How to select a 3PL in the US, and what to look for

Choosing a 3PL is one of the most expensive decisions a DTC brand makes, and one of the hardest to undo. Moving warehouses mid-year costs months of disruption, so it's worth getting right first time.

Here's what to look at, in roughly the order it matters.

1. Location and shipping zones

US parcel rates are priced by zone, based on the distance from warehouse to customer. Where your stock sits decides your shipping cost and delivery speed more than almost anything else.

• A single warehouse in the central or south-central US can reach much of the country within a few ground zones, which suits most brands under a few thousand orders a month.
• Two warehouses, one on each coast, cut average zones and transit times further, but split your inventory and raise the risk of stocking out in one location.
• If you import through the West Coast, a warehouse near the port saves drayage and time. If most customers are in the Northeast, that matters more.

Do this: map last year's orders by destination ZIP code and model average zone and shipping cost from each candidate location. Use the numbers to choose, not instinct.

2. Fit with your order profile

3PLs are built for different kinds of business. A warehouse set up for single-item apparel orders works differently from one built for heavy, bulky goods or high-SKU beauty brands.

Ask for the profile of their typical client: order volume, units per order, SKU count, product type. You want to be a normal client for them, not the smallest or the strangest.

3. Specialisations you need

• Lot and expiry tracking for supplements, food and cosmetics
• Hazmat handling for aerosols, batteries and some beauty products
• Oversize handling for furniture, bedding and large pet products
• Kitting and subscription boxes
• Amazon FBA prep and replenishment
• B2B and retail: EDI, routing guide compliance and pallet shipments

Don't assume a 3PL that says yes can do it well. Ask how many clients they currently serve with that requirement.

4. Technology and integrations

Check native integrations with your store platform, marketplaces, and any inventory or ERP system you use. Ask to see the client portal: real-time inventory, order status, receiving status, and reports you can export. If you can't see your own inventory without emailing someone, keep looking.

5. Pricing transparency

Ask for a complete rate card, then ask what's not on it. Pay attention to:

• How storage is measured (pallet, bin, cubic foot) and when
• How postage is priced and what markup applies
• Monthly minimums and account fees
• Peak surcharges, special project rates and returns fees

Do this: give every shortlisted 3PL the same three months of your real order data and ask them to quote the total monthly bill. Comparing rate cards line by line misses how the structures interact.

6. Service levels

Ask for their actual performance, not their targets: order accuracy, same-day ship rate against the cutoff, receiving turnaround and inventory accuracy. Then ask what the contract says happens when they miss.

7. References and a site visit

Ask for two references from brands of a similar size and category, and call them. Ask what went wrong and how it was handled. Visit the warehouse if you can, or ask for a live video walk-through. Clean, labelled, organised floors tell you a lot.

8. The contract

Negotiate the minimums, rate-increase caps, liability for lost inventory, termination rights and exit support before you sign. The rate card sets this year's cost. The contract sets the next three.

A simple scorecard

Score each shortlisted 3PL from 1 to 5 on location fit, order-profile fit, specialisations, technology, modelled total cost, service levels and references. Weight cost and location highest. The lowest quote rarely wins once everything else is on the page.