What Is Ecommerce Fulfillment? Guide to Fulfillment Strategies

Chances are you didn’t start a business because you’re good at packing boxes. But ecommerce fulfillment can quickly take over your time. The right fulfillment strategy depends on how many orders you receive, what types of products you sell, and how much control you want to maintain over the process. 

Online shoppers expect their orders to be packaged and shipped as soon as possible. In a 2025 survey from advertising company Criteo, 61% of consumers said they choose to shop online versus in-store for convenience. That means fulfillment speed and reliability affect whether shoppers become repeat customers.

It’s important to have a plan for getting products to your customers as efficiently as possible. This guide covers different fulfillment methods, how to choose a solution, and a breakdown of fulfillment providers.

What is ecommerce fulfillment?

Ecommerce fulfillment is how online businesses get orders to customers—from receiving, warehousing, and inventory management to picking and packing, shipping, and returns. Depending on the size of your business, fulfillment can be as simple as packing orders in your garage and dropping them off at the post office or as complex as shipping items from global warehouses via third-party logistics (3PL) providers.

3PLs process orders for multiple online stores, operate fulfillment centers in strategic locations, and store inventory near cities and transport hubs to reduce delivery times. These companies are fulfillment experts that can help you scale your ecommerce business.

How do you fulfill an ecommerce order?

1. Warehousing
2. Packing and shipping
3. Returns

The ecommerce fulfillment process has many moving parts. Here are the high-level stages:

1. Warehousing

Whether you’re operating from your garage or working with a 3PL, inventory storage is crucial. Fulfillment centers keep products in highly organized warehouses where every item gets a stock keeping unit (SKU) and a specific storage location in the warehouse.

For packages to reach customers quickly, some fulfillment providers have centers in multiple locations, allowing them to pre-distribute stock. Perfume company Dossier works with 3PL ShipBob, which operates more than 60 fulfillment centers around the world. 

“By storing inventory in ShipBob’s facilities within the countries or near the geographies we’re shipping to, we can bypass a lot of the complexities of international shipping,” Dossier founder and CEO Sergio Tache told ShipBob in a case study. “More importantly, shipping locally instead of internationally is better for customers.”

Fulfillment centers also track inventory and work with store owners to keep products in stock. If you’re doing your own fulfillment, ensure your inventory management system helps you find products quickly.

2. Packing and shipping

After a customer places an order, the next step is picking and packing their items for shipping. Items are selected via a packing slip, then packed in the appropriate box.

After packing, orders go to the shipping carrier. Many fulfillment centers have bulk agreements with shipping carriers to reduce shipping costs.

Next, centers confirm shipping and tracking information with store owners or directly with customers.

3. Returns

In 2024, US online shoppers returned $890 billion worth of products. As customers increasingly expect generous return policies, some logistics companies will process returns and issue refunds on your behalf. 

For example, 3PL Flexport integrates with returns management solutions like ReturnGo and Loop. Customers send returns directly to the fulfillment center, where Flexport employees inspect the items, then restock or dispose of the items. 

4 types of ecommerce fulfillment

• Self-fulfillment
• Third-party fulfillment
• Dropshipping
• Hybrid fulfillment

The right ecommerce fulfillment method for you depends on the size, structure, and complexity of your business. Small sellers can self-manage orders, while larger businesses use fulfillment companies and 3PL solutions to reduce costs. Dropshippers outsource the entire fulfillment process to the manufacturer or supplier.

Here’s a look at each of these fulfillment methods: 

Self-fulfillment

Self-fulfillment, also known as in-house fulfillment, is when a business fulfills orders within its own facilities. It uses its own labor, technology, and other assets, without help from a third-party fulfillment company. 

Whether in-house ecommerce fulfillment is right for your business depends largely on your inventory volume. If your operation is smaller (fielding less than 100 orders a month) self-fulfillment may be an efficient option for you.

“When [third-party fulfillment] really helps is at scale, when you’re fulfilling hundreds, if not thousands, of things a month—when you have the volume that warrants going to a 3PL partner,” says Richard Shaw, senior lead of Shopify Fulfillment Network. If that’s not you, Richard says there’s no need to outsource yet.

Third-party fulfillment

When ecommerce businesses outsource fulfillment, fulfillment partners accept direct orders and handle packing and shipping. All the retailer must do is ensure their provider has enough inventory to meet demands.

Shopify Fulfillment Network automatically syncs store inventory for a selection of trusted 3PL providers. Store owners manage every aspect of fulfillment directly from their Shopify admin.

Richard recommends third-party fulfillment for store owners who want to scale. He also says 3PL can help businesses expand internationally. “If I’m a UK [seller] and I want to break into America as a large market, having a fulfillment center in the US can be really helpful so customers don’t have to wait a week or even two weeks to get their stuff.”

Third-party fulfillment works best when volume order justifies the cost of outsourcing. If you lack the time or resources to pack and ship orders in-house, an expert third party can optimize your fulfillment process and offer premium customer service.

