital, low-volume niches |
Choose 3PL if: You have consistent, repeatable demand; margins that justify storage and handling fees; customers who value fast, reliable delivery; or products you’ll sell for more than a year. A brand selling 500+ units monthly almost always improves profit and customer satisfaction with 3PL versus dropshipping.
Choose dropshipping if: You’re validating a product concept with under 50 orders per month; you want to test multiple SKUs without capital risk; or your supplier has genuinely faster shipping than you could negotiate with a 3PL. Dropshipping is a testing ground, not a long-term margin play.
The hidden cost of dropshipping is customer experience. When a supplier ships your branded product in plain packaging, with a 5-day window, you lose the speed and unboxing quality that builds repeat customers. 3PL margins are higher because they’re earned—faster delivery and full brand control drive both customer lifetime value and repeat purchase rates.
How Much Does 3PL Cost?
3PL pricing is modular. You’re not paying one flat fee; you’re paying for discrete services. Understanding these components helps you compare providers and avoid surprises.
There’s no universal price sheet for 3PL services—costs depend on your product dimensions, weight, order complexity, storage needs, and the 3PL’s location. Two brands with identical order volume can pay very different amounts if one ships lightweight apparel and the other ships 80-pound furniture. That said, the pricing structure is consistent across the industry.
Most 3PLs charge across five core fee categories:
Per-order fulfillment fees (also called “pick and pack”) are what you pay each time the 3PL ships an order. The fee depends on how many items are in the order, how much they weigh, what packaging is required, and whether any assembly or kitting is involved. A single-item, lightweight order costs far less to fulfill than a multi-item order with custom packaging and inserts.
Storage fees are charged monthly based on the space your inventory occupies—usually per pallet position, per cubic foot, or per bin. The more inventory you store and the longer it sits, the more you pay. Climate-controlled or temperature-regulated storage costs more than ambient. This fee structure incentivizes you to turn inventory faster and avoid dead stock.
Receiving fees are charged when new inventory arrives at the warehouse. The 3PL needs to count, inspect, barcode, and shelve your products—and that labor isn’t free. Fees are typically based on the number of units, cases, or pallets received. Consolidating your inbound shipments (fewer, larger deliveries) reduces this cost.
Special handling fees apply to anything outside a standard pick-pack-ship workflow. This includes oversized or heavy items, fragile goods requiring extra protection, hazmat products with compliance requirements, temperature-controlled items, or kitting and assembly work. If your products need special handling, expect this to be a meaningful portion of your total cost—ask specifically what qualifies.
Monthly minimums are common at most 3PLs. If your per-order and storage fees don’t reach a baseline amount, you pay the minimum instead. This covers the 3PL’s fixed overhead for maintaining your account, warehouse space, and integrations. Minimums vary widely by provider and are worth negotiating, especially if you’re a growing brand with increasing volume.
| Fee Category | What It Covers | What Makes It Higher |
|---|---|---|
| Per-order fulfillment | Pick, pack, ship for each order | Heavier items, multi-item orders, custom packaging, kitting |
| Storage | Monthly space for your inventory | More SKUs, slower-moving products, climate control, peak season |
| Receiving | Intake and shelving of new inventory | Frequent small shipments, individual unit scanning, case breakdowns |
| Special handling | Non-standard fulfillment requirements | Hazmat compliance, fragile packaging, oversized dimensions, assembly |
| Monthly minimum | Baseline account fee | Varies by provider—tied to committed space and service level |
What drives 3PL cost up
Several factors push your total cost higher. Heavy or oversized products require more labor and specialized equipment. Products that need temperature control or hazmat certification add compliance overhead. High SKU counts increase storage complexity. Slow inventory turnover means you’re paying storage fees on products that aren’t generating revenue. And geographic mismatches—storing inventory far from your customers—inflate shipping costs on every order.
