How do third party logistics providers work?

A 3PL works by integrating with a business’s supply chain. Products are stored in the 3PL’s warehouse, orders are picked and packed when customers place an order, and the 3PL ships the products directly to the end customer or retailer.

What services do 3PL providers typically offer?

Most third party logistics providers offer services such as warehousing and storage, order fulfilment, inventory management, pallet storage, transportation, freight forwarding, and returns management.

What are the benefits of using a third party logistics provider?

Using a 3PL can help businesses reduce costs, scale operations more easily, improve delivery speed, access logistics expertise, and focus on core activities such as sales and product development.

What is the difference between 3PL and fulfilment services?

Fulfilment services usually focus on picking, packing, and shipping orders, while third party logistics providers offer a broader range of services including warehousing, inventory control, transportation, and supply chain management.

How much do third party logistics providers cost in the UK?

The cost of using a 3PL in the UK depends on factors such as storage volume, order volumes, handling complexity, and delivery requirements. Pricing is typically based on storage fees, pick and pack fees, and shipping costs.

Are third party logistics providers suitable for small businesses?

Yes, many 3PL providers work with small and growing businesses. Outsourcing logistics allows smaller companies to scale without investing in warehouses, staff, or logistics infrastructure.

Can 3PL providers support ecommerce businesses?

Third party logistics providers are widely used by ecommerce businesses to manage storage, order fulfilment, same-day or next-day delivery, and returns, often integrating directly with ecommerce platforms.

How do I choose the right third party logistics provider?

When choosing a 3PL, businesses should consider factors such as industry experience, location of warehouses, technology integrations, scalability, pricing structure, and customer support.

What is the difference between 3PL and 4PL?

A 3PL provides hands-on logistics services like storage and fulfilment, while a fourth party logistics provider (4PL) manages and oversees the entire supply chain, often coordinating multiple 3PLs.

Third Party Logistics Providers (3PLs): A Complete UK Guide

Blue30
8 hours ago
7 min read

Getting products from your warehouse to your customers sounds simple until your order volumes increase, delivery expectations tighten, and operational costs start to creep up. For many UK businesses, especially in e-commerce, logistics quickly becomes one of the biggest barriers to growth.

This is where third party logistics providers (3PLs) come in.

Rather than managing warehousing, fulfilment, transport, and returns yourself, third party logistics providers 3PLs take on these responsibilities, allowing you to focus on sales, product development, and customer experience. But how exactly do 3PLs work, who are they right for, and how do you choose the right provider in the UK market?

In this in-depth guide, we break down everything you need to know about third party logistics providers 3PLs, with practical examples, UK-specific considerations, and expert insight from Blue30, a UK-based 3PL supporting fast-growing brands.

What Are Third Party Logistics Providers (3PLs)?

Third party logistics providers 3PLs are specialist companies that manage some or all of your logistics operations on your behalf. This typically includes warehousing, inventory management, order fulfilment, shipping, and returns handling.

Instead of investing in your own warehouse space, staff, systems, and carrier relationships, you outsource these functions to a 3PL partner that already has the infrastructure and expertise in place.

In practical terms, a 3PL becomes an extension of your business. When a customer places an order, the 3PL picks, packs, and ships it. When stock arrives from your supplier, the 3PL receives and stores it. When a return comes back, they process it according to your rules.

At Blue30, we see this model working particularly well for UK e-commerce brands selling on platforms such as Amazon UK, Shopify, WooCommerce, and TikTok Shop, as well as B2B businesses supplying retailers and wholesalers.

Who Uses Third Party Logistics Providers 3PLs?

Third party logistics providers 3PLs are not just for large enterprises. In fact, businesses of all sizes use 3PL services at different stages of growth.

Common users include:

Small and medium sized e-commerce brands that have outgrown home or self-managed fulfilmentAmazon sellers using FBA alongside third party fulfilment for multichannel ordersRetail brands expanding into direct to consumer salesSubscription businesses needing reliable pick and pack processesImporters and wholesalers requiring UK storage and distributionInternational brands entering the UK market without a local warehouse.

