A 3PL, or third-party logistics provider, stores your stock and picks, packs and ships your orders for a fee. “Pick and pack 3PL” is the part of that service that turns each order into a parcel. It can be a smart move as you scale, but it is not a decision to make on frustration alone, and it does not hand over the packaging. This guide explains how pick and pack 3PL works, when it is the right call, and the parts you keep control of.
How pick and pack 3PL works
- Receiving. Your inbound stock is booked in and stored in recorded locations.
- Order sync. Orders flow automatically from your sales channels into the provider’s system.
- Picking. Items are collected and scanned against each order, usually in batches.
- Packing. The order is checked and packed into a shipping outer, ideally to your format spec.
- Dispatch. The parcel is weighed, labelled on the provider’s carrier rates, and shipped.
- Tracking and returns. Tracking flows back to your customer; returns are received and restocked.
The mechanics are the same as the in-house pick and pack process. What you are buying is someone else’s space, labour and carrier rates.
When a 3PL is the right call
| Use a 3PL when | Keep it in-house when |
|---|---|
| Volume is high or sharply seasonal | Volume is moderate and steady |
| You ship nationally and want a central despatch point without a lease | Most customers are near you |
| Picking is complex (kitting, serial tracking, many SKUs) | Picking is simple |
| You have no warehouse space or staff | Brand and unboxing control matter to you |
| The operation genuinely exceeds what you can run well | The real problem is a slow pack bench |
That last row is the common trap: paying a 3PL margin to fix an inefficiency you could solve cheaply. Work through contract packing versus smart in-house packaging before you commit.
What you keep control of
- The packaging spec. Give the provider your format range, sizing rules and branded materials so freight stays predictable and the unboxing stays consistent.
- Right-sizing. Carriers bill the provider (and so you) on the greater of actual and dimensional weight. A defined format range stops orders shipping as air. See where pick and pack fees come from.
- Accuracy standards. Agree a pick-accuracy target of 99% or better, with reporting.
- Exit terms. Notice period, stock-removal cost and data portability.
Storage and 3PL support from Carewell
Carewell Group can support the storage and dispatch side of your operation and supply every packaging format your fulfilment needs. We are not a contract packing, kitting or filling service. Where we add the most value is making sure the packaging around your operation is right, so whether you run pick and pack in-house or through a 3PL, the freight cost and the customer experience are what they should be.
How Carewell Group helps
Carewell Group is an Australian packaging manufacturer and supplier with 3PL and industrial supply capability. We provide:
- Poly satchels, kraft paper mailers and recyclable honeycomb padded mailers in matched size ranges.
- Right-sized cartons, paper void fill, edge protection and water activated tape with dispensers.
- Custom print on mailers and tape so branding survives an outsourced pack line.
- A parcel-profiling review that defines the format range you hand to your 3PL or run in-house.
Carewell can meet all your packaging needs for your business. Talk to our expert and we will work to your required MOQ. Call +61 (02) 8760 1491 or request samples and a sizing review. See also pick and pack fulfilment services and pick and pack solutions.
Frequently asked questions
What is pick and pack 3PL?
The part of a third-party logistics service that picks each order, packs it into a shipping outer and dispatches it, using the provider’s space, labour and carrier rates, for a per-order fee.
Is a 3PL cheaper than in-house?
Not automatically. You pay per-order, per-item and storage fees plus a margin. It pays off when volume, complexity or space genuinely exceed what you can run well.
Does a 3PL choose my packaging?
No. You specify the format range, sizing rules and branded materials; the provider packs to that spec.
Does Carewell operate as a contract packer?
No. Carewell supplies packaging and can support storage and dispatch. We are not a contract packing, kitting or filling service.
Sources
- Australia Post, cubic weight and parcel sizing: auspost.com.au
- MHI, order-picking fundamentals: mhi.org
Written by Alif Vasaya, digital and content strategy, Carewell Group. Carewell Group is an Australian packaging, food packaging, tape, industrial safety and 3PL supplier serving all of Australia. Last updated 10 September 2026.