For many e-commerce sellers, switching to a Third-Party Logistics (3PL) provider is a turning point. Suddenly, you’re no longer buried in boxes and packing tape—you have time to focus on marketing, product development, and scaling your business.
But while 3PL partnerships can unlock huge growth opportunities, they also come with challenges. The truth is, a 3PL is not a “set it and forget it” solution. Without the right preparation, communication, and systems in place, you might find yourself facing stock shortages, unexpected costs, and unhappy customers.
In this article, we’ll cover the most common mistakes online sellers make when working with a 3PL—and how you can avoid them to ensure your fulfillment runs smoothly and your customers stay happy.
Mistake #1: Not Sharing Accurate Inventory Data
Why it’s a problem:
Your 3PL can only work with the information you give them. If your inventory data isn’t accurate or up-to-date, you run the risk of overselling (selling products you don’t have) or stockouts (running out of popular items). Both lead to unhappy customers and lost sales.
Real-world example:
Imagine you run a trending home décor store. You launch a successful social media campaign, and orders flood in. But because your stock numbers weren’t updated after a recent wholesale order, your 3PL keeps shipping orders for an item that’s already sold out—resulting in refunds, apologies, and bad reviews.
How to avoid it:
- Use integrated inventory management software that syncs in real time with your e-commerce platform and your 3PL’s system.
- Schedule regular inventory audits to catch discrepancies early.
- Set up low-stock alerts so you can reorder before you run out.
Mistake #2: Ignoring Shipping Costs
Why it’s a problem:
Many sellers focus on storage and fulfillment fees but forget to factor in the full cost of shipping. This can lead to unpleasant surprises—like surcharges for oversized products, remote delivery zones, or fuel adjustments.
Real-world example:
A seller ships gym equipment that’s bulky but light. The carrier charges dimensional weight fees instead of actual weight, significantly increasing shipping costs. Without factoring this in, the seller’s profit margin disappears.
How to avoid it:
- Request a detailed cost breakdown from your 3PL before signing the contract.
- Ask about extra fees for remote areas, oversized items, or special handling.
- Compare rates across multiple carriers—most 3PLs can offer discounted bulk rates, but it’s worth checking.
- Build shipping costs into your product pricing to protect margins.
Mistake #3: Poor Communication with Your 3PL
Why it’s a problem:
Assuming your 3PL understands your business as well as you do is risky. Without clear instructions, mistakes happen—wrong products get shipped, items are packaged incorrectly, or branding elements are missed.
Real-world example:
A beauty brand offers gift-wrapped sets during the holidays. The seller forgets to communicate this special requirement to the 3PL in time, resulting in plain packaging. Customers are disappointed, and returns increase.
How to avoid it:
- Set up regular check-ins with your 3PL account manager.
- Provide detailed product information—dimensions, weight, fragility, and any special packaging instructions.
- Keep your 3PL informed about promotions, product launches, or seasonal changes well in advance.
- Use shared project management tools or dedicated communication channels for important updates.
Mistake #4: Not Planning for Returns
Why it’s a problem:
Returns are inevitable in e-commerce—especially in categories like apparel, footwear, and electronics. Without a clear process, returns can create customer frustration and operational headaches.
Real-world example:
An online clothing store offers free returns but fails to coordinate with their 3PL on how returned items should be processed. As a result, returned stock sits in a corner of the warehouse for weeks, and new customers can’t buy those items because the inventory isn’t updated.
How to avoid it:
- Ask your 3PL if they offer returns management as part of their service.
- Make sure the returns process matches your brand’s customer service standards.
- Decide whether returned items will be restocked, refurbished, or discarded.
- Ensure your inventory system updates immediately when returns are processed.
Mistake #5: Choosing the Wrong 3PL Partner
Why it’s a problem:
Not all 3PLs are created equal. Choosing a provider that doesn’t align with your needs can cause ongoing frustration—slow shipping, outdated technology, and poor communication.
Real-world example:
A small but growing food brand partners with a 3PL that doesn’t specialize in temperature-controlled storage. Shipments arrive spoiled, refunds pile up, and the brand’s reputation suffers.
How to avoid it:
- Choose a 3PL with experience in your product category.
- Check their warehouse locations—are they close to your customer base?
- Review their technology capabilities—do they integrate with your store platform?
- Read client reviews and case studies before committing.
Mistake #6: Neglecting Performance Monitoring
Why it’s a problem:
Once the partnership is set up, some sellers take a “hands-off” approach and never monitor how well the 3PL is performing. Without oversight, small problems can turn into big issues.
How to avoid it:
- Track KPIs such as order accuracy rate, on-time delivery rate, and average order processing time.
- Request monthly or quarterly performance reports from your 3PL.
- Regularly review customer feedback related to shipping and fulfillment.
Mistake #7: Not Having a Backup Plan
Why it’s a problem:
Even the best 3PLs can run into disruptions—carrier strikes, weather delays, or sudden capacity issues. If you rely 100% on a single provider with no contingency plan, your business could grind to a halt.
How to avoid it:
- Maintain relationships with alternative carriers or backup 3PLs.
- Keep safety stock in a secondary location if possible.
- Have a plan for manual order fulfillment in emergencies.
Final Tips for a Successful 3PL Partnership
- Be proactive, not reactive—anticipate potential challenges before they happen.
- Document everything—from product details to packaging preferences.
- Prioritize transparency—share your sales forecasts so your 3PL can plan ahead.
- Treat your 3PL like a partner, not just a vendor—collaboration leads to better results.
Conclusion
Working with a 3PL can take your online store to the next level—but only if you manage the partnership strategically. The most common mistakes sellers make—like inaccurate inventory data, ignoring shipping costs, poor communication, and lack of return planning—are all avoidable with the right systems and processes in place.
By choosing the right partner, setting clear expectations, and maintaining open communication, you’ll not only avoid costly pitfalls but also turn your 3PL into a powerful growth engine for your e-commerce business.
