Often, fulfillment begins in-house with whoever is available to get the orders out – potentially, even the owner or founder themselves. Inventory is stored wherever there is available space, and shipping is handled manually on a per-order basis. At first, this can work well. However, many brands experience growing pains with in-house fulfillment, especially when scaling quickly. Space becomes limited, shipping volumes become unmanageable, and manual processes can slow down operations. This is when most brands realize it’s time to find a 3PL to handle their fulfillment so that they can focus on everything else it takes to run a successful business.
Transitioning from in-house fulfillment to an outsourced model with a 3PL can feel like a big step – it’s basically like moving your home! According to IBISWorld data, there were almost 70,000 3PLs operating in 2025 just in the US alone. That’s a lot of options! And unless you’ve worked with a 3PL in the past or have previously been in the warehousing and logistics industry, it is difficult to know how to find the best fit for your business and what questions to ask. In this blog, Ware-Pak covers what you should consider when you’re looking for a 3PL, especially when moving from an in-house fulfillment model.
Starting with the basics that most people think about:
Volumes/Capacity – How many orders per day does the 3PL fulfill on average? How much space is available? How many current clients do they have, and out of those, how many are in the same e-commerce industry as your brand? Are there any order minimums needed for your account to stay active (per day, or per month)?
Shipping Capabilities – What shipping carriers are available to you? Who “owns” the accounts? Is shipping pre-paid for? Who pays shipping carriers directly, the fulfillment center, or the brand? Some 3PLs will cover shipping costs upfront as a service and re-bill them to you, but they don’t provide the actual shipping cost. This makes it impossible to know if all discounts are being applied, or if they might be using shipping as a profit center. Ask – how will I see shipping discounts applied on my invoice? Can brands use their own shipping accounts? Who chooses how each order ships? How often do carriers pick up shipments from the warehouse? Are smaller DTC shipments organized onto pallets for carrier pick-up, or are they thrown into gaylords or load bags? Are they hand-loaded onto a shipping truck? Ask the 3PL to walk you through their day-to-day shipping process.
Technology – How are orders processed and picked in the warehouse – are paper pick tickets being used, or has RF tech been implemented? RF allows for the best accuracy and visibility. What integrations exist with your current systems (ERP/webstore/Shopify/Amazon/other distributors)? How will you have visibility into your account? An online remote portal should be available at least to see completed orders. How are you notified of daily fulfillment activity, what reports are available? Can the inventory on your website be adjusted by integration with their systems? What technology advancements have been implemented in the last year, and what is scheduled to be implemented in the next 12 months? Continuous review and improvement allow for maximum success in any industry. Does this 3PL employ their own team of programmers and developers, or is this department contracted out?
Pricing Structure – Every 3PL prices differently – some charge a percentage of your sales, some have a more straight-forward activity-based model. You should be able to transparently see what you are paying for each invoice period. Ask to see a sample invoice from the 3PL. Is there a minimum spend or order number needed per month to stay active with this 3PL, is there a minimum monthly fee? Will long-term storage of any products affect your storage rates? Many fulfillment centers want products to move, not sit, because then they have more space available to sell to other brands. Slower-moving SKUs could end up costing you more. What other fees may exist, such as setup and on-boarding costs, administrative fees, customer service, hourly labor, programming, etc? Many of these types of fees exist with many 3PLs, but are not explained in an initial quote.
We’ve covered reviewing 3PL pricing, hidden costs of 3PL’s and current 3PL price trends in greater detail in one of our recent blogs. Download a 3PL Pricing Checklist to help with your review!
Understanding how the 3PLs you are reviewing will handle the above will get you most of the way to finding the best fit for your brand.
Below are aspects of fulfillment and some steps that brands might not have considered to include in their review:
Seasonal Scalability – Will your brand be prioritized during your busy season? How does your busy season compare to their other clients? It’s one thing for a 3PL to handle your normal average daily order volumes, but once your sales team ramps up, will they be able to attack the new volumes with the same level of expertise?
Error Accountability – How do they handle it when things don’t go according to plan (as seems to happen almost daily in the logistics industry)? Pick rates, stated SLAs and KPIs – how are these measured, and do you have visibility on your specific brand’s data? Does their tech have the ability to drill down into the employee who picked your order? What solutions are implemented when errors are identified?
Take a Tour – Ask if you can visit the 3PL and tour their warehouse and operations prior to making a decision. If they aren’t willing to meet you face-to-face and provide a look around their warehouse on pretty much any operating day, consider looking elsewhere. What do they have to hide? Does this 3PL allow customers to visit periodically, such as during audit season? Do they allow customers to pick up orders in person for nearby businesses?
Customer Service – What type of customer service can you expect to receive from this 3PL? Will you have a dedicated rep managing your account? If so, are they located in the same place as your inventory? Can you pick up the phone and call them? Many businesses in this post-pandemic era have gone completely remote or even outsourcing their customer support, and have eliminated phone support, meaning you wouldn’t be able to speak with someone on the phone during an urgent-need situation. Is there a ticket system? How will follow-ups be received when you request new services or reports, or have a concern about your account? Does this 3PL offer periodic account reviews with leadership to discuss success, growth, and scalability?
Client Mix & Brand Fit – This can sometimes be a bit of an awkward conversation, but it’s important to know how your brand measures up to the 3PL’s other clients. Will you be a “big fish” to them and one of their largest clients with the most volume, or will you be a small number among hundreds of clients? Each of these scenarios will bring its own challenges that you can then be more prepared to face by asking these questions. Most 3PLs will not provide you with a complete listing of clients, but will offer some references of current clients. Request at least 3 references of current brands being serviced by the 3PL, including at least one tenured client that has been with them for over 3 years to discuss the 3PLs partnership abilities, one client who has gone live within the last 3 months to give a reference about the on-boarding process, and one client in your same industry or selling similar products to see how they handle your specific business.
Prep Services – When Amazon announced they would be discontinuing their FBA Prep services in 2026 in the 3rd quarter of last year, many brands scrambled to find an efficient solution. You don’t want to sign a contract with a 3PL that can’t accurately prep your distributor shipments. Does this 3PL handle Amazon Prep? You will want to be specific about the requirements of your Amazon FBA orders so that the 3PL can evaluate their capabilities in servicing your account. Are they capable of completing other types of prep for other distributors? Take a look at your key accounts and any routing guides and shipping requirements, and share any necessary details to ensure the 3PL can accurately prep your larger distributor shipments.
At Ware-Pak, we aim to make the transition from in-house to outsourced fulfillment simple, strategic, and scalable. We partner with growing e-commerce brands to take fulfillment off of their plate, while keeping full visibility and control.
From receiving inventory to picking, packing, and shipping orders, our team handles day-to-day order fulfillment so that brands can focus on sales, marketing, and growth. As order volume increases, Ware-Pak scales with you. Flexible space, proven processes, and experienced staff ensure orders are handled accurately and efficiently, in every season.
Brands that transition to Ware-Pak gain more than just warehouse space and a 3PL team to pick and pack orders for them. They gain a true fulfillment partner to support growth with consistency, transparency, and over 63 years of success.
Whether you are outgrowing your current setup or you’re preparing to review your fulfillment operation for your next stage of growth, Ware-Pak can help make fulfillment one less thing you need to worry about.