Choosing Between 3PL and In House Fulfillment
- zachsievert15
- Nov 18
- 4 min read
Choosing Between 3PL and In House Fulfillment is one of the biggest decisions an ecommerce brand makes as it grows. Each path affects your costs, workflow, customer experience, and the amount of time you have to focus on product development, marketing, or scaling. The right fulfillment model can support smooth operations, while the wrong one can slow everything down.
Table of Contents
Choosing Between 3PL and In House Fulfillment
Why this decision matters
Fulfillment is more than packing boxes. It shapes your customer experience, cash flow, workload, and your ability to scale. Small brands can sometimes handle everything on their own, while others reach a point where partnering with 3rd party warehouse companies becomes the smoother and more cost-effective option. Thinking through the full picture helps you avoid costly missteps.
Understanding What Is 3PL
A simple definition
If you’re still wondering what is 3pl, it’s a partner that handles receiving inventory, storing products, picking, packing, and shipping orders for your business. Many fulfillment companies for ecommerce also offer returns processing, kitting, subscription box support, and integrations with marketplaces and shopping carts.
Why brands consider 3PL
A growing brand often shifts to a 3pl fulfillment company to reduce manual labor, improve accuracy, and speed up shipping. Instead of trying to build an entire ecommerce warehouse operation internally, a 3pl fulfillment near me can provide established systems, trained staff, and predictable logistics.
When In House Fulfillment Makes Sense
Best for brands shipping low volumes
If you’re only shipping a handful of orders daily, in house fulfillment may be the simplest option. You only need basic tools and can package items on your own schedule.
Ideal for brands needing full control
Businesses that want to maintain tight control over packaging details or have highly specialized product fulfillment workflows sometimes prefer handling everything internally. It allows complete oversight from bin organization to packaging materials.
Works well if you already have space
If you already manage a warehouse or have low-cost access to space, running your own operations may be cost-effective for a while.
When a 3PL Fulfillment Company Is the Better Fit
Perfect for fast-growing ecommerce brands
As orders increase, maintaining in house fulfillment becomes harder. A 3pl fulfillment company offers dedicated staff, streamlined systems, and optimized workflows. This can eliminate bottlenecks and help you maintain shipping accuracy as order volume scales.
Supports a wide range of business fulfillment services
Most fulfillment companies for ecommerce integrate with platforms like Shopify, WooCommerce, and Amazon. They also provide kitting, custom packaging, subscription box assembly, and storage capacity that adapts to demand.
Reduces the stress of managing staff
Instead of hiring, training, and overseeing warehouse employees, a 3PL handles the labor side. This helps business owners stay focused on product development, marketing, and brand expansion.
Comparing Costs and Long-Term Scalability
The true cost goes beyond rent
Running your own ecommerce warehouse requires shelving, equipment, supplies, labor, and software. You’re fully responsible for inventory counts, shipping labels, freight negotiations, and process improvements.
3PL pricing is structured differently
A 3PL typically charges for storage, pick-and-pack, receiving, and shipping. Even though these costs may seem higher at first glance, many brands find that outsourcing frees up budget that previously went toward staff, warehouse space, and day-to-day operations.
Scalability is smoother with 3PLs
During peak seasons, a 3PL can add staff and manage surges without you scrambling to hire temporary help. This flexibility is one reason ecommerce brands eventually partner with fulfillment companies in Utah that already have strong operational systems in place.
How Location and Speed Factor Into Your Choice
Geographic advantages for cost and delivery speed
A well-placed fulfillment center utah or another central location can help reduce shipping zones, shorten delivery times, and lower postage costs. In-house operations may struggle with this if they’re based in areas far from major distribution hubs.
Carrier relationships matter
3rd party warehouse companies often have negotiated shipping rates through carriers. These cost savings can significantly impact your bottom line and make your brand more competitive in ecommerce fulfillment.
How to Decide Between the Two
Evaluate your current pain points
Ask yourself:
Are order volumes becoming too much for your team?
Are shipping mistakes or delays increasing?
Is your space running out?
Are you spending more time packing boxes than running your business?
These are common signs that transitioning to a 3pl fulfillment company may be the smarter long-term path.
Consider your long-term goals
If your plan is to grow your brand aggressively, outsourcing will free up time and resources. If you prefer a smaller operation with full in-house control, staying internal may fit your style.
Test with hybrid options
Some ecommerce brands start by outsourcing only overflow volume or specific product lines. This approach allows you to evaluate a fulfillment company’s accuracy, communication, and performance gradually.
Working With FlatOut Fulfillment
Why brands choose us
FlatOut Fulfillment is designed to support growing ecommerce brands that want reliable, scalable business fulfillment services. Our team integrates with popular ecommerce platforms, supports product fulfillment needs, and stores inventory in a centrally located facility. If you’re evaluating Choosing Between 3PL and In House Fulfillment, we help you understand the full picture so you can make the right decision for your brand.
Whether you’re growing steadily or preparing for major expansion, our fulfillment solutions are built for brands that want simple, fast, and accurate logistics. If you're ready to explore how FlatOut Fulfillment can support your business, contact us today. Our team is here to help you streamline operations, improve delivery times, and support your long-term growth.