Fast, reliable delivery: the benefits of shipping with a 3PL 

Blog Post
Growing online retailers and brands need an e-commerce fulfillment strategy to meet customer expectations and grow revenue. A fulfillment strategy aims to ensure customers receive their orders accurately and promptly while maintaining efficiency and cost-effectiveness.
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90% of consumers claim that shipping accounts for at least half of the online brand experience. Frustrating delivery experiences lead to lost customers with 71% of online shoppers contacting customer service in the last year due to shipping or delivery issues, and 79% will avoid a brand in the future after a bad post-purchase experience.   

Brands face a variety of challenges when it comes to offering fast e-commerce delivery. They need to determine what shipping options or partners are available, how they can minimize transportation costs, and how their shipping strategy fits into the overall e-commerce fulfillment process. Fortunately, brands have options, including working with third-party logistics providers (3PLs). In this article, we focus on the benefits of shipping with 3PLs. Let’s start by reviewing different e-commerce fulfillment models, and how they affect shipping. 

What is e-commerce fulfillment? 

e-commerce fulfillment refers to the process of receiving, processing, packaging, and shipping online orders to customers. It includes various stages: order management, inventory management, warehousing, packaging, shipping, and reverse logistics.  

A fulfillment strategy aims to ensure customers receive their orders accurately and promptly while maintaining efficiency and cost-effectiveness. Let’s dive into the different models brands can implement to manage their e-commerce fulfillment. 

Choosing the right e-commerce fulfillment models 

Growing online retailers and brands need an e-commerce fulfillment strategy to meet customer expectations and grow revenue. A fulfillment strategy aims to ensure customers receive their orders accurately and promptly while maintaining efficiency and cost-effectiveness.   

From order processing to shipping and returns management, each step of the fulfillment process plays a key role in delivering a seamless customer experience.  Here are the most common eCommerce fulfillment approaches: 

In-house fulfillment 

With an in-house fulfillment model, e-commerce merchants handle all aspects of fulfillment internally. They maintain fulfillment centers or warehouses to store inventory, and the entire fulfillment process is managed by the company’s own staff.   

In-house fulfillment provides businesses with greater control over the fulfillment process and allows for more customisation and flexibility. It requires significant infrastructure, resources, and expertise to manage operations effectively. In-house fulfillment means managing shipping partners, negotiating rates, tracking shipped orders, and communicating shipping statuses with customers. 

Dropshipping 

With dropshipping, the e-commerce business doesn’t hold inventory or handle product fulfillment directly. Instead, when a customer places an order, the business forwards the order details to a supplier or manufacturer. They then ship the products directly to the customer.  

The e-commerce business acts as an intermediary, taking orders and payments from customers and passing on the order information to the supplier for fulfillment. Dropshipping eliminates the need for inventory management, transportation management, and an upfront investment in stock. Merchants instead focus on marketing, customer acquisition, and building their online presence.  

There are potential drawbacks. Dropshipping can result in less control over product availability. Importantly, dropshipping delegates e-commerce shipping and delivery to the supplier or manufacturer, which can affect shipping options and delivery times.  

Third-party logistics partners (3PLs) 

Some growing e-commerce retailers outsource fulfillment to third-party logistics partners (3PLs). 3PLs specialize in fulfillment and manage warehousing, inventory storage, order processing, kitting or gift wrapping, shipping, and returns on behalf of merchants.    

The 3PL provider typically has expertise in fulfillment operations, established warehousing infrastructure, transportation management, and advanced systems to handle the entire process efficiently. This model allows businesses to focus on core activities such as marketing and product development, while relying on the expertise of the 3PL provider for efficient order fulfillment. It creates scalability, reduces operational costs, expands shipping options, and provides access to specialized services. 

While there are many elements of e-commerce fulfillment, from order processing to returns, let’s dive deeper into the importance of optimized shipping and how working with a 3PL can make shipping easy for growing brands.  

