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How to Choose a 3PL That's Right for You

In this article
The end of seller shipping
The Solution: Integrated TikTok Shop logistics
Critical action for Shopify users
Join us before the deadline and save

If you're about to take your eCommerce business to the next level, selecting the right 3PL (Third-Party Logistics) partner is an essential success factor. Not only do they help manage your day-to-day operations and fulfillment but having a reliable 3PL can also streamline customer service, reduce costs, and drive growth. We'll outline key considerations so you can confidently choose a 3PL that meets all your unique needs!

3PL Partner Meaning

3PLs are the real MVPs of eCommerce. By leveraging 3PLs, merchants can offload a sizable portion of their supply chain management and never worry about fulfilling orders on time. With 3PLs handling everything from warehousing to order fulfillment and shipping coordination to retail distribution, exchanges, and returns, merchants can sit back and let their 3PL do all the heavy lifting. In the end, 3PL partners mean more time for merchants to focus on other areas of their business rather than managing their own warehouses or logistics.

How to Choose a 3PL Provider

3PL has revolutionized eCommerce, allowing businesses to choose the right 3PL partner and focus on maximizing sales rather than worrying about supply chain management. If you're considering a 3PL partner for your business, be sure to weigh these factors on how to choose a 3PL provider that's right for you!

Flexible and Feature-Rich Integrations

When you’re on the hunt for a 3PL, how do you decide which provider is the right fit? Capability is key: if your third-party provider doesn’t have the capacity and expertise to cover all your bases, from fulfillment services and reverse logistics to subscription box solutions, you may be in for a bumpy ride. Keep an eye peeled for providers offering flexibility and feature-rich integrations with your eCommerce platform – that way, as consumer demand continues to skyrocket, you can rest assured knowing you've picked a partner able to roll with the punches. With capability and scalability in spades, there won't be any supply chain kinks that they can't help you iron out!

Adapting to a Changing Market

When it comes to stability in the logistics industry, you deserve the best. That's why it pays to look for a 3PL with a track record of adapting to a changing market – ensuring your business that potential innovations won't rock their stability down the line. Plus, multiple locations allowing for shorter shipping times and increased national reach is a bonus – so you can have confidence that your supply chain needs are taken care of! An esteemed reputation for providing top-notch service is worth considering when it comes to peace of mind.

Communication and Trust

How do you ensure your 3PL has the best reputation around? Find a partner that knows the importance of making connections! It's not just about happy customers - it's about happy vendors, carriers, and employees. A great 3PL will take the time to understand your business needs, so communication is key here - make sure they take their engagement levels seriously and bring in their expertise. With a compatible culture and shared values, you can be sure they'll exceed expectations every step of the way.

Safety First

When it comes to safety, what you should look for in a 3PL is the same thing you’d do when checking the brakes on a cart: check twice and confirm. Spot-check that your 3PL has the most up-to-date PCI, FDA, and DEA certifications and a HAZMAT Shipping Certification. After all, safety first!

Top-Tier Customer Experiences

With a third-party logistics provider, customer service and attention to detail often make or break the relationship. The good news is that experienced 3PLs will rise to the occasion to provide business solutions that leave you nodding your head in approval, like how easy it is to calculate savings and track delivery times. Plus, with omnichannel retail taking over the market, you'll want to find a partner that knows how to navigate through these complexities and provide top-tier customer experiences. Look for someone with an impressive track record, a reusable approach, and expertise in handling similar operations.

Scale Without Breaking a Sweat

If you're feeling cramped and think it might be time to upgrade your operations, outsourcing is an ideal option. You only need the perfect third-party logistics provider who can make scaling up a breeze. Your provider can help you address peak demand without investing in physical infrastructure and personnel. Don't forget to ask them one crucial question: “What’s the maximum amount of scalability you offer?” That way, you'll know just how easily they can pick, pack, and ship your goods should demand suddenly skyrocket.

