3PL vs 4PL: Best Option for Your eCommerce Business

As your eCommerce business grows, shipping and order fulfillment become more complex. You might start by handling orders in-house, but at some point, it becomes too much to manage alone. That’s when companies start looking into outsourcing logistics.

You’ve probably come across two terms: 3PL and 4PL.

Both are logistics partners, but they offer different types of services. Choosing the right one can affect your costs, speed, and customer satisfaction.This blog will explain what 3PL and 4PL mean, how they work, and which one might be the better fit for your eCommerce business.

3PL vs 4PL — Choose What Works for Your eCommerce

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What Is 3PL (Third-Party Logistics)?

3PL stands for third-party logistics. A 3PL company handles some or all of the logistics functions for your business. This usually includes warehousing, packing, and shipping your products.

Think of a 3PL as a company that helps you get products from your warehouse to your customers without you needing to run a warehouse yourself.

You still manage your inventory and work directly with the 3PL provider to move products. They don’t take over your supply chain, but they help manage parts of it.

Examples of what a 3PL might do:

• Store your products in their warehouse
• Pick and pack orders
• Ship orders through courier companies
• Handle returns and exchanges

If you’re running an eCommerce store and getting too many orders to manage on your own, a 3PL can be a practical solution.

When to Choose 3PL?

A 3PL is a good choice when:

• Your business is growing, and you need help with shipping
• You want to keep control of your supply chain but need help with certain tasks
• You don’t want to invest in your warehouse
• You’re mainly focused on order fulfillment

Using a 3PL is often the first step when moving from doing everything in-house to working with outside help.

It’s great for businesses that want support but still want to be involved in decisions like shipping methods, inventory placement, and returns management.

You still run the show — the 3PL just handles the hands-on work.

Pros and Cons of 3PL

Let’s look at the benefits and drawbacks of each option:

✅ Pros of 3PL:

• Simple to get started
• You keep control of decisions
• Lower cost than 4PL
• Flexible — you can use more than one provider

⛔️ Cons of 3PL:

• You still have to manage the bigger picture
• Limited analytics and strategic input
• May not scale well as you grow

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What Is 4PL (Fourth-Party Logistics)?

4PL stands for fourth-party logistics. A 4PL company goes one step further than a 3PL. Instead of just handling logistics tasks, they take charge of your entire supply chain.

A 4PL provider manages your inventory, coordinates with multiple 3PLs and carriers, and makes sure everything runs smoothly from your supplier to your customer.

They act like a manager who oversees all the moving parts, not just one warehouse or one courier. You hand off the planning, coordination, and technology to them.

A 4PL might:

• Develop a complete supply chain plan
• Select and manage 3PLs for you
• Choose the best shipping carriers
• Track performance across all logistics partners
• Provide data and insights to help improve your supply chain

You don’t need to coordinate every detail — the 4PL does that for you.

When to Choose 4PL?

A 4PL is the better choice when:

• Your logistics setup is too complex to manage internally
• You work with several warehouses, shipping companies, or suppliers
• You want one company to take full responsibility for the supply chain
• You’re expanding into new countries or markets
• You want deep reporting and insights on logistics performance

4PLs are ideal for larger eCommerce businesses or companies looking to scale quickly.

If you’d rather focus on product, marketing, or customer service, and let experts handle the entire logistics chain, 4PL gives you that freedom.

They become your logistics partner, not just a service provider.

Pros and Cons of 4PL

✅ Pros of 4PL:

• Full supply chain management
• Better coordination across providers
• High-level planning and reporting
• Saves you time on logistics

⛔️ Cons of 4PL:

• More expensive than 3PL
• Less control over day-to-day operations
• It can feel like giving up part of your business

The Key Differences Between 3PL and 4PL

The biggest difference is how much control and involvement each type of provider has in your logistics.

• 3PL handles tasks.
• 4PL manages the entire process.

Here’s a breakdown of the key differences:

How to Choose Between 3PL and 4PL?

The right choice depends on your business size, growth stage, and how involved you want to be in logistics.

