To drive growth and stand out in today’s ecommerce world, your business has to do a lot of things right. You have to be able to:
- Develop or source products your customers need or want to satisfy demand.
- Execute a savvy sales and marketing strategy to attract and convert shoppers.
- Implement a smooth order fulfillment process to ensure your products are delivered to your customers’ doorsteps on time, every time.
Getting the last point—order fulfillment—right is particularly challenging for ecommerce businesses today, as in many cases it’s not their core competency. And that’s why many merchants outsource their order fulfillment to third-party logistics (3PL) providers, who can help drive improved operational efficiency, on-time delivery performance, and customer satisfaction.
Today’s global 3PL market is booming—it reached $1.3 trillion in market size in 2025, and is expected to grow to more than $2 trillion in 2030, at an annual compound annual growth rate (CAGR) of 10% Ecommerce businesses and the rise of omni-channel retailing is propelling this growth. As businesses expand to new selling platforms like online marketplaces and social media stores, the fulfillment process becomes more complex, and their need for a competent fulfillment partner who can streamline operations and ensure fast, reliable delivery becomes critical.
With the expansion of the 3PL industry, the number of 3PL providers in the market has increased. With so many providers—from small niche players to global giants—trying to choose which 3PL to work with can be difficult.
If you are searching for a new 3PL, you will probably start by researching various 3PLs online and reaching out to your business connections to see if they have any recommendations. Once you’ve put together a shortlist of prospective 3PLs, you should arrange to speak with their representatives to learn more about what they have to offer and see if they would be a good fit for your business. When you have those conversations, there are a handful of critical questions that you need to ask to get the information you need to make an educated decision.
In this blog, we highlight the 7 key questions that you should ask the 3PL provider you’re evaluating.
Question 1: What’s the size and scale of your global network?
It’s critical that the third-party logistics service provider that you select has a connected network of logistics facilities (including fulfillment centers and warehouses) and a footprint in the geographic locations where your business operates and your customers are based. Partnering with a 3PL that has a physical presence in the locations that matter most to your business will allow you to strategically distribute your inventory, so that you can deliver your products to customers as quickly and inexpensively as possible.
One 3PL provider that has an extensive network is Amazon Supply Chain Services (ASCS). ASCS is an end-to-end logistics solution that offers services along every step of the supply chain. It has a global network that includes more than 2,000 facilities (including over 200 US fulfillment centers), over 80,000 trailers, containers, and over 100 aircraft, and more than 1.5 million associates and partners. By working with ASCS, you also get access to its vast fulfillment network, enabling you to store stock close to customers—allowing you to provide faster delivery—and expand into new markets when you’re ready to scale.
Question 2: How is your suite of 3PL solutions unique?
Typically, 3PLs offer a standard selection of solutions, including order fulfillment, inventory management, warehousing, expedited shipping, and reverse logistics (also known as returns management). You will not only want to make sure that the 3PLs you are considering can provide the solutions your business needs, but you should also ask them about what makes their solutions different from other providers.
There are many areas in which third-party logistics partners can distinguish themselves. ASCS, for example, is a 3PL provider whose solution set is unique in many ways. One area of differentiation is its multichannel fulfillment service, which utilizes one of the world’s largest fulfillment networks, ASCS’ advanced fleet of cutting-edge warehouse robotics and transportation technologies, and more than 100 state-of-the-art integrations that help automate your order fulfillment process and support ecommerce features like Buy with Prime (which uses MCF to fulfill orders).
Question 3: Which key metrics do you track, and what’s your performance against your service-level agreements (SLAs)?
You should take the time to find out which key metrics the 3PLs you are evaluating use to measure their performance. Some of the common metrics that 3PLs use include:
- Dock-to-stock times: The amount of time it takes for a 3PL to receive your inbound inventory, process it, and put it in a pickable or storage location in the fulfillment center or warehouse—so that customers can place orders against it.
- Cut-off times: The time of day when the 3PL stops taking orders that will be processed and shipped that same day. Most 3PLs determine their cut-off times based on their order processing times as well as the pick-up times set by the carriers they use. Some 3PLs, like ASCS, are carriers themselves and don’t have cut-off times; they can receive orders any time of the day or night.
