How profitable is running a 3PL business? Do you know what net profit % most would operate? Who has had experience working for a logistics company?

I have made headway doing fulfilment for a few E-COMMERCE brands in Australia at a smaller scale and it is definitely profitable on a small scale. I want to get an understanding of the ins and outs from someone that has been in the industry and knows what net profit % most 3pl providers generate.


If you've done a great job setting up your business, I believe your net profit will be something like $.60 to $1.xx per package you process and ship.

Answered 2 years ago

Typically, a 3PL business will take care of your warehousing necessities. In general, warehousing by a third-party provider is more cost efficient. Depending on your type of business, 3PL allows you to scale back your operations over varied time frames. For example, if your prime business time is at Christmas, using 3PL will allow you to increase the scale of your business during this busy time and reduce the size of your operations during the summer months. This improved resource network allows your business to be more efficient at every part of the logistics process. This also allows the 3PL provider to optimise each step of the supply chain which will allow the overall service to be faster and more effective. When you use a 3PL provider, you no longer need to invest in several areas of your business. This can help your business build a global logistical network at a fraction of the cost. By outsourcing your logistics services, you have time to concentrate on the other elements of your business. The flexibility to respond quickly to varying business environments and peak periods as well as fluctuating market trends without major disturbances to distribution operations is a huge benefit of 3PL.
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Answered 2 years ago

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