Third-Party Logistics (3PL): Complete Guide for 2026

Third-party logistics (3PL) is when a company hires an outside partner to handle its logistics operations—like storing products, packing boxes, and shipping orders to customers. As ecommerce has grown, so too has the demand for 3PL providers—called 3PLs for short—with the market projected to reach $1.57 trillion by 2031.

These logistics industry experts house your inventory in their warehouses and pick, pack, and ship products directly to your customers. For growing ecommerce brands, working with a 3PL is a strategic way to scale fulfillment, improve delivery speed, and avoid having to build logistics infrastructure in-house—if you choose the right model and partner.

If you’re ready to partner with a 3PL for the first time, or considering multiple 3PL partners to diversify and mitigate risk, here’s what you need to know to find and select the right vendor.

What is third-party logistics?

Third-party logistics is when a company outsources logistics operations—warehousing, transportation, and order fulfillment—to a specialized external provider. 3PLs handle product storage, inventory tracking, order picking and packing, carrier coordination, and order-tracking software.

3PLs offer various logistics solutions, such as:

• Storing products in strategic locations
• Tracking stock levels and product locations
• Picking, packaging, and shipping customer orders
• Coordinating shipments via truck, air, and sea

Providing software for order tracking and inventory management

Companies partner with 3PLs to reduce costs and improve efficiency. Instead of managing warehouses and distribution in-house, you can store your stock with a 3PL and ship orders from their network. But what does that process look like in practice?

How does a 3PL work?

While the 3PL fulfillment process can vary depending on the provider and services you’ve chosen, the typical process looks like this:

1. You send your products to the 3PL warehouse, and their software syncs with your online store.
2. A customer buys a product on your site, and the order details are automatically sent to the 3PL's system.
3. The 3PL warehouse team picks the items from the shelves and packs them into boxes with the necessary labels.
4. A shipping carrier like UPS or FedEx collects the package and delivers it to the customer’s door.

Generally, this is the core operational flow most 3PLs follow. However, 3PLs are just one type of logistics management provider within a larger ecosystem. 

4PL vs. 3PL vs. 2PL

To understand how 3PL services fit in the broader logistics landscape, it helps to compare them with other fulfillment models. These models differ by how much control, coordination, and operational responsibility a business retains—not by company size. 

• 2PL: Couriers collect parcels from your warehouse and deliver them to an end customer.
• 3PL: Inventory is stored, picked, packed, and shipped by a third-party company.
• 4PL: Providers manage the fulfillment partners (3PLs) you’re working with. Their team negotiates the contract with a partner, resolves any issues, and communicates between your internal team and the distributor.

If you only need help executing fulfillment, a 3PL is the best fit; if you need help coordinating multiple logistics partners end to end, a 4PL is the better model.

Freight forwarders focus on international or long-distance transportation, rather than managing end-to-end fulfillment, which distinguishes them from 3PLs.

3PL versus dropshipping 

Dropshipping is an ecommerce fulfillment method where the store doesn’t stock the products it sells. Instead, when the store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

For many commerce brands, the choice comes down to control and simplicity:

• 3PL is often a better fit for brands that want faster delivery, more consistent unboxing experiences, and operational stability at scale.
• Dropshipping may be a better option for testing new products, minimizing up-front inventory costs, or launching quickly.

Choose a 3PL when you:

• Want more control over packaging, returns, and deliveries
• Need faster, more predictable shipping when you have more orders
• Are ready to invest in inventory and operational planning

Choose dropshipping when you:

• Want to validate demand before buying inventory
• Need a simple path to launch and expand a catalog quickly
• Don’t mind having less control over shipping speed and packaging

Why do companies choose to work with a 3PL provider?

Companies choose a 3PL when they become overwhelmed by order growth. 3PLs are not just a solution for enterprise-sized brands—they’re designed for ecommerce brands of any size with intentions to scale fulfillment, improve delivery speed, and stay focused on core business priorities.

Suppose you have a flash sale, or one of your products goes viral. It’s not always feasible (or cost-effective) to handle that surge of orders in-house. When fulfillment can’t keep up, missed delivery promises can quickly erode customer trust, particularly in an era where fast shipping becomes the norm.

