Complete Guide to 3PL Services, Costs & How to Choose the Right Provider

If you ship products at scale, you already know this: logistics can make or break your margins.

Late deliveries. Damaged goods. Inventory stuck in the wrong warehouse. Rising freight costs. One weak link in the chain and your customer experience suffers.

That’s where 3rd party logistics companies step in.

And this is also where platforms like Claimlane play a critical role. While third party logistics providers handle warehousing, fulfillment, and transportation, Claimlane strengthens what happens after shipment. It brings structure and visibility to delivery claims, damage documentation, and post-delivery issue resolution. In a world where last-mile delivery failures directly impact customer retention, that layer matters more than ever.

Modern logistics is not just about moving boxes. It’s about managing the entire lifecycle of an order. From storage to doorstep to dispute resolution.

This guide breaks down everything you need to know about 3PL companies, including services, pricing models, benefits, risks, and how to choose the right provider.

What Are 3rd Party Logistics Companies?

A 3rd party logistics company, often called a 3PL, is a business that manages logistics operations on behalf of another company.

Instead of handling warehousing, order fulfillment, and transportation in-house, businesses outsource those operations to third party logistics providers.

At its core, a 3PL sits between your business and your customer. It stores your inventory, picks and packs orders, ships products, and often manages returns.

1PL vs 2PL vs 3PL vs 4PL

Understanding the difference clarifies where 3PL companies fit in supply chain management.

• 1PL (First-Party Logistics): You handle everything yourself.
• 2PL (Second-Party Logistics): A carrier moves your goods from point A to B.
• 3PL (Third-Party Logistics): A provider manages warehousing, fulfillment, and transportation.
• 4PL (Fourth-Party Logistics): A strategic partner oversees multiple 3PLs and manages the entire logistics ecosystem.

The difference between 3PL and 4PL comes down to execution versus orchestration. A 3PL executes logistics operations. A 4PL designs and manages the full network.

How Do 3PL Providers Work?

Most 3PL companies follow this flow:

1. Receive and store inventory in a fulfillment center.
2. Integrate with your ecommerce platform or ERP.
3. Process orders automatically.
4. Pick, pack, and ship.
5. Manage returns and reverse logistics.
6. Provide reporting and performance analytics.

The more advanced providers integrate warehouse management systems, transportation management systems, and real-time tracking dashboards.

The Evolution of 3PL

Originally, 3PLs were basic warehousing and trucking operations.

Ecommerce changed everything.

Today, 3PL services include:

• Multi-channel ecommerce fulfillment
• Cross-border shipping
• Last-mile delivery partnerships
• Technology-enabled visibility
• Automated fulfillment centers

Speed and data now define competitive advantage.

Who Uses 3PL Services?

3PL companies support:

• Fast-growing ecommerce brands
• Manufacturers scaling distribution
• Retailers expanding into omnichannel
• Healthcare and pharma companies
• Food and beverage businesses needing temperature control

If shipping becomes complex, a 3PL becomes attractive.

Core Services Offered by 3PL Companies

Not all 3PL services are the same. But most providers offer four core capabilities.

Warehousing & Inventory Management

Warehouse management is foundational.

3PL companies offer:

• Shared warehouse space
• Dedicated warehouse facilities
• Inventory tracking systems
• Barcode scanning
• Cycle counting
• Cross-docking operations

Shared storage lowers costs for smaller brands. Dedicated facilities offer greater control for high-volume companies.

Modern warehouse management systems integrate directly with ecommerce platforms, giving real-time visibility into stock levels.

Order Fulfillment & Ecommerce Fulfillment

This is where speed meets accuracy.

Ecommerce fulfillment includes:

• Pick and pack services
• Kitting and bundling
• Subscription box assembly
• Returns processing
• Multi-channel fulfillment across Shopify, Amazon, and retail

A good fulfillment center minimizes error rates and reduces delivery times.

For growing brands, this is often the first operational bottleneck.

Transportation & Freight Brokerage

Many 3PL companies also provide freight brokerage services.

