What Is 3PL (Third-Party Logistics): Contracts, EDI Integration, and Amazon FBA Pricing Logic

A 3PL is a third-party logistics provider that holds inventory for a brand and handles receiving, picking, packing, purchasing shipping labels, and returns processing. The brand retains control of product pricing and customer relationships. Its contract charges storage fees by pallet or cubic foot and picking fees per item. Carrier costs may be passed through at negotiated rates or included in the customer’s account. Amazon launched Fulfillment by Amazon on September 19, 2006; in its 2006 shareholder letter, it listed storage at 45 cents per cubic foot per month.