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What is a fulfillment service?

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A fulfillment service is a third party logistics (3PL) service provider that processes orders for shipment to your customers. Fulfillment services come in many shapes and sizes with basic services that include warehousing or storing inventory, picking, packing, and shipping orders to customers. For e-commerce companies, the 3PL process includes storing inventory, picking, packing, and shipping orders placed on websites that are linked to shopping carts.

Before the pandemic, online shopping was gaining headway as the preferred way people liked to shop, for convenience, to save time, and for the bargain aspects shopping online offered. When the pandemic shutdown forced brick-and-mortar retail outlets to close, online retailers experienced a surge of orders that left many wondering how to best handle the influx of business, to survive their expansion, in terms of their fulfillment operations. As many e-commerce vendors have discovered over the past decade or so, partnering with a 3PL fulfillment service not only saves them the cost of renting or purchasing a warehouse in which to store their inventory, it also saves overhead required to hire and train a fulfillment operations staff. With fulfillment processes already in place, online retailers learned they could leverage the expertise of fulfillment services to improve accuracy ratings, reduce delivery times, save on packing and shipping supplies, get discounted shipping rates and gain brand loyalty with more satisfied customers.

According to, “The global third-party logistics (3PL) market was valued at $1 billion in 2019, and is projected to reach almost $2 billion by 2027, registering a CAGR of 7.1% from 2020 to 2027.”  3PLs are the future of e-commerce fulfillment, allowing online retailers to grow and expand, without experiencing the disruptions that growing pains can cause many e-commerce companies. For online retailers, outsourcing your fulfillment operations helps improve all aspects of your online fulfillment operation, saving you money and time as you grow.

If you are interested in learning more about fulfillment services for your business, contact Phase V Fulfillment today.