In ecommerce, your fulfillment strategy can make or break your business. How your orders are picked, packed, and shipped to your customers leaves a lasting impression–one that you’ll want to get right every time.
After all, a brand can have top-tier marketing and products, but if packages arrive damaged or packed with the wrong items? Customers will remember that. Today’s ecommerce sector is much too crowded to let fulfillment go by the wayside.
The thing is, not all 3PLs are the same. The ‘right’ partner depends on your products, supply chain management needs, and (most importantly) where you’re at within your growth journey.
Choose well, and fulfillment becomes a growth lever, improving customer satisfaction and protecting your margins. Choose poorly, and it may feel like you’re always on the defense.
The reality is that there’s no such thing as a one-size-fits-all fulfillment solution. In this blog, we’re breaking down what to look for in a fulfillment partner at every stage of growth, from self-fulfilling early days to omnichannel expansion and beyond.
The right fulfillment partner for every stage
When you’re just starting out
Many brands begin with self-fulfillment because it gives them complete control over how and when orders are picked, packed, and shipped. But self-fulfillment often becomes unsustainable once order volume outpaces fulfillment operations. Whether a brand is shipping from an office or a leased space, it can be difficult to manage growing demand. Not to mention the time and energy it takes to juggle ecommerce integrations.
Outsourcing fulfillment can feel like a huge step; however, if your fulfillment strategy can’t keep up with your growth, it can mean costly delays and a miss on customer satisfaction. Partnering with a 3PL before high-growth strikes mode is a great way for brands to ensure all they’re set up to scale smoothly.
Look for a fulfillment partner with expertise in these key startup fulfillment needs:
- User-friendly, intuitive system. Startups and new DTC brands will need a fulfillment partner with easy-to-use inventory management technology. This way, they can keep track of their SKUs and avoid costly stockouts.
- Basic integrations. Your fulfillment partner should have seamless integrations to all major ecommerce platforms. An extensive Shopify integration enables the fulfillment process to begin as soon as an order is placed.
- Robust onboarding process. It can be overwhelming to design and implement a fulfillment strategy as a startup brand. A good 3PL partner won’t treat their customers as another number, instead, they’ll design a detailed onboarding and continuous improvement plan to keep things running smoothly.
- Low-volume friendly. Many 3PLs require brands to ship out a certain number of orders per month to work with them. When you’re first starting, you’ll want to look for a fulfillment partner who is willing to take on low volume AND has the capabilities to scale.
- Quick customer support. Nothing is worse than when fulfillment questions go unanswered. Your business is on the line, and your partner should be transparent and quick to respond to any issues. When you’ve just launched a brand, customer support is paramount so that you can solve any mishaps as quickly as possible.
When you’re in high-growth mode
Scaling fast? It’s a good problem to have, but it comes with operational challenges. When your order fulfillment can’t keep up with your sales volume, it creates bottlenecks, negatively impacts customer expectations, and drives up costs.
Brands that successfully get through this high-growth period have fulfillment strategies designed to handle rapid growth while reducing shipping costs. Plus, if your brand is taking an omnichannel fulfillment approach by selling on multiple marketplaces, social media, and more, you’ll need a fulfillment company that can integrate with multiple sales channels.
In high-growth mode, your 3PL should be able to handle these key fulfillment needs:
- Tech-forward operations. Real-time visibility of orders and inventory tracking is a must-have for high-growth brands. Your 3PL partner should have technology that enables complete control over your operation from just about anywhere.
- Expansive integrations. Integration with post-purchase platforms, returns platforms, shopping carts, and ERP systems is the key to unified, scalable solutions, where your fulfillment operation aligns with everything happening outside of the warehouse.
- Custom/branded packaging. The customer experience doesn’t stop after a purchase is made. It continues throughout the fulfillment journey until the product is taken out of its packaging. Working with a partner who can offer custom packaging, marketing inserts, kitting, bundling, and more will make the unboxing experience an unforgettable one.
- Fulfillment cost optimization. Now that you’re shipping plenty of orders out daily, it’s vital to ensure you aren’t leaving valuable dollars on the table. Your partner should be able to optimize your packaging and carrier strategy to ensure cost-effective shipping.
- Cross-border fulfillment capabilities. Whether you’re just starting to expand internationally or have it on the future roadmap, a partner with cross-border fulfillment expertise makes it easier to break into new markets without the hassle.
