3PL? Everything You Need to Know About 3rd Party Logistics

3PL Logistics and Ecommerce Order Fulfillment

If you’re running an ecommerce business, it’s likely you’ve weighed the challenges of order fulfillment, inventory management, and shipping logistics. That’s where third-party logistics (3PL) comes in. At Medallion Fulfillment & Logistics, we’ve seen the dramatic impact a reliable 3PL partner can have on scaling a business, improving efficiency, and boosting customer satisfaction.

This guide breaks down what 3PL logistics is, the services it offers, and how it can reduce operational burdens for your ecommerce business.

What is 3PL/ 3PL Logistics?

Third-party logistics, or 3PL, refers to outsourcing your company’s supply chain operations to a specialized partner. Simply put, a 3PL provider becomes an extension of your business, taking over complex tasks like warehousing inventory storage, order fulfillment, shipping, and even returns processing.

For ecommerce companies, partnering with a 3PL means you can focus on growing your brand while we handle the nitty-gritty details of logistics. Whether you’re a small business owner or managing a growing online store, 3PLs are often key to maintaining smooth operations and optimizing costs.

Core Services Offered by 3PL Providers

3PLs offer a wide range of services designed to meet your business’s specific needs. Here are the essentials:

1. Inventory Management and Warehouse Storage

At our 3PL warehouse, we manage your inventory so you don’t have to. From organized storage to real-time data on stock levels, we ensure your products are tracked and ready to fulfill customer orders.

2. Order Fulfillment

A 3PL takes over the entire order fulfillment process—picking, packing, and shipping. Accurate picking ensures your customers get the correct items, while professional packing reflects your brand in every delivery.

3. Returns Processing (Reverse Logistics)

Dealing with returns is time-consuming but critical for customer satisfaction. A 3PL handles the returns process, inspecting items and efficiently restocking or redirecting them.

4. Transportation Services

Whether your business needs full truckload (FTL), less-than-truckload (LTL), or same-day shipping, 3PLs like Medallion Fulfillment & Logistics specialize in moving your products quickly, securely, and cost-effectively by partnering with shipping companies like the USPS.

Additional Services to Support Ecommerce Growth

Beyond the basics, 3PL providers often offer value-added services to further enhance your operations:

  • Global Supply Chain Management

If your business operates internationally, services like import/export assistance and customs clearance ensure smooth global operations.

  • Kitting and Assembly

Bundling multiple products together? Our kitting services make it easy to prepare subscription boxes, gift sets, and more.

  • Warehouse Management Software (WMS)

Gain access to advanced software systems that offer real-time inventory tracking and order status updates, all integrated with your online store.

How 3PLs Reduce Operational Burdens

Here’s why outsourcing to a 3PL could be a game-changer for your business.

  • Scalability and Flexibility

Whether it’s holiday season or a promotional surge, 3PLs scale operations up or down to meet demand without overextending your team.

  • Focus on Core Business Activities

By delegating logistics to experts, you gain time to focus on marketing, product development, and customer acquisition—moving the needle on your business goals.

Unlock Efficiency and Growth with a Trusted 3PL Partner

3PL logistics isn’t just about simplifying operations; it’s about creating opportunities for growth. At Medallion Fulfillment & Logistics, we work hand-in-hand with ecommerce businesses to tailor solutions that meet their unique challenges and goals. Still on the fence? See what our customers have to say!

If you’re ready to reduce operational stress and elevate your business to new heights, contact us today and learn why businesses trust our flexible and cost-effective fulfillment services.

When to Hire a 3PL Provider for Your Business

3PL (3rd Party Logistics)

Managing logistics is one of the biggest challenges for small businesses and ecommerce brands. As your business grows, keeping up with order fulfillment, inventory, and shipping becomes increasingly complex and time-consuming. This is where a 3PL (Third-Party Logistics) provider can make all the difference.

But how do you know when it’s the right time to make the move and hire a fulfillment company? Below, we explore key signs and benefits of partnering with a 3PL to help you decide.

Recognizing Growth Challenges

If your business is growing rapidly, you may be struggling with increased order volumes, managing new market demands, or handling a growing list of SKUs. These are clear signs that your logistics operations have outgrown your internal capacity.

