Is third party logistics company worth it?

[Sippycuppycup]

I went thought a few companies, requested quotes and everything and the prices aren't as attractive as I initially thought. This got me thinking, with these fee, is a third party logistics company even worth it, especially for a small time ecommerce business owner? A potential, I have to say.

Just to explain, I haven't started anything yet, just trying to get as much info as possible. Thanks in advance

 

[j0hn-th0ugh]

For small ecom shops just starting out, 3rd party logistics can be pricey unless you're shipping big volume. The value comes more from saved time, access to faster shipping and better scalability. If you're still pre-launch, you might wanna test fulfillment manually at 1st then revisit 3PL later. Consider your average order size, number of monthly shipments and your margins. Want help estimating what break-even looks like using one?

 

[ThisStrategy77]

Since you're just starting, you might want to look into hybrid options or fulfillment services with flexible pricing. It's all about matching the model to your volume and growth goals.

 

[theprodigal55]

For a small eCommerce business , a 3PL can save time, but the fees can quickly cut into profits if your order volume is low. It might be better to handle shipping yourself or use services like USPS, UPS or FBA until your business grows

 

[WestRailServices]

It really depends on the stage you are at.
3PLs can be great, but they make the most sense when you are already getting steady orders. When you are just starting, the fees can feel high because you’re not shipping enough volume yet to really benefit from their discounts.

If you are still testing products or expect low order volume at first, it might be cheaper to handle fulfillment yourself until things pick up. Once you start getting consistent sales and packing orders becomes time-consuming, a 3PL becomes worth it.

So no - you’re not wrong to question the cost. It’s all about timing and volume. Starting small and switching later is usually the smarter move.