Fulfillment
Dimitris Nikolaidis
27.3.25

3PL — What is third-party logistics and why does it make sense for your company?

Online shopping is booming and with it, logistics requirements are increasing. Customers expect fast delivery times, smooth returns and transparent shipping processes that can be traced every second — but not every company can set up its own, efficient logistics. This is exactly where 3PL (Third-Party Logistics) comes in.

Imagine yourself running a successful online shop. In the beginning, it is still possible to pack and ship parcels yourself. But as demand increases, so does the effort: warehousing, shipping, returns management — all of this costs time and resources. A 3PL service provider takes on these tasks for you and ensures that your products are stored, picked and shipped efficiently without you having to worry about logistics yourself.

But how exactly does 3PL work, what advantages does it offer and what should companies pay attention to when choosing a 3PL service provider?

3pl workflow

The most important things summarized:

  • 3PL (Third-Party Logistics) means outsourcing logistical processes such as storage, packaging, shipping and returns management to specialized service providers.

  • Companies from e-commerce, retail and industry benefit from scalable solutions that adapt flexibly to order volumes.

  • cost savings due to lower fixed costs for warehouse, personnel and infrastructure — only what is actually used is paid.

  • 3PL service providers provide access to modern technology, such as warehouse management systems (WMS), interfaces to shops and real-time shipment tracking.

  • Working with an experienced 3PL partner such as Emirat Fulfillment improves efficiency and customer satisfaction through reliable processes.

  • A careful selection of the 3PL service provider is crucial: Look for experience, technical infrastructure and adaptability to your requirements.

What is 3PL exactly?

3PL stands for Third-Party Logistics and describes the outsourcing of logistics processes to an external service provider. Companies hand over tasks such as warehousing, order picking, packaging, shipping and returns management to specialized providers who have the necessary infrastructure and experience.

The difference between 1PL, 2PL and 4PL

Differences between 1pl, 2pl, 3p, and 4pl

Logistics solutions can be divided into different levels, depending on how closely a company integrates external service providers into its supply chain. While some companies manage their logistics completely themselves, others rely almost entirely on the support of specialized providers to outsource certain tasks.

  • First-Party Logistics (1PL): The company takes care of all logistical processes itself, from warehousing to delivery. There is no external support, which means full control, but also high costs and a great deal of organizational effort.
  • Second-Party Logistics (2PL): Individual transport or storage services are contracted out to external service providers. They perform specific tasks without directly integrating themselves into the company's supply chain.
  • Third-Party Logistics (3PL): In addition to transport and storage, the service provider also takes on other logistical processes such as order picking, packaging and returns management. Many 3PL providers also offer IT-based inventory management solutions.
  • Fourth-Party Logistics (4PL): If you look at the difference between 4PL vs. 3PL, then at 4PL, an external partner controls the entire logistics chain of a company. This partner also coordinates several 3PL providers, optimizes processes and uses digital technologies to monitor and improve the entire supply chain.

Why do so many companies from e-commerce, retail and industry opt for 3 PL?

The big advantage of 3PL is scalability. Companies can flexibly adapt their logistics to order volumes without having to invest in expensive storage space or personnel themselves. For e-commerce companies in particular, this is an economic opportunity to keep pace with the growth of their business.

How does 3PL work in practice?

3PL service providers play a central role in modern supply chains by supporting e-commerce, retail and industrial companies with storage, shipping and all logistics. The importance of 3PL lies in the efficient outsourcing of these processes, which allows companies to save costs and concentrate on their core business. But which services does 3PL include exactly and how do the processes work?

Best practice: e-commerce brand scales with 3PL in high season

A growing e-commerce company for sustainable kitchen products was faced with the challenge of managing the high order volume in the run-up to Christmas. Our own logistics quickly reached its limits — long shipping times, overcrowded storage rooms and increasing costs in handling returns led to dissatisfied customers.

By working with a 3PL service provider, the brand was able to outsource its entire logistics within a very short period of time: products were transferred to the 3PL warehouse, the online shop was connected via API and took over all fulfillment processes — from order picking to shipping and returns processing. Thanks to modern systems, customers always had insight into the shipment status, and the company was able to concentrate fully on marketing and sales.

The result: Shorter delivery times, improved customer service, lower error rates and a smooth process even during peak loads — without additional internal personnel or investments in warehouse infrastructure.

Such success stories show how effective 3PL can be in practice — especially with an experienced partner such as Emirate Fulfillment, who actively supports e-commerce brands in growing and efficiently cushions seasonal peaks.