Customized Solutions

Third-party logistics can help your business stand out by providing customized solutions tailored to your unique needs. Each provider will offer a unique blend of software integrations, postponement strategies, and tailored production techniques - so make sure you work with an experienced 3PL who can leverage these things. Once you kick off the process, you'll be able to tap into cost savings while still providing excellent service.

Accuracy is Everything

When it comes to 3PL providers, there's no room for inaccuracy. If your 3PL can't keep its inventory and orders accurate, you're in for a world of customer disappointment and not-so-fun losses. Make sure the 3PL partner you pick employs a robust Warehouse Management System that keeps order and inventory accuracy levels high. It's worth all the effort to find the right provider because, in this business, accuracy is everything!

Respond Quickly and Effectively

Responding quickly and effectively when issues come up is a key factor of success for any company or individual. It can be the difference between a smooth-running operation and one that consistently trips up on large and small snags. Since no one can predict the future, understanding the importance of being responsive helps ensure that whatever comes your way is addressed in an efficient and timely fashion. Don't leave your customers hanging - make responsiveness a priority! After all, how would you feel if you were constantly waiting around for answers?

Enterprise-Level Technology

In this ever-changing technological era, how do you choose the right 3PL provider for your business? Well, it's simple: get yourself one that provides enterprise-level tech. Nothing says 'sophistication' quite like having a streamlined order-to-delivery process – and that's exactly what advanced technology solutions can give you. And while you might not require such complex systems now, who knows how future-proof you'll want your business to be in the near future? So don't take any risks - ensure your 3PL has robust technology from the get-go!

How Much is a 3PL?

You don’t have to worry about how much a 3PL costs; in fact - it could save you money! Bulk ordering from the same vendor can save your bottom line with discounted rates. And who knows, if you’re persuasive enough, you might even command better terms for yourself. You won’t need to invest in warehousing and haulage tech, labor costs, and the like - 3PLs can do everything for you. That means no more spending money on expensive mistakes and worrying about how to handle logistics without help.

Powering the Best 3PLs in the Business

Taking your eCommerce business to the next level is no small feat and choosing your 3PL partner can be a make-or-break factor. Your 3PL can help you manage operations, streamline customer service, reduce costs, and drive growth, but how do you know they're right for you? Well, that's where due diligence comes in. Weigh out all the options mentioned in this blog, and don't settle until you find one with enough experience and savvy to fuel your eCommerce rocket ship. When it comes to WMS, ShipHero has the goods.

So, if ShipHero WMS powers your 3PL, rest assured that your business will be on its way to success in no time!So, there you have it! If you want to learn more about all things 3PL, check out our guide here, which dives deeper into this fascinating world! These are just a few reasons why choosing the right 3PL is essential to your business success.

About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.Stay informed about everything in third-party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.

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January 22, 2026

Is Your 3PL Prepared For Tiktok’s New Shipping Requirements?

Executive Summary: Secure your revenue and protect your clients

TikTok Shop is discontinuing "seller shipping" on February 25, 2026, a move that will halt fulfillment for any 3PL using non-integrated legacy technology. ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, allowing you to generate compliant labels and avoid a total operational lockout. By migrating to ShipHero before the deadline, 3PLs can eliminate onboarding fees and ensure their clients’ businesses remain active and profitable.

What changed for your clients?

Starting February 25, 2026, TikTok Shop is officially discontinuing "seller shipping" (also known as "bring your own label") for all U.S. local sellers.

This means your clients can no longer use their own carrier accounts for TikTok orders. 

As their 3PL, you will be unable to generate labels unless your WMS is directly integrated with TikTok’s new ecosystem. To keep your clients' businesses running, you must transition them to TikTok Shop Logistics Services through a verified partner.

Your current WMS is a bottleneck

ShipHero can keep your 3PL orders flowing from February 25 onwards. 

If you are running your warehouse on legacy systems, you are at risk of a complete TikTok Shop lockout. Your fulfillment—and your revenue—will simply stop that day.

