--- title: 3PL vs 4PL vs 5PL description: 3PL, 4PL, and 5PL can seem quite confusing. Learn more about first-party through 5th party logistics. image: https://www.channelape.com/hubfs/best%20inventory%20and%20order%20management%20software.jpg --- [![Full Color Logo - Cropped - New](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Logos/Full%20Color%20Logo%20-%20Cropped%20-%20New.svg)](https://www.channelape.com) - Solutions - Resources ![grow-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/grow-icon.svg) Grow [Wholesale channels Big Box - X12 EDI support](https://www.channelape.com/solutions/grow/b2b-wholesale) [Brick-and-mortar channels Enable smaller retailers](https://www.channelape.com/solutions/grow/brick-and-mortar-channels) [Dropship your products Let others easily sell for you](https://www.channelape.com/solutions/grow/dropship-your-products) [Pre-sale orders Without the headache later](https://www.channelape.com/solutions/grow/pre-sale-orders) [Distribution footprint Additional locations & partners](https://www.channelape.com/solutions/grow/distribution-footprint) ![manage-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/manage-icon.svg) Manage [Reserve Inventory Influencers, wholesale & more](https://www.channelape.com/solutions/manage/reserve-inventory) [Inventory effective & expiration dates No more spreadsheets required](https://www.channelape.com/solutions/manage/inventory-effective-expiration-date) [Multi-status, multi-location inventory Warehouses, stores, and channels](https://www.channelape.com/solutions/manage/multi-status-multi-location-inventory) [Fulfillment holds & order edits Auto-hold on new CX ticket](https://www.channelape.com/solutions/manage/fulfillment-holds-order-edits) [Automate fulfillment rules Bundles, marketing SKUs, and more](https://www.channelape.com/solutions/manage/automate-fulfillment-rules) ![monitor-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/monitor-icon.svg) Monitor [Inbounds - New & Returns By SKU & Date](https://www.channelape.com/solutions/monitor/inbounds-new-return) [Fulfillable Inventory By status and location](https://www.channelape.com/solutions/monitor/fulfillable-inventory) [Fulfillment Partners SLAs, exceptions, and overall activity](https://www.channelape.com/fulfillment-partners) [Dashboards & Reports Use ours or build your own](https://www.channelape.com/solutions/monitor/dashboards-reports) [Monitoring, Alerting, Export Email, Slack, GSheets, S3, 5Tran](https://www.channelape.com/solutions/monitor/monitoring-alerting) ![enable-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/enable-icon.svg) Enable [Clearer financial picture Simplify monthly close](https://www.channelape.com/solutions/enable/clearer-financial-picture) [Store inventory online See your retail store inventory](https://www.channelape.com/solutions/enable/store-inventory) [One team to implement More than just a tool](https://www.channelape.com/solutions/enable/one-team-to-implement-customize-manage) [Customization - API Dozens of API endpoints](https://dev.channelape.com) [Integrations See all the apps](https://www.channelape.com/apps) [Support Get 24/7 help](https://www.channelape.com/support-landing) [Knowledge Base Read in-depth guides](https://www.channelape.com/support-landing?kb=true) [Guides & Whitepapers Improved inventory management](https://www.channelape.com/resources) [Fulfillment Partners Global 3PL warehouse companies](https://www.channelape.com/fulfillment-partners) ![book-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/book-icon.svg) Featured Resources ![The Definitive Guide to 3PL’s-min](https://www.channelape.com/hubfs/The%20Definitive%20Guide%20to%203PL%E2%80%99s-min.png) eBook The definitive guide to 3PL Get the information and insights you need to make better-informed decisions for your business. Download Now ![Saysh Shoes-1](https://www.channelape.com/hubfs/Saysh%20Shoes-1.png) Case Study Saysh When Saysh saw a 1000% increase in order volume for their holiday sale, they successfully fulfilled every order—without overselling. Read Story ![integration-issues](https://www.channelape.com/hubfs/2022%20-%202H/integration-issues.png) Whitepaper