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Shopify Order Fulfillment: Guide to Choosing the Right Order Fulfillment Option

You’ve put countless hours into creating your product, perfecting your Shopify website, and marketing to grab attention. But have you paid enough attention to your fulfillment strategy? It’s not just a cost center – the difference between poor and great fulfillment has a huge impact on your customer experience and revenue growth.

Depending on what type of product you sell, you have a lot of options for fulfillment. The pros and cons can be tough to parse, and it gets complicated in a hurry.

In this blog post, we’ll explore why fulfillment is so important for ecommerce, your options for Shopify fulfillment, and how to choose the fulfillment service that’s right for you.

Why Your Shopify Order Fulfillment Service Matters

Simply put, a great fulfillment strategy is the difference between keeping up with Amazon and getting buried by it. If you can’t deliver orders quickly, customers will immediately look for a similar product with better shipping options on a marketplace. Surveys show 83% of online shoppers compare prices to a competing product on Amazon when shopping online.

Amazon, Walmart, and eBay have set the bar high for order fulfillment, and unfortunately customers now expect the same high standards from online brands as well.

Ignore fast and free shipping at your own risk – 70% of US consumers expect free shipping even on orders under $50, and 48% of all cart abandonment is caused by unexpected shipping costs.

Having great Shopify order fulfillment will improve your cart conversion and customer satisfaction, leading to more immediate revenue as well as repeat customers.

Ecommerce shopping cart app displaying remaining amount needed for free shipping

So you’re convinced – you need to offer fast & free shipping on Shopify, and it can’t break the bank. What are your options?

Fulfillment Services for Shopify Sellers

There are several main fulfillment options every Seller on Shopify can choose from:

Self-Fulfillment
Dropshipping
Using a 3PL Provider

Each fulfillment strategy has its own unique pros and cons. Let’s go over these Shopify fulfillment options in detail:

Self-Fulfillment

If you’re selling small, low-cost items to a fairly local customer base, then self-fulfillment may be the best Shopify fulfillment strategy for your business.

Small items are easier to store yourself, and if your customer base is local, you won’t have to pay too much for shipping. Moreover, products will arrive relatively quickly to the customer because they don’t have too far to go.

Self-fulfillment also means you’ll have full control over product and fulfillment quality. You can choose where and how your products are stored, ensuring that they’re in the best condition possible when they get to customers. If there are errors in fulfillment, you have the power to immediately fix issues. Additionally, self-fulfillment can lead to higher storage costs, especially as your inventory grows, impacting your overall profitability.

The main drawbacks of self-fulfillment are that it’s extremely time-consuming and it isn’t cost-effective in the long run. If you’re fulfilling your own orders, your success comes with a price; more and more of your time will be consumed by managing operations. Every second spent on logistics is a second not spent on growing your top-line revenue. So most brands that start out self-fulfilling choose to outsource fulfillment as they grow.

Dropshipping

Dropshipping is a good option if you have the resources to find reliable suppliers and can successfully manage your relationships with them. With dropshipping, the entire fulfillment process is handled by the supplier or manufacturer, which means you don’t have to invest as much time in it – but you also don’t have control over it.

The key benefit of dropshipping isn’t to be underestimated; you can simplify a huge part of the logistics value chain. Instead of having to worry about shipping products from your manufacturer to a middle location, and then from that middle location to the customer, it goes straight from the manufacturer to the customer.

Diagram explaining the dropshipping process in ecommerce from supplier to customer

The main drawbacks of dropshipping are a lack of control over product quality and a poor delivery experience.

For quality, you don’t get to inspect the product before it gets to the customer. You have to rely entirely on the dropshipper, and when things go wrong, you’re left on the outside looking in.

Just as importantly, your customers won’t be delighted by fulfillment provided by dropshippers. Since they’re almost always shipping from one location, the delivery won’t be fast for customers across the country, which can negatively impact customer satisfaction. Since they’re often shipping long distances, shipping is also more expensive than it needs to be as well.

Using a Third-Party Fulfillment Provider

If you’re looking for a Shopify order fulfillment service that offers the benefits of self-fulfillment without all the hassle, then using a third-party provider is your best bet.

The best 3PLs will give you access to a nationwide network of warehouses and carriers, so shipping products will take less time than if you were going it alone – in most cases within one or two days. Furthermore, if a 3PL places your inventory across the country strategically, you’ll always pay ground rates for shipping, so fast delivery will come at low prices.

Third-party logistics providers also work with shipping carriers to negotiate discounted shipping costs, further improving your profitability.

In addition, some 3PLs can even support dropshipping services.