For instance, if you’re a small ecommerce business expanding internationally, managing customs, shipping, and returns can quickly become overwhelming. A 3PL has the systems, expertise, and scalability to take these burdens off your plate.

Cost Efficiency with a 3PL

Running in-house logistics can be expensive. From leasing warehouse space and hiring staff to investing in tech infrastructure, the costs add up fast. A 3PL provider allows you to benefit from economies of scale—such as reduced shipping rates and operational efficiencies—saving you time and money.

Imagine being able to allocate your budget toward your product development or marketing, instead of logistics overhead. This is one of the biggest advantages of hiring a fulfillment company.

Focus on Your Core Business

Logistics challenges don’t just drain your budget—they also steal your time. By outsourcing fulfillment to a 3PL provider, you can focus on what you do best, whether that’s developing products, marketing campaigns, or scaling your customer base.

With logistics in expert hands, you have more bandwidth to grow your business and strengthen your core operations.

Avoid Infrastructure Investments

Hiring a 3PL saves you from making large up-front investments in warehouse facilities, vehicles, and cutting-edge logistics technology. These resources are essential for smooth operations but are costly to set up and maintain.

By partnering with an experienced fulfillment company, you can access state-of-the-art infrastructure without the heavy financial commitment—and scale your operations without worrying about space or capability limitations.

Identifying Pain Points in Your Operations

Consider this checklist to determine if it’s time to hire a 3PL provider:

  • Are you consistently missing shipping deadlines or struggling with order accuracy?
  • Is your business expanding into new markets with different fulfillment requirements?
  • Are logistics eating into the time and resources needed for product development and marketing?
  • Are rising logistics costs cutting into your profit margins?

If you answered “yes” to most of these questions, bringing on a 3PL partner might be the solution you need.

Taking the Next Step

A partnership with our fulfillment company can transform your logistics operations, boosting efficiency, cutting costs, and giving you the room to grow. Assess your current logistics challenges and take an informed step toward finding the right 3PL provider for your business.

The right time to hire a 3PL is when your business is ready to focus on growth—not logistics roadblocks. Contact Medallion Fulfillment and Logistics Today.

The Growth of Third-Party Logistics (3PL) Providers Post 2024

3PL Providers Concept Illustration

The e-commerce fulfillment landscape is evolving at an unprecedented pace, and third-party logistics (3PL) providers are at the forefront of this transformation in 2025. With the rise in online shopping and the complexities of global supply chains, businesses are increasingly partnering with 3PLs to streamline operations and meet heightened consumer expectations. Here’s why 3PLs are booming and how they are driving value in the fulfillment industry.

Why 3PL Providers Are on the Rise

Several factors are fueling the rapid growth of 3PL providers:

  • Advanced Technology Integration: Operating a modern fulfillment center requires cutting-edge tools like AI, robotics, and blockchain. Many businesses lack the infrastructure or resources to implement these technologies in-house, turning to 3PLs who specialize in them.
  • Flexibility and Scalability: Whether it’s managing seasonal demand spikes or expanding into new markets, 3PLs offer the ability to scale operations up or down as needed. This agility is critical in today’s volatile market conditions.
  • Expertise and Networking: 3PLs bring logistical know-how and established supply chain networks, enabling quicker shipping, cost optimization, and seamless cross-border operations.
    The result? More businesses can focus on their core competencies like product development and customer engagement while leaving logistical complexities to the experts.

Key Benefits of Partnering with 3PL Providers

1. Cost Efficiency

Managing an in-house fulfillment operation can be expensive due to investments in technology, workforce, and infrastructure. 3PLs spread these costs across their clients, allowing individual businesses to save significantly. Robots, for instance, are revolutionizing warehouse operations, with robotic picking systems handling up to 1,000 picks per hour—reducing human labor costs while increasing speed and accuracy.

2. Improved Flexibility

Fluctuating demand is a constant challenge in e-commerce. During peak seasons like holidays, 3PLs can handle the surge without businesses needing to hire temporary labor or expand facilities. These providers are also instrumental for brands exploring global markets, offering localized fulfillment hubs to ensure faster delivery times.

