What is eCommerce Fulfillment and Why Your Business Can Benefit from a 3PL Partner

What is eCommerce Fulfillment and Why Your Business Can Benefit from a 3PL Partner

In the first quarter of 2025, retail eCommerce sales totaled 275.8 billion USD nationwide, up by 5.6% from the first quarter of 2024. The increase shows how heavily modern sellers depend on eCommerce fulfillment in today’s shipping landscape, as more consumers are buying their goods online. 

The shift has made eCommerce order fulfillment essential for any company looking to boost its profits. But managing all that inventory can drain valuable time and resources that could be dedicated to growing your business. 

That’s where third-party logistics (3PL) providers come into play. A dedicated team of order fulfillment experts that handle all your warehousing processes, a 3PL provider partners with your organization to help you get your products off the shelves and into consumers’ hands more quickly, and with near-perfect accuracy. 

The right 3PL partner can streamline your order fulfillment workflows, elevate your throughput and efficiency, and improve satisfaction, resulting in more sales. They can handle every phase of your warehouse management system, from receiving and storage to picking and packing, all the way to shipping and reverse logistics. 

So, what is eCommerce fulfillment, exactly, and what can it do for your business? This guide will explain how 3PL providers make your fulfillment processes smoother and the key tasks your provider can perform. Then we’ll show you what to look for when choosing the provider that’s the best fit for you — and why Relentless Fulfillment could be the best match.

What is eCommerce Fulfillment?

From receiving incoming orders to placing returned inventory back on the shelves, eCommerce fulfillment refers to your online sales journey from start to finish. Key components of fulfillment are:

  • Receiving, when new products are shipped to your fulfillment warehouse
  • Storage, stocking your warehouse with new inventory
  • Order placement, when customers order your products through your eCommerce channels
  • Picking, pulling your inventory from stock to fill incoming orders
  • Packing, assembling your inventory into shipping parcels with the appropriate packing materials
  • Kitting, combining individual product components into a bundled unit
  • Shipping, sending your product to a carrier to convey it to the customer
  • Reverse logistics, managing customer returns

Orchestrating so many stages can be a challenge for sellers, especially for startups or small-to-midsized businesses (SMBs), but it has a big impact on customer satisfaction and retention. 32% of customers will stop doing business with a brand after a single bad experience, such as shipping delays.

A smooth eCommerce fulfillment pipeline can be the difference between a lost sale and a loyal promoter, so many companies turn to a 3PL fulfillment provider to make sure they get it right.

In-House vs. Outsourcing Fulfillment to a 3PL

Warehouse workers sorting cardboard boxes, next to a conveyor belt.

Some companies choose to handle their order fulfillment processes in-house, but many work with a 3PL partner. The decision is especially important for emerging brands and SMBs, as they often find the rest of their operations bogged down by going it alone. 
Common challenges of managing a fulfillment strategy internally are:

  • Time management. It takes time to process new orders, stock inventory, and package outgoing products — time that could be spent growing your business. Sellers that find themselves spending too much time on their order fulfillment workflows may offload these tasks to a 3PL provider so that they can get back to expanding their brand.
     
  • Scalability. Whether it’s adding more space to your warehouse or hiring new workers for faster picking and packing, scaling your order fulfillment processes can cost valuable time and money, and it’s difficult to achieve overnight. 3PL partners already have the personnel and infrastructure in place to scale your operations, and you can tap into their resources to grow your fulfillment pipeline with ease.
     
  • Speed. The more orders you have to fill, the longer it takes to fill them all. Sellers that struggle to keep up with incoming orders may choose a 3PL partner to help them fill higher volumes of orders in less time.
     
  • Location. Many brands are located far away from their customer base. The longer distance can create lengthy shipping times for distant clients. 3PL providers have strategically located fulfillment centers so that you can reach your customers faster.
     
  • Cost. Companies that handle their order fulfillment in-house don’t have to pay a third party. However, any savings are offset by the extra overhead, labor, technology, and shipping costs that they incur, especially as they scale their operations. Leveraging a 3PL partner requires some upfront investment, but the reduced costs and improved efficiency can give you a net savings overall. 

Shipping costs can also be a challenge for in-house order fulfillment. Sending all those orders to your parcel carrier can take time and carries significant transportation and labor costs with it. A single company will ship fewer products than a 3PL provider that ships orders for multiple clients. Their high-volume shipping status gives them access to discounts from the leading carriers. 

