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.
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:
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.
Not all 3PLs offer the same suite of services. Consider whether the provider can handle all of your requirements.
A modern 3PL should provide more than a warehouse. Their systems should give you visibility, control, and automation.
Red flags:
Technology is especially critical for distributed fulfillment across multiple warehouses.
Communication is consistently highlighted by brands as a defining factor in successful 3PL relationships.
Look for:
Operational excellence is measurable. Ask about key performance indicators (KPIs).
Important: Ask for real historical performance data—not just claims. Request 6-12 months of actual metrics.
3PL costs typically include receiving, storage, pick & pack, shipping, and returns processing. Make sure you understand:
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.
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:
For brands with nationwide customer bases, distributed fulfillment becomes increasingly important.
Your provider should be able to grow with you—not just handle your current order volume.
Important indicators include:
For more on this, see our guide on scalability differences between in-house and 3PL.
A provider's reputation and client feedback speak volumes.
What to do:
Finally, the best 3PL relationships feel like partnerships, not vendor contracts.
Signs of a good cultural fit include:
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.
Choosing the right 3PL requires evaluating technology, performance metrics, cost transparency, and cultural fit. Talk with a BlueWave consultant to assess your 3PL needs.
Request a Call with a Sales Consultant