Dropshipping

Dropshipping is an ecommerce model that removes store owners from the fulfillment process. Instead of producing or storing inventory, a store forwards orders to a dropshipping supplier, and the supplier sends products directly to customers.

This fulfillment method can help online stores establish themselves while avoiding upfront costs, but reduces store owner control over shipping and customer service, like entrepreneur Kamil Sattar discovered. 

On an episode of Shopify Masters, Kamil says, “Before you use [a dropshipping supplier], you want to ask them, ‘Is the product that I’m looking to put in my store in your warehouse? Not in your business partners’ warehouse that’s 300 miles away on the other side of the country.’” 

Kamil says many dropshipping companies actually act as intermediaries for other manufacturers. Waiting for the product to go from a manufacturer to an intermediary and then to your customer can significantly impact delivery times—up to 10 days, according to Kamil.

Hybrid fulfillment

Hybrid fulfillment involves using different fulfillment methods to meet different needs. 

For example, you might partner with a 3PL to warehouse your core product line but self-fulfill limited-edition drops and custom orders. Or you might use a 3PL to test the waters in a new country or region before investing in a new warehouse location.

How to choose a fulfillment solution

1. Know when you’re ready
2. Find 3PLs in your industry
3. Ask specific questions
4. Look beyond price

“Choosing a 3PL is a really big decision, and it often comes when a business is managing significant growth,” says Richard. 

He encourages store owners to do their due diligence even if choosing a fulfillment partner feels urgent. “On the surface, a lot of 3PL providers could handle your business, but details matter when it comes to handling your specific product.” 

Here are the steps Richard suggests for store owners looking for a fulfillment solution:

1. Know when you’re ready

Most companies start by self-fulfilling orders and add a third-party solution as they scale. 

If you find yourself in one of these situations, it could be time to start chatting with a logistics company:

• Cyclical or uneven sales. If the number of orders you process fluctuates throughout the year, it may not make sense to commit to running and staffing a warehouse yourself. A fulfillment company can adapt to your needs. 

• You’re too busy. If you’re so focused on order fulfillment that you don’t have time for growth, it’s probably time to start outsourcing. As a business owner, you need to devote time to marketing, expanding your sales channels, sourcing new products, and otherwise improving your offerings.

• Lack of infrastructure. Logistical hurdles like increased costs and shipping times can limit your ability to expand. When you outsource to a global fulfillment partner, they can leverage their multiple locations to keep up with customer demand.

On the other hand, Richard says some owners turn to 3PL too quickly. You may want to wait to outsource fulfillment if:

• Your daily order volume is limited. If you’re only receiving a handful of orders per day, it’s likely too soon to outsource fulfillment. Start thinking about 3PL when you hit at least five daily shipments.

• Your business is highly specialized. Fulfillment centers may be unable to accommodate customizable products, highly fragile objects, or sensitive materials.

2. Find 3PLs in your industry

Each fulfillment company functions differently. Many providers offer services for niche businesses or specialized industries. 

If your business has unique needs, look for a fulfillment partner with experience handling your products and customer base. A logistics company that already works with businesses like yours can offer strategic guidance as you grow.

3. Ask specific questions

Before committing, talk with your potential fulfillment partner about your business’s needs. Richard recommends asking practical questions like:

• What is your on-time delivery rate? A 3PL’s on-time delivery rate (OTD) is the percentage of orders delivered within the promised delivery window.

• What is your dock-to-stock speed? This is the time it takes for products to be available for sale after reaching the warehouse.

• Where are your warehouses located? Placing your stock closer to customers will reduce shipping times and costs.

• What fees do you charge? Different third-party fulfillment partners have different fee structures. For example, some 3PLs charge for inventory shrinkage (damaged, stolen, or lost products) or for storing certain products, like batteries. Determine exactly which fees will apply to your business.

4. Look beyond price

It’s tempting to base your choice on budget alone, but it’s important that your fulfillment solution is a good fit for your business needs. 

“Quality is a combination of price and speed—cheap is better, free is best, fast is better still—and it will drive conversion,” says Richard. “The quality of your fulfillment really matters.” 

According to a 2024 McKinsey survey, consumers’ top three delivery priorities are cost of delivery, transparency of shipping, and flexibility and ease of returns (in that order). But the overall “best” fulfillment company might not be the right fit for your business.

For example, Richard worked with a business that sold custom belts. Each product was configured to order, and the business needed a fulfillment partner who could pack the right combination of belt buckles and belt straps in the same package.

“For him, the solution was finding a relatively smaller fulfillment center, because they could be more flexible than a larger fulfillment company with a standardized process for everything,” Richard says.

9 best ecommerce fulfillment providers

1. Flexport
2. Amazon Multi-Channel Fulfillment
3. Bigblue
4. DHL Fulfillment Network
5. GoBolt
6. Mayple Global
7. ShipBob
8. Shipfusion

Shopify partners with eight trusted 3PL providers through Shopify Fulfillment Network. Here’s a breakdown of each:

1. Flexport

Flexport is Shopify’s preferred 3PL partner. The San Francisco–based startup launched in 2013 as a software-driven alternative to legacy freight forwarders.