When you’re expanding into retail
DTC alone isn’t always enough to fuel long-term growth. Boosting reach and profitability comes with retail expansion. Embracing wholesale early on is a surefire way to avoid the growing pains of building a loyal, online community. Why? Because big-box retailers have in-person communities that brands can tap into.
But, retail fulfillment introduces a whole new set of operational demands. Processing bulk shipments for big-box retailers come with strict requirements for packaging, labeling, EDI, and delivery times. And, there can be costly chargebacks for brands that can’t meet these requirements consistently.
Brands expanding into brick-and-mortar will want to look for these key retail fulfillment needs:
- Retail compliance expertise. From routing guides and timely delivery windows to labeling and packaging standards, your 3PL should have deep experience navigating retailer compliance to avoid costly chargebacks or rejected shipments.
- Unified DTC and retail fulfillment. Managing separate inventory pools for DTC and retail can create operational headaches. Look for a partner with integrated technology that provides real-time inventory visibility across channels, supports automated store replenishment, and enables flexible fulfillment from one interface.
- POP displays. Your fulfillment strategy will directly impact your point-of-purchase (POP) delivery. A partner with expertise in building POP displays will be able to recommend the most efficient way to pack displays to get them safely to retailers, like bundling products that are too large to build out before shipping.
- Automated fulfillment. Manual processes don’t scale well in retail operations. Automated fulfillment, like real-time inventory syncing and EDI integrations, eliminates operational friction across retail fulfillment operations.
- Compliant packaging and labeling. Major retailers expect brands to meet the demands of their specific labeling and packaging needs. Look for a fulfillment partner that can avoid penalties with retailer-specific processes in place.
When you’re looking to optimize your operations
When you’re a well-established enterprise brand, fulfillment is no longer just about seamless operations and getting orders out the door, it’s about building a strategy that becomes a competitive advantage in a saturated market. At this stage, operational efficiency, cost optimization, and customer experience are all deeply tied to your fulfillment strategy.
Enterprise brands have typically built a large community of loyal advocates, and they won’t want to do anything to harm their reputation. Switching fulfillment partners at this stage can be a tricky decision, but finding a partner that acts as a strategic collaborator means delivering even more exceptional customer experiences.
Enterprise brands should look for fulfillment providers with:
- Multi-node fulfillment network. Distributing inventory across multiple fulfillment centers ensures orders are delivered quickly and efficiently to customers close to a specific warehouse location. Look for a partner with strategically located warehouses and smart order-routing technology to optimize delivery.
- Shipping rate software. Diversifying carrier and shipping methods can drive significant savings at scale, especially when it’s done with a rules-based system. The right fulfillment partner will offer software that automatically selects the most cost-effective option without sacrificing delivery speed.
- Full suite of value-added, scalable services. Enterprise brands should look for a partner that offers kitting, bundling, custom packaging, returns processing, retail compliance, and even sustainable packaging solutions so your fulfillment strategy can evolve with your brand needs.
- Full data visibility and reporting. At this stage in an ecommerce brand’s journey, your 3PL should offer more than just real-time visibility. Look for customizable dashboards and automated reporting with actionable insights into service levels and performance.
- Two-way transparency. True operational excellence comes from a strategic partnership. Look for a partner who acts like an extension of your team with proactive communication, clear SLAs, and a willingness to share insights, flag issues early, and continuously optimize for better performance.
Choosing the right 3PL: Tips for success
With the 3PL market expected to grow to $1,993.72 billion (yes, billion) by 2028, there are an overwhelming number of 3PLs out there. But, not all logistics partners are created equal. When making the switch to a new provider or partnering with a 3PL for the first time, retailers must understand how to best assess a new provider.
Do’s:
- Ask for references and customer case studies
- Look for industry-specific expertise
- Understand SLAs and performance metrics
Don’ts:
- Choose based on price alone
- Rush into a long-term commitment
- Be afraid to ask questions and test technology
No matter where you are in your ecommerce journey, focusing on the above will help clarify which 3PLs best align with your business needs. Looking for more? Check out these 19 questions to choose the right 3PL from our friends over at Kase.
How WSI handles fulfillment across every growth stage
WSI is one of the largest privately-held 3PLs in the US, with an expansive nationwide fulfillment network of over 13 million square feet of warehouse space. With almost 60 years of reliable warehousing and fulfillment services, our comprehensive industry expertise spans health and beauty, food and beverage, chemicals, and more.
Whether you’re an emerging business or an experienced enterprise retailer, WSI has the people, processes, and technology to unlock seamless, automated fulfillment. Our warehousing, fulfillment, and transportation services focus on the customer experience–no matter the growth stage.