Why great shipping is so important 

Consumers have very high expectations when it comes to e-commerce delivery. As previously mentioned, 90% of consumers claim that shipping accounts for at least half of the online brand experience. Sixty-six percent of consumers expect free shipping for online orders. And 46% expect fast delivery. Per Radial research, 29% of shoppers expect 2–3-day shipping, and 45% expect 3–5-day shipping. 

Online brands need great e-commerce shipping options to meet customer expectations. Happy customers mean repeat purchases, increased sales, and positive reviews. Poor delivery could easily lead to the opposite. 

Offer multiple shipping options 

Customers have unique preferences, desires, and expectations when they shop online. Brands can win more sales and satisfy more customers by offering a variety of e-commerce shipping options. Customers can then select the option that suits them best—whether that’s based on speed, cost, or convenience. Common options include standard, express, overnight, or same-day delivery. E-commerce brands can work with multiple shipping carriers or logistics providers to ensure they have a strong range of shipping options. 

Common shipping problems 

Great shipping isn’t easy. Many online brands face these common issues: 

Slow shipping speeds 

Customers expect fast e-commerce shipping and delivery. But that creates challenges for retailers. They need to optimize processes and collaborate closely with shipping partners—especially if they take an in-house approach to fulfillment.  

Overcoming these challenges requires evaluating fulfillment operations, identifying transportation bottlenecks, and clearly communicating delivery options to customers. Partnering with a network of carriers, or working with a 3PL that offers transportation management, can simplify the shipping process while also providing faster shipping options to brands. 

High shipping costs 

Shipping costs are a high percentage of overall logistics costs. And they can increase unpredictably depending on fuel prices, regulatory requirements, trade agreements, and more. 

There is no simple way to reduce shipping costs, but rate shopping, either in-house or through a 3PL’s transportation management solution, can help optimize shipping rates across carriers.  

Delivery delays 

Up to 70% of consumers have had an e-commerce delivery delay in the past six months, and 40% of consumers say they will stop buying from a brand after a negative shipping experience. Delays are caused by a variety of factors, from labour shortages at transportation firms to peak season surges creating bottlenecks.  

Delivery delays happen for virtually every e-commerce brand, but working with trusted 3PLs and other partners can help streamline e-commerce fulfillment and reduce these types of shipping issues. 

Lost parcels 

Parcels go missing for a variety of reasons. Some are lost because the package was stolen, while others go missing due to inaccurate address data or poor address verification.  

Experienced 3PLs can leverage secure shipping networks to reduce the chance of theft. And technology integrations at checkout can help with accurate data collection and verification. 

Damaged orders 

Damaged deliveries deeply frustrate customers and create headaches for brands. And while online brands can’t control every element of the shipping process, they should be responsive to customers who discover damaged parcels on their doorsteps. Brands can sidestep future damage by working with trusted partners that have the experience and reputation for providing great e-commerce shipping—from packaging through to delivery.

Supply chain disruptions 

Supply chains are a top three risk for businesses in 2025. And supply chains face constant disruption due to a wide range of causes, from weather events to trade and tariff changes.  

Online brands can mitigate disruptions primarily through supply chain diversification. They can spread inventories strategically across different locations and work with multiple shipping carriers to reduce risk. Organizations can also manage supply chain disruption via data and technology designed to improve real-time data analysis and risk modeling

International shipping challenges 

International shipping requires its own strategy and introduces new strategies. Brands must consider customs regulations, international shipping costs, and cross-border logistics. Smooth international shipping requires understanding and complying with different countries’ laws and customs procedures. 

Often, shipping international requires working with multiple logistics providers, carriers, and customs brokers. Good cross-border e-commerce also requires processing payments in different currencies and converting prices accurately.  

Online brands can work with 3PLs to navigate the challenges of international e-commerce shipping to win new customers and expand their brands. 

What is 3PL shipping?  