When should you consider outsourcing fulfillment logistics to a 3PL?

You should consider outsourcing fulfillment to a 3PL when your current operations start limiting growth or impeding the customer experience. Four key questions will help you determine whether it’s time to enlist the services of a 3PL:

1. Are you fulfilling more than 10 to 20 orders per day?

If that’s where you’re at, calculate the costs of partnering with a 3PL to keep your profit margins strong. Outsourcing packing, picking, and shipping can save time on manual labor, especially if you’re partnering with a 3PL that uses automation.

Likewise, estimate the growth potential—opportunities you’re not currently able to pursue—by outsourcing fulfillment to a 3PL.

2. Are you running out of space for inventory?

Merchants often forget to include storage costs in their fulfillment expense calculations.

When deciding whether a 3PL is right for your retail business, compare your current warehouse expenses with estimates from 3PLs. Sometimes, bundling storage costs with outsourced fulfillment gives you better value for your money.

3. Can your existing infrastructure handle a surge in demand?

How much would a sustained spike in order volume (outside of one-off flash sales or marketing promotions) cost your business?

If you need to hire rapidly to increase in-house capacity or invest in automation yourself, it might be more cost-effective to outsource fulfillment to a 3PL.

4. Do you want to offer faster shipping and fulfillment?

Consider a 3PL if you want to offer shipping options like next-day or two-day delivery but find it challenging to do so with your current in-house operations. Faster shipping can improve customer satisfaction, increase conversion rates, and drive repeat purchases.

3PLs work with multiple clients, which allows them to negotiate better rates with shipping carriers. These savings are passed on to you, making faster shipping options more affordable. They can also help you implement strategies like zone skipping or multi-carrier shipping to optimize for speed and cost. 

When evaluating 3PLs, ask about their shipping-speed capabilities, the locations of their fulfillment centers, and their track record for meeting delivery promises. 

Advantages and disadvantages of 3PLs

3PL advantages

• Test and launch in new markets with ease
• Free up capital that’s tied up in warehouse space
• Reduce your overhead costs
• Insulate your business against supply chain disruptions

Test and launch in new markets with ease

Expanding internationally requires a global fulfillment network, documentation, and accounting for customers and duties. If you want to try to sell your product overseas but aren’t prepared to navigate the legalities involved or invest in infrastructure abroad, working with a 3PL is a good way to test the waters.

For example, if you’re a US-based merchant and want to test your products in the UK, it makes sense to store a small batch of inventory in the country using a 3PL. This removes the complexity of learning about local real estate and labor laws before you know if the market is even worth it.

Outsourcing these responsibilities can also speed up delivery times, improve customer satisfaction, and reduce shipping costs.

Free up capital that’s tied up in warehouse space

If you’re investing in your own warehouses and distribution centers, costs aren’t set to decrease any time soon. 

While vacancy rates are up, rents continue to grow due to demand for storage space, especially in key regions, despite new supply coming online. In particular, the Southern California and Northeastern US markets continue to see significant rent increases, with areas like Los Angeles leading the nation at $21 per square foot.

In contrast, 3PLs operate shared warehouse networks across multiple clients, allowing them to absorb storage costs and maintain capacity when demand fluctuates. If you reduce or avoid your own warehouse overhead, you’ll have more capital to redirect toward growth opportunities.

Reduce your overhead costs

Relying on a 3PL means you get the benefits of skilled warehouse staff, as well as warehouse automation technology, without investing cash into developing your own. Robotic machinery to pick and pack orders, for example, means human staff don’t need to be on hand to fulfill orders. 

The machinery works 24/7, so retailers can benefit from later order cutoffs for immediate shipping. Ocado Retail even overhauled their entire warehouse to be completely automated.

The other area of potential cost-savings is carrier rates. Since 3PLs are able to negotiate preferred shipping rates, the cost of shipping is typically lower. 

Insulate your business against supply chain disruptions

With an existing network of fulfillment centers around the world and pre-negotiated carrier contracts, 3PLs can be less vulnerable to global shipping and fulfillment disruptions. While working with one may not eliminate shipping surcharges altogether, it will help reduce your exposure and diversify your risk, as 3PLs typically have relationships with multiple carriers.

