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What Is a 3PL? Third-Party Logistics Explained

A 3PL, or third-party logistics company, stores your inventory and ships your orders for you. Here is how it works in plain English, when a brand needs one, and how Matrix fits.

Folded apparel shirts ready for ecommerce order fulfillment
  • Receives and stores your inventory
  • Picks, packs and ships every order
  • Handles returns and restocking
  • Connects to your online store
  • Frees your team to sell

99.8% order accuracy across 1M+ orders · Month-to-month, no setup fees

Talk to a Los Angeles 3PL

Itemized pricing.

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No minimums · No setup fees · No long-term contract

The Basics

What a Third-Party Logistics Company Does

  1. 1

    Stores Your Inventory

    Instead of boxes in a garage or office, your products sit on shelves in a warehouse, counted and tracked by SKU.

  2. 2

    Ships Your Orders

    When a customer orders from your store, the 3PL picks the items, packs them and hands the package to a carrier.

  3. 3

    Connects to Your Store

    Orders flow from Shopify or TikTok Shop to the 3PL automatically, and tracking flows back to your customer.

  4. 4

    Handles Returns

    Returned items come back to the warehouse, get inspected, and sellable units go back into stock.

On This PageHow It WorksBenefitsWhen You Need OneComparePricingFAQGet a Quote

How It Works

How the 3PL Flow Works

  1. 01

    Receive and Store

    You ship inventory to the warehouse. It is counted, checked in by SKU and put away on shelves or pallets.

  2. 02

    Pick and Pack

    Each order is pulled from the shelf, checked and packed in the right box with any inserts.

  3. 03

    Ship and Return

    The package goes out with tracking. If the customer sends it back, the return is inspected and restocked.

Benefits

How Matrix Does Each Step

Receiving

Inventory is counted into ShipHero WMS for $10 per pallet or $1.50 per mixed carton.

Storage

An FDA-registered Los Angeles warehouse near the Ports of Los Angeles and Long Beach, with lot and expiration tracking.

Picking

Every pick is barcode-scanned, which is how we hold 99.8% accuracy across more than one million orders.

Packing

Your branded boxes, inserts and gift notes, plus kits and bundles built as their own SKUs.

Shipping

Orders placed by 2 PM Pacific on weekdays ship the same day, with tracking sent back to your store.

Returns

Loop Returns or your own forms, with each unit inspected for $2 and sellable stock restocked.

When You Need One

When Does a Brand Need a 3PL?

Signs It's Time

Most brands move to a 3PL when shipping starts taking over the business.

  • Packing orders takes hours every day
  • Inventory no longer fits where you are
  • Orders ship late during busy weeks
  • You're adding channels like TikTok Shop or retail

What Changes After

Your team gets its time back while customers get faster, more accurate orders.

  • Same-day shipping by 2 PM Pacific
  • Live stock and orders in ShipHero
  • One inventory for every channel
  • An account manager who knows your brand

Side-by-Side

Shipping In-House vs. Using Matrix

Topic
Shipping In-House
Matrix Fulfillment
Why It Matters
Time
Hours a day packing boxes
We pick, pack and ship for you
Your team focuses on selling
Space
Garage, office or rented storage
Los Angeles warehouse near the ports
Room to grow without a lease
Accuracy
Hand-checked orders
Barcode-scanned, 99.8% accurate
Fewer refunds and reships
Speed
Ships when someone has time
Same day on orders by 2 PM Pacific
Faster delivery for customers
Cost
Staff, space and supplies
Published per-order and storage rates
Costs scale with your orders
Contract
12-month lock-in and minimums
Month-to-month, no minimums
You stay because it works, not because you're stuck

Bottom line: a 3PL stores, packs and ships your orders so your team can grow the brand, and Matrix does it from Los Angeles with same-day shipping.

How a 3PL Connects to Your Store

Matrix runs on ShipHero WMS with 200+ integrations, including Shopify, Shopify Plus, TikTok Shop and Loop Returns.

ShopifyShopify PlusTikTok ShopLoop ReturnsWooCommerceAll Integrations

Published Pricing

What a 3PL Costs at Matrix

Real numbers, no gated pricing. Your quote is itemized line by line.

Get My Exact Rate
Pick and Pack
$1.50 per order + $0.35 per additional item
At Volume
As low as $0.50 per order
Storage
$0.25 per bin per day · $0.90 per pallet per day
Receiving
$10 per pallet · $1.50 per mixed carton
Returns
$2 per unit inspected
Setup and Platform Fees
$0

Keep Exploring

Related Resources

How to Choose a 3PL

What to ask and compare before you sign.

3PL Cost Guide

What fulfillment really costs, line by line.

3PL vs. In-House Fulfillment

When outsourcing makes sense for your brand.

See All Resources →

FAQ

Questions About 3PLs

Still unsure? Call (310) 415-7759 and talk to the team that packs your orders.

What does 3PL stand for?

3PL stands for third-party logistics. A 3PL is a company that stores your inventory and picks, packs and ships your orders on your behalf.

What does a 3PL do?

A 3PL receives your inventory, stores it, picks and packs each order, ships it with tracking and handles returns. Most connect directly to your online store so orders flow in automatically.

What is the difference between a 3PL and a warehouse?

A warehouse mainly stores goods. A 3PL also fulfills orders: it connects to your sales channels, packs each order, ships it and processes returns.

When should a brand use a 3PL?

Usually when packing orders takes too much of your team's time, inventory outgrows your space, or orders ship late during busy weeks. Matrix works with brands shipping 50 to 50,000 orders a month.

How does a 3PL connect to Shopify?

The 3PL's warehouse software connects to your store. At Matrix, Shopify and TikTok Shop connect to ShipHero WMS, so orders arrive automatically and tracking syncs back.

Where is Matrix Fulfillment located?

Our FDA-registered warehouse is in Los Angeles, California, close to the Ports of Los Angeles and Long Beach.

How much does a 3PL cost?

Pick and pack starts at $1.50 per order plus $0.35 per additional item, dropping as low as $0.50 per order at volume. Bin storage is $0.25 per day, and there are no setup or platform fees.

How long does it take to start with a 3PL?

We onboard brands within 24 to 48 hours. Your store is connected and your plan is set right away, and same-day shipping starts as soon as your inventory arrives and is counted.

Ready to Hand Off Fulfillment?

Tell us your volume and products. Itemized pricing and onboarding in 24 to 48 hours.

Get My QuoteCall (310) 415-7759