Online Customer Shopping Habits Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Download Now - Solutions ![grow-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/grow-icon.svg) Grow [Wholesale channels Big Box - X12 EDI support](https://www.channelape.com/solutions/grow/b2b-wholesale) [Brick-and-mortar channels Enable smaller retailers](https://www.channelape.com/solutions/grow/brick-and-mortar-channels) [Dropship your products Let others easily sell for you](https://www.channelape.com/solutions/grow/dropship-your-products) [Pre-sale orders Without the headache later](https://www.channelape.com/solutions/grow/pre-sale-orders) [Distribution footprint Additional locations & partners](https://www.channelape.com/solutions/grow/distribution-footprint) ![manage-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/manage-icon.svg) Manage [Reserve Inventory Influencers, wholesale & more](https://www.channelape.com/solutions/manage/reserve-inventory) [Inventory effective & expiration dates No more spreadsheets required](https://www.channelape.com/solutions/manage/inventory-effective-expiration-date) [Multi-status, multi-location inventory Warehouses, stores, and channels](https://www.channelape.com/solutions/manage/multi-status-multi-location-inventory) [Fulfillment holds & order edits Auto-hold on new CX ticket](https://www.channelape.com/solutions/manage/fulfillment-holds-order-edits) [Automate fulfillment rules Bundles, marketing SKUs, and more](https://www.channelape.com/solutions/manage/automate-fulfillment-rules) ![monitor-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/monitor-icon.svg) Monitor [Inbounds - New & Returns By SKU & Date](https://www.channelape.com/solutions/monitor/inbounds-new-return) [Fulfillable Inventory By status and location](https://www.channelape.com/solutions/monitor/fulfillable-inventory) [Fulfillment Partners SLAs, exceptions, and overall activity](https://www.channelape.com/fulfillment-partners) [Dashboards & Reports Use ours or build your own](https://www.channelape.com/solutions/monitor/dashboards-reports) [Monitoring, Alerting, Export Email, Slack, GSheets, S3, 5Tran](https://www.channelape.com/solutions/monitor/monitoring-alerting) ![enable-icon](https://www.channelape.com/hubfs/2023%20Mega%20Menu%20Assets/Icons/enable-icon.svg) Enable [Clearer financial picture Simplify monthly close](https://www.channelape.com/solutions/enable/clearer-financial-picture) [Store inventory online See your retail store inventory](https://www.channelape.com/solutions/enable/store-inventory) [One team to implement More than just a tool](https://www.channelape.com/solutions/enable/one-team-to-implement-customize-manage) [Customization - API Dozens of API endpoints](https://dev.channelape.com) - Resources [Integrations See all the apps](https://www.channelape.com/apps) [Support Get 24/7 help](https://www.channelape.com/support-landing) [Knowledge Base Read in-depth guides](https://www.channelape.com/support-landing?kb=true) [Guides & Whitepapers Improved inventory management](https://www.channelape.com/resources) [Fulfillment Partners Global 3PL warehouse companies](https://www.channelape.com/fulfillment-partners) [Login](https://appx.channelape.io/) 3PL # 3PL vs 4PL vs 5PL 3PL, 4PL, and 5PL can seem quite confusing. Learn more about first-party through 5th party logistics. [Jordan Stokes](https://www.channelape.com/blog/author/jordan-stokes) Dec 20, 2021 --- ## What are all these PLs? The terms for [3PL,](https://www.channelape.com/ecommerce-terms/what-does-3pl-mean/)[4PL,](https://www.channelape.com/ecommerce-terms/what-is-a-4pl/)and [5PL](https://www.channelape.com/ecommerce-terms/what-is-a-5pl/) can seem quite confusing but I’m hoping to help you clear that up today by going through everything from first-party through 5th party logistics. ## 1PL First-party logistics is when a brand or manufacturer handles all logistics themselves. An example would be a brand of paper towels that manufacturers in Illinois and own and operates a warehouse in Reno, NV and Tobyhanna, PA. ## 2PL 2nd Party Logistics is when a brand hires a warehouse manager as a subcontracted