Choose 3PL if:

• You’re growing fast, but still managing logistics in-house
• You need warehousing, packing, and shipping support
• You want to keep some control and make decisions yourself
• Your operations are straightforward and mostly domestic

Choose 4PL if:

• You’re managing multiple suppliers, warehouses, or 3PLs
• You want to hand off the full logistics process
• You’re selling across different regions or countries
• You need better reporting and planning

Startups and small eCommerce brands usually start with 3PL. As things grow more complex, switching to a 4PL can save time and reduce mistakes, especially when paired with strong Shopify integration solutions that keep everything connected.

3PL and 4PL in Action: Real-life Examples

Understanding the difference between 3PL and 4PL becomes much clearer when we look at real businesses and how they manage their eCommerce logistics.

These examples show how companies of different sizes and models benefit from third-party or fourth-party logistics providers.

These cases offer real insight into how choosing the right logistics model can support business growth, order volume, and delivery reliability.

Example 1: Gymshark (Using 3PL)

Gymshark, a global fitness apparel brand, started as a small operation in the UK. As the company grew rapidly through social media marketing and influencer partnerships, fulfilling orders in-house became a major challenge.

Here’s how they scaled with a 3PL:

• Partnered with Radial (a 3PL provider) for warehousing and order fulfillment.
• Outsourced storage, packing, and shipping to speed up delivery times in key regions like the US and Europe.
• Maintained full control over inventory and customer experience while letting the 3PL handle daily logistics tasks.

By working with a 3PL, Gymshark was able to keep pace with demand during high-sales periods like Black Friday without overloading its internal team.

Example 2: Unilever (Using 4PL)

Unilever, a multinational company with thousands of SKUs and suppliers, relies on a 4PL model to manage its global supply chain. Given the complexity of managing products across continents, Unilever needed more than warehousing support.

How they work with a 4PL:

• Partnered with CEVA Logistics, which acts as their 4PL service provider.
• CEVA manages and coordinates multiple 3PLs, transportation providers, and suppliers on Unilever’s behalf.
• Provides detailed reporting and performance tracking to help Unilever improve planning and avoid delays.

In this case, the 4PL is not just executing shipments but also helping Unilever plan, oversee, and improve its entire logistics network.

Example 3: Casper (Started with 3PL, Then Shifted to 4PL)

Casper, the online mattress brand, began with a basic 3PL setup to ship mattresses across the US. As demand grew and the company entered new markets, logistics became more complex.

How Casper adjusted its logistics:

• Initially partnered with 3PLs for warehousing and domestic delivery.
• As they expanded into Canada and Europe, Casper began working with a 4PL to coordinate between multiple carriers, international warehouses, and fulfillment centers.
• This shift helped Casper simplify vendor management while improving delivery speed and cost tracking.

Casper’s transition from 3PL to 4PL shows how logistics needs evolve with growth and international expansion.

Example 4: H&M (4PL Model)

H&M, one of the largest fashion retailers in the world, uses a 4PL model to manage its large-scale eCommerce and retail logistics operations.

Key elements of their 4PL setup:

• Works with multiple 4PL providers, including DHL Supply Chain.
• DHL coordinates everything from inbound freight, customs clearance, warehousing, and last-mile delivery.
• Provides end-to-end visibility and integrates with H&M’s internal systems to track inventory and order performance.

H&M’s logistics setup is designed for high-volume, multi-channel fulfillment — something only a 4PL provider can manage efficiently.

Manage Logistics the Smart Way with CartCoders

CartCoders helps eCommerce brands integrate their Shopify stores with trusted 3PL and 4PL partners. We set up the tech, so your orders, inventory, and shipping data stay in sync without the hassle.

Looking to connect your store with a fulfillment provider? See our Shopify 3PL integration service to get started.

Here’s what we take care of:

• Connecting your Shopify store with logistics partners
• Automating order flow and shipping updates
• Reducing manual steps with smart integration
• Giving you more time to focus on sales and service

Let CartCoders handle the backend while you run your business with fewer logistics headaches.

What’s Best for Your eCommerce Logistics Strategy?

Choosing between 3PL and 4PL is about more than just price. It’s about how much help you need, how fast you’re growing, and how involved you want to be in your shipping and supply chain.

Start small with a 3PL if your needs are simple. Move to a 4PL when things get complex.No matter which route you choose, CartCoders is ready to support your journey with the right tools, tech, and experience to keep things running smoothly. Contact us today!