Shopify 3PL Integration: The Ultimate Guide to Streamline eCommerce Fulfillment

Shopify 3PL integration is a powerful feature l that helps eCommerce businesses simplify order fulfillment by connecting their Shopify stores with third-party logistics (3PL) providers.

This integration automates critical processes like inventory management, shipping, and tracking, allowing store owners to focus on growing their business instead of logistics. 3PL involves outsourcing logistics operations to third-party providers, which helps manage the entire supply chain efficiently.

However, you might ask, “I am not an enterprise, so why do I need the hassle of a 3PL integration for my Shopify business?”

For small-to-medium-sized businesses (with a lean workforce), managing order fulfillment in-house can become overwhelming as sales grow. Whether it’s running out of storage space or keeping up with an increasing number of daily orders, 3PL integration with Shopify provides a scalable solution to these challenges.

What is Third-Party Logistics (3PL)?

Third-party logistics (3PL) is a service where businesses outsource their logistics operations to external providers. This involves partnering with a 3PL company to manage various aspects of the supply chain, including warehousing, inventory management, order fulfillment, and shipping. 

Outsourcing logistics operations allows businesses to focus on their core competencies, reduce costs, and improve efficiency.

Partnering with a 3PL allows businesses to leverage the expertise and resources of external service providers, ensuring that logistics operations are handled professionally and efficiently. 

This can lead to significant cost savings, as businesses do not need to invest in their own warehousing and transportation infrastructure. Additionally, 3PL companies often have relationships with shipping carriers, enabling them to negotiate better rates and improve delivery times.

Third-party logistics is a strategic approach to managing supply chain operations, allowing businesses to streamline their processes, enhance customer satisfaction, and scale their operations more effectively.

When it comes to global eCommerce fulfilment, Easyship 3PL delivers a proven formula for lowering costs, improving pick and pack accuracy and increasing your global footprint.

What is Shopify 3PL Integration, and Why is It Important?

Shopify 3PL integration connects your Shopify store’s backend with 3PL’s software, creating a seamless system for managing logistics. This integration automatically sends orders placed in your store to the 3PL partner, who handles the picking, packing, and shipping. 

This removes the need for manual intervention, reducing errors and saving time.

For example, if a customer orders a product from your Shopify store, the order details are instantly sent to the 3PL, which follows a process that leads to ultimate fulfillment. The 3PL processes the order, retrieves the item from inventory, packages it, and ships it to the customer. 

The system also updates your Shopify store with tracking information, ensuring you and your customers are informed.

Why Choose a 3PL Integration for Your Shopify Store?

Without 3PL integration, managing logistics can be tedious and prone to mistakes. This can lead to delays, unhappy customers, and lost sales for growing businesses. It's essential to address 3PL myths and misconceptions to ensure businesses understand the actual benefits of third-party logistics. Moreover, outsourcing fulfillment to a 3PL offers several advantages:

1. Scalability

One of the major reasons to consider outsourcing fulfillment logistics is when you’re adding new geographies to your shipping circuit. As your business grows, a 3PL can handle increased order volumes without additional staff or infrastructure. Moreover, it frees up time spent on logistics, allowing you to focus on marketing, product development, and customer service.

2. Cost Savings

Since 3PLs are packaged deals, you do not have to pay separately for warehousing, order processing, or shipment. Therefore, instead of investing in additional resources, you pay only for the services you use.

3. Operational Efficiency

Automation reduces manual work, allowing you to scale without additional staff. For instance, a small Shopify store handling 20 orders a day may manage in-house fulfillment effectively. However, during seasonal spikes like Black Friday, order volumes may double or triple.

It does not make sense to direct your in-house logistics and shipping team toward this growth spurt and ignore other consistent sales. This is where a 3PL integration for your Shopify store comes into play.

Partnering with a 3PL ensures these orders are fulfilled without delays, keeping customers happy and your store’s reputation intact. Selecting trustworthy fulfillment providers is crucial for efficiently managing storage, shipping, and tracking as your business scales.

4. Access to Real-Time Data

Shopify’s 3PL partners offer automation as a service, which is a crucial part of an effective fulfillment strategy, allowing you to receive real-time data concerning your inventory, advanced tracking information, and overall visibility into the fulfillment process. This hands-on information makes it easier for owners to address potential problems immediately.