Like dropshipping, trusting a third party means giving up some control over your product before it gets to the customer. This challenge can become apparent with 3PLs that aren’t built for ecommerce, as products get damaged in their rush to fulfill orders. Modern 3PL networks that specialize in ecommerce, though, have very low defect rates and may even improve on your own delivery record.

Of the three Shopify fulfillment options, using a third-party provider is the best option for most Shopify stores. It’s a question of when, not if for most Sellers. Many assume that they need thousands of orders before they can get a good deal with a 3PL, but today’s tech-enabled fulfillment networks are built to be easy to use for merchants of all sizes.

So, if you’re looking for a 3PL, how do you choose one that’s right for you?

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Shopify’s Fulfillment Network

The Shopify Fulfillment Network (SFN) is a 3PL fulfillment service designed to streamline the order fulfillment process for Shopify Sellers. With a 3PL network of warehouses across the United States (SFN no longer operates in Canada as of 2023), the Shopify Fulfillment Network allows businesses to store, manage, and ship their products efficiently. This network is built to provide fast and reliable delivery, ensuring that customers receive their orders promptly and in excellent condition. However, this service was announced in 2019 and still outsources fulfillment through Flexport.

Using the Shopify Fulfillment Network (powered by Flexport) offers several advantages for online Sellers, making it an attractive option for Shopify businesses looking to enhance their fulfillment capabilities:

Fast and Reliable Delivery: SFN’s strategically located fulfillment centers enable businesses to offer fast and reliable delivery to their customers. This can significantly boost customer satisfaction and loyalty, as timely deliveries are a key factor in the overall shopping experience.
Simplified Order Fulfillment Process: SFN handles the entire fulfillment process, from storage to shipping. This allows businesses to focus on other critical aspects of their operations, such as marketing and product development, without worrying about the logistics of order fulfillment. However, there are some fulfillment limitations that come with this simplified fulfillment process.
Increased Efficiency: By utilizing SFN’s network of fulfillment centers and advanced technology, businesses can streamline their fulfillment process. This not only reduces costs but also improves operational efficiency, allowing for better resource allocation and management.
Scalability: SFN is designed to scale with businesses as they grow. Whether you’re a small startup or an established enterprise, SFN can accommodate your needs, allowing you to expand your operations without the hassle of managing fulfillment logistics.

Choosing the Right Shopify Order Fulfillment Service for Your Store

It’s one thing to decide to work with a 3PL provider and another thing entirely to find one that has the right Shopify fulfillment network that your business needs to scale. Here are the key factors you’ll have to consider:

Shipping speed SLAs (what shipping options will they enable?)
Fulfillment costs and methods (how much do different options cost?)
Inventory management options (do they help you efficiently manage inventory?)
What other providers do they integrate with, and how?
Customization & special services (e.g., assembly, packaging)

The best Shopify fulfillment services are built for fast & free ecommerce – that means they’ll enable fast delivery for your customers, but do so in a low-cost way. They should have pre-built integrations with Shopify and ecommerce platforms to make your life easy. Finally, you should look for a provider that helps you intelligently manage inventory to optimize capital.

Image of a Shopify bag containing a collared shirt, coffee mug, purse, and shipping cart

For more in-depth guidance on how to choose a 3PL, use our 3PL RFP template to easily collect the information you need to make the right choice.

Cahoot – Your Best Option for Shopify Order Fulfillment

Cahoot’s fulfillment network of over a hundred warehouse locations is built for ecommerce. We’ll help you level the playing field with marketplaces and delight your customers with a stellar, Amazon-like delivery experience – right on your Shopify store.

Price: Our innovative peer-to-peer model offers low-cost, fast fulfillment by design. As a result, our pricing is typically lower than that of traditional 3PLs, 3PL networks, Shopify Fulfillment Network, and even marketplace fulfillment solutions like Amazon Multi-Channel Fulfillment.

Shipping Flexibility: Cahoot also offers the option to ship on your existing carrier accounts, allowing you to maintain your purchasing power and volume discounts.

Speed: Cahoot’s Shopify fulfillment service will enable you to turn on conversion-boosting fast and free shipping badges. We’ll strategically distribute your inventory to our warehouses locations across the country so that no matter where an order comes from, it’ll be fulfilled by a nearby warehouse. The customer gets their item in one to two days, but you pay cheap ground shipping rates.

Reliability: Our barcode scanning technology powers 99.95% on-time delivery and a 99.99% accuracy rate.

Easy Onboarding: With Cahoot, you can go from sign up to shipping in just two weeks. Our pre-built integration with Shopify makes setup a breeze.

