Should You Use a 3PL in Australia?

By Andrew Hope, Operations Director, Pik Pak Logistics
15+ years managing logistics operations across Australia

Understanding the Landscape

The Australian e-commerce market continues rapid growth, with projected sales reaching over $39 billion USD in 2025 and retail e-commerce volume alone topping $46.2 billion USD in 2024.[1][2][3] Alongside this, the Australian third-party logistics (3PL) sector was valued at approximately $24 billion in 2024, with forecasts pointing towards $44 billion by 2033.[4][5][6] For businesses, this means rising competition, higher customer expectations, and urgent logistics needs.

As a 3PL provider since 2009, Pik Pak Logistics has supported diverse Australian businesses through industry shifts and market growth. Here we outline the direct, practical benefits and challenges of partnering with a professional 3PL in Australia.

Key Benefits of 3PL Partnerships

Regaining Focus on Your Core Business

Outsourcing receiving, storage, picking, packing, and shipping typically frees up 20–30 hours weekly—time better spent on product development, marketing, or strategy.[7] Professional 3PLs routinely report significant improvements in order accuracy and fulfillment speed.

Cost Efficiency, If Done Right

• Industrial warehouse rents grew by nearly 70% since COVID in major centres.[8]

• Labor, technology, equipment, and time are major hidden costs.

• 3PLs often negotiate better shipping rates, saving businesses 15–25% on postage.[7]

Third-party providers invest in infrastructure, warehousing, and tech, savings that aren't feasible for most SMBs.

Scaling Without the Seasonal Stress

Australian retailers face seasonal rushes (Christmas, EOFY, etc). Reputable 3PLs absorb demand spikes with scalable staff and technology, avoiding last-minute hiring or space rentals.[9]

Modern Technology & Transparency

Leading Warehouse Management Systems integrate with major platforms (Shopify, Amazon, WooCommerce, etc.), providing:

• Live inventory and low-stock alerts

• Real-time order and shipping tracking

• Comprehensive reporting and accounting integrations

Major players have invested millions in tech—well beyond SMB capacity.[10]

Simplifying Compliance

Australian consumer law, transportation safety, import/export procedures, and GST require expertise. Specialist 3PLs manage compliance, allowing you to focus on growth.[11][12]

Regulatory changes (like dangerous goods shipping in 2023) were promptly managed by compliant providers.[13][14]

Challenges of Working With a 3PL

Reduced Direct Control

Handing off inventory and fulfillment requires trust, especially for custom or highly specialized products. Success comes when business owners focus on growth and strategy.

Variable, Sometimes Complex Pricing

Providers may differ on transparency. Insist on comprehensive, itemized quotes and clear contracts to minimize hidden fees.[7]

Your Reputation Is in Their Hands

Delays, errors, or damaged goods impact customer trust. Leading 3PLs safeguard reputation via SLAs, insurance, and prompt communication.

Industry and Tech Integration Issues

• Australia faces labor shortages, compliance changes, and regional service challenges.[9]

• Some providers lag in seamless tech integration—avoid those requiring manual processes.

Deciding Whether a 3PL Is Right for Your Business

• Consider a 3PL when:

  • Processing 100+ orders/month

  • Logistics distracts from growth

  • Scaling or market expansion are priorities

  • You want better shipping rates and tech

  • Your home/office is overwhelmed with inventory

• Stick with in-house when:

  • Highly specialized product handling is required

  • Order volume is low or irregular

  • Margins are too tight for 3PL fees

  • You prefer direct operational control

What Drives Successful Partnerships?

• Open communication around goals and practical limitations

• Realistic expectations—logistics is technical, not magical

• Growth-oriented, partnership-focused mindset

• Data-driven insights and reporting

Industry trends—AI, automation, sustainability—mean only the right logistics partner gives your business a decisive edge.

Your Next Steps

1. Calculate your true logistics costs (including your time)

2. List your non-negotiable requirements

3. Get detailed, itemized quotes from multiple providers

4. Tour facilities and meet their team

5. Consider starting with a small trial

About the Author

Andrew Hope is Operations Director at Pik Pak Logistics, an Australian-owned 3PL provider based in Melbourne. Pik Pak supports thousands of businesses in e-commerce fulfillment, with transparent pricing and a commitment to reliability and partnership.[10]

References

1. Statista – eCommerce Market Forecast

2. PaymentsCMI – Australia’s E-commerce Market 2024–2025

3. Accio – Australia’s E-commerce Growth Trends 2025

4. Banking Press Releases – 3PL Market Forecast

5. IMARC Group – 3PL Market Report

6. Open PR – Australia Third-Party Logistics (3PL) Market Projected

7. Global 3PL Network – Navigating the 3PL Market

8. Green Street News – Industrial Rents Since COVID

9. AutoStore System – 3PL Landscape Trends & Challenges

10. Pik Pak Logistics – eCommerce Fulfilment Services

11. Business.gov.au – Australian Consumer Law

12. LegalVision – Consumer Law & Logistics

13. SafeWork SA – Dangerous Goods Regulations

14. SA Legislation – Dangerous Goods Transport 2023