What to Look for in a 3PL: A Practical Guide for E-Commerce Brands

Choosing the right third-party logistics partner is one of the most important decisions an e-commerce business makes as it scales.

Choosing the right third-party logistics (3PL) partner is one of the most important decisions an e-commerce business makes as it scales. The right provider can improve delivery speed, reduce costs, increase accuracy, and free your team to focus on growth. The wrong one can lead to angry customers, hidden fees, and operational headaches.

Here's a comprehensive breakdown of the most meaningful criteria to evaluate when choosing a 3PL partner—with practical guidance on how each factor impacts your business.

If you're still deciding whether to move to a 3PL, start with our guide on when to move to a 3PL or compare in-house fulfillment vs 3PL.

1. Industry Experience & Expertise

Look for a 3PL with experience working with companies similar to yours—especially in your product category and fulfillment model (D2C, B2B, international, etc.).

What to ask:

  • How many years have you worked with brands like ours?
  • Can you provide case studies or references from similar clients?
  • Do you have experience with our specific product category?
  • Have you handled brands with similar order volumes and growth trajectories?

If you're expanding into B2B channels, ensure the 3PL has experience with both D2C and B2B fulfillment. Understanding how B2B and D2C fulfillment differ is critical.

2. Service Coverage & Capabilities

Not all 3PLs offer the same suite of services. Consider whether the provider can handle all of your requirements.

  • Warehousing and distribution: Secure storage, inventory management, and order fulfillment
  • Order fulfillment and returns: Picking, packing, shipping, and processing returns with 99%+ accuracy
  • Kitting and custom packaging: Value-added services like product assembly or gift wrapping
  • International logistics: Customs documentation and cross-border shipping
  • B2B and wholesale fulfillment: Case picking, pallet building, retailer compliance, and ASN management

3. Technology & Integration

A modern 3PL should provide more than a warehouse. Their systems should give you visibility, control, and automation.

  • Real-time inventory visibility: See exactly what's in stock across all warehouse locations
  • Order tracking: Monitor order status from receipt through delivery
  • Platform integrations: Native integrations with Shopify, WooCommerce, Amazon, Walmart, and other marketplaces
  • Automated reporting: Dashboards showing fulfillment metrics and performance KPIs
  • API access: Programmatic access to inventory and order data

Red flags:

  • Manual CSV uploads required
  • No API or platform integrations
  • Limited reporting or data visibility
  • No real-time inventory synchronization

Technology is especially critical for distributed fulfillment across multiple warehouses.

4. Communication & Customer Service

Communication is consistently highlighted by brands as a defining factor in successful 3PL relationships.

Look for:

  • A dedicated account manager: A single person who knows your account and can quickly resolve issues
  • Clear escalation paths: Defined processes for urgent issues with support available during your business hours
  • Regular performance reviews: Monthly or quarterly meetings to review metrics and discuss improvements
  • Proactive communication: The 3PL alerts you to potential issues before they become problems

5. Performance Metrics & Accuracy

Operational excellence is measurable. Ask about key performance indicators (KPIs).

  • Order accuracy: Industry standard is 99%+ (fewer than 1% of orders have errors)
  • On-time fulfillment rate: Percentage of orders shipped within promised timeframe (target: 95%+)
  • Inventory accuracy: How closely physical inventory matches system records (should be 99%+)
  • Average fulfillment cycle time: Time from order receipt to shipment (same-day or next-day)
  • Damage rate: Percentage of orders damaged during fulfillment (should be under 0.5%)

Important: Ask for real historical performance data—not just claims. Request 6-12 months of actual metrics.

6. Cost Structure & Transparency

3PL costs typically include receiving, storage, pick & pack, shipping, and returns processing. Make sure you understand:

  • How each fee is calculated: Receiving ($5-25 per pallet), storage ($15-40/pallet/month), pick & pack ($2-5 per order)
  • Whether there are minimums or hidden costs: Monthly minimums, setup fees, or integration costs
  • How pricing changes during peak seasons: Some 3PLs charge premium rates during holidays
  • Volume discounts: How costs decrease as volume increases

Tip: A seemingly low per-order fee can be offset by higher storage costs. For more on costs, see in-house fulfillment vs 3PL costs.

7. Geographic Coverage & Network

Where a 3PL's warehouses are located matters a lot for delivery speed and cost. Strategic warehouse placement can reduce transit times by 2-4 days and shipping costs by 15-30%.

Good coverage enables:

  • Faster transit times: Orders ship from warehouses closer to customers
  • Lower shipping costs: Shipping from Zone 2 instead of Zone 8 saves $5-10 per order
  • Efficient handling of regional peaks: Distributed networks balance load across facilities
  • Redundancy and resilience: If one warehouse has issues, others can continue operations

For brands with nationwide customer bases, distributed fulfillment becomes increasingly important.

8. Scalability & Flexibility

Your provider should be able to grow with you—not just handle your current order volume.

Important indicators include:

  • Ability to handle peak seasons: Can handle 3-5x volume spikes without service degradation
  • Flexible contracts: Avoid providers that lock you into high monthly minimums
  • Commitment to expanding capacity: Willingness to add warehouse locations as you grow
  • Experience scaling other brands: Ask for examples of clients who've grown 10x while staying with the same 3PL

For more on this, see our guide on scalability differences between in-house and 3PL.

9. Reputation, References & Track Record

A provider's reputation and client feedback speak volumes.

What to do:

  • Ask for references: Request 2-3 references from brands similar to yours
  • Read online reviews: Check Google Reviews and industry forums for patterns in feedback
  • Check for certifications: ISO 9001, SOC 2, or industry-specific accreditations
  • Ask about client retention: What percentage of clients stay for 2+ years?

10. Cultural Fit & Partnership Approach

Finally, the best 3PL relationships feel like partnerships, not vendor contracts.

Signs of a good cultural fit include:

  • Willingness to align with your values: Understanding your brand and customer experience goals
  • Proactive problem-solving: Identifying issues before they become problems
  • Commitment to continuous improvement: Regular process reviews and performance optimization
  • Transparency and honesty: Clear communication about challenges and realistic expectations

Final Thoughts

Choosing a 3PL isn't just about price or location—it's about alignment across operations, technology, performance, and culture. A thoughtful evaluation process can reveal which partner will help accelerate growth without operational headaches.

Take your time during the evaluation process. Request detailed proposals, ask tough questions, and speak with references.

If you're still in the early stages, start with understanding when to move to a 3PL and the tradeoffs between in-house and 3PL. If you're expanding into multiple channels, ensure your chosen 3PL can handle both B2B and D2C fulfillment.

Evaluate 3PLs with Confidence

Choosing the right 3PL requires evaluating technology, performance metrics, cost transparency, and cultural fit. Talk with a BlueWave consultant to assess your 3PL needs.

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