Customer Service: You’ll have a dedicated customer support team that is always ready to help you every step of the way.

Cahoot is committed to helping Shopify Sellers grow their businesses with our fast and affordable ecommerce fulfillment service.

If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait to show you how Shopify fulfillment was meant to be.

Frequently Asked Questions

How can I fulfill orders on Shopify?

The main ways to fulfill Shopify Orders are directly shipping yourself, dropshipping, or using a 3PL.

Are there any limitations with Shopify Fulfillment Network?

Not all products are eligible for the SFN; you can review the list here.

Are all 3PLs the same?

No! 3PLs are different, and choosing the right 3PL for your business is an important decision.

Written By:

Indy Pereira

Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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Shopify Fulfillment Network to Cut Number of Locations

Wedbush analyst Ygal Arounian sums up Shopify’s challenge well: “Shopify is nowhere close to building a type of fulfillment operation at the scale of Amazon, and investors should not expect anything like that in the near term”. Investors have taken notice of Shopify’s recent struggles – the stock is down nearly 50% from its November high of 1,690.60.

We’d assert that this change is more important for merchants than investors, as it reveals that Shopify Fulfillment Network isn’t an FBA alternative, and instead is moving in the opposite direction.

Merchants that want to power their sales with affordable, reliable fast shipping will need to look elsewhere for a fulfillment solution.

Shopify Fulfillment Network’s Pros & Cons

Like Amazon FBA, Shopify is building its own logistics solution for eCommerce sellers, Shopify Fulfillment Network.

It combines seamlessly with a merchant’s Shopify account, making it an easy way to start fulfilling eCommerce orders for someone with a new DTC store. It also comes with software that helps merchants with order and inventory management, and it boasts a dedicated customer service team that helps merchants overcome operational challenges.

Unfortunately for merchants with big growth ambitions, it’s focused on fulfilling Shopify orders and not orders from other channels. On top of that, it doesn’t offer fast shipping by default. Merchants that want to win on multiple channels will likely need an additional 3PL for their other orders. More importantly, they won’t be positioned to offer affordable fast shipping to their customers. With Amazon and other national fulfillment services setting the bar at 1- and 2-day free shipping, merchants that rely on SFN will be left at a significant disadvantage.

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Cahoot: The Best Shopify 3PL

If you need a fulfillment solution that keeps up with Amazon FBA at always-affordable prices, give us a call.

Unlike Shopify Fulfillment Network, Cahoot’s fulfillment network has no trouble keeping up with FBA. We’ll help you level the playing field with marketplaces and delight your customers with a stellar, Amazon-like delivery experience – right on your Shopify store.

It sounds expensive, but our innovative peer-to-peer model offers low-cost fast fulfillment by design. As a result, our pricing is typically lower than that of other top providers, but we can beat them on fulfillment speed and reliability.

And of course, we don’t stop there. We have pre-built integrations with major marketplaces to fuel your multi-channel growth.

If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait to show you how Shopify fulfillment was meant to be.

Written By:

Rinaldi Juwono

Rinaldi Juwono leads content and SEO strategy at Cahoot, crafting data-driven insights that help ecommerce brands navigate logistics challenges. He works closely with the product, sales, and operations teams to translate Cahoot’s innovations into actionable strategies merchants can use to grow smarter and leaner.

Shopify B2B: Your Next Growth Opportunity?

What is B2B on Shopify?

Per Shopify’s press release, B2B on Shopify is “a new set of features built specifically for B2B merchants, directly into our platform, and with access to all of Shopify’s most powerful customization features like store themes, discounts, and Functions—and it’s all included with Shopify Plus. This will allow you to manage your entire ecommerce business—whether it’s B2B, DTC, or both—all in one place.”

Business-to-business sales are significantly different from direct-to-consumer sales, so it’s only natural that Shopify needs to launch an entirely new service with a full suite of features to enable B2B ecommerce on its platform.

Shopify B2B Company Profiles

First and foremost, different business purchasers require different experiences. Almost all DTC online stores offer their customers the same experience: they see the same homepage, the same products, and the same prices. At most, customization comes down to whether the user can log into a saved profile.

In contrast, B2B purchasers need different experiences from one another. Some businesses will negotiate better prices and terms than others, so of course a seller doesn’t want the businesses paying more to see that others are paying less. Adding to that, businesses may have multiple purchasers that are in charge of procuring different items, so they need the ability to add different people to an account with varying levels of permissions.

Source: Shopify.com

B2B on Shopify will enable its merchants to create company profiles that save all of this differentiation and more. With it, they overcome one of the biggest hurdles involved in moving from DTC to B2B ecommerce.