Increasingly, 3PLs are also investing in their own delivery vehicles, which can support shorter distances and more frequent deliveries, and avoid clogs in the entire supply chain.

For example, Shopify brand Manly Bands—which sells wedding rings for men—has started to mitigate the impact of delivery delays by working with 3PLs to fulfill orders.

“By doing this, we have found that we have more control over our shipping commitments,” says Eric Farlow, Manly Band’s COO.

3PL disadvantages 

• Up-front investment
• Fixed warehouse workflows and operating hours
• Integration complexity
• Less direct control over shipping
• Dependence on provider performance
• Reverse logistics challenges

Up-front investment

There are high up-front costs when setting up with a 3PL provider, like integrating their software with your ecommerce store, SKU upload, and account access. Overall costs are typically broken into the following categories:

• Transportation costs: Shipping products from your factory to your national and international warehouses.
• Receiving costs: Offloading products from your transportation provider to their warehouse.
• Warehousing fees: Usually a monthly fee based on the amount of space used and charged per pallet.
• Pick-and-pack fees: Picking units from shelves or bins and packing them for shipment and discounted for higher volumes.
• Shipping costs: Delivery of product to your end customer.
• Account set-up fees: Account creation and software integration.
• Minimums: Minimum monthly spend is generally required.

Fixed warehouse workflows and operating hours

With “fast” and “free” being the two principles dominating the shipping and fulfillment landscape, when there’s a backlog and you just want to get orders out the door, it might be tempting to head down to the warehouse and pack orders yourself. 

But if you’re working with a 3PL, that won’t be possible. 3PLs maintain their own hours of operation and workflow, which can have a downstream effect on your business.

Integration complexity 

Moving to a 3PL isn’t always a plug-and-play experience. Depending on your provider, you may have to link your warehouse management system (WMS), order management system (OMS), and enterprise resource planning (ERP) systems. Aligning these with carrier service-level agreements (SLAs) and reporting requirements can take time and resources. 

It’s also expensive to switch 3PL providers, should the need arise. Rebuilding integrations and revalidating workflows can become an operational risk. If you’re on Shopify, you can integrate with an approved 3PL app, such as Shopify Fulfillment Network or ShipBob, to reduce integration risk.

Less direct control over shipping

When you work with a 3PL, you delegate part of your brand promise to a third-party. You still own the relationship, but the 3PL owns your shipping touchpoint. 

The 3PL typically handles carrier selection, warehouse prioritization, and daily cutoff times. If your customers expect sub-two-day delivery (as nearly 50% now do), you are limited by your 3PL’s network. Any custom shipping logic, like packaging rules or split shipments, will be difficult or more expensive. 

Dependence on provider performance

Your brand reputation is only as good as your 3PL’s worst day. If they miss an SLA, your business absorbs the fallout. 

Although 90% of shippers report successful relationships with their 3PLs, some 74% say they would switch providers for better AI capabilities, as most are trying to overcome a lack of skilled personnel and make the right investments to meet shippers’ expectations. 

Reverse-logistics challenges

Managing returns is more complex than outbound shipping, especially when return volumes online are three times higher than in physical retail. Returns require detailed inspection, grading, and decisions on restocking or liquidation. 3PLs are known for high-speed outbound shipping, but may not have as effective reverse logistics processes.

Even with a clear view of the benefits and tradeoffs, some misconceptions about working with a 3PL can stall the decision, so it’s worth clearing up.

3PL myths and misconceptions

Plenty of myths and misconceptions exist about working with 3PLs. Here, we’ll break down three of the most common ones.

When you hand things over to a 3PL, you lose control

It’s true that inventory stored in a 3PL’s warehouse won’t be immediately accessible to you, which may feel disconcerting at first.

But working with a 3PL actually allows you to gain more visibility and consistency. When the pressure of shipping and fulfillment is taken off your plate and handed over to the experts, mistakes are less likely to occur. A good 3PL should also be able to provide reports and analytics, which lets you manage the process remotely and help you make better business decisions in the future.