Providing great shipping can be as complicated as any other part of the e-commerce fulfillment process. When brands partner with 3PLs for e-commerce fulfillment, they can also leverage 3PL shipping. The 3PL partner then manages the complexities and challenges of shipping and delivery on behalf of the brand. That means the brand can focus on their core competencies, like product development, sales, and marketing.  

The elements of 3PL shipping 

The 3PL shipping process includes the following elements, all designed to drive faster delivery and help brands succeed:  

Order processing  

The first step in creating great shipping experiences starts before the parcel leaves the warehouse. Leading 3PLs focus on efficient order processing, with optimized picking, packing, and shipping processes. That means reduced processing time, easier order fulfillment, and faster delivery to customers. 

Packaging 

Before an item is packed and shipped, it will go through quality control to ensure the product meets brand standards. Then the 3PL uses quality packing materials to secure the order for transit. Some organizations use automated packaging systems to further streamline order fulfillment.  

Remember that packaging is more than just the protective shell protecting orders during transit. It also reflects the brand’s image and can create a positive unboxing experience for customers. Quality packaging leaves a lasting impression and can encourage customers to share their experiences and recommend your brand. Some 3PLs also offer value-added services, like gift wrapping, custom packaging, personalized messages, and other personalized touches. 

Transportation management 

3PLs often offer transportation management services. These services are designed to track parcels while they are enroute to be delivered. 3PLs also typically work with comprehensive networks of national and regional parcel carriers, like Evri, UPS or FedEx, and they work with other partners to optimize shipping down to the final mile. The goal: Help eCommerce brands keep their  eCommerce delivery promises to customers. 

The benefits of shipping with 3PLs 

Brands gain many benefits when leveraging 3PL shipping, from service quality to customer satisfaction. Ultimately, outsourced shipping can lead to consistent, fast delivery promises made to customers—and an increase in customer satisfaction and loyalty.  

Reduced costs 

3PLs can reduce transportation costs by leveraging their warehouse networks and placing inventory closer to end-customers. They work closely with shipping carriers to negotiate favorable rates for their customers. Brands can also track orders transparently via technology integrations and reporting, reducing the odds of lost or mishandled packages. 

Seasonal fluctuations 

Many brands experience seasonal peaks and order fluctuations. They may also leverage sales events and promotions, which lead to surges in orders. These fluctuations test e-commerce fulfillment operations, as increased volumes put pressure across people and processes.  3PLs prepare for peak seasons long before they arrive. They design their operations to scale and work with shipping partners to ensure reliable delivery. 

Customer satisfaction 

Eighty-three percent of consumers think that the purchase experience could be improved. That includes fast, consistent shipping. Reliable, scalable 3PL fulfillment means brands can make customers happy even as order volumes grow. Leading 3PLs provide the operational expertise and technology-driven operations necessary to create consistent customer experiences all the way through to shipping and delivery.  

3PLs also offer the value-added services necessary to personalize customer orders. From gift wrapping to embroidery or etching, personalization helps retailers differentiate themselves from the competition. Seventy-eight percent of shoppers are likely to make repeat purchases from companies with personalization strategies and retailers drive up to 40% more revenue

Positive brand image 

Working with a 3PL means faster, more reliable e-commerce shipping. When customers have a satisfying experience with a brand, they are more likely to view the brand favorably, recommend it to others, and return to shop again and again. 

3PL shipping and Radial 

E-commerce brands need to stay competitive and meet the ever-increasing delivery expectations of online shoppers. One option: 3PL shipping with Radial. Radial offers comprehensive e-commerce fulfillment services designed to streamline every aspect of the fulfillment process—including shipping. By working with Radial, brands can manage transportation costs, provide more delivery options, and ensure timely delivery to customers. With our state-of-the-art technology, extensive fulfillment network, and industry expertise, Radial empowers businesses to overcome common challenges, scale their operations, and deliver exceptional customer experiences. 

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