B2B Price Lists

Building on the above, prices for business-to-business commerce are multiple degrees more complex than prices for direct-to-consumer sales.

B2B on Shopify will enable merchants to create variable price lists for all of their products and product variants, and it will also enable easy currency modifications. In this way, sellers will be able to manage complex international B2B ecommerce smoothly.

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B2B Payment Terms

Business-to-business transactions are resolved with up-front payments much less frequently than DTC transactions, so a feature for payment terms is absolutely essential. In addition to assigning different payment terms to different merchants, B2B on Shopify also will help its users track, sort, and collect on payments as they become due.

On the other side of the transaction, businesses will be able to see their payment terms, check out with their approved terms, and keep track of upcoming payments within their company profile.

Shopify will also provide a personal checkout experience for business purchasers pre-loaded with assigned payment terms, payment methods, and wholesale discounts. The B2B Checkout feature thus will seek to help streamline conversion and keep customers happily ordering

Why is Shopify Targeting B2B Ecommerce?

In their announcement, Shopify exhorts its users, “With an expected global market value of $7.7 trillion, now is the time to expand into wholesale.” Their logic for why their users should wholesale also succinctly explains why they’re launching B2B on Shopify: there’s a ton of money to be won!

Ecommerce merchants are used to hearing the advice that they should sell to consumers on multiple channels, and many now are pursuing multi-channel growth strategies across their DTC sites and online marketplaces. Shopify is betting that the next big growth frontier won’t be DTC at all; instead, ecommerce DTC brands are going to start trying to win shelf space in physical retail.

Shopify may be feeling the need to take some big swings as the walls of DTC ecommerce seem to be tightening.

Source: Google.com

After a meteoric rise from $138 per share at the start of 2019 to $1,690 near the end of 2021, Shopify’s share price has crashed back to earth. Once tagged as the upstarts that would wrest control of ecommerce away from Amazon, they simply aren’t seeing the GMV growth that you’d expect from a giant slayer.

Moreover, Amazon is now the prime mover in the Shopify vs Amazon battle. Their new purchasing and fulfillment service, Amazon Buy with Prime, is a scary shot across Shopify’s bow. In short, Buy with Prime will allow DTC ecommerce brands to install the Prime buying and delivery process on their own website, thus offering fast and free shipping to their customers. If Shopify doesn’t allow its merchants to integrate with Buy with Prime, they’ll be at a disadvantage to all those that can use the service. If Shopify does allow the service, though, they’ll give up control of payments to Amazon. This would be devastating, as they rely on growth from merchant services like their payments solutions to drive their bottom line.

So, with DTC ecommerce only becoming more competitive, more saturated, and more difficult to win, Shopify is betting that by opening a new front with B2B ecommerce, they’ll go where others can’t and quickly grab market share.

How Can B2C Sellers Add B2B?

Shopify exhorts its users to add B2B to their growth strategy – if only it were that simple! Business-to-business sales are a completely different ballgame from direct-to-consumer. We won’t be able to teach you how to add a fundamentally different sales channel in the space of a few paragraphs, but we can at least share the basics.

First, what’s similar: you’ve learned to tell your brand’s story to win consumers, and you’ll need to do the same with business purchasers. Everyone loves a good story and a compelling brand, and it will help you stick in the mind of prospects. Moreover, a great story will help the retailer sell your product once it’s on shelves, so they need to know that your product will sell.

Next, start local. Consumers like to buy local, so retailers like to stock local products. Go door to door with samples, and talk to your local small business owners! You can connect with them as a fellow small business owner, and if your product is good, they’ll be able to find a place for it as the next best thing to come out of your town.

Once you’ve got your foot in the door and a little track record of success in business-to-business wholesaling, you can think bigger. Trade shows are a fantastic place to meet tons of retailers at once (including big regional and national ones) and to get your product into as many hands as possible. This is just the start of your sales journey, though, and where things really start to diverge from DTC ecommerce.

You’ll have to learn to love the long sales cycle: wholesale deals don’t happen overnight (or even over a month, or a year!). Retailers rarely have shelf space just lying around, waiting for someone to fill – so you have to develop relationships with them and either convince them to knock off a different product, or be ready to snap up an opening. We won’t try to teach you business-to-business sales here, but suffice to say that you’ll need to learn about how to build long-term relationships with potential buyers and to speak to their needs.

Finally, you need the right tools! This is where not only B2B on Shopify comes in, but also a whole host of other tools that make B2B hum. For instance, you’ll likely need a Customer Relationship Management (CRM) tool to manage long sales cycles with retailers. And you’ll need a fundamentally different Shopify fulfillment strategy that sends infrequent, large shipments to repeat customers instead of small orders all over.

