Third Party Logistics Providers Explained: A UK Beginner’s Guide
- Blue30
- 2 days ago
- 7 min read
If you run an ecommerce or retail business in the UK, chances are you have already come across the term third party logistics providers. You may also have heard phrases like 3PL, fulfilment partner, logistics outsourcing or non asset logistics.
But what do these terms actually mean in practice, and more importantly, how do they apply to your business?
For many growing brands, logistics quickly becomes one of the biggest operational headaches. Orders increase, customer expectations rise, storage space runs out and delivery mistakes start to cost money and reputation. This is where third party logistics providers step in.
In this beginner friendly guide, we will explain exactly what third party logistics providers are, what they do, how they differ from carriers and freight brokers, and when it makes sense to use one. We will also look at the benefits for UK ecommerce businesses and how a fulfilment specialist like Blue30 Fulfilment can support sustainable growth.
What Are Third Party Logistics Providers?
Third party logistics providers are specialist companies that manage part or all of a business’s logistics and supply chain operations on its behalf.
Rather than handling warehousing, order fulfilment, shipping and returns in house, businesses outsource these activities to a third party logistics provider with the expertise, infrastructure and technology to do it more efficiently.
Services offered by third party logistics providers can include:
Warehousing and inventory storage
Pick and pack fulfilment
Ecommerce order fulfilment
Freight and transport coordination
Returns management
Inventory management systems
Supply chain optimisation and consulting
In simple terms, a third party logistics provider acts as an extension of your business, taking care of the physical movement and storage of your products so you can focus on sales, marketing and growth.
At Blue30 Fulfilment, we operate as a UK based third party logistics provider, specialising in ecommerce fulfilment for growing brands that want fast, accurate and scalable order processing.
Why Third Party Logistics Providers Matter in the UK Ecommerce Market
The UK ecommerce landscape is one of the most competitive in Europe. Customers expect next day delivery, real time tracking and seamless returns, often at no extra cost.
At the same time, marketplaces like Amazon UK, Shopify and TikTok Shop are making it easier than ever for new brands to enter the market. This puts pressure on fulfilment operations from day one.
Third party logistics providers help UK businesses meet these expectations without the cost and complexity of running their own warehouse operations.
Instead of investing in premises, staff, warehouse management systems and courier contracts, businesses can tap into an established logistics network that is already optimised for speed and accuracy.
What Do Third Party Logistics Providers Actually Do?
Third party logistics providers cover a wide range of supply chain functions. Some focus purely on transport or freight, while others, like Blue30 Fulfilment, focus on warehousing and ecommerce fulfilment.
Below are the core areas where third party logistics providers typically add value.
Warehousing and Inventory Storage
One of the most common reasons businesses work with third party logistics providers is to access professional warehousing without long term leases.
Stock is stored in secure, strategically located UK warehouses with systems that track inventory levels in real time. This reduces the risk of overselling, stockouts or lost inventory.
For ecommerce brands, having inventory closer to customers also helps reduce delivery times and shipping costs.
Pick and Pack Fulfilment
Pick and pack is the heart of ecommerce fulfilment. When an order is placed, the items are picked from storage, packed securely and prepared for dispatch.
Third party logistics providers use trained warehouse staff, barcode scanning and quality checks to ensure accuracy. This is especially important for brands shipping hundreds or thousands of orders per day.
At Blue30 Fulfilment, accuracy and speed are central to our fulfilment process, helping brands protect their customer experience as they scale.
Shipping and Courier Management
Managing multiple courier relationships can be time consuming and expensive. Third party logistics providers already have negotiated rates and established relationships with major UK carriers.
This means faster dispatch, competitive shipping rates and access to multiple delivery options, including next day, tracked and international shipping.
Returns Management
Returns are an unavoidable part of ecommerce, particularly in fashion, beauty and consumer goods. A good third party logistics provider will manage returns efficiently, inspecting items, restocking where possible and providing clear reporting.
This helps businesses control costs while maintaining a positive customer experience.
Technology and Integration
Modern third party logistics providers are technology driven. They integrate directly with ecommerce platforms like Shopify, WooCommerce and Amazon UK.
Orders flow automatically into the fulfilment system, inventory updates in real time and businesses can access dashboards showing order status, stock levels and performance metrics.
Asset Based vs Non Asset Based Third Party Logistics Providers
Not all third party logistics providers operate in the same way. Understanding the difference between asset based and non asset based providers helps you choose the right partner.
Asset Based Providers
Asset based logistics providers own physical infrastructure such as warehouses, vehicles or fulfilment centres.
Fulfilment focused providers like Blue30 Fulfilment fall into this category. We operate our own UK warehouses, which gives us direct control over service quality, processes and turnaround times.