3PLs are only for enterprise-sized businesses

On the contrary: If you have plans to scale or grow your business, a 3PL may be right for you. Don’t assume that the cost of third-party warehousing and distribution is out of your price range—as we explain below, it can actually reduce your overhead costs and free up capital.

3PLs have too many hidden fees

It’s true that 3PL pricing is complex, with additional fees that include inbound costs, storage costs, outbound costs, customs and duties, and even custom packaging.

But these fees aren’t hidden—they’re clearly laid out, provided you know the right questions to ask before signing a contract with a 3PL.

What are the types of 3PL companies?

3PLs can be grouped in a few ways—by the function they perform, by the products they specialize in, and whether they own the physical logistics infrastructure.

Full-service providers

Full-service 3PLs handle multiple parts of the fulfillment process—from warehousing to shipping—often across multiple locations.

Not only is knowing how much stock you have (and where) a key component of improving operational efficiency, so too is shipping inventory from the location closest to the customer in order to cut shipping costs. Full-service 3PLs help cross-border ecommerce brands become more efficient during periods of disruption.

Full logistics service providers, like the Shopify Fulfillment Network (SFN), offer end-to-end solutions that get orders to your customers easily and quickly. With a vast network of strategically located fulfillment centers nationwide, full-service 3PLs ensure you have the right merchandise at the right location, so orders ship faster and more cheaply.

Alongside faster and cheaper shipping, the Shopify Fulfillment Network offers:

• Inventory intelligence: Shopify recommends where inventory should be stored to be close to customers.
• Control over fulfillment experience: Decide how fast orders are delivered and stand out with marketing inserts. Packaging is included with the pick rate and you can supply your own branded packaging.
• Easy integration: No technical integration required. Shopify will help set up the Shopify Fulfillment app for you. Most 3PLs offer extensive integrations and ongoing maintenance.
• Same-day fulfillment: Orders received by 4 p.m. ET are shipped out the same day.

World-class fulfillment that was once reserved for only the largest companies in the world is now accessible and affordable for every high-volume brand, thanks to SFN.

3PL warehouses

Warehouses that store, ship, and handle returns are the most common type of 3PL, with many offering fast two-day shipping options. And if you’re expanding globally, international warehouses can help build a global supply chain. These providers bring established fulfillment processes and operational expertise you can plug into as you scale.

When choosing a 3PL warehouse, determine how many distribution centers you’ll have access to. You’ll need a larger network of warehouses if you promise customers expedited delivery. Shipping speed hinges on warehouses being geographically close to your customers. You’ll also need to accurately forecast inventory levels to appropriately stock warehouses in your network.

It’s also important to find out the time at which your warehouse stops fulfilling the day’s orders. If orders are placed after the warehouse cutoff time, they won’t go out until the next day. This impacts how you market fulfillment and the delivery dates consumers expect. (Remember: Just one later-than-expected delivery and you risk losing customers.)

Transportation-based 3PLs

These providers focus on transportation management, moving goods through various transportation services. They usually don’t manage warehousing or order fulfillment, but specialize in moving inventory efficiently between locations. 

Depending on your volume, they can coordinate LTL (less-than-truckload) shipping for smaller batches or full-truckload freight for large-scale inventory replenishment.

There are three main types of transportation-based 3PLs:

• Traditional parcel transportation providers such as DHL, FedEx, UPS, and the USPS
• Same-day delivery by local couriers like Postmates and UberRush
• Transportation marketplaces like Flexport, Freightos, and GrandJunction

When deciding on a transportation-based 3PL, explain your origin and destination locations and the time frames you expect for inventory to move between.

Ask about the shipping methods they use, the service levels, and any pricing/discount information they’ll give once your inventory increases. If you transport international freight, some include brokerage fees; others include import/export taxes and duties in their costs.

Financial and information-based 3PLs

Many growing ecommerce businesses are increasingly focused on unit economics. It’s a model that requires visibility into key warehouse-management processes like pick-to-pack to better understand and calculate the costs associated with each unit or item sold.

Retailers need to have the financial information associated with fulfillment at their fingertips. It’s the only way to make rapid and accurate decisions during disruptive periods and ongoing operations.