That includes:

• Carrier sourcing
• LTL and FTL shipping coordination
• International freight forwarding
• Customs compliance
• Freight auditing

Freight brokerage allows 3PLs to negotiate bulk shipping rates and pass savings to clients.

Last-Mile Delivery Solutions

Last-mile delivery is the most expensive and complex stage.

3PL providers often partner with regional carriers to improve speed and reduce costs. Some offer:

• Same-day delivery
• Urban distribution hubs
• Delivery exception management
• Real-time tracking notifications

And when deliveries fail, structured claims management becomes critical. That’s where systems like Claimlane enhance post-delivery workflows and protect margins.

How Claimlane Integrates with 3PL Companies

Even the best 3PL companies deal with damaged goods, missing items, and delivery disputes.

The difference between high-performing logistics operations and chaotic ones is how those issues are handled.

That’s where Claimlane integrates directly into 3PL workflows.

Here’s how the integration typically works:

1. Order ships from the fulfillment center.
2. The carrier completes last-mile delivery.
3. If there’s damage, shortage, or delivery failure, the issue is logged through Claimlane.
4. Documentation is collected immediately, including photos and structured data.
5. Claims are routed automatically to the correct carrier or logistics partner.
6. Resolution tracking is centralized and visible to all stakeholders.

Instead of scattered emails and manual paperwork, everything lives in one controlled workflow.

Integration Points with 3PL Systems

Claimlane connects with the tools most 3PL companies already use:

• Warehouse Management Systems (WMS)
• Transportation Management Systems (TMS)
• Ecommerce platforms
• Carrier APIs
• ERP systems

This means claim data ties directly to order IDs, shipment tracking numbers, and inventory records.

Why This Matters for 3PL Performance

3PL companies are judged on service level agreements.

That includes:

• Damage rates
• On-time delivery percentages
• Claim resolution timelines
• Customer satisfaction scores

Without a proper claims infrastructure, those metrics become hard to control.

Claimlane helps 3PL providers:

• Reduce manual claim handling time
• Improve documentation accuracy
• Speed up carrier reimbursement
• Identify recurring damage patterns
• Protect margins on high-volume shipments

For ecommerce fulfillment operations especially, post-delivery transparency directly impacts retention. A delayed or mishandled claim often costs more than the product itself.

Supporting Both Brands and 3PL Providers

One of the biggest friction points in logistics outsourcing is visibility.

Brands want transparency.
3PL providers want operational efficiency.

Claimlane creates alignment between both.

It gives brands structured reporting while allowing 3PL teams to maintain process control internally. That balance strengthens long-term partnerships.

How 3PL Companies Fit Into Supply Chain Management

Supply chain management is about coordination.

A 3PL becomes the operational backbone of that system.

They help with:

• Demand forecasting alignment
• Inventory allocation
• Multi-warehouse distribution
• Data-driven analytics
• Risk mitigation

Instead of fragmented shipping operations, companies get centralized visibility.

The best 3PL companies operate as extensions of your internal team.

Types of 3PL Companies

Asset-Based 3PL Providers

These companies own trucks, warehouses, and equipment.

Pros:

• More control over infrastructure
• Potentially higher reliability

Cons:

• Less flexibility

Non-Asset-Based 3PL Providers

These providers manage brokered networks.

Pros:

• Greater flexibility
• Easier geographic expansion
• Lower fixed costs

Cons:

• Dependence on external carriers

Industry-Specific 3PLs

Some specialize in:

• Healthcare logistics
• Food and beverage cold chain
• Automotive supply chains
• Ecommerce fulfillment

Specialization often improves compliance and efficiency.

Benefits of Hiring a 3rd Party Logistics Company

Cost Reduction

• Lower labor expenses
• Reduced warehouse overhead
• Bulk shipping discounts
• Less capital investment in technology

Scalability

Seasonal spikes become manageable.

You don’t need to lease new space for Q4.

Technology Access

Modern 3PL companies offer:

• AI route optimization
• Robotics in fulfillment centers
• Real-time tracking dashboards

Risk Management

Compliance expertise reduces regulatory exposure.

