3PL

How a 3PL works

A brand signs up with a 3PL, sends inventory to its warehouse, and connects its sales channels or sends order files. The 3PL receives the stock against advance notices, stores it, and ships orders as they arrive. The brand keeps ownership of the goods throughout.

For example, a skincare brand might send 2,000 units of serum and 500 gift sets to a 3PL. Each morning the 3PL picks and packs the previous day's orders, sends a dispatch report, and bills at month end for pallets stored, orders picked and packaging used.

Common 3PL services and billing

Most 3PLs price by activity, so they need accurate records of what they did for whom.

• Receiving: per pallet, carton or hour.
• Storage: per pallet, bin or cubic meter per week or month.
• Pick and pack: per order plus per additional item.
• Value-added services: kitting, labeling, returns processing.
• Shipping: carrier costs passed through, often with a margin.

What a 3PL warehouse system must do differently

A 3PL holds stock for many clients in one building. Every stock record, order and receipt must carry its owner, because two clients can sell the same product with the same barcode. Reports, counts and invoices all have to split cleanly by client.

The common mistake is running a multi-client operation on a system built for one owner, then keeping client separation in spreadsheets. That works until two clients' stock is mixed in one bin. Our 3PL client onboarding guide covers how to set new clients up cleanly, and 3PL vs in-house fulfillment compares the two models from the brand's side.

How NextStock handles 3PL operations

In NextStock every stock, order and inbound record carries its owner, so a 3PL can store many clients' stock in shared locations without mixing it. Membership is scoped by warehouse, with role permissions and API keys. Clients can receive receipt and dispatch emails. A client portal and automated storage and handling billing are on the roadmap and not available yet. See NextStock for 3PLs.