21 Aug

When Brands and 3PLs Outgrow Each Other: How to Transition Smoothly

In the world of logistics and fulfillment, change is constant. As we like to say at Ware-Pak, “every day is a great day” – especially for a new challenge. Businesses evolve, strategies shift, and sometimes even long-standing partnerships reach a natural turning point. A recent announcement from Flexport highlights this reality: beginning in 2026, the company will raise its minimum monthly fee for fulfillment customers from $500 to $5,000.

For many small and mid-sized brands, that’s a significant leap. But rather than seeing it as a setback, it can be an opportunity to re-evaluate whether your fulfillment provider is still the right fit for your brand’s needs.

Why Does Outgrowing Happen?

It’s important to remember that outgrowing a fulfillment partner is not always a negative reflection on either side. There are several reasons this happens:

Scaling at different speeds: A brand may be in its early growth stage while a 3PL decides to pivot toward serving enterprise clients. Likewise, a brand may scale past the capabilities of their current 3PL and need a better fit with a provider that services their new business model.

Strategic shifts: Providers sometimes re-align pricing and services to target a new market segment.

Business priorities: What worked at the start of a business may not remain cost-effective or supportive long term. Either the brand or the 3PL can also have leadership changes which can sway decision-making toward new agendas.

In short: just as brands evolve, so do 3PLs.

Best Practices for Ending a Fulfillment Partnership

If you find yourself in the position of needing to transition away from your current partner, it’s important to do so thoughtfully. A clean, respectful exit sets both parties up for success.

Here are a few best practices:

  • Communicate directly. Avoid relying on mass emails or abrupt notices. Open dialogue helps maintain trust.
  • Provide reasonable notice. Creation of a transition timeline is helpful for both sides and gives each side time to prepare for a successful parting of ways.
  • Ensure data integrity. Accurate inventory counts, order history, and systems integrations should be shared to smooth the handoff. The brand’s new 3PL provider will appreciate a well-packed and accurate move-out shipment.
  • Leave the door open. Today’s small customer could be tomorrow’s large one. Ending on good terms keeps future opportunities alive.
  • Keep it professional and business-as-usual. Parting ways in any long-term relationship can be difficult. Don’t let your emotions get in the way of business, and keep to your daily professional standards.

What This Means for Brands Today

If your business’s monthly fulfillment spend falls below Flexport’s new $5,000 minimum, you’re not alone. Many growing brands may feel left behind by these shifts. But there is good news: there are fulfillment partners who specialize in supporting businesses at your stage. There are over 72,000 3PLs in the U.S., with more popping up every day!

Not all 3PLs are created equal. You need to ask yourself, where is my business right now, and what do I want my business to look like in the future?

Matt Kurtis, VP of Ware-Pak, The Future of E-Commerce Fulfillment

The key is finding a partner that aligns with your size, growth plans, and customer experience goals – not just today, but in the years ahead.

How Ware-Pak Can Help

At Ware-Pak, we understand the challenges of scaling a brand. For over 62 years, we’ve partnered with companies of all sizes to provide flexible, reliable fulfillment solutions. Our approach is built on:

  • Custom, tailored solutions that fit your business stage where it is currently.
  • Personal service from a team that is experienced in fulfillment and knows how to service your account.
  • Scalable support so we can grow with you, without unnecessary costs.

If you’re feeling unsupported and concerned about meeting new minimums elsewhere, reach out to Ware-Pak for a fulfillment quote today.

Change is inevitable, but disruption doesn’t have to be. With the right partner, transitions can be smooth, supportive, and even open new opportunities for growth.