+1 800 967-0030

The Billion-Dollar World of 3PL

It’s obvious to anyone who works with 3rd party fulfillment services that the segment is growing rapidly and changing all the time.

What isn’t as clear, however, is the actual size of that growth and change, which is pretty impressive, as it turns out. A report from Allied Market Research titled “World Third Party Logistics (3PL) Market – Opportunities and Forecasts, 2014-2022” shines a huge light on the sheer scale of it.

A Rapidly Growing 3PL Global Presence

According to the report, 3PL is expected to explode in the next few years, reaching revenues of $1.11 billion yearly in the next five years.

This is actually great news for anyone in the world of order fulfillment, since it should mean greater access to inaccessible markets and lower costs overall for shipping because the competition will be fierce. Global interdependency is expected to rise, but that’s not an entirely bad thing for companies. Instead of being limited to the skills and prices in just one area, your 3PL will have greater access to manufacturing and design experts everywhere.

The report is quick to point out that much of this growth is attributable to companies going to a model that supports their core competencies, allowing them to become more cost-efficient. By leaving their warehousing and distribution to a trusted 3rd party logistics company, businesses of all sizes can focus their budgets and efforts on what they’re best at, whether that’s making the best table anywhere or matching the right bicycle tire to the discerning cyclist.

Other Areas of 3PL Growth

3rd party logistics companies are great at another time-consuming service that many small- to medium-sized businesses tend to forget when planning their logistics: returns. The report demonstrates that the need for reverse logistics is growing, as more companies want to send their returns, repairs and refurbish elsewhere. As long as there are customers ordering products, reverse logistics will be needed, and in segments like fashion and technology, having an expert on board is a necessity.

The other main reason for the wild growth of 3PLs going into the future is the need to navigate foreign import policies and customs regulations. It might seem like your manufacturer should know what it takes to get your products from their country to yours, but the truth is that usually it takes a 3PL to broker that transportation. Developing economies like those in India and Africa are especially difficult, but may make a big difference to eCommerce opportunities in the near future.

There are so many things that 3PLs do for their customers behind the scenes that it’s no surprise that the industry is increasing in size so quickly. It just makes sense to use a 3PL when your expertise is in anything other than shipping and packaging.


May 18, 2017
Share This:

Related Posts


Real-Time Order Tracking Or Bust

Gps tracking map. Track navigation pins on street maps, navigate mapping technology and locate position pin. Futuristic travel gps map or location navigator vector illustration “Where is my order?” “When will my package arrive?” If you are inundated with questions...

First In, First Out Warehousing and Fulfillment

Are you a seasoned inventory manager? If so, the acronym FIFO - which stands for First In, First Out - might be a familiar term to you. Put simply, the items are sold in the order they are received in the store or warehouse. FIFO is the go-to inventory management...

Grow Your Amazon Business With A Standout Listing

Do you sell on Amazon? If so, you are in great company. At the end of 2022, Amazon had over 2 million active sellers worldwide, making it one of the largest e-commerce platforms in the world. Businesses have the opportunity to reach millions of customers in over 180...

Scroll, Click, Buy: How to Sell On Instagram

Do you have an Instagram shop? Instagram Shopping is quickly becoming the preferred way for consumers not only to learn about new brands and products on Instagram, but also to purchase them in just a few simple steps. If you are not already selling directly on...

New Year, New You?

Every year, millions of people make New Year’s resolutions, hoping to spark positive change, adopt new habits, or even reinvent themselves. The recurring themes each year include a more active approach to health and fitness, improved finances, better relationships,...