Working with a 3PL can free you from the time-consuming process of getting your orders out the door and can give you faster shipping at a lower price to you and your customers, and a better customer experience as a result.

When to Transition to a 3PL Partner

Handling order fulfilment in-house can work for companies that have the resources to do it, but many businesses struggle to grow when they handle all of their operations themselves. When deciding if it’s the right time to transition to a 3PL partner, consider: 

  • Fulfillment delays. Are you receiving more orders than you can fill on time? 3PL providers work around the clock to complete your eCommerce fulfillment orders so you can confidently meet increasing demands. If your growing brand is struggling to keep up with new sales, it may be time to work with a 3PL partner.
     
  • Limited space. Startups may be able to store their inventory at home or in local warehouses, but the more you grow, the more space you’ll need. 3PLs have vast amounts of storage space in warehouses that you can tap into.
     
  • Rising labor costs. Are your processes growing so much that you need to add new members to your team? An established 3PL partner already has teams of warehouse employees and eCommerce fulfillment experts at their clients’ disposal, saving you the cost of hiring new workers. If you need more hands on deck but want to keep your labor costs to a minimum, try switching to a 3PL provider.
     
  • Inefficient manual systems. Sellers may fill orders and keep track of records by hand in their earliest stages, but accurately filling more orders will eventually require more advanced systems. 3PLs have the systems and technology in place to improve your processes and boost your fulfillment efficiency. 

While the question of transitioning to a 3PL provider is most often faced by growing startups or SMBs, major enterprises may also consider leveraging a 3PL partner. Even the most established brands can face difficulties with their inventory management processes and shipping products to their consumers.

3PLs have the resources and expertise needed to handle the highest volumes of orders. From the newest startups to the largest enterprises, the right partner provides solutions for all.

Top Benefits of Using a 3PL for eCommerce Fulfillment Services

From higher operational efficiency and more storage space to faster shipping and a stronger supply chain, 3PLs bring many advantages to the table. The exact benefits you’ll reap from your 3PL partner will vary with your operations, but these are the upsides that sellers transitioning to a 3PL partner tend to notice the most:

  • Higher efficiency. Modern warehouses possess advanced technology to fill orders faster than most sellers could by themselves. Working with a 3PL provider can boost your fulfillment efficiency, increasing your throughput and profits as a result.
     
  • Faster shipping. 3PL fulfillment providers have distributed warehouse networks located throughout the country, reducing the distance that orders must travel to get to the customer. The result is faster, more reliable shipping and greater customer satisfaction.
     
  • A stronger supply chain. An established shipping network and contracts with major carriers give 3PLs a logistical advantage over sellers that complete their eCommerce fulfillment in-house. You get access to a more resilient supply chain.
     
  • Improved integration. 3PL providers use advanced software that integrates with your retail channels. This gives you better visibility over your order fulfillment operations, helping you handle seasonal surges and demand fluctuations with greater precision. 

Along with the many operational benefits, perhaps the greatest advantage that 3PL providers offer is the savings they bring to clients. The right fulfillment company can lower costs for:

  • Labor
  • Storage 
  • Shipping
  • Technology
  • Software

Taken together, a 3PL partner doesn’t just help you fill orders more efficiently — it helps you save money while you do.

What to Look For in a 3PL Fulfillment Partner

3PL providers have a lot to offer their clients, but not all are created equal. As you evaluate potential partners, choose one with the services, capacity, and location that aligns with your business needs. A few points to look for are:

  • Easy integration. Integration gives you better visibility over your pipeline and lets you create an omnichannel fulfillment experience for your customers. Make sure your 3PL partner’s order fulfillment software integrates with the leading eCommerce platforms, such as Shopify, WooCommerce, or Amazon Marketplace.
     
  • Transparency. What pricing models does the 3PL provider offer? How fast are their turnaround times? Are their service level agreements clear, and can they meet any special storage conditions that your products may have? Make sure their terms and conditions are all clear and satisfactory from the start, so that you won’t face any surprises.
     
  • Value-added services. You go the extra mile for your customers, so your 3PL should go the extra mile for you. Ask your candidate if they offer value-added services such as customized packaging, kitting and assembly, special labeling, or returns management.
     
  • Customer support. 3PL partners are tasked with responsibly managing your valuable inventory, so they should be available to communicate and answer any questions you may have about your products. They should also work with you to create a custom plan that meets your order fulfillment needs, so choose a partner with a dedicated support team to assist you every step of the way.
     