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Shopify B2B Fulfillment: Cahoot

Whether you’re just thinking about starting up B2B sales, or you’re an old pro who’s going to take advantage of Shopify’s new platform, you need a Shopify 3PL like Cahoot that has the flexibility to optimize for both DTC ecommerce and B2B replenishment.

Cahoot has created a robust ecommerce order fulfillment network that makes low cost, fast and free shipping a breeze for every eCommerce sales channel. We have built a dense network of dozens of locations that specialize in different aspects of fulfillment, so we provide affordable fast DTC shipping as easily as we can optimize low-cost, efficient replenishment for B2B.

Instead of having to contract with different 3PLs for your DTC and B2B orders, you can consolidate your inventory and your operations with us. You’ll enjoy economies of scale from being able to run leaner on inventory, and you’ll save employee time and headaches from not having to manage multiple providers. You can read or watch our case studies to see just how powerful consolidated operations for multi-channel ecommerce sales can be for your growth.

Contact Cahoot today to learn how we can design a custom fulfillment solution to power your profitable online growth, no matter the channel.

Written By:

Rinaldi Juwono

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Choosing the Best Shopify 3PL for Your Store | Cahoot

We hear it all the time – you start out on your own with a Shopify store, fulfilling orders from your garage. Your ecommerce website catches on, and soon, what started as a side hustle has turned into a full-time boxing, label-printing, and shipping operation. The success is great, but your back isn’t happy with all the box-lifting.

It’s time to outsource your Shopify Order fulfillment to a third-party logistics (3PL) company that can solve your operational headaches and let you get back to what you do best – creating and selling amazing products. There are so many 3PLs and warehouses out there. How do you choose one that’s right for your ecommerce business?

In this post, we’ll dive into what makes the best Shopify 3PL and evaluate a few of the leading order fulfillment options in the industry today.

Introduction

What is Third-Party Logistics (3PL)?

Third-party logistics (3PL) refers to the outsourcing of logistics and supply chain management to external service providers. These providers specialize in managing various aspects of the supply chain, including inventory management, order fulfillment, warehousing, and shipping. By partnering with a 3PL company, Shopify store owners can focus on core business activities while ensuring efficient and timely order delivery.

Benefits of Using a 3PL for Shopify

Using a 3PL company can bring numerous benefits to Shopify store owners, including:

Improved customer satisfaction: By outsourcing logistics operations, businesses can ensure timely and accurate order delivery, leading to increased customer satisfaction.
Reduced shipping costs: 3PL companies can negotiate better shipping rates with carriers, resulting in cost savings for businesses.
Increased efficiency: 3PL companies can streamline logistics operations, reducing the time and resources required to manage inventory, fulfill orders, and handle shipping.
Scalability: 3PL companies can help businesses scale quickly and efficiently without the need for significant investments in infrastructure and personnel.

Types of 3PL Companies

There are several types of 3PL companies, including:

Full-service providers: These companies offer end-to-end solutions, managing all aspects of the supply chain, from freight forwarding to bulk inventory storage and management to shipping and reverse logistics.
3PL warehouses: These companies specialize in storing, shipping, and handling returns for businesses.
Transportation-based 3PLs: These companies focus on transporting goods between locations, often using their own fleet of vehicles.
Financial- and information-based 3PLs: These companies provide financial and information services, such as sales analyses and supply chain analytics.

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What Makes a Good 3PL for Shopify Sellers?

If you’re an ambitious ecommerce Seller looking to boost your growth, you should know that the right Shopify 3PL can be a revenue driver and not just a cost center. The best 3PLs will improve your delivery experience, delight customers, and open new avenues for growth. Here are the most important things to look for in a 3PL for your Shopify store:

1. Nationwide USA Warehouses

Don’t sell yourself short. Even if you’re small now, you can still distribute your inventory across the country to unlock affordable, fast, and free shipping without huge expense. That is…if your Shopify 3PL has a nationwide network of warehouses.

You’ll want to make sure your Shopify 3PL has at least 4 order fulfillment centers across the USA. Still, ideally, the best 3PL will have many more warehouses so they can fine-tune exactly where your product inventory is placed to be near your largest customer base.

The best 3PLs offer true national order fulfillment services by strategically placing inventory in 4+ locations across the country. The benefit to you is that these networks cover 99%+ of US consumers with 2-day shipping at economy shipping rates. No matter where your customer wants their product shipped, you’ll have inventory nearby. They will get their products quickly, and you’ll pay the cheapest shipping rates possible.

