What Is The Best 3PL For Shopify?

Your Shopify store hasn’t gotten ahead by chance – it’s growing because it strives to be the best in every respect. Quality products and timely customer service are fundamental parts of growth phase one. Now that orders are rolling in en masse, staying competitive will require top-notch fulfillment services.

Third-party logistics (3PL) providers offer a convenient and cost-effective option for businesses that want to focus more of their time on core sales-related activities. In this article, we outline everything to look for in a top 3PL for Shopify as you compare 3PL companies to potentially partner with.

Benefits of Partnering with a 3PL for Ecommerce

All of the benefits of working with a 3PL can be distilled into one word: savings. Businesses reap multiple kinds by choosing the right Shopify fulfillment partner. Large service providers’ robust fulfillment systems are naturally efficient, they can do more than an in-house team would for the same cost, and often in less time.

When order speed and accuracy rates climb, customer satisfaction does as well. That causes return rates to decline, reducing the cost a company pays for reverse logistics operations. 

But while outsourcing fulfillment will save your business money, partnering with a 3PL also offers significant benefits that go beyond immediate cost savings. 

One of the biggest additional advantages is scalability. As your business grows, managing logistics can become more complex. A 3PL allows you to scale operations seamlessly, eliminating the need for large investments in warehouse space, technology, or additional staff. This flexibility allows you to allocate your resources more efficiently and focus on other critical aspects of your business.

Key Features to Look for In a 3PL Provider for Shopify

Just like how Shopify brings unique offerings to the table compared to other ecommerce platforms, 3PLs vary in strengths and core features. In this section, we’ll explore the most important ones to prioritize during your search.

Integration with Shopify

When selecting a 3PL provider for your Shopify store, seamless integration should be at the top of your priority list. A well-integrated 3PL solution can significantly streamline your operations and enhance your customer experience. Look for providers that offer native Shopify apps or robust API connections that enable real-time data synchronization. This means that as soon as an order is placed on your Shopify store, it's instantly transmitted to the 3PL's system for processing. Similarly, when inventory levels change in the warehouse, your Shopify store should reflect these updates immediately.

Inventory Management

Effective inventory management is crucial for the success of your Shopify store, and a top-tier 3PL should offer robust tools to help you optimize this aspect of your business. Look for providers that go beyond basic stock tracking and offer advanced features such as demand forecasting, reorder point calculations, and cycle counting. Advanced inventory forecasting software that analyzes your sales history, seasonality, and market trends to predict future demand can help you make data-driven decisions about when and how much to reorder, reducing the risk of stockouts or overstocking.

Order Fulfillment Speed and Accuracy

Order fulfillment speed and accuracy can make or break your Shopify store's reputation. That’s why it’s important to look for a 3PL that guarantees same-day processing for orders placed before a specific cut-off time, typically around 2 PM. Pay attention to error rates; top-tier 3PLs maintain accuracy rates of 99.9% or higher. Also ask potential partners about their quality control processes, such as barcode scanning and weight checks. 

Shipping Options and Costs

Most 3PLs provide a range of carriers and service levels, allowing you to balance speed and cost based on your customers' preferences. It’s best to find a partner that has relationships with major carriers like UPS, FedEx, and USPS, as well as regional carriers, and international shipping companies. In-house freight forwarding services can be particularly valuable if you're importing products from overseas manufacturers. 

Return Management

A proficient 3PL partner should offer a comprehensive reverse logistics solution that goes beyond basic processing. Consider providers that offer value-added services such as product inspection, refurbishment, and restocking. This can help reduce losses from returns and even create opportunities for resale.

Some advanced 3PLs also provide data analytics on return reasons, helping you identify and address product issues or unclear descriptions that may be driving returns. By choosing a 3PL with robust return management capabilities, you can turn a potential pain point into a competitive advantage, enhancing customer satisfaction and potentially increasing repeat purchases.

Warehouse Locations

A 3PL with a well-distributed network of fulfillment centers can offer several advantages. For instance, if you're serving customers across the United States, a 3PL with facilities in key regions like the Northeast (e.g., New Jersey), Midwest (e.g., Chicago), South (e.g., Atlanta), and West Coast (e.g., Los Angeles) will be poised to offer fast ground shipping to most of the country. 3PLs that use a distributed inventory model, where you split your stock across multiple warehouse locations based on demand patterns, can further reduce shipping costs while supporting faster delivery times and improving inventory management.

Customer Service and Support

Exceptional customer service and support from your 3PL can be a game-changer for your ecommerce business. Look for a provider that offers a dedicated account manager who understands your unique needs and can provide personalized solutions. For instance, some top-tier 3PLs assign industry-specific Account Managers who are well-versed in the nuances of your product category, whether it's apparel, electronics, or perishables. 

Beyond personal support, seek providers with robust omni-channel communication options. This might include 24/7 phone support for urgent issues, email ticketing systems for detailed inquiries, live chat for quick questions, and even video conferencing capabilities for complex problem-solving sessions. 

Additionally, consider 3PLs that offer self-service portals with real-time dashboards, allowing you to access critical information like inventory levels, order statuses, and performance metrics at any time. Some advanced 3PLs even provide API access, enabling seamless integration with your own systems for automated data exchange. By choosing a 3PL with comprehensive support options, you can ensure that you have the assistance you need to navigate challenges and capitalize on opportunities in the fast-paced world of ecommerce.

