3pl what is it

3PL: What It Is, how It works, and why It’s essential in logistics

Ever wondered why some online stores deliver fast and flawlessly?
The secret often isn’t in the product—it’s in the logistics.
Behind many on-time deliveries and smooth shopping experiences, there’s a 3PL provider at work.
If you're not sure what that means or how it can benefit your business, this article is for you.

What Does 3PL Mean in Logistics?

3PL stands for Third Party Logistics. It refers to a model where an external company manages part or all of your business’s logistics operations.

Definition of 3PL and Its Role in the Supply Chain

A 3PL provider handles warehousing, order fulfillment, transportation, and returns management. You focus on selling—they take care of the rest.

Differences Between 1PL, 2PL, 3PL, and 4PL

Understanding these logistics tiers helps you make smarter strategic decisions:

  • 1PL (First Party Logistics) refers to companies that handle all logistics operations internally. They own and manage their own warehouses, transportation, and distribution channels.

  • 2PL (Second Party Logistics) involves outsourcing only the transportation part of the supply chain. The company manages the rest internally but partners with carriers or freight companies for deliveries.

  • 3PL (Third Party Logistics) means delegating both transportation and warehousing to an external partner. This allows the company to focus on sales and operations while the 3PL handles storage, shipping, and returns.

  • 4PL (Fourth Party Logistics) goes a step further by outsourcing the entire logistics ecosystem, including strategy, coordination, and optimization of multiple 3PLs. A 4PL acts as a central orchestrator of the entire supply chain.

Key Benefits of Working with a 3PL Provider

A good 3PL partner can transform your business by streamlining operations and reducing complexity.

Cost Savings and Faster Delivery Times

Outsourcing logistics to a 3PL warehouse saves space, labor, and time—and helps your orders ship faster.

What Services Do 3PL Providers Offer?

They don’t just store boxes. Their value lies in efficiency and technology.

Common 3PL Services:

  • Warehousing and inventory management

  • Domestic and international shipping

  • Reverse logistics (returns processing)

At AMPHORA, for example, we offer:

  • Real-time inventory management with proprietary software

  • Order preparation and shipping across national and international markets

  • Seamless returns and reverse logistics solutions

Does Your Business Need a 3PL Partner?

Not every brand needs one—but many do. Look for these signs:

Indicators You Might Benefit from a 3PL:

  • Your warehouse is running out of space

  • You spend too much time managing logistics

  • Deliveries are late or poorly packed

  • You want to scale without expanding your internal structure

Tips for Choosing the Right 3PL Partner

Choosing the wrong partner is costly. Choosing the right one will power your ecommerce growth.

Key Aspects to Consider:

  • Technology: Do they have their own software? Can you track orders in real-time?

  • Flexibility: Can they scale with your business?

  • Expertise: Do they understand your industry’s needs?

  • Location: Are their warehouses close to your customers?

AMPHORA: Your Ecommerce-Focused 3PL Partner

At AMPHORA, we specialize in ecommerce fulfillment, combining technology, speed, and proximity to enhance your logistics operations.

Want to learn more? Visit our fulfillment services page or request a personalized demo.