What is 3PL Dropshipping and What are the Best 3PL Dropshipping Companies? 

3PL is a dropshipping method where you buy the inventory. It is a crossbreed between traditional retail and dropshipping. 

Over the years, I have learned that 3PL makes sense if you have outgrown the base model of dropshipping. If you are in the same situation, I will provide you a list of the best 3PL partners in this article. 

We will discuss:  

• The meaning of 3PL in dropshipping
• 3PL companies and what they do 
• The best 3PL companies you can work with 

For starters, here is the list of 3PL companies best suited for dropshipping: 

1. Fulfillment-Box – best for Amazon dropshipping 

2. Speed Commerce – best for kitting

3. ShipBob – best for fast shipping

4. Printify – best for print-on-demand

5. Fulfillment by Amazon – best for Amazon

Let us start!

What is 3PL?

The term “3PL” stands for third-party logistics. In the world of dropshipping and retail, it refers to a process where a company warehouses the goods and ships them to customers only when there is an order. 

What this entails is that you, the dropshipper, would be doing wholesale. You can either do private-label or white-label dropshipping, but you need to buy inventory. If you want to learn the difference between the two, please read our blog: White Label vs. Private Label - Ultimate Guide for Beginners.

In a snapshot, the process is:

• You buy inventory
• You ship it to the warehouse (the 3PL company)
• You integrate their system with your dropshipping store

Once an order comes in, you place that order through the 3PL’s systems. Then, they will process the shipment. 

Some 3PL systems do not integrate with your store. What happens is that once your customer places an order, it is you who have to log in to the 3PL’s systems and place the order manually. 

What is a 3PL Company?

A 3PL company specializes in logistics. It is not DHL or FedEx—these are logistics companies.  

In essence, a 3PL is a warehousing company that also provides shipping services, not with their ships, but in conjunction with shipping carriers or couriers. 

The main functions of a 3PL company are: 

• Warehousing – they will store your products in their warehouse, along with the products of other people.
• Fulfillment – they will print the shipping label and work with shipping companies to fulfill orders
• Inventory Management – they have a system that records your remaining stocks.
• Packing – they will prepare your products for packing for shipment

Why would you need a 3PL company for dropshipping? Dropshippers who succeed will eventually try to create their brands. In this case, you are now shifting to traditional retail, but online. 

Since you are a dropshipper, chances are you do not have a warehouse. You can use your house, but then you also have to face the problem of packing, handling, inventory management, shipping, etc. 

That is why you need a 3PL company—you do not want the business burden of managing stocks, shipping them, and printing shipping labels. You want to outsource this service so you can focus on marketing your products.

3PL Vs Dropshipping: What is the Difference? 

3PL is a wholesale business method. It is traditional retail where you buy the stocks. However, you do not keep the stocks in your property. You rent a warehouse and let that warehouse facility take care of shipping, too. 

Dropshipping is also retail but you do not buy the inventory. You only post the product pictures. Then, you order the product from the supplier and let them process the order. 

Here is a table that highlights the key differences: 

Area

3PL

Dropshipping

Buying Inventory

You buy inventory

No upfront inventory

Warehouse

You rent warehouse space

No warehouse requirement

Packing

They will pack your goods

They will pack your goods

Shipping

They will ship your goods

They will ship your goods

Store Integration

Not all have integration systems

Integration is the industry standard

The main difference here that you must pay attention to is the inventory. If you work with a 3PL, you need to buy items in bulk from a supplier, like one in China, and pay the 3PL to store the items for you in their warehouse. 

3PL necessitates money—you need to pay not only for your products but also the rent in the warehouse. In addition to that, 3PL companies also charge a handling fee. This is the fee you pay if they process the order.

List of Reliable 3PL Dropshipping Suppliers

There are many 3PL companies in the world, especially now that ordering online has become a norm. However, most of these are not dropshippers. They do not provide you with products. Instead, you merely rent their warehouse and pay them for shipping your items to your customers. 

The best ones you can try are the following: 

• Fulfillment-Box 
• Speed Commerce
• ShipBob
• Printify
• Fulfillment by Amazon

Let us review each one. 

1. Fulfillment-Box – best for Amazon dropshipping 

This company is a full-service logistics provider. They have a branch dedicated to dropshipping. In this process, you will contact your supplier to send the items to Fulfillment-Box. From here, Fulfillment-Box will take care of the shipment to your customer.  

Fulfillment-Box Features

• Warehouses – they have warehouses in the United States, Europe, and China. For Chinese warehousing, they will even inspect the supplier facilities before they facilitate direct shipments. 
• International Fulfillment – they work with DHL, which means they have access to the fulfillment centers of DHL in Germany and Poland. 
• Integration – you can integrate their system with Shopify, eBay, WooCommerce, and Amazon.

You can use Fulfillment-Box to dropship on Amazon. Instead of using Fulfillment by Amazon, Fulfillment-Box will do the warehousing, packing, handling, and shipping, all in compliance with Amazon’s requirements. 

