3PL vs. 4PL: What’s the Difference and Which Model Fits Your Business?
When companies grow and start to ship more products, the big question arises: should you outsource fulfillment, and if so — to which type of partner?
Two of the most common options are 3PL (third-party logistics) and 4PL (fourth-party logistics) providers. While they may sound similar, the roles they play in your supply chain are very different.
Understanding these models will help you make the right decision when outsourcing fulfillment, especially if you’re scaling quickly and need more than just warehouse space.
What Is a 3PL?
A third-party logistics (3PL) provider takes care of the physical side of logistics:
- Receiving inventory
- Storing products
- Picking and packing orders
- Shipping through carrier services
- Handling returns
- And often providing software to track it all
3PLs are ideal for ecommerce brands, wholesalers, Amazon sellers, and subscription box businesses that need a reliable partner to execute their day-to-day order fulfillment.
When you outsource fulfillment to a 3PL, you’re handing over the operational load, but still keeping a clear line of communication and control over how things are run. This is especially important for businesses that want branded packaging, flexible workflows, and responsive support.
What Is a 4PL?
A fourth-party logistics (4PL) provider, on the other hand, does not handle physical goods directly. Instead, they manage the entire logistics network on your behalf. A 4PL often oversees multiple 3PLs, selects carriers, manages data and systems, and acts as a single point of contact for your supply chain.
4PLs are best suited for large, complex businesses with international shipping, multi-warehouse setups, and layered supply chains.
They essentially act as logistics consultants — designing the overall strategy while outsourcing the actual work to others.
3PL vs. 4PL: Key Differences
| Feature | 3PL | 4PL |
| Physical Handling | ✅ Yes | ❌ No |
| Warehousing | ✅ Yes | ❌ No |
| Strategy | ❌ Limited | ✅ Full control |
| Best for | Small to mid-sized brands | Large/global enterprises |
| Control over operations | ✅ High | ❌ Low |
| Response speed | ✅ Fast | ❌ Slower |
Why Choose a 3PL for Outsourced Fulfillment?
For most growing brands, outsourcing fulfillment to a 3PL makes more sense. Here’s why:
- Direct execution: You’re working with the people who actually handle your inventory and ship your orders.
- Faster response: Need to make a change to packaging or shipping rules? A 3PL can implement quickly.
- Cost-effective: You pay for what you use, without the added management layer that comes with a 4PL.
- Flexible service: Whether you ship 100 orders a month or 10,000, a good 3PL scales with you.
- Better customer experience: The accuracy and speed of a well-run 3PL directly impacts your brand’s reputation.
The key is choosing a 3PL that understands your needs and can grow alongside you. That’s the advantage of smart outsourced fulfillment — you save time, reduce errors, and free up internal resources to focus on marketing, product, and growth.
Outsourcing Fulfillment Doesn’t Have to Be Complicated
If you’re considering this option, start by looking at what you really need. Do you need someone to manage your entire supply chain across regions and vendors? Then a 4PL might fit.
But if you need a trusted partner to store, pack, and ship your orders accurately and on time — with visibility and support — a 3PL will give you more value.
At Tetris3PL, we make outsourced fulfillment simple, efficient, and scalable. Whether you’re just starting or looking to upgrade from your current provider, we’re here to help you grow.