As your eCommerce business grows, you might encounter terms like 3PL and 4PL when researching fulfillment solutions.

So what is the difference between
3PL vs 4PL?

In short, a third-party logistics (3PL) provider handles the day-to-day operations of order fulfillment, warehousing your products, picking & packing orders, shipping, and often handling returns and customer service.

A fourth-party logistics (4PL) provider, on the other hand, takes a higher-level role by managing your entire supply chain from end to end. Think of a 3PL as the team executing the shipping of your orders, and a 4PL as the general contractor overseeing and optimizing all the moving parts of your supply chain (often coordinating multiple 3PLs and carriers).

3PL vs 4PL Quick Comparison

Whats a 3PL, Really?

Short version? A 3PL (third-party logistics provider) ships your stuff so you dont have to.

Slightly longer version: you send your inventory to a warehouse run by someone else. When customers place orders, that team picks, packs, and ships everything out. They handle returns, too. Thats the core of it.

Its basically like having your own fulfillment department, just not in your building. Or your garage.

So What Do They Actually Do?

Most 3PLs (like lite prepcenter) cover a few big pieces:

• Inventory storage your products live in their warehouse.

   

• Order fulfillment they pick and pack your orders.

   

• Shipping they print the labels and ship stuff out using carriers like UPS, USPS, or FedEx.

   

• Returns they inspect, restock (if possible), or toss damaged items.

   

And because they ship in bulk, 3PLs often get better rates. Some, like us, pass those savings on to you.

Youll usually get a dashboard, too. Something to help you keep tabs on orders, stock levels, and shipping activity without needing to be in the warehouse.

Why Do Sellers Use One?

Because at some point, doing it all yourself stops making sense.

A good 3PL gives you time back and cuts shipping costs. No hiring warehouse staff. No printing labels at midnight. No panicking when five people order the same thing and you only have three left.

Its also easier to grow. You can start small, just one warehouse, and scale up if orders start pouring in.

Quick Heads-Up

Not every 3PL is built for smaller brands. Some expect huge order volumes or long-term contracts right out of the gate.

Look for one that works with where you are now, not where they think you should be. (No shade, but not every provider is flexible.)

lite prepcenter, for example, works with growing eCommerce shops. No setup fees. No minimums. No year-long lock-ins. Just straightforward support that fits your actual needs.

Whats a 4PL, Then?

If a 3PL is the crew shipping your stuff, a 4PL is the one managing all the crews.

A fourth-party logistics provider doesnt just fulfill orders. They step back and run the entire supply chain, from manufacturing and freight to warehousing and delivery. You’re not just outsourcing tasks; you’re outsourcing the orchestration.

Hows That Different from a 3PL?

Lets say your product is made in Vietnam. A 3PL might store it and ship it when orders roll in.

A 4PL? Theyll coordinate with your manufacturer, handle freight across the ocean, work with multiple 3PLs across different U.S. regions, and still make sure your customer in Ohio gets their order on time. You deal with one contact the 4PL. They handle the rest.

No more juggling vendors, chasing down tracking updates, or managing contracts with three different carriers. The 4PL does all that so you dont have to.

What Do They Actually Manage?

• Big-picture logistics not just shipping, but strategy.

   

• Multiple vendors they might subcontract different 3PLs in different regions.

   

• Technology most 4PLs use advanced tracking, data tools, and dashboards.

   

• Cost optimization theyre looking for long-term efficiencies, not just quick wins.

   

And usually, 4PLs dont own trucks or warehouses themselves. Thats kind of the point, they stay flexible. They pick partners based on whats best for you, not based on what they happen to own.

So Who Needs a 4PL?

Not everyone.

If youre a small-to-mid-sized eCommerce brand, a solid 3PL is probably enough. But if you’re shipping internationally, working with multiple factories, or growing so fast youre losing visibility into how everythings moving, a 4PL can help you get your arms around it.

This model tends to make the most sense for enterprise-level or rapidly scaling businesses with complex operations. Otherwise, it can feel like too many layers and too much cost.

TL;DR?

A 3PL ships your orders.
A 4PL manages the entire logistics ecosystem, including the 3PLs.

Its like hiring a conductor instead of just the drummer.

Still trying to figure out which setup makes sense for your business? Stick aroundwell break down how to choose the right model next.

3PL or 4PL? Heres How to Choose.

This isnt about which ones better. Its about which one makes sense for where your business is right now.

Most small to mid-sized eCommerce brands stick with a 3PLand for good reason. It gives you the core logistics support you need (inventory storage, picking, packing, shipping) without the added cost or complexity of bringing in a logistics manager-for-hire.

You still call the shots on sourcing, product decisions, and business strategy. The 3PL just handles the heavy liftingliterally.

When a 4PL Might Make More Sense

Now, if your supply chain looks more like a flowchart than a checklistmultiple factories, multiple 3PLs, overseas freight, third-party carriersyou might be entering 4PL territory.

Thats where having one partner manage everything can actually save time and money. A 4PL can bring it all under one roof (figuratively), help you negotiate better rates, and maybe even plug you into smarter warehouse placements and shipping routes.

But keep in mind: 4PLs arent cheap. Youre paying for strategy, oversight, and coordination. The savings have to outweigh the feesor its just another layer.

Start Simple, Then Scale

For most growing brands, starting with a solid 3PL is the way to go. The right one will grow with you. Some even offer freight services, kitting, and international help when youre ready.

Honestly, a good 3PL can start to feel like part of your internal teamjust without the HR paperwork.

And if things get complicated later? You can always reevaluate. Either bring in a supply chain manager in-house or look at a 4PL to centralize everything. But until then, keep it lean.

Quick Gut Check

Ask yourself:

• Are you overwhelmed by shipping or by supply chain chaos?

• Do you need help getting orders out or managing vendors, freight, and global logistics?

If its the former, go 3PL.
If its the latter, maybe talk to a 4PL, but only if the complexity (and budget) truly justifies it.