After you’ve scaled revenue to eight or nine figures, you might want to consider a financial or information-based 3PL company. Consulting firms—like Chicago Consulting and St. Onge—provide industry-specific insight and can take the headache out of complex global supply-chain management. They also provide internal controls for tasks such as freight auditing, cost accounting, and inventory management to ensure consistency.

Cold chain logistics 

Cold chain logistics is a specialized service for temperature-sensitive products. These providers use refrigerated and frozen storage facilities to maintain product quality for industries like:

• Pharmaceuticals, where vaccines and medications must stay within strict temperature ranges
• Grocery, including perishable foods and meal kits
• Biotechnology, which handles sensitive lab materials and samples 

Hazardous materials handling

Shipping hazardous materials may require a 3PL with specific certifications and understanding of compliance. 

In many cases, providers must follow strict packaging, labeling, and transportation rules—such as Pipeline and Hazardous Materials Safety Administration (PHMSA) regulations in the US—to ship these items safely.

You may think your products are not hazardous, but these everyday items require certifications:

• Nail polish
• Perfume
• Hairsprays 
• Cleaning sprays
• Phones
• Power tools

Heavy-item fulfillment 

For a brand selling furniture, large appliances, or fitness equipment, you may need a provider that specializes in oversized items. 

These 3PLs use equipment like heavy-duty forklifts and may provide white-glove delivery services—bringing the product into a customer’s home, unboxing it, and installing it as needed. 

Asset-based versus non-asset-based 3PLs

Choosing between an asset-based and a non-asset-based 3PL is a big decision for brands. Let’s break down what these terms mean and how to pick the right one for your business.

• Asset-based 3PLs have their own warehouses, trucks, and other logistics equipment. Think of them as having all the tools in-house.
• Non-asset-based 3PLs don’t own physical assets. Instead, they partner with other companies to use their equipment and facilities.

Cost

• Asset-based 3PLs might be pricier due to their investments in equipment, but they could offer more stable pricing. 
• Non-asset-based 3PLs might be cheaper, but prices could change based on their partners.

Choose an asset-based 3PL if pricing stability matters more than flexibility. If you want lower up=front commitment and are comfortable with variable costs, consider a non-asset-based 3PL.

Control

• Asset-based 3PLs have more control over their operations, which can mean better quality and consistency. 
• Non-asset-based 3PLs rely on partners, which might lead to less control but more flexibility.

Asset-based 3PLs are a better fit when you need consistent execution and tighter operational control are critical.

Scalability

• Asset-based 3PLs might be limited by their physical resources.
• Non-asset-based 3PLs can often scale up quickly by tapping into their network. 

If you expect rapid expansion across regions or channels, non-asset-based 3PLs can scale faster—asset-based providers are better for predictable, steady growth.

Expertise

• Asset-based 3PLs usually specialize in specific industries or regions where they have facilities. 
• Non-asset-based 3PLs might offer a wider range of services across different areas.

Non-asset-based providers are useful when you need broader geographic or functional coverage. Consider asset-based if you’re focusing on specific regions or verticals.

Technology

• Asset-based 3PLs might prioritize their physical infrastructure.
• Non-asset-based 3PLs often focus more on tech solutions. 

Brands that prioritize visibility and coordination across multiple partners may prefer non-asset-based 3PLs.

Customization 

• Asset-based 3PLs can sometimes offer more tailored solutions, since they control their assets. 
• Non-asset-based 3PLs might have less room for customization.

When customization and hands-on control matter—such as branded packaging or specialized handling—asset-based 3PLs typically offer more flexibility.

There's no one-size-fits-all answer. The best choice depends on your brand's specific needs and goals. It's smart to talk to both types of 3PLs and compare how well they match your requirements before making a decision.

What services does a 3PL provide?

These are the core capabilities to evaluate when assessing a 3PL:

Warehouse and inventory management

A 3PL should provide inventory warehousing and inventory management solutions and software. 

Based on where most of your customers reside, it’s helpful to know where a 3PL’s warehouses are located. This can keep your merchandise within shipping zones, allowing you to provide same-day or two-day shipping.

