Why So Many 3PL Searches Fail (And How Growing Brands Can Get It Right)

Recently, Barrett Distribution Centers hosted a webinar with Fulfill.com Co-Founders Joe Spisak and Dan White to discuss one of the most important decisions a growing brand can make: choosing the right third-party logistics (3PL) partner.

Drawing on years of experience helping thousands of ecommerce brands evaluate, select, and transition to fulfillment providers, the conversation explored why so many 3PL searches fail, common mistakes brands make during the evaluation process, and the red flags and green flags that can help companies make better logistics decisions.

The discussion featured candid insights from Joe and Dan, alongside Barrett's Vice President of Sales & Marketing, Bryan Corbett, who shared perspectives from nearly two decades in the logistics industry. Together, they covered everything from pricing transparency and onboarding expectations to operational fit, scalability, and the role relationships play in long-term fulfillment success.

Whether you're searching for your first 3PL or evaluating a new partner to support your next stage of growth, these takeaways can help you avoid costly mistakes and build a stronger logistics strategy.

The Challenge: Finding the Right 3PL Isn't Easy

When brands realize they've outgrown self-fulfillment, they're faced with a seemingly endless list of options. They can conduct their own search, hire a consultant, rely on referrals, or work with a fulfillment matchmaking service.

The problem isn't a lack of options—it's knowing which option is actually right for your business.

As Joe Spisak explained:

"You go to Google and type in best fulfillment company for your company. You kind of get hit with the same 10, 20, 30 different 3PLs that are sponsoring Google ads."

With thousands of logistics providers in the market, visibility doesn't necessarily equal capability. The best fulfillment partner for one brand may be completely wrong for another.

That's why Bryan Corbett emphasized a simple but important point:

"The best people find the best 3PLs for the brands that they're servicing."

The objective isn't finding the biggest name or the cheapest quote. It's finding the provider that best aligns with your products, channels, growth plans, and customer expectations.

Why Price Shouldn't Drive the Decision

One of the most common mistakes brands make during a 3PL search is focusing too heavily on pricing.

While fulfillment costs matter, the panel agreed that operational failures often cost far more than paying slightly higher rates.

Spisak shared a personal example from his time running an ecommerce business:"One of the board gaming companies almost went bankrupt during the holiday season when we got really, really messed over by one of our 3PLs. We lost hundreds of thousands of dollars."

The experience ultimately led him to launch his own fulfillment operation before later founding Fulfill.com.

The lesson is simple: selecting a logistics partner based solely on price can create far greater costs down the road through inventory issues, service failures, customer dissatisfaction, and lost sales.

The Biggest Red Flags During a 3PL Search

The panel discussed several warning signs brands should watch for when evaluating potential logistics partners.

1. Quotes Before Discovery

A fulfillment provider that offers pricing before understanding your business should raise concerns.

As Spisak noted:

"If a 3PL is just ripping a quote right back, there's so much more that goes into proper pricing."

Order profiles, SKU counts, inventory characteristics, sales channels, packaging requirements, return volumes, and retailer compliance requirements all influence fulfillment costs.

Without discovery, pricing is often little more than a guess.

2. Salespeople Who Say Yes to Everything

Dan White highlighted another common issue:

"How many times have I seen a salesperson at a 3PL say, 'We can do that, no problem,' without even asking a question?"

Experienced logistics operators know that every fulfillment operation has unique challenges. Providers that promise immediate solutions without asking detailed questions may be prioritizing closing the deal rather than ensuring long-term success.

3. Overly Complex Pricing Structures

Opaque fee structures can make it difficult to understand the true cost of outsourcing fulfillment.

Spisak shared:"I've seen 3PLs with 100-plus line item quotes, which is ridiculous."

Brands should understand exactly how storage, fulfillment, transportation, accessorials, and value-added services are priced before signing any agreement.

Green Flags That Signal a Strong Partnership

Just as important as spotting warning signs is recognizing the characteristics of a high-quality fulfillment partner.

Meet More Than the Sales Team

Corbett encouraged brands to look beyond the salesperson during the evaluation process.

The people responsible for running your account day-to-day will have a much greater impact on your success than the person who signed the contract. Strong providers are comfortable introducing operational leaders early because they view fulfillment as a long-term partnership—not simply a sales transaction.

Visit the Facility

Nothing replaces seeing an operation firsthand.

A warehouse visit provides valuable insight into:

• Operational organization
• Inventory management practices
• Employee engagement
• Technology deployment
• Quality control processes
• Safety standards

As the discussion highlighted, brands often learn more from walking a facility than they do from reviewing a proposal.

Look for Similar Customers

One of the best indicators of success is whether a 3PL already supports companies with similar requirements.

According to Spisak:"Find a 3PL that is shipping for other companies similar to you."

A provider experienced in handling comparable products, order volumes, and fulfillment channels is often better positioned to deliver a successful onboarding and long-term partnership.

Why Relationships Matter More Than Most People Realize

Technology, automation, analytics, and reporting continue to reshape the logistics industry. Yet despite these advancements, fulfillment remains a people-driven business.

Even the best-run operations occasionally face challenges. The difference between a temporary issue and a failed partnership often comes down to communication, trust, and collaboration.

Organizations that build strong relationships between account management teams, warehouse leadership, and client stakeholders are better equipped to navigate problems when they arise.

The Right 3PL Today May Not Be the Right 3PL Tomorrow

Another major theme from the discussion was scalability.

As brands grow, fulfillment requirements become more complex.

Joe Spisak explained:"The right 3PL for a $1 million ARR brand may not be the right 3PL for a $10 million ARR brand."

As businesses expand, they often add:

• Amazon FBA and FBM programs
• Retail distribution
• EDI integrations
• Omnichannel fulfillment
• Multiple warehouse locations
• International shipping requirements

The best logistics partners don't just solve today's challenges. They have the infrastructure, technology, and expertise to support tomorrow's growth as well.

Final Takeaway: Focus on Fit, Not Just Features

There is no universal "best" 3PL.

There is only the best-fit 3PL for your business.

Successful fulfillment partnerships are built on operational alignment, transparent communication, scalability, and trust. Brands that invest time in discovery, ask deeper questions, visit facilities, and evaluate long-term fit are far more likely to achieve fulfillment success.

As the webinar made clear, choosing a 3PL isn't simply a procurement decision—it's a strategic partnership that can directly impact customer experience, profitability, and growth.

The brands that get it right aren't looking for the lowest quote.

They're looking for the right partner.