2. Speed Commerce – best for kitting 

Speed Commerce is a business-to-customer logistics solution. They offer not just warehousing but also fulfillment services, even for dropshippers. 

Speed Commerce Features  

• Kitting – you can warehouse multiple types of products in their warehouse, and then create “kits” or bundles in your dropshipping store. Once a customer orders, Speed Commerce will get the items one by one and ship them in a package. 
• Product Care – the company takes pride in its processes that ensure your products do not get damaged. They have over 40 years of experience in shipping and logistics.
• Returns Management – if a customer is not happy with the product, Speed Commerce will process the return process for you. They even have systems that will help you reduce your return rate. 

On top of these features, the company offers affordable long-storage options. They can also do cross-docking, a process where an item has to land in one port and then move to another port to complete the shipping route.

3. ShipBob – best for fast shipping

ShipBob is one of the most popular 3PL companies for dropshippers. They offer direct-to-customer shipping services, global fulfillment, and also warehousing.

ShipBob Features

• Kitting – similar to the previous 3PL company for dropshipping, ShipBob offers kitting services. You just need to send them your products and they will mix and match these for you according to your sales or promotions. 
• Warehouses – the company has a presence in the USA, Australia, the United Kingdom, Canada, and many countries in Europe. 
• 2-Day Shipping – with a vast network of warehouses, ShipBob offers shipping times as fast as two days. However, this will only happen if you select the right warehouse location relative to your target shipping locations. 

ShipBob integrates with multiple sales channels. It works with Shopify, TikTok, Amazon, eBay, WooCommerce, and many more. 

4. Printify – best for print-on-demand

Printify not only does print-on-demand (POD) but also warehousing and fulfillment services. You can order hundreds of items and let Printify take care of the storage and inventory management for you. 

Printify Features

• Product Design – since it is a POD company, you can choose from hundreds of blank products and design them. You are the only seller who has this product, so you have a better chance of success.
• Integration – you can integrate Printify with Shopify, eBay, Etsy, WooCommerce, and many other platforms. With only one system (Printify), you can manage several stores all at once.
• Catalog – Printify has a huge catalog of blank products. The most popular are shirts, mugs, and hoodies. With over 900 products in their catalog, there surely is a product here that fits your niche. 

My suggestion is to use the POD system for white-label wholesale dropshipping once you already have a consistently high demand. This way, you are not risking money for inventory that people may or may not buy. 

5. Fulfillment by Amazon – best for Amazon

Finally, we have what is known as Amazon FBA. The process is the same where you send your goods to an Amazon warehouse, and they take care of the rest of the process. The big difference is that you can only sell or dropship in the Amazon marketplace.  

Amazon FBA Features

• Market Presence – the world knows Amazon, and one cannot doubt that Amazon has one of the largest traffic among all marketplaces in the world. Because of this, you do not even have to do a lot of marketing. 
• Storage and Fulfillment – like all 3PLs, you can send your products to Amazon. Then, someone over there will list your inventory in the system. Just make sure you follow their barcode standards.
• Fast Shipment – Amazon offers one of the fastest shipping services in the United States, especially for Prime members. The company is also at the forefront of technology where they even test drones for delivery. 

Amazon FBA is an excellent option if you want to target Amazon buyers. There is a huge traffic here that you can exploit. Amazon also offers affordable “rent” or storage fees. Finally, you no longer need to worry about shipping rates because Amazon takes care of that.

What 3PL is Right for You?

Overall, I will only recommend the 3PL business model if you have already outgrown basic dropshipping. If not, I do not suggest it. Once you have built a brand, then that is the only time you need to look into 3PL.

You must also take into consideration your sales. If you are in a stage where you have thousands of sales every month, then it is about time to consider wholesale and 3PL.

For dropshippers, the two main 3PL companies I recommend are Fulfillment by Amazon and print-on-demand services like Printify. 

Amazon, however, limits you to selling only on their platform. On the other hand, a company like Printify does not give you boundaries on which platform you can sell.

FAQ: 3PL Dropshipping

What is a 3PL dropshipping?

3PL dropshipping is a process where you buy the inventory and stock them in a company’s warehouse. Once an order comes in, they ship the item to the customer. 

What does 3PL mean in shipping?

3PL stands for third-party logistics. 

Is J&T a 3PL?

No, J&T is a logistics and delivery company. 

What is 3PL in Shopify?

3PL in Shopify means you integrate the 3PL system with your Shopify store. For example, you can integrate Printify with Shopify. 

Summary: 3PL in Shopify Dropshipping

The next step I recommend that you take from here is to learn more about wholesale. We have a guide on how you can do either white-label or private label dropshipping that you can use for 3PL.

After that, you can sign up for a free 7-day trial with Dropship.IO. It is a dropshipping tool that helps you succeed in dropshipping. With this tool, you can find winning products and also soy on your competitors.