How to Choose a 3PL Provider

If you run an eCommerce brand, you know the thrill (and chaos) of keeping customers happy while getting orders out the door fast. At some point, though, packing boxes in your garage or managing your own warehouse stops being sustainable. That’s when many brands start looking for a third-party logistics partner (3PL) to help handle storage, shipping, and the day-to-day grind of fulfillment.

But here’s the catch: choosing a 3PL isn’t as simple as picking the first one you find on Google.

Maybe you’re trying to keep up with same-day delivery demands. Or your sales are growing faster than your team can handle. Or you’re tired of juggling a dozen shipping carriers and tracking spreadsheets. The right 3PL can save you time, lower your costs, and make your customers love you even more. The wrong one can leave you dealing with delayed shipments, unhappy customers, and a whole lot of headaches.

So how do you choose wisely?

In this article, we’ll help you figure that out with different factors to consider, questions to ask before you sign, and red flags to watch out for.

Whether you’re shipping ten orders a day or ten thousand, finding the right logistics partner is one of the smartest moves you’ll make. Let’s dive in and help you find a 3PL that fits your business like a glove.

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Factors to consider when choosing your 3PL provider

Having the right 3PL is crucial to streamline your logistics operations. Here are factors to consider when choosing the best 3PL partner for your business.

1. Logistics capabilities

Start with a clear understanding of your business’s logistics needs today and where you’re headed.

• Do you need support with warehousing, order fulfillment, shipping, or all of the above?
• Are your orders primarily domestic, or are you planning to expand internationally?
• Do you sell across multiple channels (e.g., Shopify, Amazon, B2B)?

Choose a 3PL that offers services aligned with your current needs and can support long-term goals like international growth, retail compliance, or omnichannel fulfillment.

2. Technological strength and integrations

Technology powers modern logistics. Your 3PL should offer seamless platform integrations and give you real-time data access across your supply chain.

• Warehouse Management System (WMS) and Transportation Management System (TMS)
• Real-time inventory tracking and order status
• eCommerce platform integrations (e.g., Shopify, Amazon, WooCommerce)
• Shipping notifications, analytics dashboards, and automation tools

3. Scalability and flexibility

Growth and seasonality require a logistics partner that can flex with demand.

• Can they handle sales spikes like Black Friday or product launches?
• Do they support new SKU additions or location changes quickly?
• Do they offer scalable space, staffing, and tech?

A flexible 3PL reduces operational friction as you grow.

4. Locations and warehouse network

Where your 3PL stores and ships your products can significantly affect delivery time and cost.

• Do they have fulfillment centers near your customer base?
• Are they strategically located across key regions (East/West Coast, Midwest, etc.)?
• Can they support international fulfillment if needed?

The right warehouse footprint improves delivery speed and reduces last-mile costs.

5. Shipping speed and carrier relationships

Your 3PL should help you meet rising customer expectations for fast, affordable delivery.

• Do they have negotiated rates with major carriers (UPS, FedEx, USPS, DHL)?
• Can they offer 2-day or next-day delivery for your top markets?
• Do they provide rate shopping tools to optimize shipping methods per order?

Strong carrier partnerships can significantly reduce shipping costs and improve delivery reliability.

6. Customer service and communication

Logistics is fast-paced, and when things go wrong, responsiveness matters.

• Will you have a dedicated account manager?
• What’s their response time for issues?
• Do they provide proactive updates and regular reviews?

Look for a provider with transparent communication and a track record of client support.

7. Costs and transparency

Not all 3PL pricing is straightforward. Watch for hidden fees and unclear billing structures.

• Are pricing models clear and easy to understand?
• Do they charge extra for account management, software access, or customer service?
• Will you receive regular cost breakdowns or fulfillment cost per order?

A transparent 3PL makes it easier to predict margins and optimize operations.

8. Reliability and reputation

Look for a 3PL with a proven track record and financial stability.

• Do they have case studies or client testimonials?
• What’s their average fulfillment accuracy and on-time shipping rate?
• Are they actively investing in new technology and infrastructure?