Asset based providers are often well suited to ecommerce fulfilment, where consistency and accuracy matter.
Non Asset Based Providers
Non asset based providers do not own physical assets. Instead, they coordinate services through a network of carriers or warehouses.
This model is more common in freight brokerage and transport management, where flexibility and access to large carrier networks is the priority.
Asset Light Providers
Some providers operate a hybrid model, owning limited assets while outsourcing the rest. This approach can offer flexibility but may reduce control over day to day operations.
Are Third Party Logistics Providers the Same as Freight Brokers?
This is a common point of confusion.
All freight brokers are considered third party logistics providers, but not all third party logistics providers are freight brokers.
Freight brokers focus on arranging transport, matching shippers with carriers for road, sea or air freight. They typically do not handle warehousing or fulfilment.
Fulfilment focused third party logistics providers manage inventory storage, pick and pack and shipping for ecommerce and retail brands.
For UK ecommerce businesses, fulfilment focused providers are usually the most relevant type of third party logistics provider.
When Should a Business Use Third Party Logistics Providers?
There is no single right time, but there are clear signs that it may be time to outsource logistics.
You should consider working with third party logistics providers if:
You are running out of storage space
Order volumes are increasing faster than your team can handle
Fulfilment errors are leading to customer complaints
Shipping costs are becoming unpredictable
You want to expand into new sales channels or marketplaces
You want to offer faster delivery options
Many UK brands start by fulfilling orders in house, then move to a third party logistics provider once growth makes this unsustainable.
The Core Benefits of Working with Third Party Logistics Providers
Third party logistics providers are a significant part of the global supply chain for a reason. They provide measurable benefits across cost, efficiency and customer experience.
Scalability Without Risk
One of the biggest advantages is scalability. You can increase or decrease order volumes without hiring staff, renting more space or investing in equipment.
This is especially valuable for seasonal businesses or brands running promotions.
Expertise and Best Practice
Third party logistics providers specialise in logistics. They bring proven processes, trained staff and industry knowledge that would take years to build internally.
This expertise helps avoid common fulfilment mistakes that can damage brand reputation.
Cost Efficiency
Although outsourcing may seem expensive at first glance, it often reduces overall costs. Businesses save on rent, labour, insurance, systems and courier rates.
With shared infrastructure, third party logistics providers can achieve economies of scale that individual businesses cannot.
Faster Delivery and Better Customer Experience
With optimised processes and courier integrations, third party logistics providers help businesses meet rising customer expectations around delivery speed and reliability.
This directly impacts reviews, repeat purchases and brand loyalty.
Focus on Growth
Perhaps the most overlooked benefit is time. By outsourcing logistics, founders and teams can focus on marketing, product development and customer acquisition.
How Third Party Logistics Providers Support Amazon UK Sellers
Amazon UK has strict performance requirements around delivery speed, accuracy and customer service.
Third party logistics providers can support sellers who use Fulfilled by Merchant, Seller Fulfilled Prime or hybrid models alongside Amazon FBA.
With proper integrations and SLAs, a fulfilment partner like Blue30 Fulfilment can help sellers meet Amazon standards while maintaining control over their inventory and branding.
Choosing the Right Third Party Logistics Provider in the UK
Not all providers are created equal. When evaluating third party logistics providers, consider the following:
Experience with businesses similar to yours
UK based warehousing and delivery networks
Technology integrations with your sales platforms
Transparent pricing and reporting
Proven accuracy and fulfilment speed
Clear communication and account management
A good third party logistics provider should feel like a partner, not just a service supplier.
FAQs About Third Party Logistics Providers
Are third party logistics providers only for large businesses?
No. Many SMEs and startups use third party logistics providers to compete with larger brands by accessing professional fulfilment from day one.
Can I still use multiple sales channels?
Yes. Most third party logistics providers integrate with multiple platforms, allowing you to fulfil orders from your website, marketplaces and wholesale channels from one inventory pool.
Is outsourcing fulfilment safe?
When you choose a reputable provider with strong systems and processes, outsourcing is often more secure and reliable than in house fulfilment.
Final Thoughts: Are Third Party Logistics Providers Worth It?
For most UK ecommerce businesses, the answer is yes.
Third party logistics providers play a critical role in helping brands scale efficiently, meet customer expectations and stay competitive in a fast moving market.
By outsourcing fulfilment to a trusted partner, you gain access to infrastructure, expertise and technology that would otherwise be costly and complex to build yourself.
If you are looking for a UK based fulfilment partner that understands ecommerce growth challenges, Blue30 Fulfilment offers reliable, scalable and transparent third party logistics services designed to support your next stage of growth.
Get in touch with our team to find out how we can help streamline your fulfilment and improve your customer experience.
Comments