If you aren’t already offering free 2-day shipping, it’s a recommended upgrade that can truly turbocharge your ecommerce growth. Today, 90% of US online shoppers expect free one-day and two-day shipping. Amazon metrics show that turning on the Amazon Prime badge can net up to 50% growth for a product!

Adding a banner or top bar to your Shopify store that says “Fast and free shipping” can boost your ecommerce conversions and revenue.

Source: Shopify App Store Free Shipping Bar

2. User-Friendly Shipping Software

As a business owner, giving up control and outsourcing to other companies is tough. The best Shopify 3PLs know that, so they provide their customers with easy-to-use shipping software that provides proactive notifications and robust reporting on how they’re doing. If you can’t get real-time updates on your orders’ status, inventory levels, and shipping and order fulfillment costs, then you’re not working with a cutting-edge 3PL.

One key benefit of great 3PL shipping software is proactive notifications. Unfortunately, things go wrong all the time in the shipping logistics world. It can be as simple as an undeliverable address incorrectly input by the customer or as complex as a worldwide supply chain and shipping crisis. The best Shopify 3PLs don’t leave it up to you to identify order fulfillment problems. Their shipping software should alert you when a customer orders with an undeliverable address. You can immediately fix the issue before it turns into a late shipment, and you’ll keep the customer happy.

“I use Cahoot to process our shipping labels. Their auto label creation feature is a huge time saver. We are continuing to use Cahoot over our previous shipping label provider.”

~ Home and Garden Supply

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3. Achieve a 99% On-Time Order Fulfillment Rate

Reviews are the lifeblood of your ecommerce business, and a happy customer is a repeat customer. You can probably recall more than a few lost customers and poor reviews that were due to errors in the order fulfillment or shipping workflow that were not your fault.

The best Shopify 3PLs minimize these issues and have an on-time fulfillment rate of 99.9% or higher. Anything less signals a Shopify 3PL that isn’t built for the rigorous demands of modern ecommerce.

Top 3PLs designed for ecommerce order fulfillment also integrate technology like barcode scanning into their warehouses to eliminate errors. Simple but effective innovations like these stop issues before they happen, and they also fuel the functionality of the software mentioned above.

4. Multi-Carrier Shipping Discounts and Carrier Flexibility

Shipping fees consume a significant chunk of every ecommerce merchant’s profits, but where there’s extra cost, there’s an opportunity to save. The best 3PLs who ship huge volumes of packages every year will negotiate preferred rates with major and regional parcel carriers, and they should pass those savings on to you.

Beware though. A trick in the 3PL industry is to consolidate pricing into a single one-line item and not itemize what you’re paying for every component of their service. While it can feel helpful to be quoted one simple price, keep in mind this enables the 3PL to charge you more for shipping than what they’re paying the carrier and keep the difference without you knowing.

The best Shopify 3PLs work with all shipping carriers, not just one. The reason why is simple. Different carriers have the best rates for different routes, package sizes, and types of products. If you’re locked into just one carrier, you’re not getting the best shipping prices.

5. Pre-built Ecommerce Integrations and Open APIs

It shouldn’t be hard to connect your Shopify store to your 3PL. The best 3PLs have pre-built integrations that will do it in a few clicks (this goes for other ecommerce platforms, too). Many merchants are scaling into multiple sales channels to maximize growth, and your 3PL should be able to integrate easily with all of them.

Not every ecommerce merchant can work with pre-built integrations, especially larger ecommerce merchants with custom and complex order and inventory management systems. For that, your Shopify 3PL choice should have an open API and support resources that make the order fulfillment integration process as seamless as possible.

6. Responsive Customer Service

Finally, the best Shopify 3PLs offer amazing customer support. You should be able to get in touch with your 3PL easily to troubleshoot challenges. Look for a Shopify 3PL that assigns a real person to work with your ecommerce account. Make sure there are multiple ways to get in touch with them. If it’s a small issue, live chat works. Complex challenges should be handled by an advanced ticketing system. And finally, request direct phone support for critical or time-sensitive order fulfillment issues.

“We switched to Cahoot from a different 3PL and the team has bent over backwards to make the transition easy and seamless. Great personal assistance every day from the team and very quick, reliable shipping from the Cahoot partner warehouse. Highly recommend their service.”

~ Cut.com

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Top Shopify 3PL Companies

Now that you know what to look for, how do a few of the top players in the 3PL industry stack up? We’ve provided a primer to help jump-start your order fulfillment research.