9. Industry specialization

Some 3PLs specialize in specific verticals (like beauty, fashion, supplements, or electronics). This can give you a strategic edge.

• Do they understand the unique compliance needs or packaging requirements of your category?
• Have they worked with brands similar to yours?
• Can they accommodate custom kitting, lot tracking, or fragile item handling?

Questions to ask potential 3PL partners before you get started

Before you sign any contracts, be sure to ask:

1. What is your average order accuracy rate and fulfillment speed? Accuracy and speed directly impact customer satisfaction. You want to know how often orders are shipped correctly and how quickly they get out the door, so you can maintain your brand’s reputation.

2. Can you integrate with our existing eCommerce platforms? Seamless integration means fewer manual tasks, fewer errors, and real-time syncing of orders and inventory. This helps your team stay efficient and informed without extra work.

3. How do you handle returns and customer service inquiries? Returns are a fact of life in eCommerce. Understanding the 3PL’s reverse logistics process and how they support customer service ensures your shoppers have a smooth experience, even when things go wrong.

4. What are your onboarding timelines and what’s included in setup? Knowing how long it takes to get started and what kind of support you’ll receive during onboarding helps you plan your launch or transition without surprises.

5. How do you ensure inventory accuracy across warehouses? Inventory discrepancies can lead to overselling or stockouts. Ask about their inventory management systems and cycle count processes to make sure your stock levels stay reliable.

6. Do you offer branded packaging or custom kitting? If unboxing experiences matter to your brand, find out if the 3PL can handle customized packaging, inserts, or bundling services that add a personal touch for customers.

7. What shipping carriers do you work with, and can you support multi-carrier strategies? Using multiple carriers can help optimize cost and delivery times, and reduce risk if one carrier faces delays. Check that your 3PL has carrier flexibility that fits your shipping needs.

8. How do you handle seasonal spikes or sudden surges in order volume? Seasonality can strain fulfillment capacity. You want a 3PL that can scale up quickly during busy periods without compromising accuracy or speed.

9. What kind of real-time reporting and dashboard access do you provide? Visibility into orders, inventory, and shipping status allows you to make data-driven decisions and quickly address any issues.

10. How do you handle lost or damaged shipments? Mistakes happen. It’s important to know your 3PL’s policies on claims, reimbursements, and problem resolution to protect your business and customers.

11. Can you support international shipping and customs clearance if we expand globally? If you plan to sell internationally, your 3PL should have the expertise and infrastructure to manage cross-border logistics smoothly.

12. What security measures do you have in place to protect our inventory and data? Warehousing and data security matter. Ask about their physical security protocols and IT safeguards to ensure your products and sensitive information are protected.

These questions help you uncover the 3PL’s capabilities and reliability so you can avoid surprises, reduce risks, and find a partner that aligns with your business goals.

Red flags to watch out for in a 3PL

Last but not least, here’s what to look out for when choosing a 3PL.

• Long-term contracts without a trial or performance clause
• Outdated software or lack of integration capabilities
• Hidden fees not outlined in your agreement
• Inconsistent or vague communication
• Poor reviews or lack of client references
• No transparency around performance metrics

Bottom line: Choosing the right 3PL is about more than just outsourcing logistics, it’s about finding a growth partner. Take your time, ask detailed questions, and align with a provider who understands your brand and can scale with your success.

Choosing your 3PL provider: Final tips

Choosing the right 3PL provider is a critical decision that can transform how your eCommerce brand operates and grows. By knowing what to look for, asking the right questions, and staying alert to potential red flags, you’ll set yourself up for a partnership that delivers reliability, speed, and peace of mind.

Remember, the best 3PL isn’t necessarily the biggest or cheapest. It’s the one that fits your unique needs, shares your commitment to customer experience, and can scale alongside your business. Take your time, do your homework, and don’t hesitate to lean on their expertise.

With the right partner handling your logistics, you can focus on what you do best: building your brand and delighting your customers.

Contact us to find your ideal 3PL match!