RedHat Prep · 3 min read · Published
How to choose a 3PL in Canada: 10 questions to ask
Most 3PLs look alike on a website. These ten questions show how they differ before you send them your inventory.
Choosing a 3PL means trusting someone else with your inventory and your customers' experience. Websites make every provider sound the same, so the useful comparison comes from asking specific questions and checking the answers. If you are new to the term, start with what a 3PL is.
Before you ask: know your numbers
Write down your orders per month, items per order, how many pallets or boxes you hold, and which channels you sell on. Providers can only answer well if you can describe what you ship. It also lets you price one typical month on each quote, as we describe in how to read a 3PL quote.
The ten questions
1. Who are your typical clients?
A provider built for large pallet shipments may not serve a small online brand well, and the reverse is also true. Ask for the size and type of business they do best with.
2. Is there an order minimum, a monthly minimum or a contract length?
Minimums and lock-in are the clearest difference between providers. Ask for the terms in writing, including how to leave.
3. What does each price include, and what is extra?
Ask for every price with its unit, and for the list of charges that are not in the quote: packaging, inserts, special handling, setup and account fees.
4. How will I see my inventory and orders?
You should be able to check stock, inbound shipments and order status without emailing someone. Ask for a demo of the portal or dashboard.
5. How does my store connect to your system?
Ask which platforms they integrate with and what happens when an order fails to import.
6. How fast do orders ship?
Ask for the daily cut-off time and the usual time from order to handoff to the carrier. Ask how they handle busy periods.
7. Which carriers do you use, and how are rates set?
Ask whether you get the carrier rate plus a fee, or one combined price, and whether they compare carriers for each order. If you sell in the US, ask who handles customs paperwork and how duties are collected.
8. How do you receive and count my inventory?
Ask how long receiving takes, what happens when the count does not match your notice, and how they report it.
9. How do you handle returns and mistakes?
Ask what a return costs, what is checked, and what the provider does when it ships the wrong item.
10. Who do I call, and do they pick up?
Find out who will handle your account, how to reach them and how quickly they respond. Test it: call or message before you sign.
Run a small trial first
Send one product or one shipment before you move everything. Watch how receiving goes, how accurate the first orders are and how fast questions get answered. It costs little and tells you more than any sales call.
How we answer these
We have no order minimum, we publish our prices on the pricing page, and you reach people who work in the warehouse when you call. You can see how it works on the how it works page and read about our fulfillment service. Ask us the same ten questions.
FAQ
Common questions
Should I choose the cheapest 3PL?
Not by price alone. A low price per item can cost more once minimums, packaging and special handling are added, and a slow or inaccurate warehouse costs you customers. Compare the total for a typical month and the answers to the ten questions.
Should I sign a long contract?
Be careful. Start with a trial and ask what it costs to leave. A good provider does not need to lock you in before you have seen how it works.
How many providers should I compare?
Two or three is enough. Ask them all the same questions and the same quote request.
Ask us the ten questions.
Send your sales channels and rough order volume. We will answer them and quote it with the unit next to every price.