Key Takeaways:
- 3PL services help businesses outsource warehousing, packing, and shipping.
- Fulfilment partners support scalable growth without owning warehouse space.
- Starting with 3PL requires clear volume, system, and service readiness.
What Are 3PL and Fulfilment Services?
3PL and fulfilment services cover the outsourced management of inventory storage, order picking, packing, shipping, and returns. Instead of running an in-house warehouse, businesses rely on a third-party provider to handle daily logistics tasks. This setup is common across ecommerce, retail, and subscription brands that need flexibility without long-term property or staffing commitments. In Australia, 3PL providers often integrate directly with online stores, allowing orders to flow automatically from checkout to dispatch.
How Does 3PL Fulfilment Works in Practice?
The process begins when stock is delivered to a fulfilment centre and recorded into a warehouse management system. Once a customer places an order, the system generates picking instructions, packing details, and carrier labels. Orders are packed, scanned, and shipped, often on the same day. Inventory updates automatically across sales channels, keeping stock levels accurate. Returns follow a similar workflow, with items inspected and restocked or flagged based on condition.
When Should Businesses Should Start Using 3PL Services?
Most businesses move to 3PL fulfilment when order volumes become difficult to manage in-house. This often happens when daily orders exceed what a small team can pack accurately or when storage space limits growth. Seasonal spikes, expanding product ranges, and rising delivery expectations also trigger the shift. For Australian ecommerce brands, outsourcing fulfilment often reduces delivery times by positioning stock closer to metro customers.
Steps to Start With 3PL and Fulfilment Services
Starting with a 3PL provider follows a structured onboarding process. Each step ensures systems, stock, and workflows align before live orders begin:
- Review order volumes, SKU count, and monthly growth trends
- Confirm platform integrations with ecommerce and inventory systems
- Define packing rules, shipping options, and service-level expectations
- Transfer inventory to the fulfilment centre and complete system testing
- Launch fulfilment with monitored orders before full-scale rollout
- Review order volumes, SKU count, and monthly growth trends
A clear setup phase prevents dispatch errors and reporting gaps later.
Costs and Considerations Before Outsourcing Fulfilment
3PL pricing usually includes storage, pick and pack fees, packaging, and shipping. Costs vary based on order complexity, item size, and monthly volume. Businesses should also factor in onboarding fees and returns handling. While outsourcing adds a service cost, it often replaces rent, labour, software, and carrier contracts. For many Australian businesses, the total cost becomes more predictable as order volumes increase.
Choosing the Right 3PL Fulfilment Partner
The right fulfilment partner supports long-term growth, not just short-term capacity. Experience with your product type, system integrations, and local carrier networks matters. Visibility is equally important. Real-time reporting allows businesses to track orders, inventory, and delivery performance without manual checks. A strong partner also adapts as order volumes change, preventing service breakdowns during peak demand.
3PL and Fulfilment Services: Bottomline
3PL and fulfilment services allow businesses to scale logistics without scaling warehouse complexity. By outsourcing storage, packing, and shipping, brands gain faster delivery, better inventory control, and predictable costs. Starting with the right setup and partner helps businesses focus on sales and customer experience while logistics runs reliably in the background.
3PL and Fulfilment Services: Frequently Asked Questions
Below are some of the most frequently asked questions we address when businesses explore 3PL and fulfilment services:
Shipping options: FAQs
Below are some of the most frequently asked questions we address when businesses explore 3PL and fulfilment services:
What is a 3PL provider?
A 3PL provider is a company that manages warehousing, order fulfilment, and shipping on your behalf. It stores inventory, picks and packs orders, and dispatches them using integrated systems. This setup reduces operational workload while maintaining accurate, trackable delivery processes for growing businesses.
How long does it take to start using 3PL services?
Most businesses can onboard with a 3PL provider within two to four weeks. This timeframe includes system integration, inventory receiving, and testing. Simple catalogues move faster, while complex products or custom packing rules may extend setup slightly to ensure accuracy before live orders.
Is 3PL suitable for small businesses?
Yes, 3PL services work well for small businesses that are growing beyond home or office fulfilment. Outsourcing removes storage and staffing limits while improving delivery speed. Many Australian providers support low minimum volumes, allowing businesses to scale gradually without large upfront commitments.
How do 3PL services integrate with ecommerce platforms?
3PL providers integrate directly with ecommerce platforms to sync orders, inventory, and tracking details automatically. Once connected, orders flow to the fulfilment centre in real time. This reduces manual data entry, prevents stock errors, and keeps customers updated throughout the delivery process.
What’s the difference between 3PL and standard shipping?
3PL services manage the entire fulfilment process, while shipping only covers transport. Fulfilment includes inventory storage, picking, packing, dispatch, and returns handling. Shipping is just one step within that workflow. Using 3PL gives businesses full operational support beyond courier delivery alone.
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Author: Will Adlouni
Will Adlouni brings over a decade of expertise at Pick Packers, where he leads in redefining logistics with tailored solutions that save clients an average of 30% on costs. Specializing in fulfilment, e-commerce, and online logistics, Will focuses on exceeding client expectations by automating the sale-to-delivery process and offering expertise in EDI, B2B, and B2C View all posts by Will Adlouni