Comparison at a glance
| Type | Full name | What they own or do | Best for |
|---|---|---|---|
| 1PL | First-party logistics | The brand ships its own orders with no outside help. | Very early-stage sellers. |
| 2PL | Second-party logistics | Owns one asset, such as a carrier, truck fleet, or warehouse. | Buying a single service (for example, freight). |
| 3PL | Third-party logistics | Outsourced fulfillment: receiving, storage, pick and pack, shipping, returns. | Growing ecommerce and CPG brands. |
| 4PL | Fourth-party logistics | Manages multiple 3PLs and coordinates the whole supply chain. | Large or complex, multi-vendor operations. |
| 5PL | Fifth-party logistics | Designs and runs entire supply networks, usually technology-led. | Enterprise and marketplace-scale logistics. |
1PL: first-party logistics
A 1PL is a business that handles its own logistics end to end: storing product, packing orders, and getting them to customers without any outside provider. This is where most brands start, packing at home or in a small unit, until volume makes it unsustainable.
2PL: second-party logistics
A 2PL owns a single logistics asset and sells that one capability. A parcel carrier, a trucking company, or a company that only rents you warehouse space are all 2PLs. You still manage how the pieces fit together.
3PL: third-party logistics
A 3PL bundles the whole fulfillment operation into one outsourced service: receiving, warehousing, pick and pack, shipping, and returns, plus value-added work like kitting and Amazon FBA prep. You keep control of your brand and inventory while the 3PL does the physical work. This is the model most ecommerce and CPG brands use. See our full what is a 3PL guide.
4PL: fourth-party logistics
A 4PL sits one level up. Instead of running a warehouse, it manages your entire supply chain, often coordinating several 3PLs, carriers, and vendors on your behalf. Brands use a 4PL when their logistics is complex enough to need a single point of control. Compare the two in detail in 3PL vs 4PL.
5PL: fifth-party logistics
A 5PL designs and operates whole supply networks, usually leaning on technology, data, and automation to optimize logistics across many clients or channels. It is most relevant at enterprise and marketplace scale.
Examples of 1PL, 2PL, 3PL, 4PL, and 5PL companies
Real companies make the party types easier to place. Note that large players can wear more than one hat at once:
- 1PL companies: any business moving its own goods with its own resources. A farm delivering produce in its own trucks, a bakery running its own delivery van, or a DTC brand packing every order in its own warehouse. Amazon acts as a 1PL when it ships its own retail inventory through its own network.
- 2PL companies: asset-based carriers such as UPS, FedEx, USPS, ocean lines like Maersk, and trucking or rail operators. They sell transport capacity, not fulfillment.
- 3PL companies: outsourced fulfillment providers like RitePrep, which stores inventory and picks, packs, and ships orders for brands. Amazon's FBA program is effectively a 3PL service for marketplace sellers.
- 4PL companies: lead logistics providers and supply chain management firms that orchestrate carriers and 3PLs on a client's behalf, such as the 4PL divisions of large global logistics groups.
- 5PL companies: network orchestrators that design and run supply networks across many clients, usually technology-led. There are few household names because they operate behind the scenes.
Which one do you need?
For most brands moving past packing orders by hand, the answer is a 3PL. It gives you a real warehouse and a full fulfillment team without buying your own facility. If you want help picking one, read how to choose a 3PL provider, or see the services RitePrep offers.