A potential market of 70 million people makes the UK an attractive opportunity for brands that are looking to expand.
Choosing the right Logistics Company UK partner can be the difference between a smooth market entry and a slow and costly expansion.
This guide explains how international companies can build a strong UK distribution model with 3PL support and what to consider when selecting a partner.
- Where are the top 3PL logistics warehouses located?
- Trends in the UK market to be aware of
- What affects 3PL costs in the UK?
- 7 Good questions for brands to ask when choosing a 3PL Partner in the UK
- How does a 3PL support international expansion into the UK?
Together, Ken and Kerry have 72+ years experience in global logistics, and we get their advice.
Top 3PL logistics warehouse locations in the UK
1. London / South East England, Hampshire 3PL’s
The capital and its surrounding Southeast region remain a key hub because of access to major ports, import gateways and a dense consumer market.
Hampshire is close to London, and ports like Southampton, and Heathrow Airport.
London Gateway Logistics Park is a major warehousing and distribution park – designed to integrate port, rail and road logistics – for companies needing fast distribution around London.
Warehouses in nearby gateway towns, offer cost-benefits and access to London’s large customer base while still giving 3PLs reach to the rest of the UK via motorways and freight corridors.
Why it works: Proximity to major ports/airports/import gateways + massive population centre + ideal for companies focusing on London/Southeast demand or frequent import flows.
2. South West England, Wiltshire 3PL’s
South West England refers to the region along the M4 corridor, between Bristol and Reading, about 80 miles west of London.
Serves as a key transit hub between London and the South-West, bridging southern England with Midlands/northern regions via M4-M5-M40 connections.
Why it works: Good for companies needing quick access to both London / South East markets and the West Country.
3. The Midlands 3Pl’s
The “Golden Triangle” – roughly around Northampton, Leicester, Nottingham, Lutterworth – has historically been the heart of UK warehousing.
Because of its central location, a 3PL warehouse facility in the Midlands can reach a large portion of UK population fairly quickly (by road, rail, or a mix). It sits roughly mid-point between the north, south and east-west corridors, making it ideal for companies needing broad, multi-city coverage with reasonable transit times.
4. North West England & Greater Manchester / Industrial North 3PL’s
Historically, Northern distribution hubs (e.g. large-scale warehouses and sorting centres) have allowed companies to cover the North and Scotland efficiently.
Why it works: Access to northern UK & Scotland markets; motorway and rail infrastructure; balance between warehousing cost, labour availability, and broad coverage.
NB NOTE: Cost and labour balance for UK 3PL warehouses
Compared to inner-city and high-rent areas, the South or North West areas offer lower warehousing costs and a ready supply of logistics labour and infrastructure.
Solid advice for brands looking
to expand: UK market logistics
Global 3PL Network Co-Founder, Ken Aitken, says from experience:
“Most of the country (excluding remote areas of Scotland and Ireland) can be serviced overnight from any central 3PL location, so unlike Australia or USA where a footprint in different states is a consideration due to distance, not so in the UK.
Many companies look at Europe as a single market still and focus on landing goods into mainland Europe (with a Population of 450m / 520m including UK) but the impact of shipping from mainland Europe to UK with Brexit paperwork on individual shipments can be onerous and costly.
Far better to view the UK as a separate market and land stock in bulk into a UK 3PL and have a separate solution for mainland Europe.”
How do you know which UK 3PL warehouse will be the right match for your company?
As a global network of independent, owner-led 3PL’s, we have hands-on experience with 3PL warehouses across the UK and can recommend a 3PL that’s best suited to your business needs.
Tell us about your business – contact us here
What makes the UK market attractive for international brands?
The UK remains one of the world’s most attractive markets for overseas brands with its:
- High e-commerce penetration
- Densely populated metropolitan areas
- Strong consumer purchasing power
But success in this mature e-commerce market requires efficient logistics.
Companies need to find an experienced 3PL that will keep this market happy without blowing the budget.
Food for Thought: UK Logistics Market Trend
On a visit to several 3PL logistics companies in the UK, our Director, Ken Aitken, found that some retailers are fighting against the huge wasted effort in returns.
In this mature market, they estimate that as much of 40% of ecommerce orders are going back as returns. Some people would even order 3 sizes of the same items, choose one and send the rest back. “This is a killer – it’s leads to wasted effort, transport and labour costs and it’s terrible for the environment,” says Ken.