  • Scalability. Whether seasonality impacts consumer demand or you launch a new product that your customers love, your order fulfillment needs will change over time. Your 3PL provider should be able to accommodate those fluctuations, so choose one that lets you scale your operations without paying for more services than you use.
     
  • A stable supply chain. Does your 3PL have a network of fulfillment and distribution centers, placing your inventory closer to your customers? Do their warehouse locations help keep your fulfillment costs down, or do they make it difficult to reach your consumers? Location is critical to maintaining a robust supply chain, so ask where your 3PL partner’s fulfillment centers are stationed. 

A quality third-party fulfillment provider should provide end-to-end assistance with your inventory management system, but their services shouldn’t stop at the warehouse floor. Their software should improve your order fulfillment visibility, their distribution network should deliver faster and more reliable shipping to your customers, and their support team should work with you as your business grows. 

Far more than a warehouse, a 3PL provider’s fulfillment services should elevate every stage of your inventory management pipeline, letting you grow your brand and offer a better experience to your customers.

Why Relentless Fulfillment Is the Right Fit for Your eCommerce Business

Three small cardboard boxes stacked on top of a laptop.

At Relentless Fulfillment, we know what it takes to improve your eCommerce fulfillment processes, and we’ve got the resources to do it. Our strategic location, tech-forward infrastructure, and simple scalability let you boost your order fulfillment operations, and our shipping agreements allow for the fast, reliable delivery times that today’s customers have come to expect. 

Here’s what we bring to the table:

  • Advanced technology. From automated storage and retrieval systems (AS/RS) that speed up picking and packing to RFID tags that enable near-perfect order accuracy, our warehouse management system is equipped with the industry-leading technology that it takes to fill your orders efficiently. The results are higher throughput and productivity, leading to faster delivery times.
     
  • Competitive shipping rates. Relentless Fulfillment works with the leading carriers to get you the most competitive shipping rates possible, creating savings that you can pass on to the customer. Our location in Reno, Nevada, also gives us close access to customers across California and Nevada for even faster shipping, without the higher warehousing costs of nearby locations.
     
  • Scalability. 3PL providers aren’t just for startups and SMBs — they’re for any company looking to improve their eCommerce fulfillment operations. Relentless Fulfillment offers custom fulfillment services to help grow any company, no matter its size, delivering scalable solutions for startups and enterprises alike.
     
  • Dedicated support. Our clients get a hands-on team of experienced eCommerce fulfillment specialists. Dedicated, responsive, and here when you need us, we make sure that your inventory management processes are carried out according to your specifications. 

Companies should look for real-life metrics that prove the quality of their 3PL provider, and Relentless Fulfillment can give you plenty. Not only does our warehouse ship over 150,000 units per month and prepare 40,000 units for Fulfillment by Amazon (FBA) each month, but we do it with over 99.9% on-time shipping and a less-than-0.1% error rate. On time, high-capacity, and near-perfect accuracy: Relentless Fulfillment gets your orders right.

Relentless Fulfillment: Your Third-Party Logistics Partner

Whether it’s receiving and storage or shipping and returns, the order fulfillment process comprises many moving parts. Keeping up with it all can be a challenge. Working with a 3PL partner can be a great way to enhance your productivity, elevate your customer satisfaction, and offload your warehousing processes to an expert, so that you can focus on growing your business.

Relentless Fulfillment is a dedicated 3PL provider, committed to helping sellers of all shapes and sizes fulfill their orders faster. Based in Reno, Nevada, our expansive 250,000 square-foot fulfillment center possesses the capacity to house even the highest volumes of inventory and is strategically located to deliver the fastest shipping to your customers. 

Our warehouse is equipped with the latest inventory management technology to maximize throughput and speed up your order fulfillment, and our client access portal integrates seamlessly with the leading eCommerce platforms. The result is not only a streamlined logistics infrastructure that rivals the leading brands but an omnichannel fulfillment solution that exceeds the demands of today’s eCommerce-driven fulfillment economy. Relentless Fulfillment understands that each business has unique fulfillment needs and that those needs may change over time. That’s why we work with you to create a scalable, efficient fulfillment solution tailored to the needs of your operations. To see how working with us can meet your order fulfillment requirements now and in the future, contact us to request a custom quote today.

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