Your Guide to Choosing a 3PL Provider

Finding the right third-party logistics (3PL) provider directly affects your ability to meet delivery promises, control fulfillment costs, and grow without operational friction. The best options can become an extension of your brand, not just a service behind the scenes. This guide walks through the process of choosing a 3PL provider. Learn how to assess potential partners, what to look for beyond the basics, how to build a long-term relationship that supports sustainable ecommerce growth, and more below.

What a 3PL Provider Really Does

A 3PL takes over the operational side of order fulfillment, handling inventory storage, picking, packing, shipping, and returns, so you can focus on marketing, merchandising, and customer experience. But the scope of services can vary widely.

Some providers, like Shipfusion, go beyond basic pick-and-pack by offering tools for real-time reporting, lot tracking, and even specialized services for B2B orders or custom projects. Others may focus solely on low-cost fulfillment without much operational insight. Understanding the provider’s full capabilities and how much of your workload they’ll realistically take off your plate is critical in choosing the right fit.

Core Services to Evaluate When Choosing a 3PL Provider

A strong 3PL should offer much more than a warehouse and a shipping label. The best partners provide infrastructure that can support your current needs and scale with you. Key areas to assess include:

Warehousing Infrastructure

Look for secure, climate-controlled facilities with sufficient space to support your product mix. Multi-location networks are especially useful if you want to reduce shipping zones or enable 2-day delivery without high costs.

Order Fulfillment Workflows

How does the provider process orders? Is there flexibility for bundling, kitting, or branded packaging? Ask whether workflows can be customized for your SKUs or order types.

Your Carrier and Freight Management

Established 3PLs often leverage negotiated rates with major carriers. Providers like Shipfusion also offer freight brokering services, which can help you secure competitive rates for inbound shipments or bulk distribution.

Returns Processing

An efficient returns management workflow should be seamless for customers and easy to track on your end. Look for providers that can offer real-time visibility into returns status and disposition options like restocking or disposal.

Factors That Make or Break a 3PL Relationship

When comparing potential 3PLs, it’s not just about services offered – how they operate behind the scenes often matters more.

Here are five critical areas that deserve close attention:

1. Operational Experience in Your Category

Experience with similar products and sales volumes matters. If you're a high-growth brand with SKUs that require lot tracking, for example, a provider like Shipfusion with pharmaceutical-grade capabilities is better suited than a generic warehouse. Request use cases or examples that match your fulfillment model – especially if you have special handling needs.

2. Tech Infrastructure and Integration Capabilities

Your 3PL should offer robust software with real-time visibility into inventory, orders, and fulfillment statuses. More importantly, their system should integrate seamlessly with your ecommerce platform (like Shopify or BigCommerce), ERP, or OMS. A native integration means fewer delays, better inventory accuracy, and smoother launches for new products.

Providers with proprietary systems, like Shipfusion, can often offer deeper insights and faster customization than those relying solely on third-party platforms.

3. Scalability Without Penalties

Make sure the provider can scale in both directions – ramping up for peak season or product launches, and scaling back during slower periods. Some 3PLs charge premium rates for temporary spikes or require long-term commitments that don’t align with ecommerce seasonality. Flexible providers build capacity into their model and offer transparent terms around scaling.

4. Geographic Reach and Delivery Speed

If your customer base spans the U.S. or includes international orders, a geographically diverse fulfillment network can reduce time-in-transit and lower shipping costs. Ask for data: how many shipping zones does their network help you skip? Do they offer same-day fulfillment cutoffs? Providers with warehouses strategically placed across North America – like Shipfusion – give brands more control over delivery timelines.

5. Cost Transparency and Fee Structures

Understand how fees are structured: storage (by volume or per pallet), pick and pack (per order or per item), packaging, receiving, account management, tech fees, etc. Cheaper isn’t always better – especially if hidden fees offset the savings. Look for pricing that aligns with your average order profile and business growth plan, and push for clarity around any variable fees that might catch you off guard.

Choosing a 3PL Provider with the Right Criteria

Even once you’ve shortlisted potential providers, due diligence is critical to avoid costly missteps. Go beyond brochures and sales pitches with these steps:

1. Request a Tailored Proposal

Provide detailed information about your SKUs, average order volume, return rate, and growth projections. The quality of their proposal will reflect how well they understand your needs and whether they’ve worked with businesses like yours before.

2. Ask for Tech Demos

Have them walk you through their platform – reporting dashboards, inventory views, and how order status updates are shared. Look for user-friendly interfaces, customizable reports, and how clearly they surface issues like backorders or delayed shipments.

3. Tour the Facility (Physically or Virtually)

Observing operations in real time is often the fastest way to assess organization, cleanliness, staffing levels, and overall efficiency. If in-person isn’t an option, request a video tour or live walkthrough over Zoom.

4. Review SLAs and KPIs

Fulfillment accuracy, on-time shipments, inventory accuracy, and response times for support tickets should all be covered in your service agreement. Providers like Shipfusion offer defined supply chain KPIs backed by dedicated Account Managers, ensuring you’re not left troubleshooting on your own.

Building a Productive Relationship After Choosing a 3PL Provider

The work doesn’t stop once you sign. Your 3PL should be a partner you meet with regularly, not just when something goes wrong.

• Set Clear Operational Expectations: Spell out what matters most to your business: cutoffs, handling requirements, service levels, packaging needs. Align on how these expectations will be tracked and enforced.
  

• Hold Regular Reviews: Quarterly business reviews (QBRs) are a best practice for identifying trends, uncovering issues, and adjusting processes. Providers with strong client support structures – like Shipfusion – typically initiate these sessions to keep performance on track.
  

• Document Workflows: From inbound receiving to final-mile shipping, having detailed SOPs ensures consistency and minimizes miscommunication. This becomes especially valuable during team turnover or when scaling quickly.

We Make Choosing a 3PL Provider Easy

At Shipfusion, we understand how pivotal choosing a 3PL provider is in your ecommerce success. That's why we offer a turnkey solution. Businesses partner with us for top-tier fulfillment services tailored to meet the unique needs of their growing operations. With experts at the helm, you'll benefit from seamless order processing, expert inventory management, and competitive shipping rate, all while ensuring your customers receive their orders accurately and on time.

Get pricing today and let us help you achieve ecommerce excellence.