Many ecommerce businesses start out self-fulfilling orders, but quickly grow out of it. Operating logistics in-house can be time-consuming, messy, and hold you back from focusing on money-making initiatives.

The easiest, most straightforward solution is to outsource fulfilment to a trusted third-party logistics (3PL) partner. While outsourcing logistics can seem like a big step, doing so can give your business a competitive advantage as it puts logistics into the hands of the expert while saving you time and money.  

Read on to learn some of the benefits of outsourcing your logistics to a fulfilment partner, what to look for in a logistics service provider, and how ShipBob can help optimise your supply chain.  

What does it mean to outsource logistics?

Outsourcing logistics refers to hiring a 3PL partner to manage some or all aspects of the order fulfilment process, including storing and managing inventory, picking and packing boxes, and shipping orders. While outsourcing may seem like a risky option, a 3PL can help brands stay competitive by optimising their logistics strategy to meet customer expectations.

How does outsourcing to a 3PL work?

When you outsource to a third-party logistics (3PL) provider, you’re handing over the operational side of fulfilment, which is everything from storing inventory to picking and packing orders to shipping them out. 

Here’s how it typically works:

• You send your products to the 3PL’s warehouse(s).
• Your online store is integrated with their fulfilment platform.
• When a customer places an order, the 3PL automatically picks, packs, and ships the item.
• You can track inventory, orders, and performance through the 3PL’s dashboard.

It’s a hands-off, scalable way to run logistics, without needing to manage a warehouse or hire staff yourself.

Why many businesses choose to outsource logistics

There are several reasons why a business might choose to outsource its logistics, as each business has a unique set of needs. Here are four of the most common reasons why ecommerce businesses choose to partner with a fulfilment provider like ShipBob.

1. They run out of space

Running your business out of your spare room, garage, or other living space is not only stressful, but it can also lead to disorganized and inefficient logistics operations. With a 3PL, you can store your inventory in one or more fulfilment centre locations. A fulfilment provider safely and securely stores products in an organised way to track where items are located, when they arrived, how long they have been there, and the quantity on hand.

2. They are growing

As your business grows, it can be challenging to focus on money-making initiatives if all your time is spent managing logistics. An influx in order volume can leave you scrambling for storage and the manpower needed to pick, pack, and ship every order. But with a fulfilment provider’s flexible warehousing services, cutting-edge technology, and fulfilment expertise, you’ll have access to a scalable ecommerce fulfilment solution needed to help you grow your business. 

3. They need more efficient logistics

Order filling takes time, and that time is almost always better spent on more strategic functions like marketing or product design. 3PLs have systems and processes in place to help fulfil orders quickly without compromising order accuracy. By outsourcing to a 3PL, businesses place time-consuming logistics into the hands of the experts, who can help find ways to reduce shipping costs and speed up transit times, while saving on fulfilment costs. 

4. They aren’t experts in the field

Fulfilment providers are experts at what they do and are well-versed in industry best practices. When you partner with them, they will not only implement these practices for you, but they will also introduce you to additional cost-saving measures and strategies that come from their years of service in logistics. 

The benefits are big when you outsource logistics

The choice to outsource your logistics to an order fulfilment provider is a big one. However, in this case, with big change comes big rewards. Few decisions will lead to such immediate growth for your business with such little effort. In most circumstances, the benefits of outsourcing logistics to a trusted fulfilment partner far outweigh the potential negatives. Here are just a few of the benefits you can expect when outsourcing your logistics to a 3PL. 

Higher order accuracy

Fulfilment providers have the infrastructure, expertise, and technology to improve order accuracy. For instance, whether it’s assigning pickers optimised routes, opening more fulfilment centre locations to reduce shipping times, or improving our warehouse picking and packing processes, ShipBob is continually seeking ways to enhance and achieve higher levels of order accuracy.

Faster processing

While smaller ecommerce businesses often have to manually verify, register, and process orders, 3PLs have software that integrates and syncs with your online store and other sales channels, which can speed up the fulfilment process. For instance, with ShipBob, orders are automatically to a fulfilment centre to be picked, packed, and shipped as soon as possible. To stay in the loop, our merchants can view order status and inventory level in real-time all from a single dashboard. 

Faster shipping

In addition to speeding up fulfilment, 3PL providers offer businesses the ability to offer affordable and fast shipping to more or all of their customers. ShipBob offers merchants the ability to split inventory across several fulfilment centre locations. This drastically cuts down on shipping distance and costs, which also provides merchants with the ability to offer better shipping incentives, such as free shipping. 

Cheaper shipping costs

Shorter shipping distances mean lower shipping costs, but that’s just the beginning. A 3PL’s relationships with major couriers like UPS, FedEx, USPS, and DHL enable them to negotiate bulk shipping discounts that they then pass along to the businesses that partner with them. In addition, 3PLs are packing masters, helping their partners cut back on expensive and unnecessary packing materials by shipping items in SIOC packaging or using our standard packaging materials.

Top services offered by outsourced logistics providers

Your 3PL should act as an extension of your team. As you’re choosing the right 3PL partner for your business, there are several important factors to be on the lookout for. When it comes to choosing a partner to handle your online store’s retail fulfilment, the options can seem endless. It’s essential to select a logistics company that you trust to manage your inventory, fulfil orders accurately, and provide the necessary support to help grow your business.

1. Multiple fulfilment centres for distributed inventory

3PL providers with multiple fulfilment centres are more agile and efficient than those with only one. With fulfilment centres strategically located across the US, as well as internationally, a 3PL can distribute inventory to reduce average shipping zones, which significantly reduces shipping costs and transit times.

