Article Takeaways
- In-house logistics gives control but comes with high costs and less flexibility
- 3PL providers handle storage, packing, shipping, and returns for you
- Outsourcing cuts overheads and lets your team focus on growth
- 3PLs like Green Fulfilment scale easily with fast-growing brands
- Green Fulfilment’s portal gives real-time tracking and stock updates
- B Corp-certified 3PLs help brands cut emissions and reduce waste
- 3PL pricing is more flexible than fixed in-house logistics costs
- For brands prioritising growth and sustainability, 3PL is often the smarter choice
Choosing between in-house and 3PL logistics is a critical decision for any eCommerce business. It requires weighing up how much control you need against the cost, your ability to scale, and whether you need specialist support. For brands that care about sustainability, the choice can also reflect their values.
Managing fulfilment in-house gives you more oversight, but it can quickly become expensive and inflexible. Partnering with a third-party logistics (3PL) provider, like Green Fulfilment, offers specialist support and room to grow, all while avoiding the overhead costs of running logistics in-house.
This guide will walk you through both options, help you weigh the pros and cons, and decide what makes the most sense for your business right now.
What’s the Difference Between In-House and 3PL Logistics?
In-house logistics means running fulfilment from your own space using your own people and systems. You pick, pack, and ship orders directly. Think: stacking boxes in your own warehouse, updating your own inventory, dealing with returns one by one.
Third-party logistics, or 3PL, means outsourcing those operational tasks to a fulfilment partner. A 3PL provider takes care of storage, stock management, picking, packing, shipping, and, in Green Fulfilment’s case, even returns. It’s like extending your operations team without having to hire or rent more space.
Pros and Cons of In-House Logistics
Advantages of In-House Fulfilment
- Full control: You oversee every touchpoint.
- Custom workflows: Tailor processes to suit your exact needs.
- Closer customer experience: Personalise packaging, messaging, and service with ease.
Disadvantages of In-House Logistics
- High fixed costs: Renting space, hiring staff, and buying equipment add up.
- Scalability issues: Growth can be unpredictable, and your setup may struggle to keep up.
- Resource-intensive: Managing logistics internally pulls focus away from marketing, product development, and customer service.
Pros and Cons of 3PL (Outsourced Logistics)
Advantages of Outsourcing Logistics
- Lower operational costs: Only pay for the space and services you use.
- Faster scalability: 3PLs already have the infrastructure to support your growth.
- Access to expertise: Tap into seasoned fulfilment pros and proven systems.
- Focus on your strengths: Free your team to double down on what you do best.
Potential Drawbacks to Be Aware Of
- Less control: You’re not the one packing every box.
- Communication gaps: Syncing your systems and expectations is vital.
- Brand misalignment: Not every 3PL will reflect your values or quality standards.
- Data security: Handing over operations means trusting a partner with sensitive customer info.
Green Fulfilment helps ease these concerns by offering real-time visibility through our Green Portal, dedicated support from a real person, and secure, paperless systems to keep your customer data protected.
Cost Comparison: In-House vs 3PL Fulfilment
Let’s break it down. Here’s what you might expect to pay:
| Cost Element | In-House Fulfilment | 3PL Services (Green Fulfilment) |
| Warehouse rent | £3,000+ per month | Included in per-order pricing |
| Labour | £2,000+ for staff wages | Included |
| Software & systems | £300+ | Included |
| Packaging & materials | £500+ | Eco-packaging included |
| Returns handling | £2.50+ per item | Often discounted |
With in-house logistics, you’re on the hook for overhead whether orders are flying out the door or not. With a 3PL, you pay based on activity, making it easier to scale up or down as needed.
Which Model Offers Better Scalability?
Scaling in-house means more space, more staff, and more complexity. For fast-growing businesses, that can be a bottleneck.
With a 3PL like Green Fulfilment, scaling is built in. Need to double the output during peak season? We’ve got the tech, people, and space to handle it. You grow. We flex.
Which Offers Better Visibility and Control?
In-house gives you physical control. But 3PLs offer digital visibility.
Green Fulfilment’s Green Portal provides real-time tracking, inventory updates, and return management all in one place. You stay in control without having to do everything yourself.
Environmental Considerations in Your Logistics Strategy
Running your own warehouse can make it hard to meet environmental targets. Outsourcing to a sustainable fulfilment partner brings you closer to your green goals.
Green Fulfilment uses:
- Shared transport to reduce emissions
- Recyclable, eco-certified packaging
- Paperless systems (we’ve already saved over a million sheets of paper)
- Energy-efficient, low-impact facilities
Choosing a B Corp logistics partner means your fulfilment strategy can work for the planet, not against it.
When to Keep Logistics In-House – and When to Outsource
In-House May Suit You If:
- Your products require specialist handling or fragile packaging.
- You already own a warehouse and a fulfilment setup.
- You want full control over every part of the delivery experience.
3PL Might Be Better If:
- Your business is growing fast and unpredictably.
- You need to cut fixed costs and simplify operations.
- Sustainability and operational efficiency are key priorities.
Green Fulfilment is a perfect match for eCommerce businesses that want to grow responsibly, especially those in beauty, wellness, and subscription-based sectors. With low staff turnover and a hands-on, human approach, we build strong partnerships that feel personal and reliable.
Why eCommerce Brands Choose Green Fulfilment
We’re not just a logistics provider. We’re a growth partner.
- Scalable service that grows with your business
- Sustainable operations with B Corp credentials
- Integrations with all major sales platforms
- Hands-on, human support
We do the heavy lifting so you can focus on building your brand.
The Best Fulfilment Model Is the One That Grows With You
There’s no one-size-fits-all answer. In-house fulfilment gives you control and customisation. 3PLs offer flexibility, savings, and speed.
For brands that want to grow with purpose, a 3PL like Green Fulfilment helps strike the right balance between business performance and environmental impact.
Need Help Deciding Between In-House and 3PL? Book a discovery call to see how Green Fulfilment can support your growth goals.
FAQs About 3PL vs In-House Logistics
What is the difference between 3PL and in-house logistics?
In-house means running fulfilment yourself. 3PL means outsourcing to a specialist like Green Fulfilment, who handles storage, packing, and shipping for you.
Is outsourcing logistics more cost-effective than managing it in-house?
Often, yes. You avoid overheads like warehouse rent and full-time staff and instead pay only for what you use.
What are the disadvantages of outsourcing logistics?
You have less direct control and need to align closely with your provider. There’s also the risk of data handling issues, which Green Fulfilment mitigates with secure, paperless systems.
When should a business outsource its logistics?
If you’re growing fast, struggling to manage returns, or want to make your operations more sustainable, a 3PL could be the right move.
Can you scale with in-house logistics?
To a point. But you may hit limits with space, labour, and tech. A 3PL can flex with your needs.
Is a 3PL right for small eCommerce businesses?
Absolutely. Green Fulfilment works with SMEs, startups, and subscription box brands who need a partner that scales without waste.
How do 3PL services integrate with your existing eCommerce systems?
Green Fulfilment integrates directly with platforms like Shopify and WooCommerce using secure APIs. This means your orders flow automatically, your stock levels stay up to date, and you spend less time on manual admin.
How can I maintain control if I outsource my logistics?
With Green Fulfilment’s Go Green Platform, you can monitor orders, stock, and returns in real time. It’s your operation, just handled more efficiently.