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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryRetail Media & CommerceThird-Party Logistics (3PL)

Retail Media & Commerce

Third-Party Logistics (3PL)

An outsourced provider that stores inventory and picks, packs, and ships orders on a brand's behalf.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Third-party logistics (3PL) is an outsourced provider that handles warehousing and fulfillment on a brand's behalf. A 3PL stores inventory and picks, packs, and ships orders, and often manages returns. Brands use 3PLs to scale fulfillment without building their own warehouses, gaining access to shipping networks and operational expertise.