When Is It Time to Switch to a 3PL for Your Ecommerce Fulfilment?

Running your own fulfilment operation has its benefits. You get more control, direct oversight, and often lower costs when order volumes are small. But for many growing ecommerce brands, there comes a point where in-house fulfilment starts causing more problems than it solves.

If you are wondering whether it is time to switch to a third-party logistics provider (3PL), this post will help you weigh up the pros and cons and spot the common signs that it might be time to make the move.

What Is a 3PL?

A 3PL (Third-Party Logistics provider) is a company that handles storage, picking, packing, and shipping on your behalf.

They usually serve multiple ecommerce brands from one warehouse and offer services like inventory management, returns handling, and discounted shipping rates through their courier accounts.

Signs It Might Be Time to Move to a 3PL

1. You Are Running Out of Space

If your stock is starting to take over your office, garage, or even your rented warehouse, that is a clear signal. Running tight on space makes it harder for your team to move efficiently and increases the risk of stock damage or picking mistakes.

2. Order Volumes Are Becoming Unmanageable

When you find yourself, or your team, working late into the night just to keep up with daily orders, it is time to consider whether your setup is sustainable.

If you are regularly struggling to meet courier collection times or seeing order backlogs, outsourcing fulfilment could free up your time and reduce customer service problems.

3. You Are Spending Too Much Time on Logistics

As a business owner, your time should be focused on growth. That means marketing, product development, and customer experience—not packing boxes.

If fulfilment tasks are taking over your day and stopping you from scaling the business, that is another red flag.

4. Delivery Performance Is Slipping

Are you seeing more late deliveries? Missed dispatch deadlines? More customer complaints about shipping times?

A good 3PL will have the infrastructure, staffing, and systems to handle volume spikes and meet delivery targets more consistently than a small in-house team.

5. You Are Expanding into New Sales Channels or Markets

If you are starting to sell on new platforms like Amazon, eBay, or TikTok Shop, or targeting international customers, fulfilment complexity increases quickly.

Many 3PLs offer multi-channel integration and international shipping options that would be costly or difficult to set up on your own.

Pros and Cons of Moving to a 3PL

Benefits:

Scalable storage and labour without long-term leases

Better shipping rates and courier options

Less management time spent on day-to-day fulfilment

Established systems and processes for peak seasons

Downsides:

Less direct control over packing and dispatch

Setup and integration costs

Service risks if you choose the wrong partner

The key is finding a 3PL that suits your brand size, order profile, and service expectations.

How to Know If You Are Ready for the Switch

There is no single answer, but here is a simple test:

If your current fulfilment setup is limiting your ability to grow, serve customers well, or stay profitable, it is time to seriously consider 3PL options.

That does not mean rushing the decision. A bad 3PL partnership can create more problems than it solves. Take the time to assess your needs, visit potential partners, and review service level agreements carefully.

Need Help Deciding or Managing the Transition?

Choosing the right 3PL, and making sure the handover goes smoothly, is not always straightforward.

If you want an unbiased review of your current operation and advice on when and how to outsource, I can help.

Book your free 20-minute consultation

Get practical, real-world advice from someone who has worked inside ecommerce operations and knows the common pitfalls of 3PL transitions.