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What is a 3PL? The meaning of 3PL logistics, from 1PL to 5PL

3PL meaning: a third party handles your storage, order processing and shipping. 1PL to 5PL, 3PL versus fulfilment, and when a 3PL suits your webshop.

What is a 3PL? A 3PL (third-party logistics provider) is a company that carries out the logistics of another business: storage, order processing, shipping or all of them together. The 3PL meaning in short: you hand your logistics to a third party, which works for you with its own warehouse, its own people and its own systems.

The letters PL stand for party logistics. The number in front tells you how much of your logistics you hand over, and how far that partner goes.

3PL meaning: from 1PL to 5PL

Level What it means Example for a webshop
1PL You do everything yourself: storage, packing and transport You pack at home and drop off the parcels yourself
2PL You buy in transport and do the rest yourself You pack yourself, a carrier collects
3PL A provider handles storage, order processing and shipping A fulfilment company with your stock in its warehouse
4PL A coordinator that manages several 3PLs and carriers A partner that plans your whole supply chain, often without a warehouse of its own
5PL Supply chain coordination on an even larger scale, usually with its own software Large brands with warehouses in several countries

The line between 4PL and 5PL isn't sharp; you'll see the terms used in different ways. For a webshop, mainly 1PL, 2PL and 3PL matter. You only deal with 4PL and 5PL once you manage several warehouses, countries and carriers at the same time.

3PL, fulfilment and e-fulfilment: what is the difference?

In practice the words get mixed up. This is how to tell them apart:

  • 3PL is the broadest term: any logistics provider working for another company. That can also be pallet storage for a wholesaler, or transport to shops.
  • Fulfilment is the kind of 3PL where the provider handles orders: storing, picking, packing, shipping and returns.
  • E-fulfilment is fulfilment for webshops and marketplaces: lots of small orders, shipped straight to consumers, with an integration with your webshop and often same-day dispatch.

So every e-fulfilment company is a 3PL, but not every 3PL is set up for webshops. A provider that mostly moves full pallets to distribution centres works differently from one that packs hundreds of single parcels every day. How fulfilment works step by step is explained in What is fulfilment?.

3PL logistics for webshops: what to look for

If you're looking for a 3PL for your webshop, look beyond the label. What counts is what they do for webshops. We track 207 active fulfilment companies in the Netherlands and Belgium; this is what they mention on their own website:

  • Integrations. 110 mention Shopify, 103 WooCommerce, 100 bol and 88 Amazon. Without an integration with your channels, there's no starting point.
  • Returns. 140 mention returns handling. Important if you sell clothing or shoes (list).
  • Parcels and pallets. 90 mention B2B delivery and 27 pallet storage (list). Useful if you also supply shops.
  • Cut-off time. 51 say until what time an order still leaves the same day; for 34 of them that is between 23:00 and 23:59.
  • Software. 131 mention a client portal where you see your stock and orders. Which system sits behind it is covered in WMS system.
  • International. 129 mention shipping abroad.

What a company doesn't mention, it may still offer. Ask when you request a quote.

When does a 3PL suit your webshop?

A 3PL usually fits when:

  1. you consistently ship more than about 50 to 100 orders a month;
  2. your home, shed or unit is full;
  3. you sell on several channels and want one stock;
  4. you supply shops or wholesalers as well as consumers;
  5. you let customers order until late in the evening and still want to deliver the next day.

It fits less well if you have very few orders, if you make every product to order, or if packing by hand is part of your brand. If you only sell on bol, also compare Logistiek via bol (bol's own fulfilment): see fulfilment for bol sellers.

What does a 3PL cost?

With a fulfilment 3PL you usually pay per order (picking and packing, often €1.60 to €2.40), plus shipping, packaging and storage. Among the companies that put a "from" price per order on their site, the middle half sits between €1.69 and €2.95. All cost items with worked examples are in What does fulfilment cost?.

Frequently asked questions

Is a 3PL the same as a fulfilment company?

Not quite. A fulfilment company is a 3PL, but a 3PL doesn't have to do fulfilment. Some 3PLs only store pallets or only provide transport.

What is the difference between a 3PL and a 4PL?

A 3PL carries out the logistics itself, in its own warehouse. A 4PL coordinates: it plans and manages other parties, such as several 3PLs and carriers.

What does 3PL stand for?

Third-party logistics: logistics carried out by a third party. You'll also hear logistics service provider or, for webshops, fulfilment company.

How do I find a 3PL that suits my webshop?

More on the work in the warehouse: pick and pack, cut-off times and Verzenden via bol.

Browse all fulfilment companies in the Netherlands, Belgium and Germany, or connect your webshop and see, based on your own orders, which partners suit your volume, products and channels. Start your match.

Further reading