A side-by-side comparison of 1PL, 2PL, 3PL, 4PL and 5PL, with a simple rule for choosing.
Last reviewed October 2026.
A 3PL physically stores, picks, packs and ships your products from its own warehouse.
A 4PL doesn't touch the boxes.
It manages your entire supply chain, coordinating multiple 3PLs, carriers and suppliers for you.
Almost every ecommerce brand under about $50M in revenue needs a 3PL, not a 4PL. 4PLs make sense for enterprises running many warehouses, regions and freight lanes that need one accountable orchestrator. 3PL vs 4PL side by side. : What it does; 3PL: Warehousing and order fulfillment; 4PL: End-to-end supply-chain management. : Owns or runs warehouses; 3PL: Yes; 4PL: Usually no; contracts 3PLs. : Typical client; 3PL: Ecommerce and D2C brands, SMB to mid-market; 4PL: Enterprises with complex, multi-region networks. : Pricing; 3PL: Per-touch fees (pick, pack, storage); 4PL: Management fee plus pass-through costs. : Day-to-day contact; 3PL: Account manager at the warehouse; 4PL: Supply-chain manager overseeing vendors.
The full ladder: 1PL to 5PL. 1PL: the seller moves and ships its own goods. 2PL: an asset-based carrier, such as a trucking company or parcel carrier, moves goods for you. 3PL: an outsourced partner warehouses and fulfills orders. 4PL: a lead logistics provider manages several 3PLs and carriers as one network. 5PL: a provider that manages entire supply-chain networks, often across e-marketplaces, usually at very large scale.
Which one do you need? If your problem is getting orders out the door accurately and on time, you need a 3PL.
If your problem is coordinating five warehouses, ocean freight, customs and regional carriers across continents, you may need a 4PL.
Most growing ecommerce brands are firmly in the first group.
Ship Velocity is a 3PL: a 100,000+ square foot fulfillment center in Doral (Miami), Florida with 99.8% pick-pack accuracy, 24-hour dispatch and month-to-month terms.
What is the difference between 3PL and 4PL? A 3PL warehouses and fulfills orders itself.
A 4PL manages a company's whole supply chain by coordinating multiple 3PLs, carriers and suppliers, without usually running warehouses itself.
Is a 4PL better than a 3PL? Not for most ecommerce brands.
A 4PL adds a management layer that only pays off for large, multi-region supply chains.
What is a 2PL? A 2PL is an asset-based carrier, such as a trucking company, airline or parcel carrier, that moves goods from one place to another.
What is a 5PL? A 5PL manages entire supply-chain networks at very large scale, often aggregating demand across many shippers and marketplaces.
About Ship Velocity — a Miami-based third-party logistics partner.
Velocity Worldwide LLC operates a purpose-built fulfillment center at 8292 NW 21 ST, Doral, FL 33122, serving direct-to-consumer ecommerce brands, Amazon FBA sellers, subscription-box operators, and wholesale and retail vendors from a single 100,000-plus square-foot facility.
Coverage and reach.
Ground shipping from the Miami hub reaches roughly 90 percent of the continental United States population within two business days and 99 percent within three.
Cross-border programs into Canada, Mexico, the Caribbean, and Latin America route through the same facility.
International freight ships to 200-plus countries via UPS Worldwide, FedEx International, and DHL Express.
How we work.
Engagements are month-to-month with no long-term contracts, no storage minimums, and per-touch pricing itemized in the fee schedule.
Every account is assigned a named account manager who stays for the life of the relationship.
Onboarding a new client typically takes five to ten business days from inventory receive through pilot cutover.
Published performance standards. 99.8 percent pick-pack accuracy on a twelve-month rolling basis, 24-hour order-to-dispatch service level for orders placed before the daily cutoff, sub-one-percent short-ship rate, 99.5 percent on-time carrier hand-off, and sub-half-percent damage claims rate.
Every metric is reported to clients monthly.
Get in touch.
Prospects can request a quote at shipvelocity.com or email [email protected] for a same-business-day response with pricing, references, and an operations plan tailored to the program.