A good 3PL will also relocate your inventory based on where orders are coming from. It will ship goods closer to your buyers to ensure they’re always available in the closest warehouse possible.

Expertly managed warehouse operations reduce the risk of fulfillment errors, while many providers also offer value-added services such as kitting, assembly, or custom branded packaging.

Order management and fulfillment

A 3PL should have a robust order management system to track stock levels across warehouses and to get the products into your customers’ hands, fast. This will be integrated with your own software, so that you’re able to maintain management of your shipping and fulfillment.

Shipping coordination

3PLs either work with established carriers or have their own fleet for shipping and fulfilling orders.

Most are adept at fulfilling shipping promises (such as two-day shipping), which has been proven to drive conversions at checkout.

Order tracking

A 3PL will send order confirmation to customers, as well as confirmation of shipping and delivery.

Reverse logistics and returns

It’s not enough to simply ship orders out. A full-service 3PL will also manage your return and exchange processes, as well as the customer service that goes along with that.

International logistics

Finally, if you’re scaling internationally, choose a 3PL with locations in multiple countries, which can help to reduce cross-border shipping and tax complexities.

How to choose a 3PL provider

Selecting a third-party logistics service is likely one of the biggest decisions you’ll make as you scale your international ecommerce business. You’re putting trust in the provider you select to take care of your brand and deliver the customer experience you envision.

The right partner can make or break your company’s logistics, customer service, and repeat-purchase rate. Trusting someone with sales, inventory, and other sensitive information is a significant risk.

Choosing the right partner is a balance between quantitative data and relationship building.

We asked a merchant success lead at Shopify Fulfillment Network what they would recommend when it comes to choosing a 3PL. Their top piece of advice? Don’t choose a 3PL based on where you are today, but rather where your business is going to be one to three years from now.

“Changing fulfillment providers can be strategically difficult and disruptive to your business, even when executed via the smoothest transition plan,” they said.

“It's best to pick a long-term partner and to anchor yourself to the one to three things that elevated that partner amongst the rest. Commerce and fulfillment will evolve over time, and by selecting a partner for the long term and establishing trust, you can benefit from their insight and suggestions into how to evolve your business along with the industry’s changing landscape.”

Likewise, choose a 3PL that is also looking for a long-term partnership, such as one that’s able to advise you on how to maximize sales, reduce costs, and optimize your supply chain operations.

Decide on 3PL selection criteria

The advantage of using a 3PL is you can lean into a partner’s existing setup to store, pack, pick, and ship orders. Evaluate how efficient that process is and whether they’re equipped to handle a rise in inventory as your own business scales.

Here are the top 10 questions to ask a 3PL provider:

1. What service levels do you commit to for shipping speed, order accuracy, and inventory accuracy—and how are they defined in your SLA?
2. What compensation or corrective action do you provide when you miss those service levels?
3. What is your standard time to receive inventory and make it available to sell?
4. What is your daily order-cutoff time for same-day shipping?
5. What is the total fulfillment-cost structure, including all fees and minimums?
6. Which warehouse locations would handle our orders, and what delivery speed can we expect for most customers?
7. Which shipping carriers do you support, and can we use our own negotiated rates?
8. How do you handle returns from intake through inspection, restocking, and final disposition?
9. What systems do you integrate with, and what is the typical timeline to go live?
10. Who is responsible for day-to-day account support, and what response times do you commit to?

Ask about 3PL costs

There are steep set-up fees when partnering with a new 3PL, but as time goes on, you’ll likely save money on fewer overheads and labor costs. Calculate the potential savings by asking for a list of costs—and what that quote includes—before deciding on a partner. Ask:

• What are your hours of operation (including weekends and holidays)?
• How many shipments from your factory do you receive on a quarterly basis?
• Do you provide custom packing slips and gift messages or gift cards?

“Look out for the quoted price and understand that it often won’t include value add-ons like marketing inserts, gift wrapping, and special packaging,” says Charles Michael, manager of strategic partnerships at Stitch Labs. “If you feel like you’re getting too good a deal, you probably haven’t asked all the right questions.”