3. Enhanced Customer Experience

Speed and precision are non-negotiable in e-commerce today. By leveraging technologies AI-driven inventory forecasting, 3PLs ensure faster deliveries and fewer stockouts. Blockchain, another powerful tool, offers customers real-time visibility into their orders, building trust and transparency.

Technologies Powering 3PL Success

AI and Machine Learning

AI is at the heart of modern logistics. Predictive analytics enable 3PLs to anticipate demand surges, optimize route planning, and automate inventory replenishment. For instance, Amazon’s AI tools monitor buying trends to ensure warehouses are stocked with in-demand items.

Robotics and Automation

From robotic picking systems to automated sorting lines, robots are taking over tedious and time-sensitive tasks in warehouses. This ensures continuous operations, especially during labor shortages, and drastically improves order accuracy and shipment speed.

Blockchain

Tracking the movement of goods in real time is a game-changer for supply chain transparency. Blockchain technology records every step in the shipping process, ensuring accurate and tamper-proof tracking data—critical for both businesses and their customers.

Strategic Advantages of Working with 3PLs

For businesses to thrive in an increasingly competitive market, partnering with the right 3PL can yield significant advantages. Here’s how:

  1. Optimize Supply Chain Management: Specialized providers can handle everything from warehousing to last-mile delivery more efficiently, removing bottlenecks and reducing overall lead times.
  2. Expand Global Reach: With established networks in different regions, 3PLs make scaling internationally more straightforward and less risky.
  3. Future-Proof Your Operations: By leveraging the latest technologies through a 3PL, your business can adapt to industry innovations without large upfront investments.

Final Thoughts

The growth of third-party logistics providers in 2025 reflects a broader shift toward streamlined, technology-driven fulfillment strategies. For businesses, 3PLs offer an unmatched opportunity to reduce costs, boost scalability, and enhance customer satisfaction—all while staying ahead of technological trends. Strategic partnerships with 3PL providers ensure your operations remain not only efficient but also resilient in a rapidly changing market.

To stay competitive, now is the time to evaluate your fulfillment strategy and explore how 3PL providers can elevate your business. The future of fulfillment is here—ensure your business is ready for it and contact Medallion Fulfillment today. We are focused on the future while being invested in our employees and our small business partners.

3 Reasons Ecommerce Businesses Should Partner with a Fulfillment Company in 2025

Fulfillment Partner for Ecommerce Business

What if your ecommerce business could save time, cut costs, and keep your customers happier than ever—all at once? It’s not just wishful thinking. The key lies in outsourcing your fulfillment operations to a trusted partner.

The ecommerce landscape is shifting faster than ever before. Consumer expectations for rapid delivery continue to rise, global supply chain disruptions are increasing costs, and sustainability is no longer optional—it’s a necessity. The challenges are real, and the stakes are high. Yet, the solution is simpler than you think.

Partnering with a fulfillment company could be your game-changing move for 2025. Here’s why.

1. Satisfy Demand for Lightning-Fast and Reliable Shipping

A recent survey found that over 65% of customers expect same-day or next-day delivery. Failing to meet this expectation could cost you customers—and fast. But meeting it on your own involves significant investments in warehousing, logistics technology, and workforce scaling.

That’s where fulfillment companies excel.

Take Medallion Fulfillment and Logistics, for example. They provide seamless order processing, pick-and-pack services, and shipping solutions across the globe. Their expertise ensures your products are delivered quickly and reliably—without you needing to overhaul your operations.

Plus, it’s not just about speed—it’s about reliability. Studies show that shipping issues are among the top reasons for customer dissatisfaction. By outsourcing to a dedicated fulfillment provider, you can significantly reduce errors, delays, and lost packages, keeping your customers happier (and more loyal).

2. Navigate Global Supply Chain Disruptions and Rising Costs

With ongoing global supply chain disruptions and rising transportation costs, fulfillment has become a minefield for ecommerce businesses. Managing these complexities in-house isn’t just stressful—it’s expensive.

Fulfillment companies are built to handle these challenges. They use advanced tools and strategies to optimize inventory management, reduce shipping costs, and adapt to unpredictable changes in logistics networks.

Partners like Medallion Fulfillment and Logistics offer significant cost efficiency. Why?

  • Shipping Discounts: They leverage their bulk shipping volume to secure lower rates, passing those savings directly to you.
  • Inventory Optimization: Advanced systems track and manage inventory so you can avoid overstocking or stockouts.