5. Improved Customer Satisfaction

Since your third-party logistics provider oversees operational efficiency, order processing, and shipping packages, the automation ensures that your customers receive their deliveries within time and at the correct address. 

Types of 3PL Companies

There are two main types of 3PL companies: asset-based3PLsand non-asset based 3PLs.

1. Asset-Based 3PLs

Asset-based 3PLs own and operate warehouses, trucks, and other logistics equipment. They have more control over their operations and can offer customized solutions to their clients. However, asset-based 3PLs might be more expensive due to their investments in equipment and infrastructure.

These companies can provide high reliability and consistency as they manage their assets and have direct control over their logistics operations. This can be particularly beneficial for businesses that require specialized handling or have specific logistical needs.

2. Non-Asset Based 3PLs

Non-asset-based 3PLs, on the other hand, do not own any physical assets. They partner with other companies to use their equipment and facilities, allowing them to offer more flexible and cost-effective solutions. Non-asset based3PLsare often preferred by businesses that require scalability and adaptability in their logistics operations.

These 3PLs can quickly adjust to changes in demand and offer a wide range of services by leveraging their network of partners. This flexibility makes them attractive for businesses looking to expand their operations without significant upfront investments.

Services Provided by 3PLs

3PLs provide various services to help businesses manage their supply chain operations.

1. Warehouse and Inventory Management

Warehouse and inventory management is a critical service offered by 3PLs. They provide secure and efficient product storage facilities and inventory management systems to track stock levels and monitor inventory movements. This service helps businesses to reduce inventory costs, improve stock accuracy, and enhance customer satisfaction.

By outsourcing warehouse and inventory management to a 3PL, businesses can free up resources and focus on their core competencies.3PLscan also provide value-added services such as kitting, labeling, and packaging to enhance customer experience.

2. Order fulfillment, shipping, and transportation management. 

In addition to warehouse and inventory management,3PLsalso provide other services such as order fulfillment, shipping, and transportation management. They can help businesses streamline logistics operations, reduce costs, and improve customer satisfaction.

When considering outsourcing logistics operations to a 3PL, businesses should evaluate their logistics operations, ask about costs, set reporting and communication expectations, determine delivery service levels, and check for integrations with their existing systems. By partnering with a 3PL, businesses can improve their supply chain operations, reduce costs, and enhance customer satisfaction.

How Shopify 3PL Integration Works

Shopify’s 3PL integration connects your store to the 3PL’s warehouse management system (WMS). Here’s how the process works:

1. Receiving Inventory: Your 3PL partner receives your inventory at their warehouse and logs it into their system.
2. Order Placement: When a customer places an order, the details are automatically sent to the 3PL.
3. Order Processing: The 3PL retrieves the item, packages it, and prints the shipping label.
4. Shipping: The order is shipped using the 3PL’s carrier network, with tracking details sent to your Shopify store and customer.
5. Returns Management: If a return is initiated, the 3PL handles the process, ensuring a smooth customer experience.

Key Factors to Consider When Choosing a Shopify 3PL Integration

You are looking to outsource your logistics to optimize your business. To make sure you get the proper support and can make the most of Shopify 3PL integration, look for providers with these features:

1. Real-Time Inventory Syncing

Ensures your stock levels are updated across all sales channels to prevent overselling or stockouts. For example, a store owner selling on Shopify and Etsy can integrate both platforms with their 3PL, ensuring inventory is synchronized and orders are fulfilled efficiently. This eliminates the need for manual inventory updates and reduces the risk of errors.

Furthermore, Shopify’s Fulfillment Orders API simplifies 3PL integration by enabling automated order routing, inventory syncing, and customer notifications. This ensures:

• Orders are processed promptly and accurately.
• Inventory levels are updated in real time to reflect changes.
• Customers receive notifications about shipping status.

This technology streamlines operations and improves the shopping experience for customers.

2. Multi-Channel Support

If you are a growing business or an enterprise, you are more likely to have multiple eCommerce platforms supporting your business. Your 3PL provider should be able to manage orders from Shopify and other platforms like Amazon or eBay from a single dashboard. 

Easyship is compatible with multiple platforms like Shopify, Etsy, Amazon, TikTok Shop ,etc., and integrates easily to offer a holistic view of your business across different stores. 