Don’t leave your operations at risk

TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.

  • Client Churn: If your WMS is not integrated, your clients will be forced to move to a 3PL that can support their growth.

  • Account Health Stakes: Failure to adapt risks shipping delays that kill customer loyalty and lead to client account suspensions.

  • Critical Action: If you currently funnel your clients' TikTok orders into Shopify and then to your WMS, that workflow will break.

Join us before the deadline and save

To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.

Frequently Asked Questions

I am a 3PL owner. How do I know if my WMS is compliant?

There are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. Most legacy WMS providers are not currently approved. To avoid a total operational blackout for your clients, you must move to a verified partner like ShipHero.

Can my clients still use their own carrier accounts?

No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.

Do I have to send my clients' inventory to TikTok warehouses?

No. You can still manage fulfillment from your own 3PL warehouse using ShipHero’s direct integration, which pulls the required TikTok labels and logic directly into your existing workflow.

What happens if we don't switch by February 25?

You will lose the ability to generate shipping labels for any TikTok Shop order. This will result in immediate fulfillment backlogs, client dissatisfaction, and potential loss of contracts.

Is ShipHero ready for this change right now?

Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.

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January 22, 2026

How Brands Can Avoid a TikTok Shop Blackout: Stay Shipping After February 25

Executive Summary

TikTok Shop is introducing mandatory logistics changes that will stop fulfillment for unprepared sellers on February 25, 2026.

ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, ensuring your orders keep moving without interruption. By switching to ShipHero before the deadline, brands can maintain compliance and eliminate onboarding fees during this transition. Here’s everything brands need to know to continue fulfilling orders.

The end of seller shipping

Starting February 25, 2026, TikTok Shop will discontinue "seller shipping" for all U.S. local sellers. This means you can no longer use your own carrier accounts to generate labels for TikTok orders. To stay compliant and keep selling, brands must transition to TikTok Shop Logistics Services. 

Relying on legacy systems like Extensiv, Deposco, or Logiwa puts your business at risk of account suspension and shipping delays that kill customer loyalty.

If your current WMS or 3PL is not integrated with TikTok Shop Logistics Services, you will face a total fulfillment blackout on that date. Failure to adapt to these changes risks shipping delays that kill customer loyalty and can lead to account suspension on the platform.

For brands onboarding on or after February 9, 2026, these restrictions are already in effect. 

The Solution: Integrated TikTok Shop logistics

ShipHero has done the due diligence and has built a direct integration to ensure that merchants can fulfill TikTok Shop orders themselves while remaining fully compliant with TikTok’s new label requirements.

  • Integrated label generation: ShipHero is one of only two WMS platforms globally and the only one in the U.S. integrated to handle the new TikTok logistics flow.
  • Direct store connections: Our software provides a direct TikTok Shop connection to automate the transition and remove manual workarounds.
  • Automated Rate Shopping: We compare carrier rates for every package to find the optimal route, protecting your profit margins even under the new policy.

Join us before the deadline and save

To help brands and 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.

Frequently Asked Questions

I use a WMS, how do I know if I can continue to fulfill TikTok orders? 

Currently, there are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. If you are using legacy providers like Extensiv, Deposco, or Logiwa, they are not currently approved to support these specific TikTok Shop requirements. To avoid a total operational blackout, you must move to a verified partner like ShipHero before the deadline.

Can I still use my own carrier accounts for TikTok Shop?

No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.

What are my main options for TikTok Shop fulfillment? 

You can use Fulfilled by TikTok (FBT) to store and ship items through their network, switch to one of the six approved ERP/WMS systems, or use ShipHero's direct integration.

Do I have to use Fulfilled by TikTok (FBT)?

You must use TikTok Shop Logistics Services, but with ShipHero, you can still manage the fulfillment from your own warehouse using TikTok’s required labels and logic.

What happens if I keep using my Shopify-to-TikTok connection?

This connection type will not support the new label requirements. You must switch to a direct TikTok Shop connection within ShipHero to avoid fulfillment interruptions.

