If you want a successful business, setting it up online has become mandatory to survive. Not to mention your business can get much-needed exposure online. There is no doubt that online businesses are thriving today. However, the one thing which has made it possible is third-party logistics. These services have made it easier for even small businesses to deliver their product anywhere in the country.

As a result, much less known businesses have become known. Also,  having these services have great advantages as well as disadvantages. If you want to take your business online but have doubts about the 3PL services, then read ahead to know its advantages and disadvantages.  

What Is Third-party Logistics?

Third-party logistics, or 3PL, plays a vital role in online business. It is a process that monitors and executes the shipping process of a business. This process can include picking up the product and packing it to delivering it to the customer’s given address.

In simple words, the 3PL takes care of the whole order fulfilment process of the E-commerce business. This process of acquiring and delivering the products to the customer has so many advantages, but it also has some disadvantages too. Both of these aspects of this business process are explained in detail further.

Advantages Of Third-party Logistics

1. Effective Warehouse Management

3PL companies manage the warehouse for their customers. They procure large amounts of products and store them in their warehouses. As soon as the order is placed, they contact the nearest warehouse to deliver the product.

2. Lower Shipping Charges

Since 3PL companies ship large amounts of products per day, it’s easier for them to provide their services at cheaper rates.

3. Fast Delivery

Due to the availability of numerous warehouses, it has become possible for the 3PL companies to deliver the product on time and before time.

4. Real-Time Order Tracking

You can track the order in real-time, which gives you a sense of security that the order is about to be delivered.

5. Numerous Payment Options Are Available

It is a big hub of order. So for customer convenience, they have several payment options to choose from to make the payment.

6. Customer Satisfaction

The sole goal of 3PL companies is customer satisfaction. If the customer is satisfied, the business relies on these companies to continue to provide them with work.

Disadvantages Of Third-party Logistics

1.   Complex To Track Multi-carrier Orders

2.   Independent Communication

3.   Separate Allocation Of Orders

4.   Carrier Performance Needs To Be Tracked Separately

5.   No Standard Labels Or Packaging


If you want to grow your trade business, partnering with a 3PL company might be fruitful. It’s true that these services have their fair share of disadvantages, but they are nothing in comparison to the benefits, including lower shipping prices and fast delivery.

Taking this simple step towards the expansion of your business could be a transformative decision for your business. If you want a reliable company, then you can contact 3PL consulting by AML Advisory.