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3. Data-Security

Your customer data is precious, and a slight breach can lead to significant financial implications for your brand, not to mention the erosion of customer loyalty, which can spell doom for your brand’s reputation. Your Shopify third-party logistics provider must be well-equipped with an advanced security layer to safeguard confidential information.

4. Automated Notifications

Do not undermine the importance of real-time notifications and alerts to keep your customers informed about order status, improving transparency and trust. It would be helpful if the notifications could be sent in various formats or across different platforms, such as push notifications, WhatsApp alerts, or email. These notifications also come in handy in case of low inventory levels or errors in orders for timely action. 

5. Global Warehouse Network

Select a partner with warehouses near your customer base to reduce shipping times and costs. At the same time, look for a partner with a strong global network that can help you scale your business across locations. 

Easyship offers a leading global network of warehouse and fulfillment centers in strategic locations worldwide. Find the best fulfillment service options for your business.

Benefits of 3PL Integration for Shopify Fulfillment

Due to their geographical expansion, big and small brands approach 3PL to simplify their growing shipping network. Not to mention, they also automate a lot of operational tasks that help your business grow at a faster rate.

Outsourced fulfillment with 3PL providers can lead to cost savings and improved efficiency, allowing companies to focus on other aspects of their operations while leveraging the expertise of fulfillment specialists.

Here are a few advantages of partnering with a 3PL for Shopify fulfillment:

1. Better Inventory Management

Partner with a 3PL to leverage their advanced warehouse management system, which provides accurate stock tracking and forecasting tools, helping you plan for spikes in demand. Interestingly, they are auto-updated to help you keep track of the inventory that might be running low (across different storage units, including warehouses, retail stores, etc.) and help you optimize your stock accordingly.

2. Faster Order Processing

Your 3PL provider is here to take the ops problem off your plate. Most transportation-based3PLsare backed by CRMs and other software that automates your shipping journey, ensuring that your orders are processed and shipped quickly, improving customer satisfaction.

3. Cost-Effective Shipping 

3PLs often negotiate bulk shipping discounts with carriers, reducing transportation costs and slashing expenses by automating several processes as you grow.

Did you know? Easyship helps you grow your Shopify business by connecting with multiple carriers and offering discounts of up to 91% on shipping.

4. Faster Product Launches

If you have done your research and know that your product is likely to be a hit within your new target market, you can set things in motion with your reliable 3PL integration. Experiment with a small batch of your products and set up the shipping process with the third-party logistics provider to boost your shipping success. 

A Shopify store experiencing rapid growth can avoid bottlenecks by outsourcing fulfillment, ensuring orders are delivered on time and customers stay satisfied.

Shopify 3PL integration is a game-changer for eCommerce businesses looking to streamline operations and scale effectively. By automating fulfillment processes and leveraging the expertise of 3PL providers, you can save time, reduce costs, and deliver a superior customer experience. 

Whether you’re a small business starting to grow or an established store looking to expand, integrating a 3PL with your Shopify store is a smart investment in your success.

Make Easyship your Shopify 3PL Partner!

Integrate your Shopify store with Easyship to gain access to a complete fulfillment journey that helps you improve your customer’s delivery experience.

• Easyship’s live rates at checkout feature offers accurate shipping quotes, with a customizable format that can include pre-paid duty options, estimated taxes, and insurance purchase options at checkout. 
• You can sync orders directly from your store and customize the sync criteria within your store settings.
• Download products to synchronize inventory, including SKU, weight, and description. Additional product details will need to be manually added.
• Set store triggers to mark orders as fulfilled when labels are generated, cancel fulfillment if shipments are canceled, and send tracking numbers to Shopify.
• You have access to a global network of warehouses to support your business growth and fulfillment.

It doesn’t get easier than this to make the most of your Shopify store!

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FAQs

1. What is 3PL in Shopify?

3PL stands for third-party logistics. It is a service that enables Shopify businesses to outsource their logistics operations, including inventory management, warehousing and transportation.

2. When should you consider Shopify 3PL integration?

Consider transitioning to a 3PL when:

• Your order volume exceeds 10–20 orders per day.
• You’re running out of storage space for inventory.
• You want to focus more on growing your business than managing logistics.

3. What is 3PL integration?

A 3PL integration is the data exchange between businesses and logistics providers to enable smoother operations. 

4. Does Shopify offer logistic services?

Shopify has a Shopify Fulfillment Network (SFN) that connects businesses with their logistics partners.