The short answer
Choose the provider that can reliably handle your actual operation at a defensible fully loaded cost. A low pick fee cannot compensate for poor product fit, expensive postage, weak communication or a contract that makes leaving difficult.
Start with operational fit
Share current and expected order volume, peak demand, SKU count, product dimensions and handling needs. Describe DTC, wholesale, retail and marketplace requirements, plus returns, kitting and special projects. Ask what the warehouse does routinely versus work it would need to learn.
- Check product restrictions, storage conditions and handling capabilities.
- Confirm retailer routing-guide, FBA prep or other channel experience relevant to you.
- Ask how peaks are staffed and what happens when inbound or outbound volume exceeds forecasts.
Model location and shipping economics
Use your customer ZIP-code distribution and packed parcel dimensions to compare warehouse locations. Evaluate total postage, service coverage and actual transit expectations rather than assuming a central location or a second warehouse is always best.
See How do shipping zones work? for the trade-offs of multiple locations.
Test technology and communication
Confirm integrations with your storefronts, marketplaces and inventory systems. Ask to see order status, stock reporting, exception handling and returns workflows. Clarify who owns integration fixes, what fees apply and how you export data.
Find out who answers operational questions, how urgent problems escalate and when inventory discrepancies are reconciled. Request references from brands with comparable products and complexity; ask about peak periods, billing surprises and issue resolution.
Compare pricing and service commitments
Price the same representative month with every finalist, including minimums, receiving, packaging, returns, technology, projects and shipping. Agree on measurable receiving and shipping commitments, accuracy definitions and remedies—not just broad promises.
Use How to compare 3PL quotes and the same input profile for each provider.
Translate promises into commercial terms with What is a reasonable fulfillment error allowance?.
Plan onboarding and the exit
Before signing, clarify onboarding timing, inventory-count procedures, contract term, price-change rights, termination notice, exit fees and inventory-release process. Understand liability, insurance and claim deadlines. Model transfer freight and any overlap between providers.
This is a commercial interpretation, not legal advice. Get qualified review of important contract terms; select a partner you can work with and leave on workable terms if the relationship fails.
Estimate the ongoing bill in the Fulfillment Cost Calculator, with transition costs evaluated separately.