Many businesses hit a point where in-house storage and fulfillment stop being practical. A third-party logistics provider steps in to handle the heavy lifting. That includes storage, packing, and shipping. This guide explains what 3PL services typically cost and what your business gets in return.
What 3PL Means
Third-party logistics (3PL) refers to outsourcing key parts of your operations to a logistics company. That usually includes:
- Inventory storage
- Order fulfillment
- Picking and packing
- Coordinating shipments
- Handling returns
You get back your time and avoid managing warehouse space or staff.
How the Process Works
Once your inventory arrives at the 3PL warehouse:
- Goods are checked in and logged
- SKUs are stored by rack, pallet, or bin
- Orders are picked and packed as they’re placed
- You receive live updates on inventory and shipping
This setup is useful for businesses that scale quickly or deal with seasonal demand.
What Impacts the Cost
Rates vary depending on volume, speed, and service level. Most 3PL warehouses charge for the following:
Receiving
Covers unloading and checking in your inventory.
Typically billed per hour or per pallet.
Storage
Ongoing monthly fee for holding your products.
Charged by pallet, shelf, bin, or cubic foot.
Pick and Pack
Fee to prepare each order for shipping.
Additional charges may apply for kitting or special handling.
Shipping and Labeling
Shipping is usually billed at the provider’s negotiated rates.
Custom inserts, packaging, or labels may have extra fees.
Software and Support
Some providers charge for access to their logistics platform.
Others include support through a dedicated account manager.
To get accurate pricing, request a custom quote based on your products and order volume.
What You Get for the Money
A 3PL warehouse adds more than just storage. Here’s what many businesses gain:
- Lower overhead
No need to lease space, buy equipment, or hire warehouse staff. - Scalability
You grow without committing to a fixed footprint. - Faster delivery
Many 3PLs offer same-day or next-day turnaround. - Cheaper shipping
Providers access carrier discounts based on volume. - More consistency
Returns and shipping issues are handled for you.
A Real-World Example
You run an online home décor business. Most months you ship about 300 orders. During November and December, that number jumps to 1,200.
Renting space and hiring temp staff every year creates stress and inconsistent costs.
With a provider like RS Distribution, you use only what you need. Your fulfillment expands during peak season and contracts when things slow down.
RS Distribution 3PL Services
From our Winnipeg facility, RS Distribution serves businesses across Manitoba and Western Canada.
We offer:
- Flexible bin or pallet storage
- Real-time inventory visibility
- Fast and accurate fulfillment
- Easy system integration
Whether you’re just starting or ready to scale, we’ll help you set up a warehouse and shipping plan that fits.
Let’s Talk
We’ll give you a detailed, no-obligation quote based on your business needs.
Visit www.thersgroup.ca to get started.