Third-party logistics (3PL) providers offer comprehensive fulfillment services including inventory storage, order picking and packing, shipping coordination, and returns processing. These services enable e-commerce businesses to outsource their entire logistics operations, allowing them to focus on sales and marketing while leveraging the 3PL's infrastructure, technology, and shipping volume discounts.

Revenue generated through multiple fee structures: storage fees based on warehouse space ($40-100/pallet/month), pick and pack fees per order ($3-8/order), shipping charges with markup (10-20% above carrier rates), receiving fees for inbound inventory ($25-50/pallet), value-added services like kitting and gift wrapping, technology fees for platform access, and returns processing fees. Volume discounts typically apply for high-order merchants.

• Order Fulfillment Accuracy

  Percentage of orders shipped correctly without errors

• SLA Compliance Rate

  Orders shipped within committed timeframes

• Same-day Fulfillment Rate

  Orders processed and shipped same day

• Inventory Turnover

  How quickly inventory moves through warehouse

• Cost Per Order

  Average fulfillment cost per order

• Client Satisfaction Score

  Customer satisfaction rating

ShipBob, Amazon FBA, ShipMonk, Red Stag Fulfillment, Rakuten Super Logistics