Amazon Multi-Channel Fulfillment

Amazon Multi-Channel Fulfillment (MCF) is Amazon’s outsourced fulfillment service for merchants selling on non-Amazon sales channels whereby Amazon handles the picking, packing, and shipping of the orders coming from those sales channels. Ecommerce Sellers can store their inventory at Amazon’s warehouses, and MCF will fulfill the non-Amazon orders from select channels.

Pros:

Biggest ecommerce order fulfillment network in the USA, powers fast shipping

One provider for Amazon orders and Shopify store orders

Pre-built integration with Shopify

Cons:

Much more expensive than FBA, despite being the same service

Only works with ecommerce platforms – won’t fulfill for other marketplaces

Orders take lower priority than FBA so it can be slower to ship and deliver

Many prohibited items across top categories

Shopify Fulfillment Network (Flexport)

Shopify Fulfillment Network (sold to and rebranded as Flexport in mid-2023 but still operating the Shopify Fulfillment Network app) is geared towards Shopify sellers. The pricing and shipping speed aren’t expected to be comparable to FBA as Shopify does not own any logistics infrastructure. This fulfillment option will work for you if you only need to fulfill orders in the United States, have fewer than 2,000 SKUs, ship more than 10 orders but less than 10,000 orders per day, and don’t sell any prohibited or regulated products.

Pros:

Integrates seamlessly with your Shopify account

Inventory syncs seamlessly between Shopify and Flexport

Native integration is built and supported by Shopify

Cons:

Fulfillment services are reported to be 20-40% more expensive than competitors

Not fast shipping by default – have to pay more

Only 99% on-time shipping and 97% on-time delivery – competitors are 99.95%+

ShipBob

ShipBob is a 3PL that focuses on serving ecommerce merchants. They have a nationwide network of order fulfillment centers that enable fast shipping, but they charge extra for guaranteed 2-day shipping. Built for ecommerce, they have an easy-to-use shipping software platform and a large set of pre-built integrations.

Pros:

Global fulfillment from a nationwide network of US fulfillment centers

Offers Warehouse Management Software if you operate your own warehouse

Integration and support for emerging channels like TikTok Shop

Cons:

Not fast shipping by default – have to pay more and not always ground rates

Affordable for small and lightweight products but quickly gets pricey for others

Red Stag Fulfillment

Red Stag Fulfillment is a more traditional 3PL with only two locations in the United States. They offer B2B fulfillment in addition to B2C since they have a wider focus than just ecommerce.

Pros:

Specialize in oversize (bulky) products

Shipping discounts across different carriers

Pre-built integrations with ecommerce platforms and marketplaces, and will custom build

>99.9% order accuracy with a 100% guarantee

Cons:

Only two USA warehouses – can’t cover all USA customers with affordable one-day or two-day shipping

Cahoot: Shopify’s Premier Fulfillment Network

Cahoot’s order fulfillment services network is built for ecommerce. We’ll help you level the playing field and delight your customers with a stellar, Amazon Prime-like delivery experience for your Shopify store. And we don’t stop there. We have pre-built ecommerce integrations with major marketplaces to fuel your multi-channel growth. Don’t see one that you need? Let’s talk.

Our innovative peer-to-peer model offers low-cost, fast, nationwide order fulfillment by design. As a result, our pricing is typically 30% lower than the 3PL providers listed above, and we can beat them on order fulfillment speed and delivery reliability.

		Traditional 3PL
Same-day fulfillment until 2pm
Nationwide 1-day & 2-day coverage
Weekend fulfillment
Powerful, easy-to-use software
Flexible fulfillment
Real-time fulfillment & shipping visibility
All sales channels
Seller Fulfilled Prime (SPF)
Fast-shipping badges – Walmart, Amazon
30% avg. lower cost

Cahoot is committed to helping Shopify Sellers grow their businesses with fast and affordable ecommerce order fulfillment service.

Looking for a New 3PL? Start with this Free RFP Template

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When is the best time to work with a 3PL?

The best time to work with a 3PL depends on your business’s specific needs and growth stage. It might be time to consider outsourcing fulfillment when you’re starting to run out of capacity. For example, if order volume consistently exceeds what you can handle efficiently in-house, or if your available storage space reaches or exceeds 75-90% of your capacity. Businesses that experience seasonal spikes in demand can benefit from a 3PL’s ability to seamlessly scale operations up or down as needed.

When logistics management becomes too time-consuming, or rising shipping costs are creating excessive margin pressure, outsourcing fulfillment allows you to focus on growing your business and improving your products while leveraging a 3PL’s carrier network and negotiated rates.