- On-time shipping: The percentage of orders that were scheduled to be sent out from a fulfillment center or warehouse on a given day that actually ship on that day.
- Order accuracy: The percentage of orders that are sent to customers without errors, including the wrong type or quantity of products. Order accuracy issues can throw your inventory count off, and can have a major downstream impact on your business.
- Inventory accuracy: A rate that measures the difference between the amount of stock you have recorded in your inventory management system and the actual inventory you have in your 3PL’s facilities. A low inventory accuracy rate can indicate that a 3PL is making picking, shipping, or other order processing errors, and this can lead to stockouts and customer dissatisfaction.
- On-time delivery performance: The rate of orders that are delivered on time to customers’ doorsteps. It should be noted that this metric is only relevant for 3PLs that are carriers themselves. ASCS for example, uses MCF to deliver orders 7 days a week with an average on-time delivery rate of 96% for US MCF orders.1
Check with the 3PLs you are evaluating to make sure they are tracking these and other important metrics, find out what their SLAs are in these areas, and determine if they are meeting or exceeding their SLA targets.
1Based on all orders placed and delivered between October 2024 and September 2025 in the US, and measuring the percentage of orders that were delivered on or before the estimated delivery date generated upon order confirmation.
Question 4: How do you manage supply chain volatility?
Supply chain volatility, due to spikes and dips in demand, seasonal fluctuations, supply shortages, production delays and disruptions, and other factors, is inevitable in today’s ecommerce landscape. Be sure to check with the 3PLs you are assessing to ensure they offer flexible logistics solutions and have the network and resource capacity you will need to handle spikes in demand. ASCS, for example, has built its network with resilience in mind at every leg of the supply chain so when disruptions occur, they’re absorbed, meaning your operations keep moving.
Question 5: How is your pricing system structured?
Before engaging a third-party logistics service, you should have a good understanding of how their pricing system is structured.
When you are evaluating various 3PLs’ pricing models, there are a few key differences to keep in mind:
- Some 3PL logistics services require you to commit to long-term contracts (which can include costs for investment in infrastructure and systems needed to support your business), while others, like ASCS’ MCF service, offer more flexible, pay-as-you-go pricing for storage and order fulfillment.
- Some 3PLs use a “per-service” pricing model, where they charge for services like picking, packing, and shipping separately, while other 3PLs use an all-in-one “per-unit” pricing where you pay one bundled fee for services. ASCS utilizes a simple, unit-based pricing model for its MCF service, where you only pay one fee for fulfillment (inclusive of picking, packing, and shipping services) and storage.
Make sure you have a solid grasp of each prospective 3PL’s pricing system and rate card – which can include hidden fees and surcharges, before entering into a business relationship with them.
Question 6: What’s your customer support system like?
Ideally, your 3PL provider will be like a partner—always there to provide assistance, support, and guidance whenever you need it.
Every 3PL has a different support structure, but you will probably want to find a 3PL that offers support on two levels:
- Day-to-day issue resolution: Providing support for any order fulfillment or inventory management issues that may arise. Ask the 3PLs you are evaluating about how their support system functions (and if they use automated tools along with support representatives to handle issues) and what their response times are.
- Strategic planning: Consulting with key stakeholders in your business to learn about your long-term plans and goals and working with you to unlock opportunities to optimize your logistics operations and drive business growth.
Question 7: What kinds of clients have you worked with?
Perhaps the best way of determining if a prospective 3PL would be a good fit for your ecommerce business is to research and learn about their client base. Ideally, the 3PL you select would have experience working with businesses that are similar to yours (i.e. of the same size, offering similar products, operating in the same locations) and would have success stories from these clients to share with you.
Choosing the right 3PL for your business
Choosing a 3PL is a complex and critical decision that will have a lasting impact on your business.
You should invest the time to really get to know the 3PLs you are considering—to learn about their global network, solution suite, SLAs, pricing and support systems, client base, and other areas—so that you can determine which provider would be right for you.