2. Pivotal courier relationship building

The best 3PLs have forged relationships with major ecommerce solutions to facilitate smoother and easier growth for their partners. ShipBob has fostered an entire partner ecosystem, working together with ecommerce platforms, freight shipping providers, inventory and order management software, and returns management solutions to ensure that our platform can easily integrate with your existing and/or expanding tech stack. 

3. Custom and transparent pricing

Surprise logistics costs frustrate business owners and wreak havoc on your carefully constructed budget and calculations, so the right 3PL partner will present a transparent pricing structure and stick to it throughout your partnership. That is why ShipBob’s pricing is intentionally designed to be as transparent and simple as possible, and it never leaves you stuck with unexpected fulfilment fees. 

4. Seamless warehouse management (systems)

Modern 3PLs do so much more than just store inventory. They run on powerful warehouse management systems (WMS) that drive efficiency and visibility. A good WMS syncs with your ecommerce platform in real time, automates inventory tracking, and generates detailed reports so you’re never left guessing about what’s in stock or where an order stands.

EZ Bombs saved 1,600 hours per month after switching from self-fulfilment to ShipBob

EZ Bombs began as a homegrown business run out of founder Tina Castaneda’s home. Originally, everything from manufacturing to order fulfilment was done from Tina’s kitchen. After going viral on TikTok countless times, the EZ Bombs team became overwhelmed by the number of shipments they had to handle. They were manually fulfilling up to 100,000 orders per month.

That’s when they decided to outsource fulfilment to ShipBob. As a result of outsourcing logistics, they were able to focus on growing the business. Instead of managing staff and physically fulfilling orders themselves, the EZ Bombs team was able to save 1,600 hours per month.

“The month after we offloaded fulfilment to ShipBob we were able to pick our heads up a little and realize there were other, more strategic things we could do instead of shipping. Outsourcing fulfilment was the last piece we needed to unlock in order to keep growing, and ShipBob helped us with that.” 

Brandon Castaneda, Founder and CEO of EZ Bombs

Outsource your logistics to ShipBob’s industry-leading fulfilment provider

Logistics outsourcing is a huge, sometimes intimidating step for many business owners, but it is a step that few regret taking. Trusted, tech-enabled 3PLs like ShipBob bring their expertise, precision, and optimisation to your fulfilment logistics operations, allowing you to run your business without getting bogged down in the weeds. Here’s how:

2-Day Express Shipping for Amazon-level delivery speed

ShipBob helps brands compete with ecommerce giants by enabling fast, affordable 2-day shipping across the contiguous US. With strategically located fulfilment centres and optimised inventory distribution, you can meet customer expectations and boost conversions.

“In a world where independent businesses are having to compete against ecommerce behemoths like Amazon, being able to offer competitive shipping rates and very quick shipping times with ShipBob allows us to be on the same playing field, rather than some outlier struggling for customer attention. We’ve had customers reach out with surprise that their order has arrived so quickly. I remember someone saying, ‘Wow, that was Amazon-fast,’ which I’ll take as a compliment.”

Lizzie Vance, Sales Director at P.F. Candle Co. 

Optimise US shipping costs and lead time with our Inventory Placement Program

Streamline your entire operation with ShipBob’s industry-leading technology

With full, real-time visibility into inventory, order status, and fulfilment activity, ShipBob’s intuitive dashboard centralises your logistics across sales channels, making it easier to manage growth, track performance, and avoid stockouts.

Expand internationally with ShipBob’s global fulfilment network

With ShipBob’s global network of over 60 fulfilment centres across the US, UK, EU, Canada, and Australia, brands can meet customers from any location. ShipBob makes it easier for brands to fulfil orders across borders, simplifying taxes, duties, and customs while delivering a seamless experience for your international customers.

Strengthen customer loyalty with customisable branding and unboxing

Your packaging is part of your brand experience. ShipBob’s Customisation Suite enables you to personalise packing materials, include custom marketing inserts, offer gift notes, and more, ensuring every delivery feels intentional and helps you leave a lasting impression, ultimately increasing repeat purchases.

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Logistics outsourcing FAQs

The world of logistics and outsourcing can seem overwhelming, especially for business owners who are already juggling the many demands of running a business. For businesses looking to outsource logistics, here are answers to the most common questions.

What’s better for outsourced logistics, 3PL or 4PL?

There are pros and cons to both third-party logistics companies (3PLs) and fourth-party logistics companies (4PLs). 3PLs allow business owners more direct control over ecommerce fulfilment, while a 4PL can help enterprise-level businesses manage their supply chains more completely, as they offer another degree of separation between the business owner and the fulfilment providers.

When are you ready to outsource logistics?

Self-fulfilment is efficient and inexpensive when you’re just starting out, but if your storage space is starting to get overcrowded and you’re having a hard time keeping up with shipping orders, it’s probably time to outsource. A 3PL like ShipBob offers fulfilment solutions for fast-growing ecommerce businesses. 

What are the potential risks and disadvantages of outsourcing logistics services?

While outsourcing logistics can save time and improve efficiency, it may also come with trade-offs. You’ll have less direct control over daily fulfilment operations, and onboarding with a new provider can take time and resources. If the 3PL isn’t a good fit, miscommunications, delays, or inconsistencies in service can impact your customer experience.

How do you choose an outsourced logistics provider?

Choosing the right 3PL comes down to fit, transparency, and capabilities. Look for a provider that serves businesses like yours and offers strong tech integrations with your ecommerce platform. A good 3PL will have a wide fulfilment network, positive customer reviews, and a proven track record. Make sure they offer clear pricing, reliable support, and tools that give you visibility and control over your logistics.