What to Consider when Choosing or Switching a 3PL

Whether you’re choosing a third-party logistics (3PL) provider for the first time or looking to switch, trusting another business with your order fulfillment can be a big decision. Logistics plays a crucial role in customer satisfaction, scalability, and long-term profitability—so selecting the right 3PL is essential.

The right 3PL partner can help direct-to-consumer (DTC) brands scale from seven to eight or even nine figures in revenue. Brands like PrettyLitter (acquired for $800 million) and Loyal for Dogs (raised $50 million) have successfully leveraged 3PL partnerships to scale rapidly.

With so many factors to consider, finding the perfect logistics partner can feel overwhelming. That’s why we’ve broken down the most important considerations when selecting a 3PL that aligns with your brand’s needs.

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Every ecommerce business has unique fulfillment needs. Whether you’re experiencing growing pains or looking to optimize costs, the right 3PL should offer services that align with your business model.

At a minimum, your 3PL should provide:

• Warehousing & Storage
• Picking & Packing
• Shipping & Order Fulfillment
• Store Integration (Shopify, Amazon, WooCommerce, etc.)
• Inventory Management‍

However, as ecommerce evolves, specialized services can set a 3PL apart. Depending on your industry, you might need:

• Cold Storage & Refrigeration (for food, beauty, and pharmaceutical products)
• Custom Kitting & Subscription Box Assembly
• Personalized Packaging & Branding Solutions

Choosing a 3PL that aligns with your long-term goals ensures you can offer customers the best possible experience.

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Fulfillment location directly impacts shipping speed, costs, and overall customer satisfaction. The closer your 3PL is to your target audience, the more advantages you gain:

• Lower Shipping Costs: Reduced last-mile delivery expenses‍
• Faster Delivery Times: Enables 2-day (or even same-day) shipping‍
• Simplified Returns & Reverse Logistics: Easier, faster processing for returns

With ecommerce competition at an all-time high, fast and affordable shipping can be a game-changer for conversion rates and customer retention.

Tip: Consider distributed fulfillment—partnering with a 3PL that has multiple strategically located warehouses to cover more regions efficiently.

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Ecommerce is unpredictable—peak seasons, viral trends, and sudden demand spikes can challenge logistics. A scalable 3PL should:

• Handle increased order volume without delays
• Offer flexible storage solutions to adjust to inventory fluctuations
• Scale internationally if global expansion is a future goal

Without a scalable 3PL, growth bottlenecks can lead to shipping delays, stockouts, and customer dissatisfaction. Before committing, ask potential 3PL partners how they handle rapid growth and seasonal demand surges.

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Technology is revolutionizing the logistics industry. A tech-driven 3PL improves efficiency, accuracy, and visibility. Key features to look for:

• AI-Powered Inventory Management: Reduces stockouts and overstock issues‍
• Automated Order Processing: Ensures faster picking, packing, and shipping‍
• Real-Time Tracking & Visibility: Allows you and your customers to track shipments‍
• Data-Driven Insights: Helps optimize fulfillment costs and operations

Pro Tip: Look for 3PLs integrating with platforms like Shopify, Amazon, Walmart, and major ERPs to streamline order fulfillment seamlessly.

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A reliable 3PL isn’t just about services—it’s about trust. Before signing a contract, research:

• Client Reviews & Testimonials (Preferably from brands in your niche)‍
• Case Studies & Success Stories (How they’ve helped brands scale)‍
• ‍Industry Experience (Do they specialize in your product category?)

Don’t hesitate to ask for references or even tour their warehouse to ensure transparency and credibility.

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Fulfillment costs can vary significantly between 3PL providers. When evaluating costs, consider:

• Storage Fees : Charged based on volume, SKU count, duration
• Pick & Pack Fees: Per-order or per-item pricing
• Shipping Rates: Carrier partnerships can impact cost efficiency
• Returns Processing Fees: Additional charges for handling refunds

Many modern 3PLs offer custom pricing models based on your business needs—so negotiate and compare before finalizing a partner.

• Pro Tip: Watch out for hidden fees like peack season surcharges and administrative costs.

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Strong communication is non-negotiable when outsourcing fulfillment. A great 3PL should:

• Offer dedicated account managers (not just generic support tickets)
• Provide real-time updates & reports on inventory and shipments
• Have multiple communication channels (Slack, direct messaging, phone, etc.)

Many top 3PLs now use WhatsApp, Slack, or dedicated customer portals instead of outdated call centers to provide faster, more personal support.

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Returns are a reality in ecommerce. A well-managed returns process can boost customer loyalty and increase repeat purchases. Your 3PL should:

• Handle Returns Quickly: Fast processing prevents inventory bottlenecks‍
• Inspect & Restock Returned Items: Ensures quality control‍
• Process Refunds Efficiently: Reduces customer frustration

A seamless returns policy builds trust, encouraging customers to buy confidently from your brand.

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Selecting the right 3PL can make or break your ecommerce success. Considering all factors—services, location, scalability, technology, reputation, costs, communication, and returns handling—will help you make an informed decision.

Key Takeaways:

• Choose a 3PL that aligns with your business needs and growth plans
• Prioritize technology-driven fulfillment partners for efficiency
• Ensure transparent pricing with no hidden fees
• Opt for a provider with strong customer service and communication

If you’re ready to streamline your logistics, boost customer satisfaction, and scale your brand— Get your free fulfillment quote today!

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Frequently Asked Questions (FAQ)

What should I look for when choosing a 3PL provider?

When selecting a third-party logistics (3PL) provider, consider key factors such as service offerings, fulfillment center locations, scalability, technology integration, pricing transparency, customer support, and returns management. A reliable 3PL should align with your business growth goals and enhance customer satisfaction.

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How does 3PL fulfillment help ecommerce businesses scale?

A 3PL enables ecommerce businesses to scale by optimizing order fulfillment, reducing shipping costs, improving delivery speed, and handling inventory management efficiently. By outsourcing logistics, brands can focus on marketing, product development, and customer experience instead of warehouse operations.

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How can I ensure my 3PL partner provides fast and affordable shipping?

To ensure cost-effective and fast shipping, choose a 3PL with strategic warehouse locations near your target customers, strong carrier partnerships, and advanced logistics technology. Distributed fulfillment solutions can further reduce transit times and shipping expenses.

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What are the hidden fees to watch out for when working with a 3PL?

Common hidden fees in 3PL pricing include storage overage charges, peak season surcharges, pick and pack fees, account management fees, and returns processing costs. Always request a detailed pricing breakdown and clarify any additional costs before signing a contract.

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How do I switch from my current 3PL to a new provider without disrupting operations?

To transition smoothly to a new 3PL, plan ahead, communicate with both providers, and gradually transfer inventory. Ensure your new 3PL integrates with your ecommerce platform and test fulfillment processes before fully switching to minimize delays and service disruptions.