How to Pick a 3PL Fulfillment Center For a DTC Shopify Store

Your spare bedroom has become a warehouse. The dining table is now a packing station. And you’re spending Tuesday afternoons at the post office instead of working on your business.

At first, shipping your own orders felt manageable. Even satisfying because you got to enjoy the pleasure of putting an item in the mail and sending it to someone who wants it.

But now, it feels like every hour spent packing boxes is an hour you’re not spending on product development, marketing, or growing your store.

That’s the moment most Shopify store owners realize they need help. But you have to be careful who you bring on to do that. Because the simple fact is that the wrong 3PL fulfillment center can create more problems than it solves. Talking about lost shipments, angry customers, and bills you don’t understand here, as well as poor communication that leaves you guessing about your own inventory.

This guide will help you pick a fulfillment partner that works for your DTC Shopify store. We’ll cover when you need one, what criteria matter, which questions separate good from bad, and how to spot red flags before signing anything.

When Do You Need a Shopify 3PL Fulfillment Center?

Not every Shopify store needs a fulfillment center. If you’re shipping just a handful of orders a week from your home office, then you probably don’t need outside help yet. There’s an overhead cost there, and it’s too high to justify the time savings.

But if you’re seeing any of these signals, it’s time to consider a 3PL.

Order volume is overwhelming. When you’re consistently behind on shipments or working nights and weekends just to keep up, that’s a clear sign. Your business is growing faster than your fulfillment capacity.

Shipping consumes time better spent elsewhere. If you’re spending 15-20 hours a week on fulfillment tasks, that’s half a full-time position. That time could go toward marketing, product development, or customer acquisition. The opportunity cost is real.

You’re making shipping mistakes. When order spikes lead to delays and shipping errors, customers will complain. Slow or inaccurate fulfillment damages your reputation and kills repeat business.

Your team is burning out. Overworking employees to meet fulfillment demands isn’t great for productivity and morale. It also increases turnover, which costs more than outsourcing ever will.

You’re managing multiple sales channels. Juggling Shopify, Amazon, wholesale accounts, and pop-up events while keeping accurate inventory across all channels is no small task. A good 3PL centralizes that complexity.

Storage space is limiting growth. Running out of room means you can’t stock enough inventory to meet demand. And renting storage units, tempting as it is, only adds cost without solving the fulfillment bottleneck.

Shipping costs are eating profits. 3PLs negotiate bulk rates with carriers that individual stores can’t access. Those discounts often offset the pick-and-pack fees, especially on high-volume shipping.

Your products need special handling. High SKU counts, kitting, temperature control, or expiration date tracking all increase complexity. These are tasks 3PLs handle daily but that overwhelm smaller operations.

Your inbox is drowning in shipping queries. When customer service spends most of their time answering “where’s my order” questions, something’s broken in your fulfillment process.

How To Choose The Right Shopify 3PL

Start with product-specific requirements. Not every 3PL handles every product type. Supplements need lot of tracking and potentially climate control. Electronics require static-safe handling. Apparel needs systems for managing sizes and colors. Perishables need cold storage.

Ask if the 3PL has experience with your category. Good partners are honest about their specialties and limitations. If they claim they handle anything, that’s a red flag.

Location matters, but maybe not how you think. For most stores, one well-placed warehouse works fine. If customers cluster on the East Coast, a warehouse in Pennsylvania or New Jersey makes sense. West Coast? California, Nevada, or even further inland like Utah.

You can work with multiple warehouse locations, but it’s more complex. That’s because you need inventory software to track it all and enough volume at each location to justify the additional cost. That’s why for most Shopify stores under a few hundred monthly orders, one warehouse beats a multi-location setup.

Make sure the 3PL integrates with Shopify. And make sure it’s a good integration too, since “we integrate with Shopify” can mean seamless two-way syncing or manual CSV uploads three times daily. You want to make sure it’s the former before you sign any papers.

You need real-time inventory syncing, automatic order routing, and accurate reporting. You’re going to be in and out of their portal a lot, so make sure it’s usable. Ask to see a demo.

Technology is also how you keep track of orders. You need to see order accuracy rates, delivery speeds, and inventory accuracy. Without measurement, you’re flying blind.

One more thing: some 3PLs require minimum order volumes. Others have capacity limits. Ask any 3PLs you’re thinking about working with what theirs are.

Questions To Ask Shopify 3PLs Before Signing On

The sales process reveals a lot about how a 3PL operates. Pay attention to how they answer these questions.

What specific guarantees are in your SLA? Service level agreements should include concrete numbers for receiving timeframes, inventory accuracy rates, and order accuracy rates. You want to see percentages and time commitments in writing.

What remedies exist for missed SLAs? Good 3PLs include reimbursement policies for mis-shipments and lost inventory above acceptable thresholds. If the contract has no penalties for poor performance, they have no incentive to maintain quality.

Can I see a demo of your system? This should be an easy yes. You’re going to be using the software regularly, so you want to make sure it’s something you’ll find easy to use.

What’s your returns processing capability? For DTC brands, returns are inevitable. You need to know how the 3PL handles inspection, restocking, and refurbishment. If you sell internationally, ask specifically about processing returns from the EU, UK, or Australia. Some 3PLs specialize in this and can save you significant headaches.

How do you handle damaged inventory? Clear protocols for damage assessment, reporting, and reimbursement matter. You need to know what happens when products arrive damaged or get damaged in the warehouse.

What’s your capacity during my peak periods? Every business has peaks. For most DTC brands, that’s Q4. Some 3PLs add surge pricing during busy seasons. Others hit capacity and can’t take your orders. It’s better to find out now than in November.

