Choosing the right logistics model can make a huge difference to how your eCommerce business runs. As your store grows, managing storage, picking, packing, shipping, and returns becomes more challenging — and finding the right solution is key to keeping customers happy and protecting your margins.
For many UK brands, the debate often comes down to 3PL vs 4PL. Both help businesses manage fulfilment but work very differently. While 3PL providers focus on operational support like storage, inventory, and order fulfilment, 4PL providers take a more strategic role, managing your entire supply chain and coordinating multiple 3PLs on your behalf.
In this guide, we’ll break down the key differences between 3PL and 4PL, explore where each model works best, and explain why many growing eCommerce businesses in the UK choose 3PL providers like PackPro.
Table of Contents
What is 3PL?
So, what is 3PL? It stands for Third-Party Logistics and refers to outsourcing specific fulfilment tasks, such as warehousing, stock management, and order processing, to a dedicated provider.
A 3PL partner acts as an extension of your business while leaving you in control of key decisions. It’s an ideal option for eCommerce brands that want flexibility without the overheads of running their own warehouse.
Core Services Provided by 3PLs:
3PL providers typically offer:
– Warehousing and inventory storage
– Order picking and packing
– Courier integration and shipping
– Returns management
– Customer order tracking
Many 3PLs also offer advanced tech tools, like warehouse management software for eCommerce brands, giving you full visibility into stock levels, order statuses, and delivery performance.
For growing eCommerce businesses, a 3PL UK partner can strike the right balance between support and flexibility.
What is a 4PL?
A Fourth-Party Logistics provider (4PL) acts as a single point of control for your entire supply chain. Rather than focusing on individual services like a 3PL, a 4PL takes ownership of the full picture — from inbound freight and warehousing to carrier selection and international movements — bringing everything together into one integrated operation.
The advantages of working with a 4PL include:
Strategic management and accountability
A 4PL isn’t just about execution. It takes responsibility for the performance of the whole supply chain, keeping costs under control while maintaining service quality and reliability.
Scalability and adaptability
By tapping into broad partner networks, a 4PL can quickly adjust to changing demand — whether it’s a single shipment or complex end-to-end operations.
Balanced cost, speed, and service
With the flexibility to choose the most suitable carriers, routes, and transport modes, a 4PL ensures each movement is optimised for efficiency and value.
Complete visibility
Businesses gain real-time insight into their supply chain, helping them make better decisions and continuously improve performance.
Resilience and risk mitigation
Leveraging wide networks and deep expertise, a 4PL reduces the impact of disruptions, keeping supply chains moving even through peak seasons, cross-border hurdles, or capacity shortages.
Key Differences Between 3PL and 4PL
While both models support eCommerce fulfilment, there are important distinctions in scope, control, and cost.
Service Scope
– 3PLs focus on execution: storage, picking, packing, and delivery.
– 4PLs focus on management: coordinating multiple providers and optimising end-to-end supply chains.
Level of Control
– With a 3PL, businesses retain more control over couriers, packaging, and the customer experience.
– With a 4PL, control shifts towards standardisation for efficiency across multiple providers.
Technology Utilisation
– 3PLs typically provide dashboards, order tracking, and inventory insights.
– 4PLs often deploy higher-level platforms to integrate data from several logistics partners.
Cost Implications
According to the 2025 NTT DATA / Penske Third-Party Logistics Study, 82% of shippers say that using a 3PL improves customer service, while 66% believe 3PLs help reduce overall logistics costs.
However, while 4PLs can offer greater scale efficiencies, for many small to medium-sized enterprises, the added layer of oversight sometimes brings complexity and higher fees.
Why Many eCommerce Brands Start With 3PLs
For many growing eCommerce businesses, starting with a 3PL model makes sense because it’s a practical first step. A 3PL manages fulfilment tasks such as storage, picking, packing, and shipping, allowing brands to focus on scaling the business rather than managing daily logistics operations.
One of the biggest advantages of a 3PL is flexibility. You maintain more control over courier selection, packaging design, and the overall customer experience compared to a 4PL, which typically standardises processes across providers.
Using tools like eCommerce inventory management solutions, many brands also find it easier to maintain stock accuracy across multiple sales channels when working closely with a 3PL partner.
By comparison, a 4PL setup usually becomes relevant when operations are larger and more complex — such as managing stock across several warehouses or operating across multiple countries. At that stage, a 4PL’s strategic oversight can deliver value, but for most brands still growing steadily within one region, a 3PL partnership is often the more efficient and cost-effective fit.