Overview of key 3PL services

A 3PL logistics service provider offers a wide range of services that go beyond pure transport:

·   Warehousing: Companies use a 3PL warehouse to efficiently manage their goods without having to rent expensive storage space themselves.

·   Commissioning and packaging: Orders are put together individually and prepared for shipping.

·   Dispatch and distribution: 3PL service providers handle shipping via various transport partners to ensure lightning-fast deliveries

·   Returns management: Returns are checked, processed and integrated into the warehouse or processed further.

These are typical processes in 3PL

The 3PL logistics process starts with the delivery of the goods to the 3PL warehouse. Storage takes place there, which is often supported by modern IT systems for inventory management. When an order is received, the goods are picked, packaged and shipped. Many 3PL service providers also offer tracking solutions so that customers and companies can track the status of the delivery at any time.

Modern 3PL service providers rely on digital solutions to efficiently manage processes. This includes:

·   warehouse management systems (WMS), which enable automated warehouse management.

·   interfaces to e-commerce platforms, to process orders in real time.

·   tracking technologies, which enable transparent shipment tracking.

By using these technologies, 3PL logistics service providers ensure that the entire supply chain is handled quickly, precisely and cost-effectively.

That's why it pays off for companies to rely on 3PL

Cooperation with a 3PL service provider offers companies from e-commerce, retail and industry many advantages. By outsourcing logistics processes, processes can be optimized, costs reduced and capacities can be used much more efficiently.

·   Flexibility and scalability: Storage and shipping capacities can be flexibly adapted to current order volumes. Seasonal fluctuations can also be balanced out in this way.

·   Cost savings through outsourcing: A 3PL warehouse reduces fixed costs for personnel, storage space and technology, as companies only pay for the services actually used.

·   Focus on core business: Instead of focusing on warehousing, shipping, and returns, companies can invest their resources specifically in growth, product development, and customer service.

·   Access to logistics expertise and technology: 3PL service providers have experience in using modern systems such as warehouse management software (WMS). With their knowledge, they can optimize shipping processes and offer valuable industry know-how.

Choosing the right 3PL service provider: Companies should pay attention to this

Employees in the 3pl fulfillment warehouse

So that companies can actually take their logistics to a new level with 3PL, you should take the time to find a suitable 3PL logistics service provider. A reliable partner such as Emirat Fulfillment not only takes care of storage and shipping, but also adapts flexibly to individual requirements. Experience plays a major role in this. As an experienced 3PL service provider, Emirat Fulfillment knows the specific challenges of the respective industry and ensures smooth processes, especially when fast delivery times and well-organized returns management are required.

In addition to experience, technical infrastructure is also an important factor. As a 3PL service provider, Emirat Fulfillment uses IT-based systems such as ERP and Warehouse Management Systems (WMS), which enable automatic inventory management and seamless integration into existing shop and logistics systems. Scalability of services is just as important. Good 3PL management can also react flexibly to seasonal fluctuations or rapid growth

With Emirate Fulfillment, companies get a 3PL service provider that increases the efficiency of their customers as well as customer satisfaction through the use of modern technologies and clear communication channels.

FAQ: Common questions about 3PL service providers

1. Can 3PL service providers also implement individual requirements, such as special packaging or labeling?

Yes, many 3PL service providers offer individual solutions, including personalized packaging, labeling, inserts, or branding elements. These services can be flexibly integrated into the fulfillment process — ideal for brands that value a consistent customer experience.

2. How long does it take to connect my online shop to a 3PL service provider?

Technical integration — e.g. via interfaces to Shopify, WooCommerce or other shop systems — can usually take place within a few days to two weeks, depending on the complexity. Good 3PL providers provide proven onboarding processes and technical support for this purpose.

3. What are the costs of using a 3PL service provider?

The cost structure is mostly usage-based and depends on volume, storage time, shipping volumes and individual additional services. Typical costs include storage fees, pick & pack costs, shipping and optional services such as returns processing or special packaging.

4. Can 3PL service providers also ship internationally?

Yes, many 3PL providers have international shipping partners and customs expertise. This makes worldwide deliveries, including tracking, customs processing and local delivery, easy — ideal for fast-growing e-commerce companies with a global target group.

Our conclusion:

Third-party logistics (3PL) offers companies an effective way to outsource their logistics processes and thus save time, costs and human resources. In e-commerce in particular, 3PL enables flexible, scalable and technologically modern processing of storage, shipping and returns management. By working with experienced service providers such as Emirate Fulfillment, companies benefit from professional processes, transparent shipment tracking and improved customer satisfaction — without having to invest in their own logistics infrastructure. If you want to remain competitive, you should definitely consider the opportunities offered by 3PL

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