Technology and Automation

Seek out 3PLs that offer real-time visibility into your inventory and order status through user-friendly dashboards and mobile apps. This transparency, along with the speed of order automation, will allow you to make data-driven decisions and provide accurate information to your customers, enhancing their shopping experience and building trust in your brand.

Scalability

A truly valuable 3PL partner grows alongside your business, adapting to your evolving needs without causing disruptions. Scalable 3PLs offer flexible storage options, such as the ability to quickly expand your dedicated warehouse space or transition from shared to dedicated fulfillment as your order volume increases. They also have the capacity to handle sudden spikes in demand, like during holiday seasons or successful marketing campaigns, without compromising on service quality. 

Top 3PL Providers for Shopify

You have no shortage of options when it comes to Shopify 3PLs. That free choice is great because it allows you to find the best 3PL in every respect – whether industry reputation, support, or specialization are a top priority. Below, we’ve listed six well-known 3PL providers in North America to consider.

1. Shipfusion

Shipfusion is a large 3PL provider specializing in white-glove Shopify fulfillment services for rapidly growing ecommerce businesses. Solutions range from basic inventory management to ecommerce fulfillment, reverse logistics, and special projects. 

The company’s proprietary platform offers seamless integration with Shopify, real-time reporting, and dedicated account management. Meanwhile, advanced warehouse technology ensures fast and accurate order fulfillment throughout the United States and Canada.

Pros: Excellent customer support, high order accuracy, strategically located warehouses.

Cons: Higher costs compared to some competitors.

Pricing: Transparent and predictable fees.

Ratings: 4.5 stars on Capterra and Trustpilot.

2. ShipBob

ShipBob offers warehousing, inventory management, order fulfillment, and returns management services. They provide two-day shipping and real-time data tracking. Their software integrates with over 100 retail platforms, including Shopify.

Pros: Cost-effective, easy-to-use software.

Cons: Lower order accuracy compared to competitors.

Pricing: Competitive rates, especially for smaller businesses.

Ratings: 3.6 stars on Capterra and G2. 

3. ShipMonk

ShipMonk provides inventory storage, order preparation, shipping, and returns management solutions to ecommerce businesses in several large industries, especially health and wellness, pet care, and home goods. Using a combination of automated hardware, software, and human expertise, it fulfills orders received through Shopify and most other large online sales platforms.

Pros: Innovative use of in-warehouse robotics, comprehensive services.

Cons: Customer service can be difficult to reach.

Pricing: Higher costs for advanced services.

Ratings: 3.8 stars on G2, 4.3 stars on Trustpilot.

4. Red Stag Fulfillment

Red Stag Fulfillment covers the basics you’d expect a 3PL to handle – picking, packing, shipping, and inventory management – in addition to specialized solutions like custom kitting projects and FBA preparation. They guarantee accuracy and pay clients when standards aren't met.

Pros: High accountability, fast fulfillment times.

Cons: Mistakes still occur despite guarantees.

Pricing: Transparent, with performance guarantees.

Ratings: Average of 4 stars on various review sites. 

5. Fulfillment By Amazon (FBA)

FBA is Amazon's in-house fulfillment service, allowing sellers to store their products in Amazon's warehouses. When an order is placed, Amazon picks, packs, and ships the product, handling customer service and returns.

Pros: Access to Prime shipping, extensive network of fulfillment centers.

Cons: Higher fees, less control over inventory, potential commingling issues.

Pricing: Complex fee structure based on product size and weight.

Ratings: 3.7 stars on Trustpilot.

6. Shopify Fulfillment Network (SFN)

Shopify Fulfillment Network (SFN) is a logistics solution designed for ecommerce businesses using the Shopify platform. It offers services such as inventory storage, order processing, and shipping. SFN utilizes a network of fulfillment centers across North America and integrates directly with Shopify stores for streamlined operations.

Pros: Seamless integration with Shopify platform, dedicated support for Shopify merchants.

Cons: Limited international fulfillment options, higher costs compared to some alternatives.

Pricing: Varies based on order volume and services used.

Ratings: No ratings on the Shopify App Store. 

How to Choose the Right 3PL for Your Shopify Store

Not every ecommerce store owner’s definition of the ‘best 3PL’ will be the same. Each of the following factors holds different levels of significance and should be used to evaluate potential options accordingly.  

1. Assess Your Business Needs

Start by considering your product type, SKU count, and average order volume. Take note of your customers’ locations and determine your budget to help narrow down your options.

2. Prioritize Integration with Shopify

Ensure the 3PL provider offers seamless integration with Shopify, allowing for real-time inventory updates and efficient order management. Ease of use and reliable syncing are essential for smooth operations.

3. Look at Pricing Structure

Review the pricing models of different 3PLs, focusing on transparency and predictability. Weigh the cost against the value they provide in terms of technology, customer support, and scalability.

4. Check Reviews and Testimonials

Read feedback from other eCommerce businesses to gauge performance in areas such as order accuracy, customer service, and overall satisfaction. Reviews offer insights into what you can expect from a 3PL provider.

Partner with the Best 3PL for Shopify

You wouldn’t settle for subpar in any other respect – why start now with fulfillment? As one of the most critical factors of success in ecommerce, this investment is worth every penny you put into it. Shipfusion’s network of North American warehouse locations extends Shopify stores’ reach while leveraging technology to achieve consistent 99.9% order accuracy and 99.9% on-time processing rates. We’re built to scale, which means there’s no need to worry about switching to another 3PL as your growth inevitably continues.

See why countless clients choose us as their long-term partner for success on Shopify and beyond by contacting Shipfusion today.