If you’re running an online store, you’ve probably heard of a "ecommerce 3PL". But what exactly is a ecommerce 3PL, and why do so many ecommerce brands built on Shopify, WooCommerce, and other ecommerce platforms rely on them?

In this article, the founders of Warehut break it down so you can figure out if a 3PL is what your business needs.

What is a 3PL?

A 3PL (third-party logistics provider) is a company that handles logistics and fulfillment for other businesses. Think of it as outsourcing your warehouse, shipping, and sometimes even returns processes. Instead of renting a storage space and packing boxes yourself (sometimes referred to as "in house fulfillment" or "self fulfillment"), you send your inventory to a 3PL, and they take care of the rest—picking, packing, and shipping your orders directly to your customers. Some 3PLs also offer added perks like inventory tracking, custom packaging, or even help with international shipping.

For ecommerce brands, working with a 3PL means you can scale faster without worrying about the complexities of supply chain management. You’ll have more time to focus on what you’re great at—whether that’s product development, marketing, or growing your Shopify store into a powerhouse.

Why ecommerce businesses need 3PLs

When you’re just starting out, fulfilling orders from your garage or spare bedroom is manageable. But as your business grows, so do your logistics headaches. This is where an ecommerce 3PL comes in handy.

They can:

• 🕒 Save you time by handling day-to-day operations like shipping and returns, freeing you up to focus on strategy and customer relationships.

  
  

• ⏳ Improve delivery speeds by using strategically located warehouses (e.g. east coast, west coast, and central) to ensure your products get to customers quickly.

  
  

• 💰 Reduce shipping costs through bulk discounts from carriers like USPS and UPS, which can significantly lower your expenses and improve your profit margins.

  
  

• 💪 Provide scalability as your order volume fluctuates with seasons, new product launches, or marketing campaigns that suddenly go viral.

  
  

• 🌍 Simplify international shipping if you’re expanding your market globally, helping you navigate tariffs, customs, and other challenges.

There’s even a growing niche for “micro 3PLs” like Warehut — smaller providers that cater to startups and boutique ecommerce brands. These might be ideal if you’re not ready for the scale (and cost!) of a larger 3PL but still need expert help and are big enough that it makes sense to outsource your pick and pack. A micro 3PL can provide personalized service and flexibility, often at a lower cost.

How to choose the right ecommerce 3PL

Not all 3PLs are created equal, and choosing the wrong one can be a costly mistake, both in terms of money and customer satisfaction. Here’s what to look for when evaluating a 3PL for your ecommerce business:

1. Experience with ecommerce

💻 Make sure the 3PL specializes in ecommerce. Bonus points if they integrate seamlessly with platforms like Shopify and WooCommerce. A dedicated Shopify 3PL will ensure your inventory and orders sync automatically, saving you tons of headaches. The right partner will also understand the specific needs of ecommerce, such as fast shipping times and the importance of keeping your customers happy.

2. Location of fulfillment centers

📍 Where are their warehouses? Ideally, you want a 3PL with facilities close to your main customer base to ensure fast and affordable shipping. For U.S.-based brands, having locations on both coasts can make a big difference. Some providers even offer analytics to help you determine the best locations for your inventory based on order history and customer demographics.

3. Scalability

🚀 Will this 3PL grow with you? Your needs might look very different in a year or two, so find a provider that can handle seasonal spikes, product expansions, and increased order volumes. Scalability is especially critical during peak times like Black Friday or holiday seasons when order volumes skyrocket.

4. Pricing transparency

💳 Hidden fees can quickly eat into your margins. Look for a 3PL with clear, upfront pricing that aligns with your budget. Make sure to ask about extra charges for things like storage, returns processing, or special handling, so you’re not caught off guard.

5. Customer support

📢 A responsive support team is non-negotiable. If there’s a problem with an order, you need a partner who’s easy to reach and quick to resolve issues. Look for a provider that offers multiple support channels, such as phone, email, and chat, and check reviews to see how they handle customer inquiries.

6. Special features

🎨 Some 3PLs offer value-added services like kitting, custom packaging, or advanced reporting. Decide which features are must-haves for your business. Custom packaging, for example, can enhance your brand image, while kitting services are great for subscription boxes or bundled products.

7. Technology and integration

🔗 A modern 3PL should have a robust tech stack, and not be relying on technology built 20 years ago. Look for providers that offer real-time inventory tracking, order management systems, and seamless integrations with your ecommerce platform. Technology can streamline your operations and provide valuable insights into your supply chain.

Final thoughts

Partnering with the right ecommerce 3PL can be a game-changer for your business, allowing you to focus on growth while they handle the nitty-gritty logistics. Whether you’re looking for a full-scale operation or a micro 3PL to get started, doing your homework now will save you countless headaches down the road. Remember, the best 3PL for your business is one that aligns with your current needs and has the flexibility to grow with you as your business evolves.

If you’re ready to take the next step, check out Warehut. We match small ecommerce businesses with powerful, ultra-responsive micro 3PLs located throughout the U.S. From full Shopify integration to custom fulfillment solutions, we're laser focused on helping ecommerce startups and small businesses succeed. You can book an intro call with us here.