What’s required from me during setup? Implementation involves integrating systems, transferring inventory, and testing everything before going live. Understanding what you’re responsible for helps you plan appropriately.

Who’s my day-to-day contact? Dedicated account managers provide better service than shared support pools. Know who you’ll be working with and how to reach them when issues come up.

Red Flags for Shopify 3PLs

Some warnings should make you pause. Here are a few that come to mind.

Vague pricing. If a 3PL won’t provide itemized quotes showing all fees, they’re hiding something. Ask specifically what’s NOT included. Account setup fees, special handling charges, and receiving fees can all surprise you.

Contracts without clear promises and remedies if those promises are broken. If there’s no remedy when they miss SLAs, you have no recourse if the SLAs are broken.

Poor Shopify integration. Manual workarounds become what you deal with constantly. Native integration should be standard.

Vague answers about performance metrics usually mean they’re not measuring. Good 3PLs know their numbers and share them readily.

Slow responses are a bad sign for future customer service. If it takes days to answer simple questions now when they’re actively trying to sell you, it won’t improve when you’ve signed on.

Severe size mismatches. Enterprise 3PLs often have high minimums. Tiny operations may lack systems to handle growth. Look for 3PLs matching your size and trajectory.

No experience with your product category means learning on your dime. You want a 3PL that has shipped products like yours.

Limited online reviews or negative online reviews mean you either have no data to verify the 3PL’s quality, or there’s a history of service issues like late shipments, poor communication, or billing disputes.

How Shopify 3PL Pricing Works

3PL pricing breaks into four categories.

1. Pick-and-pack covers warehouse labor for each order. This includes pulling items, packing them, printing labels, and handing them to carriers.
2. Postage is what you’d pay carriers based on weight, destination, and speed. 3PLs get bulk discounts and good ones pass savings to clients.
3. Account and storage fees are ongoing monthly charges. Account setup might be one-time or waived. Storage typically charges by cubic foot or pallet.
4. Value-added services like kitting, assembly, or custom packaging are priced per project based on complexity.

When requesting quotes, forecast your volume realistically. Include seasonal spikes and expected growth. Account for value-added services. Ask what’s not included.

Compare quotes by calculating total monthly costs at different volumes. The cheapest pick-and-pack rate might come with higher storage fees. Look at the complete picture.

Contract terms deserve attention, particularly around performance guarantees and exit terms. It’s also a good idea to check whether prices can increase and under what terms.

Final Thoughts

Choosing a 3PL for your Shopify store is one of the most important operational decisions you’ll make. Get it right and you save time, reduce errors, and free yourself to focus on growth. Get it wrong and you’re dealing with daily frustration while your customer relationships suffer.

Cost matters, but capability matters more. The cheapest option that ships wrong products ends up being the most expensive. Watch how they answer questions during vetting. If they’re vague about pricing or slow to respond, that’s what working with them will feel like.

Take your time with this decision. A good 3PL relationship can last years. A bad one wastes money, time, and customers.

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Brandon Rollins, MBA, is the Director of Marketing at Fulfillrite. He typically writes about how eCommerce and crowdfunding brands can manufacture, freight ship, and fulfill products, as well as scale their businesses. You can find his work featured on Kickstarter.com, CrowdCrux, Retailbound, and Launchboom. He has been quoted in CMSWire, Quartz, Whatagraph, and Atlassian.

FAQ How do I know if my Shopify store is ready for a 3PL?

Not every store needs one yet. If you are shipping five orders a week from your spare room, the overhead costs won’t justify the time you save. However, you should start looking when you hit specific pain points: you are consistently behind on shipments, shipping errors are damaging your reputation, or you are spending 15–20 hours a week packing boxes instead of marketing or developing products. When fulfillment prevents you from growing, it’s time to outsource.

Do I need a 3PL with multiple warehouse locations to get faster shipping?

Likely not at first. While having inventory on both coasts sounds appealing, it gets complicated fast when it comes to inventory management and tax nexus. For most Shopify stores doing under a few hundred orders a month, one well-placed warehouse is far better than a complicated multi-location setup. You need significant volume to justify splitting your inventory; otherwise, you risk stockouts in one location while dust gathers in another.

What is the most important thing to look for in a 3PL contract?

You need to look for a Service Level Agreement (SLA) with teeth. Vague promises about “fast shipping” aren’t helpful. You want concrete numbers in writing regarding receiving timeframes, inventory accuracy, and order accuracy. The contract must include remedies (financial penalties or reimbursements) for missed SLAs. If there is no penalty for poor performance, the 3PL has no financial incentive to prioritize your business when things get busy.

What are the biggest “red flags” that a 3PL might be a bad fit?

Be skeptical of vague pricing and resistance to transparency. If a 3PL cannot provide an itemized quote breaking down pick-and-pack fees, storage, and receiving costs, they are likely hiding fees. Another major red flag is poor technology. If they mention “manual CSV uploads” or hesitate to show you a demo of their software portal, that’s another bad sign. You need real-time syncing with Shopify, not a provider that relies on spreadsheets and local knowledge.

Can any 3PL handle my specific product type?

No, and assuming they can is a costly mistake. Generalist 3PLs often fail at specialized tasks. If you sell supplements, you need lot tracking and climate control. If you sell apparel, you need a partner experienced with high SKU counts for size/color variants. If a 3PL claims they can “handle anything” but has no track record in your specific category, they will likely be learning on your dime. Always verify they have existing clients with products similar to yours.

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