What drives 3PL cost down
Higher order volume typically earns you better per-order rates. Consolidating inbound shipments reduces receiving fees. Keeping inventory lean (fast turnover, fewer dead SKUs) minimizes storage costs. Choosing a 3PL with warehouses near your customers cuts carrier costs. And standardized packaging—rather than custom inserts on every order—simplifies the pick-pack process.
The best way to compare 3PL pricing
Don’t compare headline rates. Compare your total cost per order shipped, which combines fulfillment, storage (allocated per order), and shipping into a single number. Ask each prospective 3PL to quote your specific product mix, order profile, and volume. A provider that looks cheap on per-order fees but expensive on storage and receiving could end up costing more than one with higher per-order fees but lower total cost.
Questions to ask about pricing:
- Can you provide a fully itemized quote based on my actual product dimensions, weights, and order volume?
- Does the quote include API connectivity and platform integrations, or are those extra?
- Are there setup fees for onboarding, new SKUs, or warehouse changes?
- What exactly counts as “special handling” for my products?
- How are rates structured as my volume increases—are there volume tiers or automatic discounts?
- Can I lock in rates for 12 months, or do they adjust quarterly?
- What’s included in the monthly minimum, and what happens if I exceed it?
Benefits of Using a 3PL
Lower shipping costs through carrier leverage. 3PLs negotiate volume discounts with UPS, FedEx, and DHL that individual sellers never access. Because a 3PL ships thousands of packages daily across all their clients, carriers offer rates far below what you’d get on your own. The savings are especially dramatic for heavy or bulky items, where carrier pricing punishes low-volume shippers.
Warehouse costs become variable, not fixed. Building or leasing your own warehouse locks in rent for 3–5 years. 3PL storage is month-to-month. When demand drops, you shed inventory costs. When it spikes, a good 3PL scales space within weeks, not years.
2-day delivery from multiple locations. Red Stag’s facilities reach 96% of US homes in 2 days. A solo seller shipping from one location averages 4–6 days unless they build regional warehouses—a massive capital investment most growing brands can’t justify. Multi-location inventory reduces delivery time and increases customer satisfaction.
Your team focuses on product and sales, not logistics. A founder managing returns, inbound shipments, warehouse hires, and shipping carrier disputes doesn’t scale the business. 3PL offloads this entirely. Your operations person tracks KPIs instead of picking boxes.
Expertise in complex fulfillment. Heavy, bulky, or hazardous products require specialized packaging, carrier relationships, and compliance knowledge. Red Stag guarantees 100% order accuracy and pays you $50 for every error—that confidence reflects mastery, not luck. Building that capability in-house takes years of trial and error plus dedicated logistics hires.
Scale without capital expenditure. Adding 10,000 units/month doesn’t require buying shelving, equipment, or renting warehouse space. Your 3PL absorbs it. That’s cash available for marketing, product development, or team growth.
How to Find the Best 3PL for Your Business
Not all 3PLs are equal. A furniture company needs different capabilities than a beauty brand. Evaluate providers on six dimensions:
1. Industry Experience
Does the 3PL have proven expertise in your category? A 3PL experienced in furniture fulfillment understands white-glove delivery, damage prevention, and assembly. A beauty-focused 3PL knows temperature control and breakage patterns. Ask for three references in your exact industry and call them. Generic 3PLs optimize for volume, not your specific pain points.
2. Warehouse Locations
Map your customer geography. If 70% of your orders go to the West Coast and your 3PL has only an East Coast facility, you’re paying premium shipping on every order. Best-in-class 3PLs operate multiple locations. Red Stag’s distributed network reaches 96% of US addresses in 2 days—that’s geographic advantage baked in.
3. Technology and Integrations
Can the 3PL connect directly to Shopify, Klaviyo, Netsuite, or your ERP? Manual data entry creates errors and delays. Ask about API connectivity, real-time inventory sync, and reporting dashboards. Poor integration feels cheap until it costs you a missed reorder or a wrong shipment.
