When to Move to a 3PL

For many growing e-commerce brands, fulfillment works—until it suddenly doesn't.

What starts as a manageable in-house operation often becomes a bottleneck as order volume, channels, and customer expectations increase. Many brands begin with fulfillment in a spare room, garage, or small warehouse.

However, as sales grow, the operational complexity multiplies. Knowing when to move to a 3PL can prevent costly mistakes, operational burnout, and stalled growth.

To understand the full comparison, see our guide on in-house fulfillment vs 3PL.

Common Signs You've Outgrown In-House Fulfillment

You may be ready for a 3PL if you're experiencing one or more of the following:

  • Order volume exceeding capacity: Your team is working overtime regularly, or orders take longer to ship than promised.
  • Increasing fulfillment errors: Wrong items ship, quantities don't match records, or error rates exceed 1-2%.
  • Slower shipping times: Shipping from a single location means longer transit times for distant customers.
  • Difficulty handling peak seasons: Holiday seasons or successful marketing campaigns overwhelm your operation.
  • Limited space for growth: You're running out of storage space or warehouse costs are becoming significant.
  • Time diverted from growth: Founders spend increasing hours on fulfillment instead of growing the business.

Order Volume Is Only Part of the Equation

While many brands consider moving to a 3PL between 5,000 and 50,000 orders per month, volume alone isn't the deciding factor.

Other indicators include:

  • Expanding into B2B: B2B orders require different processes. Learn more about how B2B and D2C fulfillment differ.
  • Managing multiple sales channels: A 3PL's technology can manage complexity more effectively than manual processes.
  • Needing faster delivery: A distributed warehouse network reduces transit times.

What Changes When You Move to a 3PL

A well-aligned 3PL partnership shifts logistics from a daily challenge to a structured, scalable operation.

Brands typically gain:

  • Professional inventory management: Inventory accuracy typically improves to 99%+ levels.
  • Faster order fulfillment: Orders ship same-day or next-day with higher accuracy rates.
  • Real-time visibility: Dashboards provide instant access to inventory levels and order status.
  • Flexibility to scale: The 3PL handles volume increases without requiring you to hire or lease space.
  • Time to grow the business: Founders redirect time to product development and marketing.
  • Better shipping rates: 3PLs negotiate better rates, often reducing costs by 15-30%.

When evaluating potential partners, use our guide on what to look for in a 3PL.

Why a One-Stop, Distributed 3PL Matters

Many brands discover too late that not all 3PLs scale equally. Understanding the differences between B2B and D2C fulfillment helps you choose a 3PL that can handle both.

A one-stop partner provides:

  • Unified inventory management: One inventory pool serves both D2C and B2B channels.
  • Channel-appropriate fulfillment: The same 3PL handles both small parcel and large B2B shipments.
  • Distributed warehouse network: Orders ship from facilities closer to customers. Learn how distributed fulfillment works.
  • Scalability without provider changes: The same partner scales as you grow.

Ensure they can handle both channels—see our guide on what to look for in a 3PL.

Understanding the Cost Equation

Moving to a 3PL changes your cost structure, but total cost of ownership often decreases when you factor in all variables.

Direct costs to consider:

  • Per-order fulfillment fees: Typically $3-8 per order depending on complexity.
  • Storage fees: Usually $15-40 per pallet per month.
  • Receiving fees: One-time charges of $5-25 per pallet.

Hidden costs that often decrease:

  • Labor costs: You eliminate fulfillment staff salaries and benefits.
  • Shipping rates: 3PLs negotiate better rates, reducing costs by 15-30%.
  • Error costs: Higher accuracy reduces returns and refunds.

For a detailed breakdown, see our comparison of in-house fulfillment vs 3PL costs.

Know When It's Time to Make the Move

If fulfillment is slowing growth, causing errors, or consuming too much time, a 3PL transition can free your team to focus on what drives revenue.

Request a Call with a Sales Consultant