Using 3PL Models to Solve Shipping Challenges for Shopify Seller
Shipping and fulfillment can make or break a Shopify business, especially those who are managing everything in-house. As order volumes grow and customer expectations rise, the pressure to deliver faster, more efficiently, and with fewer errors becomes a daily struggle.
To help Shopify sellers solve their most common shipping challenges, in this article, we’re going to explore:
· The most common shipping challenges faced by Shopify sellers
· How partnering with a 3PL provider can address those challenges
· Benefits of implementing a 3PL model
· Potential drawbacks and challenges of using a 3PL model
But before we cover any of the above in more detail, we’d first like to explain what 3PL is and why it’s important.
What is 3PL (Third-Party Logistics)?
Third-party logistics (3PL) refers to outsourcing key parts of the supply chain - such as warehousing, inventory management, order fulfillment, and shipping to a dedicated logistics provider.
For Shopify sellers, this means handing off the operational heavy lifting to an experienced partner who can efficiently handle the backend processes that keep an e-commerce business running smoothly.
Instead of spending time packing boxes, managing stock levels, or navigating shipping logistics, Shopify sellers can rely on a 3PL to handle all of those tasks on their behalf. This allows them to focus more on growing their store, marketing their products, and delivering a better customer experience - without dealing with the hassle of managing fulfillment in-house.
Common Shipping Challenges Faced by Shopify Sellers
Selling physical products online comes with a unique set of challenges, especially when it comes to shipping. Some of the most common shipping challenges that Shopify sellers face include:
Order Fulfillment Delays
Timely fulfillment is crucial to maintaining customer satisfaction and brand reputation. Unfortunately, many Shopify sellers encounter delays due to manual processes, inventory mismanagement, or carrier issues. These delays can result in negative reviews, lost repeat customers, and increased support inquiries.
High Shipping Costs
Shopify sellers, especially those who are just starting out and don’t have many orders to fulfill cannot leverage the concept known as economies of scale to negotiate better shipping rates with their carriers.
As a result, Shopify sellers are forced to accept standard shipping rates, which often means choosing between lower profit margins or higher cart abandonment rates as according to Statista, high shipping costs contribute to 63% of cart abandonment.
Limited Storage Capacity
As order volumes grow, many Shopify sellers quickly find themselves running out of space to store products - especially those operating from home or a small office. Limited storage not only restricts how much inventory they can keep on hand, but also makes it harder to organize, manage, and access stock efficiently.
Managing Multiple Shipping Channels
Many sellers don’t just sell on Shopify. Instead, they also take advantage of platforms such as eBay and Amazon. This multi-channel approach can be great for increasing sales, but it also complicates shipping logistics. Each platform may have its own shipping rules, label formats, and customer expectations.
Keeping track of orders across various marketplaces without a centralized system often leads to fulfillment errors, delays, or oversights that can hurt a brand’s reputation.
How Partnering With a 3PL Provider Can Address Shipping Challenges
Despite the many challenges that Shopify sellers often face, the good news is that many of them can be addressed by partnering with a 3PL provider. Some examples of how a partnership with the right 3PL provider can address a Shopify seller’s shipping challenges include:
Streamlining Order Fulfillment
A 3PL provider can significantly speed up the order fulfillment process by leveraging automation, optimized workflows, and their network of strategically located warehouses.
That way, instead of spending time on picking, packing, and shipping, Shopify sellers can rely on a professional team with established logistics infrastructure to handle the entire order fulfillment process.
In many cases, inventory is pre-stocked at the 3PL’s warehouse, and the software systems are equipped to identify the exact location of each product. Once a customer places an order, the fulfillment center automatically triggers the picking and packing process and ships the product directly to the customer.
During transit, the 3PL continues to track essential data such as carrier options, shipment origin and destination, and delivery deadlines, optimizing both cost and speed throughout the shipping network.
They also reduce the chance of human error—like incorrect order details, mislabeling, or delayed delivery. This streamlined process enhances the customer experience and even extends to after-sales service. Since 3PL providers are equipped to receive returns, log receipt times, and follow strict, standardized return protocols, they’re often better equipped than sellers themselves to handle reverse logistics efficiently.
This reduces order errors, shortens delivery times, and helps maintain customer satisfaction, which is especially important during high-demand periods like holidays or sales events like Black Friday.
Reducing Shipping Costs
Due to the large volume of orders they handle on a daily basis, 3PLs often have established partnerships with major carriers, allowing them to negotiate better shipping rates than individual sellers can secure on their own.
They understand the most cost-effective shipping options for different destinations and seasons throughout the year. And because they ship thousands of products daily through various carriers, they’re in a position to negotiate deep volume discounts with some of the world’s largest logistics companies.
The savings they unlock on shipping costs can become increasingly significant as your order volume grows.
Additionally, by choosing a 3PL provider with warehouses close to their customer base, Shopify sellers can benefit from reduced shipping zones, which can further cut down not only shipping costs, but delivery times too.
A report by Armstrong & Associated found that companies who outsource their logistics to a 3PL provider save an average of 13% on their logistics costs, mainly due to more efficient transportation and warehousing operations.
Expanding Storage and Inventory Management
As a Shopify business grows, managing inventory in a limited space will become increasingly difficult. By partnering with a 3PL provider ahead of time, Shopify sellers can access scalable storage solutions across multiple locations.