entity. The brand likely owns the physical space and equipment but has a 2nd party manage the day-to-day operations of the shipping and logistics. ## 3PL [3PL](https://www.channelape.com/ecommerce-terms/what-does-3pl-mean/) stands for Third Party Logistics Third-party logistics is when a third party owns and operates logistics and sells their services to one or many brands. This is the most common type of logistics used by D2C brands given how cost-effective, fast and efficient it is. ## 4PL A [4PL](https://www.channelape.com/ecommerce-terms/what-is-a-4pl/) represents a company that manages a network of 3PL’s. Once brands begin to grow, they need more than one warehouse. This could even be globally. A 4PL is a company that helps brands manage one or many different 3PLs. ## 5PL A [5PL](https://www.channelape.com/ecommerce-terms/what-is-a-5pl/) is a provider that organizes independent logistic solutions on behalf of multiple clients to focus on lowering costs. 5PLs are focused on doing everything we’ve discussed so far but also helping clients lower costs. One of the biggest line items that eat up margin is shipping/logistics so 5PLs are quickly gaining in popularity to help brands optimize their supply chain. ### Looking to improve your last-mile supply chain? Create a single customizable network of integrated warehouses by selecting one or many different [3PL providers](https://www.channelape.com/list/top-100-us-and-global-3pl-companies-2019/) across the globe. [![Request Access](https://www.channelape.com/hubfs/Imported_Blog_Media/fab41fa8-3e83-4997-acd1-73606394487c-Dec-16-2021-04-56-27-92-AM.png)](https://cta-redirect.hubspot.com/cta/redirect/6043565/fab41fa8-3e83-4997-acd1-73606394487c)   [3PL](https://www.channelape.com/blog/tag/3pl) ## Similar posts 3PL ### [Why Shopify 3PL warehouse integration is more complex than just setting up a pipe](https://www.channelape.com/blog/why-shopify-3pl-warehouse-integration-is-more-complex-than-just-setting-up-a-pipe) Discover the intricacies of integrating Shopify with third-party logistics (3PL) warehouses in this insightful article. Jason DePietropaolo Jan 28, 2024 Fulfillment ### [How 3PL Management Software Can Help Save Costs With Fulfillment](https://www.channelape.com/blog/3pl-management-software) Scaling your business is easier than ever before with a third-party logistics (3PL) provider. Learn more about the benefits of 3PL management... Jordan Stokes Jan 20, 2022 3PL ### [Top 6 Reasons Why Companies Change Their 3PL Provider](https://www.channelape.com/blog/top-6-reasons-why-companies-change-their-3pl-provider) Utilizing a 3PL to handle your supply chain is one of the best ways to reduce costs and increase efficiency. However, you should keep in mind that as... Jordan Stokes Dec 20, 2021 [![channelape-white](https://www.channelape.com/hubfs/channelape-white.svg)](https://www.channelape.com/) 228 Park Ave S PMB 82108 New York, New York 10003-1502 ### Product - [Login](https://app.channelape.io/) - [API docs](https://docs.channelape.io/) - [Knowledgebase](https://www.channelape.com/support-landing?kb=true) - [Status](https://channelape.statuspage.io/) - [Support](https://www.channelape.com/support-landing) ### Company - [Blog](https://www.channelape.com/blog) - [Fulfillment partner program](https://www.channelape.com/partner) - [Careers](https://www.channelape.com/careers) - [Branding Guidelines](https://www.channelape.com/branding-guidelines) © 2022 ChannelApe [Privacy Policy](https://www.channelape.com/privacy) [Terms of Service](https://www.channelape.com/terms) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jordan Stokes", "url" : "https://www.channelape.com/blog/author/jordan-stokes" }, "dateModified" : "2022-02-22T03:41:21.370Z", "datePublished" : "2021-12-20T22:38:52.000Z", "headline" : "3PL vs 4PL vs 5PL", "image" : [ "https://www.channelape.com/hubfs/best%20inventory%20and%20order%20management%20software.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.channelape.com/blog/3pl-vs-4pl-vs-5pl", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.channelape.com/hubfs/Full-Color-Logo.png" }, "name" : "ChannelApe Inc" } } ```