If you’re struggling to meet your on-time delivery promises or you’re dealing with frequent fulfillment errors and the customer service burden has gotten to be too much, it would be worth looking into a 3PL’s expertise and infrastructure; in particular, look into 3PLs that can support nationwide inventory distribution to reduce shipping times and costs.

Merchants looking to get smarter and more efficient with inventory forecasting so they can procure the right amount of inventory at the right time should partner with 3PLs that offer AI-driven intelligent demand planning software. Agentic AI is able to analyze fluctuations in market demand, freight forwarding trends, trade and policy current events, etc., and automatically create purchase orders with your suppliers (in their language), optimizing the amount of capital tied up in inventory.

If you’d like to find out how Cahoot can enhance your efficiency, reduce your costs, and support the growth of your ecommerce business, please get in touch with us. We can’t wait to show you how Shopify order fulfillment was meant to be.

5-star Cahoot Order Fulfillment services

If you are selling on multiple sales channels and are interested in a 3PL that can help you with fulfillment, check out some of our other articles:

Frequently Asked Questions

Can Amazon fulfill Shopify orders?

Yes, Amazon can fulfill Shopify orders using the Multi-Channel Fulfillment (MCF) service. MCF integrates a Shopify website with Amazon’s fulfillment network to pick, pack, and ship orders using the Fulfilled by Amazon (FBA) infrastructure and resources.

Does Shopify offer fulfillment?

Yes, Shopify owned and operated the Shopify Fulfillment Network (SFN, formerly known as Deliverr), before it was sold to Flexport in mid-2023. Shopify promotes Flexport as its trusted fulfillment partner.

How much does Shopify fulfillment cost?

Enter your product information into the Flexport Cost Calculator to see what you would pay with Flexport Fulfillment.

What does order fulfilled mean on Shopify?

When you fulfill an order in Shopify, you begin the process of sending the order on its way to the customer. The customer receives an email telling them that their item has shipped, and the order’s Fulfillment Status displays as Fulfilled on the Orders page.

What is fulfillment on Shopify?

Shopify Fulfillment Network connects your online store with Flexport, a leading logistics partner that will pack, pick, and ship online orders to your customers without any intervention.

Written By:

Rinaldi Juwono

Turn Returns Into New Revenue

Convert returns into second-chance sales and new customers, right from your store.

In this article

Why Your Shopify Order Fulfillment Service Matters

Fulfillment Services for Shopify Sellers

Self-Fulfillment

Dropshipping

Using a Third-Party Fulfillment Provider

Slash Your Fulfillment Costs by Up to 30%

Shopify’s Fulfillment Network

Choosing the Right Shopify Order Fulfillment Service for Your Store

Cahoot – Your Best Option for Shopify Order Fulfillment

Frequently Asked Questions

How can I fulfill orders on Shopify?

Are there any limitations with Shopify Fulfillment Network?

Are all 3PLs the same?

Turn Returns Into New Revenue

Related Articles

In this article

Shopify Fulfillment Network’s Pros & Cons

Make Returns Profitable, Yes!

Cahoot: The Best Shopify 3PL

Related Articles

In this article

What is B2B on Shopify?

Shopify B2B Company Profiles

B2B Price Lists

Make Returns Profitable, Yes!

B2B Payment Terms

Why is Shopify Targeting B2B Ecommerce?

How Can B2C Sellers Add B2B?

Convert Returns Into New Sales and Profits

Shopify B2B Fulfillment: Cahoot

Turn Returns Into New Revenue

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In this article

Introduction

What is Third-Party Logistics (3PL)?

Benefits of Using a 3PL for Shopify

Types of 3PL Companies

Slash Your Fulfillment Costs by Up to 30%

What Makes a Good 3PL for Shopify Sellers?

1. Nationwide USA Warehouses

2. User-Friendly Shipping Software

3. Achieve a 99% On-Time Order Fulfillment Rate

4. Multi-Carrier Shipping Discounts and Carrier Flexibility

5. Pre-built Ecommerce Integrations and Open APIs

6. Responsive Customer Service

Top Shopify 3PL Companies

Amazon Multi-Channel Fulfillment

Shopify Fulfillment Network (Flexport)

ShipBob

Red Stag Fulfillment

Cahoot: Shopify’s Premier Fulfillment Network

Looking for a New 3PL? Start with this Free RFP Template

When is the best time to work with a 3PL?

Frequently Asked Questions

Can Amazon fulfill Shopify orders?

Does Shopify offer fulfillment?

How much does Shopify fulfillment cost?

What does order fulfilled mean on Shopify?

What is fulfillment on Shopify?

Turn Returns Into New Revenue

Related Articles