3PL, otherwise known as third-party logistics, is a broad term referring to the storage, packaging and dispatch of goods on behalf of ecommerce merchants. A 3PL company typically receives physical items, uploads them into inventory, and stores them safely until an order is placed. Warehouse workers will then pick and pack the items (this may involve kitting) either in standard or luxury packaging. Parcels are then handed to courier services and dispatched to customers.
The role of 3PL also involves receiving returned items, and either returning them to inventory, returning them to the merchant, or disposing of them on site. The idea of 3PL companies is to save time for the merchants by processing the physical goods, and create space by storing goods in dedicated facilities.