If you run an e-commerce business, you’ve probably heard the term 3PL or third-party logistics. As online shopping continues to grow, the need for efficient storage, inventory management, packaging, and shipping has become more important than ever. That’s where 3PL providers step in. They help businesses streamline their supply chain, reduce costs, and focus on growth rather than operations.
In this guide, we’ll cover everything you need to know about 3PL, including what it is, how it works, the different types and sizes of providers, benefits, and why FnPrep is considered the best 3PL in the UK.
What is 3PL (Third-Party Logistics)?
3PL (Third-Party Logistics) refers to outsourcing your supply chain and logistics operations to a third-party company. Instead of managing everything in-house, businesses partner with a 3PL company to handle services like:
- Warehousing & storage
- Inventory management
- Picking & packing orders
- Shipping & delivery
- Returns management
For e-commerce businesses, a 3PL is like an extended operations team. You sell the products, and your 3PL takes care of the backend logistics.
Why Use a 3PL?
Here are the top reasons why businesses work with a 3PL provider:
- Cost savings – Reduce overhead by eliminating the need to rent warehouses or hire staff.
- Scalability – 3PLs grow with your business, handling seasonal spikes in demand.
- Faster shipping – Many 3PLs have multiple fulfillment centers, allowing quick deliveries.
- Focus on growth – Spend less time worrying about packaging and shipping and more time on marketing and sales.
- Technology integration – Top 3PL companies offer real-time tracking, inventory software, and seamless integration with e-commerce platforms like Shopify, Amazon, and eBay.
Types of 3PL Services
Not all 3PL companies are the same. They specialize in different areas of the supply chain. Here are the main types of 3PL services:
1. Transportation-Based 3PLs
These companies focus on moving products from one location to another. They manage freight, trucking, shipping, and distribution.
2. Warehouse & Distribution 3PLs
These providers specialize in storage, inventory, picking, packing, and order fulfillment. They are ideal for e-commerce and retail businesses.
3. Financial & Information-Based 3PLs
These companies focus on data-driven logistics, supply chain visibility, freight auditing, and tracking.
4. Integrated Service Providers
These are full-service 3PLs that manage the entire logistics process, from warehousing to last-mile delivery.
Sizes of 3PL Providers
When choosing a 3PL, size matters. Businesses should pick a provider that fits their scale and needs.
- Small 3PLs – Perfect for startups and small e-commerce stores. They offer personalized service and flexibility.
- Mid-Sized 3PLs – Suitable for growing companies that need more warehouse space, faster shipping, and multiple fulfillment options.
- Enterprise-Level 3PLs – Large providers that handle global operations, high order volumes, and advanced supply chain management.
FnPrep, for example, caters to all business sizes—from small sellers on Amazon FBA to large-scale online stores—making it a versatile choice for UK businesses.
How Does a 3PL Work?
Here’s a simple step-by-step breakdown of how 3PL fulfillment works:
- Inventory storage – You send your products to the 3PL’s warehouse.
- Integration – The 3PL connects to your online store (Shopify, WooCommerce, Amazon, etc.).
- Order processing – When a customer places an order, the 3PL system receives it automatically.
- Picking & packing – Warehouse staff pick items from shelves, pack them, and prepare them for shipping.
- Shipping & tracking – The 3PL arranges delivery and provides tracking details to your customer.
- Returns management – If a customer returns a product, the 3PL processes it on your behalf.
Benefits of Using a 3PL in the UK
For UK-based businesses, using a 3PL comes with unique benefits:
- Access to UK and EU markets with fast delivery
- Lower shipping costs through bulk carrier agreements
- Brexit-ready solutions to manage cross-border challenges
- Amazon FBA prep services for sellers needing labeling, bundling, and compliance
This is why businesses across the UK prefer 3PLs like FnPrep, which specializes in helping e-commerce brands scale efficiently.
FnPrep: The Best 3PL in the UK
When it comes to 3PL services in the UK, one name stands out—FnPrep.
Why Choose FnPrep?
- Comprehensive services – FnPrep offers warehousing, order fulfillment, prep services for Amazon FBA, and returns management.
- E-commerce expertise – Seamless integration with Shopify, WooCommerce, eBay, and Amazon.
- Fast shipping – With UK-based fulfillment centers, FnPrep ensures quick delivery across the country and beyond.
- Custom solutions – Whether you’re a small startup or a large enterprise, FnPrep tailors services to your business needs.
- Amazon FBA Prep Leader – They are widely recognized for their reliable FBA prep services in the UK, ensuring your products meet Amazon’s requirements.
For businesses seeking a trusted 3PL partner in the UK, FnPrep is the go-to choice.
Common Questions About 3PL
Is 3PL the same as fulfillment?
Not exactly. Fulfillment is a service within 3PL. A 3PL company offers fulfillment along with transportation, storage, and more.
What is the difference between 3PL and 4PL?
- 3PL manages logistics operations like storage and shipping.
- 4PL goes further, managing the entire supply chain, including multiple 3PLs.
How much does 3PL cost in the UK?
Costs vary depending on storage space, order volume, and services. Most 3PLs charge for storage, pick-and-pack, shipping, and returns.
Is 3PL good for small businesses?
Yes. Small businesses save money on warehouse costs and focus on sales instead of logistics.