In the UK, the rise of next day delivery expectations and competitive shipping costs has made professional fulfilment almost essential. Many businesses reach a point where managing logistics internally becomes a distraction rather than a competitive advantage.

Why Third Party Logistics Providers 3PLs Matter More Than Ever

The UK logistics landscape has changed dramatically over the last decade.

Customers now expect fast, affordable, and reliable delivery as standard. At the same time, operating costs, warehouse rents, labour shortages, and carrier surcharges continue to rise.

Third party logistics providers 3PLs help businesses stay competitive by offering:

Access to established warehouse infrastructureDiscounted shipping rates through carrier volumeScalable operations during peak periods such as Black Friday and Christmas Technology that provides real time inventory and order visibilityCompliance support for UK and international shipping regulations

For many businesses, partnering with a 3PL is not just about convenience. It is about survival and sustainable growth in a demanding market.

Why Outsource Logistics to Third Party Logistics Providers 3PLs?

Cost Efficiency Without Capital Investment

Running your own warehouse requires long term leases, equipment, systems, and staff. Third party logistics providers 3PLs spread these costs across multiple clients, allowing you to benefit from economies of scale.

With a 3PL like Blue30, you pay for the space and services you use, rather than carrying fixed overheads year round. This is especially valuable for seasonal businesses or brands experiencing fluctuating demand.

Expertise and Compliance Knowledge

Logistics is complex. From health and safety standards to carrier regulations, customs documentation, and VAT considerations, mistakes can be costly.

Experienced third party logistics providers 3PLs bring deep operational knowledge and proven processes. This reduces errors, delays, and compliance risks, particularly for businesses shipping internationally or selling through regulated marketplaces like Amazon UK.

Flexibility and Scalability

One of the biggest advantages of third party logistics providers 3PLs is the ability to scale quickly. When order volumes spike, your fulfilment capacity scales with them. When demand drops, you are not left with underutilised space or staff.

This flexibility is crucial for growing brands, product launches, influencer campaigns, and promotional events.

Focus on Core Business Activities

Every hour spent managing fulfilment issues is an hour not spent growing your business. Outsourcing logistics frees up time and mental bandwidth to focus on marketing, customer acquisition, and product innovation.

At Blue30, many of our clients tell us the biggest benefit is peace of mind knowing orders are being handled professionally and consistently.

Types of Third Party Logistics Providers 3PLs

Not all third party logistics providers 3PLs offer the same services. Understanding the different types helps you choose the right partner for your needs.

Warehouse Based 3PLs

These providers focus on storage, inventory management, and order fulfilment. Services typically include receiving goods, storing inventory, picking and packing orders, and dispatching parcels.

This is the most common model for e-commerce businesses and the core service offered by Blue30.

Transportation Based 3PLs

Transportation focused 3PLs specialise in moving goods from one location to another. This includes freight brokerage, carrier management, and route optimisation. They may not offer long term storage or fulfilment.

Financial and Information Based 3PLs

These providers focus on logistics data, freight auditing, billing, and inventory systems rather than physical handling. They are often used by large enterprises with complex supply chains.

Many modern third party logistics providers 3PLs combine elements of all three, offering integrated solutions supported by technology.

Third Party Logistics Providers 3PLs vs Fourth Party Logistics 4PLs

A common question is the difference between 3PL and 4PL models.

Third party logistics providers 3PLs focus on executing logistics operations such as warehousing, fulfilment, and shipping. Fourth party logistics providers 4PLs take a more strategic role, managing and optimising the entire supply chain across multiple service providers.

For most UK SMEs and e-commerce brands, a 3PL is the right fit. It provides operational excellence without the complexity and cost of a full supply chain overhaul.

Third Party Logistics Providers 3PLs vs Freight Forwarders

Another area of confusion is the difference between 3PLs and freight forwarders.

Freight forwarders specialise in international transportation and customs clearance. They arrange the movement of goods between countries but do not usually manage warehousing, inventory, or order fulfilment.

