Third-Party Logistics (3PL) Services

Third-party logistics (3PL) providers offer integrated warehousing, order fulfillment, inventory management, and shipping services for e-commerce businesses and companies outsourcing logistics.

With the 3PL market worth $1+ trillion globally and e-commerce brands seeking scalable fulfillment solutions, 3PLs generate revenue of $350,000-$1,200,000+ annually with profit margins of 15-30% through storage fees, pick/pack fees, and shipping markups.

The business requires warehouse space (5,000-20,000+ sq ft to start), warehouse management system (WMS), fulfillment staff, and shipping carrier relationships.

Services include product receiving and storage, inventory management, order picking and packing, shipping and tracking, returns processing, and kitting/bundling.

Pricing typically includes per-pallet storage ($15-$40/month), pick fees ($2-$8 per order), pack fees ($1-$3 per package), and shipping charges plus markup.

Success factors include efficient warehouse operations, accurate inventory control, fast order processing, and technology integration with clients' e-commerce platforms.

Many 3PLs specialize in specific product types (apparel, supplements, electronics) or order profiles (subscription boxes, B2B wholesale).

Marketing focuses on networking with e-commerce brands, demonstrating fulfillment accuracy and speed, and showcasing technology capabilities.

With e-commerce brands seeking reliable fulfillment partners in 2025 and Amazon FBA costs driving businesses to seek alternatives, 3PL services offer strong opportunities for entrepreneurs with logistics and operations expertise willing to invest in warehouse infrastructure.