Is ShipHero ready for this change right now?

Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.

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September 9, 2025

How AI is Transforming Warehouse Management: Impact, Benefits, and Use Cases

Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.

AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.

ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.

Benefits of AI in Warehouse Management

The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.

  • Improves efficiency: By automating routine tasks, AI speeds up warehouse operations and streamlines workflows.
  • Reduces operational costs: With AI automating repetitive tasks, businesses can save on labor costs and minimize errors.
  • Enhances inventory management: AI ensures that inventory is always accurate, with real-time updates and better control over stock levels.
  • Predicts demand: AI accurately predicts demand, enabling businesses to manage inventory effectively and avoid stockouts or excess stock.

Key Components of AI-Driven Warehouse Systems

A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.

  • Inventory Management Systems – AI-powered inventory management systems ensure that stock levels are continuously updated and accurately tracked to improve operational efficiency and minimize errors in inventory counts.
  • Automated Guided Vehicles (AGVs) – Automated vehicles (AGVs) optimize routing by quickly transporting goods, speeding up processing times, and improving throughput.
  • Robotic Process Automation (RPA) – RPA automates repetitive tasks like picking, sorting, and shipping to allow 24/7 warehouse operations with minimal human intervention.
  • Predictive Analytics and Demand Forecasting – AI tools predict demand accurately, ensuring optimal inventory levels and reducing stockouts or overstocking.

ShipHero’s AI Picking: A Game Changer in Warehouse Efficiency

ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.

Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.

How AI Picking Works

AI Picking optimizes warehouse operations in two key ways:

  • AI Path Optimization: By calculating the most efficient routes, walking time is reduced by up to 30%, allowing pickers to spend more time fulfilling orders.
  • Smart Batching: Orders are intelligently grouped to maximize pick density, minimizing trips while speeding up processing times.

Benefits of AI Picking

The AI Picking feature delivers a wide range of benefits:

    Increased Productivity: With optimized paths and smart batching, pickers can fulfill more orders in less time, dramatically increasing throughput.Lower Labor Costs: AI Picking reduces the need for human labor, cutting operational costs.Improved Warehouse Efficiency: Path optimization and smart batching maximize space and resources, streamlining operations.

Broader Impacts of AI in Warehouse Management

The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.

Operational Efficiency

AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.

Inventory Management

AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.

Safety and Compliance

AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.

Applications of AI in Supply Chain and Logistics

AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.

These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.

  • Inventory Optimization: AI analyzes sales data, trends, and external factors to optimize stock levels. This reduces stockouts, overstocking, and excess inventory, ensuring more accurate and cost-effective inventory management.
  • Demand Forecasting: AI helps predict future demand by analyzing historical data and market conditions. This allows businesses to plan inventory, production, and procurement more efficiently, reducing waste and ensuring product availability.
  • Route Planning and Optimization: AI also optimizes delivery routes by considering real-time factors, including traffic and weather conditions. This helps businesses reduce fuel costs, improve delivery times, and enhance overall logistics efficiency.
  • Warehouse Automation: AI-powered robots can automate picking, sorting, and packing in warehouses. This increases accuracy, reduces labor costs, and enhances order fulfillment speed, eventually improving overall warehouse efficiency.

The Future of AI in Warehouse Management

The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.

Emerging Trends and Innovations

AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.

IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.

Challenges and Considerations

While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.

However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.

Key Takeaways

  • AI is transforming warehouse management by making operations faster, more accurate, and cost-effective.
  • ShipHero’s AI Picking system demonstrates how AI can help warehouses handle more orders, cut down on labor costs, and streamline their processes.
  • AI improves routing, aids decision-making, and ensures timely stock replenishment, helping businesses stay competitive in eCommerce.

Frequently Asked Questions

How can AI help in reducing warehouse errors?

AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.

Can AI be used for predictive analytics in warehouse management?

Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.

Is AI in warehouse management affordable for small businesses?

AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.

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