3PL Selection

You Should Always
Be Looking.

Not because your current 3PL sucks. Because the brands that win are the ones who always know what’s out there — and make strategic moves instead of reactive ones.

Real Talk

If you work in distribution, you should be active on LinkedIn. You should understand what 3PL and shipping solutions are available. You should be benchmarking your competitors. Most distribution teams don’t do this — and they should.

Once a quarter, order something cheap from your top 3–10 competitors and time the delivery.

If you ship DTC, order to multiple locations around the country and see how long it takes. What does the unboxing experience look like? What carrier did they use? How accurate was the tracking? This isn’t just for the marketing team. This is for distribution. You’re competing against those brands every single day.

And then there’s Amazon. Amazon simply dominates distribution. Your brand needs to understand that Amazon’s level of service is largely unattainable — and then figure out what the right, attainable level of service is for your customers. Chasing Amazon with a $10M brand is a losing battle. Defining your own benchmark and winning at it is not.

What “Always Be Looking” Actually Means

This isn’t about switching 3PLs constantly. It’s about staying informed so that when you do need to make a move, you’re making it from a position of knowledge — not desperation.

01

Monitor your competitors quarterly

Order from your top competitors. Time the delivery. Assess the packaging, accuracy, and carrier. Do this from multiple zip codes. Keep a simple spreadsheet. This is competitive intelligence your 3PL can’t give you.

02

Know who your retailers prefer

If you sell at Ulta, Target, Walmart, or any major retailer — find out who their preferred 3PL partners are. That doesn’t mean you need to switch. It means you need to know what your retail partners value in a fulfillment operation.

03

Stay active on LinkedIn

The 3PL industry moves fast. New providers emerge, existing ones get acquired, capabilities change. Following the right people and companies means you’re never starting from zero when it’s time to evaluate.

04

Know what other brands in your category use

Beauty brands, supplement brands, apparel brands, beverage brands — each category has 3PLs that specialize. Know who’s running distribution for the brands you compete with and aspire to be.

05

Benchmark your own costs annually

Your pick rates, storage costs, and fulfillment fees should be compared to market rates at least once a year. Not to switch providers — to know whether you’re being treated fairly and where there’s room to negotiate.

06

Understand what’s coming

Automation, robotics, same-day regional fulfillment, returns infrastructure — the 3PL landscape in 3 years will look different than it does today. The brands that understand what’s coming can build for it. The rest react to it.

The Strategic Questions to Answer Before You Look

You shouldn’t be looking for a new 3PL just because your current one sucks. You should be looking for the right strategic fit. These are the questions that define what that looks like.

One warehouse or bi-coastal? Where are your customers? Where do your suppliers ship from? A bi-coastal network cuts transit time but adds complexity and cost.

What kind of product do you ship? Refrigerated, hazmat, oversized, fragile, high-value, subscription boxes — not every 3PL handles every product type equally well. Most say they can. Few do it right.

DTC, B2B, retail, or all three? DTC and retail fulfillment have completely different operational requirements. A 3PL that excels at one may struggle with the other.

How much capital can you commit? Some 3PLs require significant upfront setup investment or multi-year contracts. That’s not always bad — but it has to match your growth stage.

Domestic only or cross-border? International shipping and customs compliance add complexity. If you’re expanding globally, your 3PL needs international capabilities — or strong carrier partnerships.

What does growth look like? A 3PL that’s perfect for 500 orders/day may not scale to 5,000. Understand your trajectory and make sure your 3PL can grow with you — or know when you’ll outgrow them.

Do you need a specialist or a generalist? There is rarely a jack-of-all-trades warehouse solution. The best 3PLs for beauty are not always the best for food. Know which type of expertise your product actually needs.

Can your current 3PL grow with you? Before you look elsewhere, honestly assess whether more space, a satellite warehouse, or a renegotiated agreement could solve your problem without a full transition.

What does your retail partner require? Some retailers have strict routing guides, EDI requirements, and compliance standards. Your 3PL needs to be certified and capable before you can ship to them.

⚠ Don’t Just Look Because Your Current 3PL Sucks.

Switching 3PLs is expensive, disruptive, and risky. If the reason you’re looking is pure frustration with your current provider, read the Fighting page first. Many of the problems brands attribute to bad 3PLs are actually fixable without moving.

The right reason to look is strategic — you’ve outgrown your current provider, you’re expanding into new channels or geographies, your product mix has changed, or your current 3PL genuinely can’t support where you’re going. Those are real reasons. “They keep making mistakes” might not be.

3PLs Worth Considering

An independent guide to leading 3PLs for CPG brands. No kickbacks, no paid placements — just 30 years of honest observations.

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Not Sure What You’re Actually Looking For?

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