Third party logistics providers 3PLs, on the other hand, manage ongoing logistics operations and customer order fulfilment. Many businesses use both, with a freight forwarder handling inbound shipments and a 3PL managing UK storage and distribution.

Core Services Offered by Third Party Logistics Providers 3PLs

Receiving, Warehousing, and Storage

When goods arrive at a 3PL warehouse, they are checked for accuracy, recorded in the inventory system, and stored in designated locations. Proper receiving processes are critical for stock accuracy and efficient fulfilment.

At Blue30, we use barcode scanning and system checks to ensure inventory integrity from day one.

Inventory Management

Modern third party logistics providers 3PLs use warehouse management systems that provide real time visibility of stock levels. This helps prevent overselling, stockouts, and excess inventory.

Accurate inventory data is especially important for multichannel sellers and Amazon UK merchants balancing FBA and third party fulfilment.

Order Fulfilment

Order fulfilment is at the heart of 3PL services. This includes picking items from storage, packing them securely, and dispatching them via the most appropriate carrier.

Speed, accuracy, and presentation all matter. A reliable 3PL ensures orders are shipped on time and in line with your brand standards.

Transportation and Returns Management

Third party logistics providers 3PLs manage outbound shipping using a network of couriers and carriers. They select services based on cost, speed, and destination.

Returns handling, also known as reverse logistics, is increasingly important in the UK e-commerce market. A good 3PL processes returns efficiently, inspects items, and updates inventory promptly.

Value Added Services

Many third party logistics providers 3PLs offer additional services such as labelling, kitting, assembly, and product customisation. These services support promotional campaigns, subscription boxes, and bespoke product offerings without adding internal complexity.

Data Analytics and Reporting

Data driven insights help businesses optimise their supply chains. Third party logistics providers 3PLs provide reporting on order accuracy, delivery times, inventory turnover, and returns rates, enabling informed decision making.

Choosing the Right Third Party Logistics Providers 3PLs in the UK

Selecting the right 3PL partner is a strategic decision. Key factors to consider include:

Warehouse location and proximity to customersExperience in your industry or sales channelsTechnology and system integrationsScalability and capacity during peak periodsTransparent pricing and service level agreementsCustomer support and communication

At Blue30, we work closely with clients to tailor solutions around their specific business model, whether that is Amazon UK, direct to consumer, or B2B fulfilment.

How Third Party Logistics Providers 3PLs Support UK E-commerce Growth

The UK e-commerce market is highly competitive. Fast delivery, accurate fulfilment, and reliable returns processing are no longer optional.

Third party logistics providers 3PLs enable businesses to meet these expectations without building costly infrastructure. They also support expansion into new channels and international markets, providing the operational backbone needed for growth.

FAQs About Third Party Logistics Providers 3PLs

Are third party logistics providers 3PLs suitable for small businesses?

Yes. Many small businesses use 3PLs to avoid upfront investment and scale efficiently as they grow.

Do 3PLs integrate with e-commerce platforms?

Most modern 3PLs integrate with platforms such as Shopify, Amazon UK, WooCommerce, and Magento.

Can I use a 3PL alongside Amazon FBA?

Absolutely. Many sellers use a hybrid model, with a 3PL handling non Amazon orders and overflow stock.

How much do third party logistics providers 3PLs cost?Costs vary based on storage, order volumes, and services required. Transparent pricing and clear agreements are essential.

Final Thoughts: Partnering with Blue30

Third party logistics providers 3PLs play a critical role in modern UK supply chains. They offer flexibility, expertise, and efficiency that enable businesses to compete and grow without being held back by operational constraints.

At Blue30, we provide reliable, scalable 3PL services designed for UK businesses that want to streamline fulfilment and focus on growth. Whether you are launching an e-commerce brand or scaling an established operation, our team is here to support you.

If you are ready to explore how third party logistics providers 3PLs can transform your operations, get in touch with Blue30 today and discover a smarter way to fulfil orders.