You might have better shipping rates than the warehouse you’re evaluating. If so, ensure your warehouse partner will accept them. Conversely, larger warehouse networks often can use their heft to negotiate deeper discounts than lone businesses.

Set reporting and communication expectations

When working with a new 3PL, it’s crucial things switch over seamlessly. Monitor your customer support channels and social media for shipping-related complaints from customers. Also inquire about whether your 3PL offers some form of reporting to help you keep track of things like timeliness of deliveries, order and delivery accuracy, and shipping-related damages.

Set expectations for that communication. Ask them how they communicate about the following:

• New orders
• Shipping notices
• Returns
• Inventory counts
• Incoming purchase orders
• Receiving stock
• Adjustment notifications

Determine delivery service levels

Sweat the contract details before you commit to working with a new 3PL provider. Asking the following questions up front prevents you from entering a contract with an untrustworthy logistics provider:

• How do they compensate for delays?
• Do they have an enforceable nondisclosure agreement?
• Do they have strong customer references?
• Do they have at least a two-year track record of financial stability, and are they willing to share financial statements with you?

Decide whether you prefer a refund or credit if shipments aren’t fulfilled on time. Be sure you know whether you’ll be credited for broken or lost items—understand the service-level guarantees offered to gauge your liabilities.

Also, think about whether you want packages fully insured while in storage and during delivery and return. Be precise when negotiating. For instance, you may only want to insure items up to $100 or beyond. Understand if what you’re getting is insurance or simply a carrier-included liability.

Check for integrations

Got your shortlist of 3PL providers? The final measure is to confirm the 3PL integrates with your existing inventory management system, order management system, order processing software, and/or warehouse management solution.

Synchronizing systems ensures orders are automatically fulfilled and shipped while simultaneously updating inventory levels.

• How easy is your standalone platform to use?
• Do you integrate directly with your Shopify store through an API or an approved app?
• Do you have a standalone platform you can integrate with through an EDI or via FTP file transfers?

Some 3PLs integrate with Shopify directly to make changes on your behalf—like marking orders as fulfilled, processing refunds, or tracking stock. Your order management system becomes the single source of truth, regardless of whether you’re posting orders from your own warehouses or using a 3PL.

Looking for more advice on how to find the right 3PL partner? Download The Third-Party Logistics Checklist, which includes 45 key questions to ask prospective partners, along with advice from experts in the field.

The Shopify Fulfillment Network

Shopify Fulfillment Network (SFN) offers an integrated solution for businesses looking to streamline their ecommerce logistics and scale operations. By partnering with Flexport, a trusted logistics provider, SFN brings advanced technology and efficiency to your fulfillment process.

Key capabilities include:

• Fast nationwide delivery: Two- and three-day shipping across the US
• Data-driven network planning: Strategic product placement based on demand
• Simplified inventory management: Send to one location, let Flexport handle distribution

SFN's integration with your Shopify store is seamless. You can monitor everything from fulfillment to inventory levels directly from your Shopify admin. 

As your business grows and evolves, you can adapt your fulfillment strategy. Choose delivery services that fit your current needs and adjust as necessary. SFN pricing is designed to be transparent, so you can understand costs as your fulfillment needs change.

By leveraging Flexport's logistics expertise and Shopify's ecommerce know-how, SFN positions your brand for scalable, sustainable growth. The use of technology and data-driven network planning means more efficient operations, lower costs, and happier customers.

Partnering with a 3PL can change your business for the better

Whether you’re partnering with a 3PL for the first time or decreasing the reliance on the one you already have, the process is tough. Ecommerce brands can’t control the destiny of each of their business partners. But you can control the due diligence you conduct before selecting a 3PL.

Be thorough in your appraisal of potential partners. The right third-party logistics companies can change your business for the better—not just by taking the headache out of storing and delivering orders, but in the speedy delivery times you promise to customers.

A well-chosen 3PL can be a strategic enabler for growth—helping you scale fulfillment, improve delivery speed, and avoid building logistics infrastructure in-house.

If you’re evaluating partners, Shopify Fulfillment Network can help you manage fulfillment through trusted 3PLs that integrate directly with your Shopify admin. Learn more about shipping and fulfillment with Shopify.