When Businesses Start Considering a 4PL
A 4PL solution is typically adopted by companies with complex, multi-region operations where fulfilment becomes harder to coordinate internally. It works best when:
– You have fulfilment centres across several countries
– You rely on multiple logistics providers and want one central coordinator
– Your operations involve international shipping strategies
– You’re dealing with significant freight forwarding requirements
In these situations, a 4PL can provide valuable strategic oversight — managing relationships across multiple providers, streamlining carrier selection, and overseeing cross-border logistics from a higher level. For enterprise-level retailers or businesses with truly global footprints, this wider perspective can help simplify decision-making and reduce friction across the supply chain.
3PL vs 4PL vs 5PL: A Broader Perspective
The logistics landscape doesn’t stop at 4PL. Emerging 5PL models take integration even further, using advanced analytics, AI, and automation to optimise entire supply chain networks.
3PL – Best for handling fulfilment and day-to-day operations.
4PL – Adds centralised oversight, ideal for multi-region logistics.
5PL – Aims for global optimisation through technology-led strategies.
For most growing eCommerce businesses, the 3PL vs 4PL vs 5PL choice comes down to scale. 3PLs fit the needs of small-to-medium brands, while 4PLs and 5PLs increasingly suit enterprise-level players.
Examples of 3PLs and 4PLs
Sometimes the easiest way to understand the difference between logistics models is to look at real-world providers. Here are two examples that highlight how 3PL and 4PL services differ in practice:
PackPro eCommerce Fulfilment
Based in the UK, PackPro is a third-party logistics provider offering a comprehensive UK fulfilment service that specialises in multi-channel fulfilment for eCommerce brands. They handle the hands-on side of logistics—storing inventory, picking and packing orders, integrating with major sales channels, and arranging delivery through a wide choice of couriers. One of their key strengths is flexibility: brands can customise packaging, select their courier mix, and maintain control over the customer experience while still outsourcing the operational workload. PackPro also supports growth with advanced returns management tools and seamless integrations with platforms like Amazon, eBay, and Shopify.
X2 (UK)
X2 (UK) is a leading transport and logistics solutions provider operating right across the UK and into Europe, delivering your products, tracked and on-time 24/7. From single loads to full logistics management, X2 (UK) operates an extensive partner network and own fleet to provide a flexible, scalable nationwide solution tailored to customer-specific needs.
Key Takeaways
3PLs handle the operational side of fulfilment — warehousing, picking, packing, shipping, and returns — while still giving you control over packaging, couriers, and branding.
4PLs manage entire supply chains, coordinating multiple logistics providers and integrating data for higher-level strategic oversight.
For SMEs and growing eCommerce brands, a 3PL UK partner often provides the right balance between flexibility and cost-efficiency.
4PLs become valuable for enterprises with multi-region operations, where complex supply chains require a centralised management layer.
5PLs are emerging, driven by AI and automation, but are generally suited to large-scale retailers operating globally.
FAQs - 3PL vs 4PL
What is 3PL vs 4PL?
3PL (third-party logistics) providers handle operational fulfilment such as warehousing, picking, packing, shipping and returns. 4PL (fourth-party logistics) providers sit above that, coordinating multiple logistics partners and managing the wider supply chain.
When should I choose a 3PL or a 4PL?
Choose a 3PL if you want operational support with flexibility over couriers, packaging and the customer experience. Consider a 4PL when you’re operating across multiple warehouses or countries and need centralised, end-to-end coordination.
How do 3PL and 4PL differ in service scope and control?
A 3PL executes day-to-day fulfilment while you keep closer control of how orders are packed and shipped. A 4PL focuses on oversight, standardising processes across several providers to keep everything moving in the same direction.
What technology do 3PLs and 4PLs use?
3PLs typically provide WMS-powered dashboards for stock, orders and carrier performance. 4PLs layer network-wide systems that pull data from multiple providers to give a single view of the supply chain.
What is 5PL?
5PL extends the concept further by using automation, AI and analytics to optimise groups of supply chains, usually for larger brands with complex, international operations.
Do you have examples of a 3PL and a 4PL?
Yes. PackPro is a UK 3PL offering a comprehensive UK fulfilment service for eCommerce brands. X2 (UK) Ltd is a 4PL that coordinates multiple logistics partners to manage multi-regional supply chains.