And structured issue handling through platforms like Claimlane reduces delivery-related losses.

When Should a Business Use a 3PL?

Signs you need logistics outsourcing:

• You’re running out of warehouse space.
• Order accuracy is slipping.
• Shipping costs are rising.
• You’re expanding internationally.
• Your team spends more time packing boxes than growing the business.

Many ecommerce brands consider 3PLs once they exceed 1,000 to 2,000 orders per month.

How to Choose the Right 3PL Company

Evaluate Capabilities

Ask:

• Do they support your product type?
• Can they handle your peak volumes?
• Do they offer freight brokerage if needed?

Assess Technology

Look for:

• WMS and TMS integrations
• Ecommerce platform compatibility
• Real-time reporting dashboards
• Claims and issue resolution workflows

Geographic Coverage

• Warehouse locations
• Carrier partnerships
• International capabilities

Pricing & Contracts

Understand:

• Storage fees
• Fulfillment fees
• Setup charges
• Long-term commitments

SLA & Performance Metrics

Negotiate:

• Order accuracy rates
• On-time delivery percentages
• Damage rate thresholds
• Claims resolution timelines

3PL Pricing Explained

3PL costs vary based on volume and service complexity.

Common fee categories include:

• Receiving fees
• Storage fees per pallet or cubic foot
• Pick and pack fees
• Shipping costs
• Account management fees

Hidden costs can include:

• Minimum monthly charges
• Seasonal surcharges
• Technology integration fees

In-House vs 3PL Cost Comparison

In-house fulfillment requires:

• Warehouse lease
• Labor
• Equipment
• Software
• Carrier contracts

A 3PL converts fixed costs into variable costs.

For growing brands, that flexibility often outweighs the margin trade-off.

Top 3rd Party Logistics Companies in 2026

Leading global 3PL companies include:

• DHL Supply Chain
• XPO Logistics
• C.H. Robinson
• Ryder
• ShipBob

Enterprise brands often choose global providers.

SMBs often choose ecommerce-focused fulfillment companies.

Each has different strengths in freight brokerage, warehouse management, and last-mile delivery.

3PL vs 4PL vs Freight Forwarder

• 3PL: Executes logistics operations.
• 4PL: Oversees multiple logistics partners.
• Freight Forwarder: Specializes in international shipping coordination.

Choose based on complexity.

If you need execution, go 3PL.

If you need orchestration, go 4PL.

Technology Trends Shaping 3PL

• Predictive analytics
• Robotics automation
• Blockchain tracking
• Sustainability reporting
• Micro-fulfillment centers

Data visibility is now the competitive advantage.

Risks & Challenges of Working With a 3PL

• Loss of direct operational control
• Dependency risks
• Data transparency gaps
• Contract lock-ins

Mitigation requires:

• Clear SLAs
• Transparent reporting
• Structured claims workflows
• Diversified carrier networks

The Future of 3rd Party Logistics Companies

Expect:

• Nearshoring growth
• Autonomous vehicles
• AI-driven logistics ecosystems
• Sustainability mandates
• Greater transparency requirements

The line between logistics provider and technology partner will continue to blur.

Frequently Asked Questions

What does a 3rd party logistics company do?
They manage warehousing, fulfillment, shipping, and sometimes freight brokerage for businesses.

How much do 3PL companies charge?
Costs vary but typically include storage, fulfillment, and shipping fees.

Is Amazon a 3PL company?
Amazon provides fulfillment services through FBA, which functions similarly to a 3PL.

What industries use 3PL services most?
Ecommerce, manufacturing, retail, healthcare, and food distribution.

What is the average 3PL contract length?
Most contracts range from one to three years.

If logistics is becoming a constraint instead of a growth engine, it may be time to evaluate third party logistics providers.

And if delivery issues are eroding customer trust, structured claims infrastructure like Claimlane should be part of that conversation.

Logistics isn’t just about shipping faster.

It’s about building a system that scales without breaking.