That way, no matter how quickly a Shopify business grows, storage and inventory space will not result in a bottleneck or disrupt any aspect of the order fulfillment process.
In addition, most 3PL providers offer advanced inventory management systems that give real-time visibility into stock levels, order status, and SKU performance. This enables Shopify sellers to make data-driven decisions, avoid overselling or stockouts, and optimize their restocking schedules.
Another important benefit is compliance. 3PL warehouses help ensure your operations meet all relevant health and safety regulations, including certifications, staff training, and regular equipment inspections. And by outsourcing to a 3PL, you avoid the time and cost of hiring in-house fulfillment staff and managing warehouse operations on your own.
Simplifying Multichannel Shipping
Managing sales across different platforms (like Amazon, eBay, and a Shopify store) can complicate the shipping process.
Amazon’s two-day delivery standard often deters sellers from expanding to the platform, as handling expedited air shipping alone can quickly eat into profit margins. However, a 3PL can make two-day delivery both feasible and affordable.
3PLs can integrate with multiple channels and centralize fulfillment, ensuring that inventory is synced and orders are processed efficiently across all platforms. This not only improves operational consistency but also allows Shopify sellers to expand to new marketplaces with minimal hassle.
Benefits of Implementing a 3PL Model for Shopify Sellers
Implementing a 3PL model offers numerous benefits for Shopify sellers, ranging from improved operational efficiency to better customer service. Below are some of the key advantages:
Improved Efficiency and Scalability
As Shopify sales pick up, managing fulfillment in-house can quickly become overwhelming. From packing orders to printing labels and keeping track of inventory, fulfillment can become too much to handle and cause severe operational bottlenecks.
By anticipating growth and partnering with a 3PL provider ahead of time, Shopify sellers can rest assured that in the event their order volume surges, the logistics side of their business won’t fall behind.
Enhanced Customer Experience
By partnering with a trusted and reliable 3PL provider, Shopify sellers can rest assured that all incoming orders and returns will be handled seamlessly and professionally. This not only reduces the operational burden on the seller but also ensures that customers receive their orders, exchanges, or refunds accurately and on time.
Aside from that, by outsourcing the entire fulfillment process, Shopify sellers will have more time to allocate to enhancing customer experience across the board.
According to statistics, 86% of shippers reported that the use of 3PLs has contributed to improved customer service. This highlights how outsourcing logistics can significantly enhance the overall customer experience, leading to greater satisfaction and loyalty.
Focus on Core Business Activities
Shopify sellers spend a significant amount of time on shipping and fulfillment-related tasks, especially in the early stages of running their store. By partnering with a 3PL provider, all that time will be freed up, allowing them to focus on core business activities that will drive growth and long-term success.
Scalable With Business Growth
As a Shopify store grows, so do its logistics needs. A reliable 3PL partner can easily scale alongside the success of the business - handling more orders, supporting a wider product catalog, and even managing cross-border shipping if the seller decides to go international.
In addition to that, Shopify sellers won’t have to worry about making major investments in expanding their warehousing space or hiring additional staff, making expansion simpler and significantly less risky.
Potential Drawbacks and Challenges of Using a 3PL Model
Despite the many benefits that come with using a 3PL model, there are also some drawbacks that Shopify sellers should consider, including:
Loss of Control and Dependence on Third-Party Service Quality
Outsourcing fulfillment to a 3PL provider means giving up direct control over key aspects of logistics - from inventory handling to packaging, shipping, and even customer-facing services like returns. For Shopify sellers with specific brand standards or custom fulfillment needs, this can be a major trade-off.
At the same time, the seller becomes dependent on the 3PL’s performance. Any errors, such as mispicks, delays, or subpar customer service are out of the seller’s hands, but can still impact their reputation and customer satisfaction.
Since customers often view shipping and delivery as part of the overall shopping experience, any service issues reflect back on the brand, not the logistics partner.
To mitigate these risks, it's important for sellers to vet potential 3PLs carefully, maintain clear SLAs (service level agreements), and stay involved through regular reporting and communication.
Potential for Higher Costs Compared to In-House Fulfillment
While 3PLs can offer valuable expertise and infrastructure, they aren’t always the most cost-effective solution, especially for small to mid-sized Shopify businesses. Several factors can contribute to higher expenses when compared to managing fulfillment in-house.
First, many 3PL providers charge for a wide range of services beyond basic storage and shipping. These can include pick-and-pack fees, receiving fees, labeling, kitting, returns processing, and even account management. If your product line involves complex handling or customization, these additional charges can add up quickly.
Second, 3PL pricing is often volume-based. Businesses with lower order volumes may not benefit from the same economies of scale that larger brands enjoy, making per-order costs relatively high. For startups or sellers with seasonal fluctuations, this can lead to inconsistent profit margins.
Final Thoughts
A 3PL model can be an invaluable asset for Shopify sellers, offering solutions to many of the common shipping challenges they face. From reducing costs to improving efficiency and customer satisfaction, outsourcing logistics can free up time for sellers so they can focus on scaling their business and providing an exceptional customer experience.
However, like any business decision, partnering with a 3PL provider requires careful consideration of the potential drawbacks, costs, and quality of service. So, make sure to carefully evaluate your options before committing to working with a 3PL provider.