The result? Your bottom line gets a healthy boost—even in an unstable market.

3. Meet Increasing Consumer Demand for Sustainability

Consumers are more environmentally conscious than ever, and ecommerce businesses are under pressure to follow suit. Over 70% of shoppers are willing to pay more for sustainable options, making eco-friendly practices a competitive advantage.

But implementing greener packaging and fulfillment practices in-house isn’t always feasible—it’s costly, logistically challenging, and time-intensive.

Fulfillment companies specialize in sustainable solutions. Medallion, for instance, supports businesses with eco-friendly packaging and practices. By partnering with them, you can reduce your environmental impact without compromising efficiency or profitability.

Beyond operational changes, sustainability isn’t just about what you do—it’s about what your customers see. Imagine showing your buyers that your business actively prioritizes reducing waste. The credibility and trust you’ll build can set your brand apart.

The Future of Fulfillment: What’s Next?

The fulfillment landscape is evolving rapidly, and emerging technologies are raising the bar for efficiency and innovation. Think drone deliveries, automated warehouses, and AI-driven data analysis. By partnering with forward-thinking fulfillment companies, you gain access to these advancements without shouldering the cost or learning curve alone.

For example, Medallion isn’t just about meeting today’s expectations—they’re positioning businesses to thrive in the future. Their flexible fulfillment solutions grow with your business, ensuring that you stay competitive in an ecommerce world that’s only getting faster and smarter.

Case in Point

Still on the fence? Consider this. A growing ecommerce business once spent over 40 hours a week managing orders, only to see disappointed customers due to late deliveries and inventory errors. After partnering with Medallion Fulfillment and Logistics, the company reduced its workload by 60%, doubled its order capacity, and improved customer satisfaction ratings by 30%.

Real results like these are why fulfillment companies have become indispensable allies for ecommerce businesses.

Turn Fulfillment Into Your Strength in 2025

The message is clear. To stay competitive in the coming year, you can’t afford to tackle fulfillment alone. Fast shipping, cost efficiency, and sustainability are no longer optional—they’re non-negotiables.

The good news? With the right fulfillment partner, these challenges become opportunities.

Medallion Fulfillment and Logistics offers tailored solutions that help ecommerce businesses like yours succeed now and in the long run. Whether you’re a startup or scaling to new heights, their expertise can transform fulfillment from a headache into a competitive edge.

Don’t wait until 2025 catches up with you. Explore partnership opportunities with Medallion Fulfillment and Logistics today and take the first step toward smarter, more efficient operations.

Discover the Medallion difference

Happy Holidays From the Team At Medallion Fulfillment: Avoiding the Post Holiday Sales Slump

eCommerce Team Working with a Fulfillment Team

No matter how successful the holiday selling season is for your eCommerce business, there’s no time to rest on your laurels. You can’t afford to ease up and have a soft start to the new year. Let our fulfillment company team share some valuable tips to help avoid that dreaded post-holiday sales slump.

1. Conduct a post-holiday sale.

Sales and discounts are part of your holiday marketing plan, but there’s no reason they can’t be part of after-holiday marketing as well. Top global brands such as Nike are known to run clearance sales straight through the month of January. This strategy can pay some additional benefits:

• Offering deep discounts or buy-one-get-one sales is a good way to clear out old inventory and make room for new merchandise.

• Great pricing can mitigate the effect of post-holiday returns by enticing customers to spend more money to upgrade.

2. Retarget your existing customer base.

When email ads are retargeted, studies show that the click-through rate is 180.6 percent higher than the initial email run. This plan also builds loyalty that pays benefits in the long run.

3. Highlight season-appropriate items.

This is where your market research will come in handy. Have you identified any specific buying patterns during the beginning of each year? In addition, there are many products such as outerwear and snow removal equipment that are sure-fire sellers during this time of year.

4. Up your social media game.

Holiday activities may have slowed down social media use, but during the post-holiday lull, old habits are sure to come back. If you’ve been meaning to try TikTok or include more interactive content, there’s no time like the present.

Partner with Our Fulfillment Company in 2025

Let Medallion Fulfillment & Logistics help make 2025 your best year yet. Contact us to learn more.