4. Customer Support Responsiveness
Will you reach a human or a chatbot when inventory runs low or an order ships incorrectly? Email support that responds in 24 hours is unacceptable for fulfillment issues. Top 3PLs offer phone support during business hours and on-call escalation. Test their support during the sales conversation—how quickly do they respond?
5. Pricing Transparency
If the quote is vague—”competitive rates” or “call for details”—keep looking. Trustworthy 3PLs quote itemized fees upfront. They explain what’s included and what isn’t. If you can’t compare the cost per order, you can’t compare providers accurately.
6. Service Guarantees
Does the 3PL guarantee accuracy? Red Stag’s 100% order accuracy guarantee (backed by $50/error credit) signals confidence. A provider unwilling to guarantee basic fulfillment quality is telling you something. Guarantees align incentives—they profit only when you succeed.
Questions to Ask Prospective 3PLs
- What’s your order accuracy rate, and how is it measured?
- What’s your average pick-to-ship time, and can you ship same-day?
- Do you guarantee 2-day delivery to my key markets, or is that aspirational?
- Which e-commerce platforms do you integrate with natively (no middleware)?
- How often can I adjust inventory or add new SKUs, and are there fees?
- What happens if there’s a quality issue (damaged product, wrong order)—who pays?
- Can you provide references from three businesses similar in size and category to mine?
3PL FAQs
What is a 3PL?
A 3PL (third-party logistics provider) is a company that stores your inventory and fulfills customer orders on your behalf. You own the inventory; the 3PL owns the warehouse, equipment, and processes. It’s a service model, not a partnership where they own your products or take margin on sales.
What does 3PL stand for?
Third-party logistics. “First party” is the shipper (you). “Second party” is the carrier (UPS, FedEx). “Third party” is the company managing inventory and fulfillment in between.
How much does 3PL cost?
3PL pricing is modular—you pay separately for fulfillment (per order), storage (monthly), receiving (per inbound shipment), and any special handling. Your total cost depends on product size and weight, order complexity, storage volume, and the 3PL’s location relative to your customers. The best way to compare providers is to request a fully itemized quote based on your actual product mix and order profile, then calculate your total cost per order shipped.
What’s the difference between a 3PL and a fulfillment center?
A fulfillment center is a facility (a building and operation). A 3PL is the company running it. All 3PLs operate fulfillment centers, but not all fulfillment centers are part of a 3PL—some are owned by the brand. 3PL implies outsourced logistics; fulfillment center is just the physical location.
Is Amazon FBA a 3PL?
Amazon Fulfillment by Amazon is a 3PL service. You send inventory to Amazon’s warehouse; they pick, pack, and ship orders. The key difference: Amazon FBA is primarily designed for the Amazon.com sales channel, and Amazon’s combined fees (referral + FBA + storage) take a significant cut of each sale. A traditional 3PL fulfills orders from your own Shopify store, marketplace channels, and anywhere else—and you only pay for the logistics services themselves, not a percentage of revenue.
What’s the difference between 3PL and dropshipping?
With 3PL, you own and stock inventory; the 3PL stores and ships it. With dropshipping, the supplier owns inventory and ships directly to customers. 3PL offers faster shipping, better margins, and quality control. Dropshipping requires no upfront inventory capital but offers slower delivery and lower profit margins. 3PL fits established brands; dropshipping fits product testing.
Work with Red Stag Fulfillment
Red Stag Fulfillment specializes in heavy, bulky, and complex products—furniture, fitness equipment, appliances, automotive parts—where standard 3PLs fall short. We guarantee 100% order accuracy, paying you $50 for every error we make. Our distributed warehouse network reaches 96% of US homes in 2 days, and we offer same-day shipping from select locations for time-sensitive orders.
If you’re shipping products that weigh more than 10 pounds, require special handling, or demand fast delivery in competitive categories, Red Stag eliminates the friction that generic 3PLs create. Get in touch with our sales team so we can appropriately discuss how our services can be suited to your specific fulfillment needs.