4-5 of the major retailers are now starting to charge for returns.
What can International brands do to help prevent returns?
- Clear and accurate UK sizes and measurements on your website
- Product images need to be clear, realistic, show a few angles
- Descriptions should describe examples of “best for” and “not suitable for”
- Include customer reviews that describe, fit, sizing and installation.
- FAQ sections on common purchase queries
What affects 3PL costs in the UK?
Gain an understanding of the main cost drivers.
Consider what you could compromise on.
9 Key Factors That Affect 3PL Costs in the UK:
1. Warehouse Location & Rent – Areas just outside of London and in the regions offer lower costs than in the city itself due to land and labour costs.
NB: Premium locations may increase monthly rent 20–50% versus regional hubs.
2. Inventory Volume – Storage fees depend on pallet or per cubic meter, or per square foot. Higher volumes may bring tiered discounts. Fast-moving SKUs may require less space over time.
3. Pick & Pack Complexity – Single-item orders are cheaper than multi-item, kitted, or custom-packed orders, which increase labour and handling costs.
4. Transportation & Delivery – Distance, speed requirements, and carrier choice affect costs; fuel surcharges are subject to market fluctuations.
NB: Often the largest variable cost.
5. Import & Customs Handling:
a) Customs clearance, duties, VAT handling, and documentation management can
add fees.
b) Compliance requirements: Labelling, product registration, or hazardous
materials compliance may increase handling costs.
c) Port or airport fees: If your 3PL handles import via a port like Southampton or a
gateway like London Gateway, terminal handling charges apply
NB: Critical for international brands; can be 5–15% of total 3PL costs depending on volume and product type.
6. Technology & Systems – Some 3PLs charge per user, per order, or per month for system access. Advanced dashboards or custom reporting can be priced extra.
7. Labour & Service Levels – Labour costs vary by region and shift patterns. Specialised handling, or peak-season staffing affect per-order cost.
8. Value-Added Services – Kitting, returns management, assembly, or special packaging increases costs.
9. Contract Terms – Long-term commitments, minimum volumes, or flexibility fees can influence overall cost efficiency.
Ken & Kerry’s Advice*
In our experience, selecting the cheapest 3PL can be the most costly.
The cost of losing customers due to poor service delivery is one thing.
But the labour and time cost of moving all your stock and systems to a better 3PL will cost you more in the long run.
Do your homework and get the right 3PL to help you scale.
7 Good questions for brands to ask when choosing a 3PL Partner in the UK
When choosing a Logistics Company UK, brands should evaluate:
- Location coverage: Are warehouses positioned to support national or regional delivery strategies?
- Customs and Compliance: If importing into the UK, can they manage customs, VAT, and labelling requirements?
- Multi-City expertise: Can they support distribution to major hubs like London, Manchester, Birmingham, and Glasgow?
- Picking accuracy: What are their average accuracy levels? They should be above 95%.
- Cost structure: Are the UK 3PL costs predictable and transparent for budgeting from overseas? Are the invoices simple and easy to understand?
- Tech stack: Will the systems integrate with your existing platforms abroad?
- inventory checks: How often do they conduct inventory checks?
You need to find a 3PL that will be a reliable foundation for growth in the UK market.
How does a 3PL support international expansion into the UK?
A UK-based 3PL acts as your operational arm inside the country.
Instead of building local infrastructure from scratch, companies can plug into an existing network and begin distributing immediately.
The right 3PL provides:
- Immediate access to a national 3PL Warehouse UK footprint
- Local market expertise and regulatory knowledge
- End-to-end fulfilment services including storage, picking, packing, and last-mile delivery
- Real-time stock tracking and performance data
- Cost efficiencies through shared labour, warehouse space, and transport
This structure allows international brands to scale quickly without:
- Long-term property leases,
- High start-up costs, or
- The risk of misjudging stock placement
Partnering with a logistics company UK accelerates market entry
With the right support, international companies can launch quickly, scale confidently, and deliver the service levels UK customers expect.
As a global network of independent, owner-led 3PL’s, we have on-the-ground experience with 3PL warehouses and can recommend a 3PL that’s best suited to your business needs.
To ask advice from our 3PL Logistics experts, contact us here
About Ken and Kerry:
* Ken and Kerry have a combined 72+ years experience
in the logistics industry.
You can follow Ken Aitken here on LinkedIn.
You can follow Kerry Holmes here on LinkedIn.