Flexport has invested heavily in AI tooling. For example, Flexport uses an AI auditor to review customs entries, which the company claims improved its compliance error rate by a factor of 10.

You don’t have to be a Shopify store owner to use Flexport—the 3PL also integrates with marketplaces like Amazon and Walmart Marketplace.

Key features:

• Two- and three-day shipping options

• US fulfillment centers in California, Texas, Illinois, Georgia, and New Jersey

• International fulfillment centers in China, Hong Kong, and the Netherlands

• Global network of fulfillment partners in 147 different countries to support international shipping to more than 200 countries and territories

• Returns management integrations with ReturnGo, Loop, Amazon, and Narvar

• Direct-to-consumer (DTC) and business-to-business (B2B) fulfillment

• Customs and insurance support

• Supply chain financing

2. Amazon Multi-Channel Fulfillment

You don’t have to sell on Amazon to use the ecommerce giant’s fulfillment network. Amazon Multi-Channel Fulfillment (MCF) is Amazon’s 3PL solution for selling products on non-Amazon channels, like your own website and online marketplaces. 

Businesses ship their products to Amazon, and Amazon handles warehousing, packing, and shipping. MCF orders go out in unbranded packaging.

Key features:

• Two- and three-day shipping options

• Option for Amazon sellers to fulfill both Amazon and non-Amazon orders from the same consolidated inventory 

• Option to offer Amazon Prime benefits with Buy with Prime

• More than 200 fulfillment centers around the world

• Returns management integration with ReturnGo

3. Bigblue

Bigblue joined Shopify Fulfillment Network in 2025. The French 3PL serves the European market, with one owned facility in France and eight more warehouses it operates across the EU and United Kingdom.

For those interested in green logistics, all of Bigblue’s fulfillment centers are Ecocert certified and their packaging is plastic-free. Bigblue also advertises carbon-neutral shipping options.

Bigblue has specialized services for industries like apparel (hanging racks, a fashion warehouse in France) and beauty and food (controlled temperature storage), as well as customized packaging for a fee.

Key features:

• Nine European warehouses in France, Germany, Spain, the United Kingdom

• Returns portal with automated exchange and store credit options (Shopify stores only)

• Sustainable delivery options 

• DTC and B2B fulfillment

• Pickup point Shopify app

4. DHL Fulfillment Network

You may know DHL as an express shipping carrier, but the DHL Group also has a global 3PL, the DHL Fulfillment Network. With more than 1,000 warehouses around the world, DHL is by far the largest Shopify Fulfillment Network partner.

DHL is available through SFN for businesses with at least 3,000 orders per month.

Key features:

• More than 1,000 fulfillment centers in 50 countries

• DTC and B2B fulfillment

• Personalization options

5. GoBolt

Toronto-based 3PL GoBolt wants to build “the largest sustainable supply chain network” in North America with its fleet of electric delivery vehicles and carbon sequestering initiatives. In Q4 of 2025, GoBolt completed 40% of deliveries with electric vehicles.

GoBolt is for businesses with 3,000 or more orders per month in the US and/or Canada.

Key features:

• 12 North American warehouses across the US and Canada

• Carbon-neutral delivery option

• Returns management integrations with Loop, AfterShip, Happy Returns, Frate, and Redo

• DTC and B2B fulfillment

6. Mayple Global

Mayple Global is a software platform focused on fulfillment rather than a traditional 3PL. It doesn’t have its own warehouses; instead, it connects logistics and fulfillment stakeholders with the aim of increasing efficiency for store owners.

Key features:

• Average delivery time of 3.5 days from checkout to doorstep

• Shipping to more than 80 countries

• Returns management

• Compliance support for beauty, skin care, and nutrition businesses

7. ShipBob

ShipBob is a Chicago–based 3PL founded in 2014. The 3PL launched with proprietary software and has invested in AI capabilities.

The company says customers who used its AI-powered inventory placement program saw a 15% reduction in shipping zones and a 16% increase in in-region fulfillment from 2024 to 2025.

ShipBob has customized packaging options for creating a memorable unboxing experience. If you pay a monthly storage fee for the materials, ShipBob will pack your orders in branded boxes and include branded packaging inserts. For an extra fee, ShipBob will print gift notes and inserts to order.

Key features:

• Two-day shipping available in the continental US

• US fulfillment centers in Arizona, California, Georgia, Illinois, New Jersey, Nevada Pennsylvania, Tennessee, and Texas

• International fulfillment centers in Australia, Canada, the Netherlands, Spain, and the United Kingdom

• International shipping to more than 250 destinations

• Returns management integrations with AfterShip and Loop

• DTC and B2B fulfillment 

8. Shipfusion

All orders Shipfusion fulfills go through one of its four owned North American warehouses (not a third party) and every Shipfusion customer has a dedicated account manager.

Shipfusion’s focus on customer service extends to its capacity for tailored projects like custom packaging, subscription boxes, and B2B and wholesale fulfillment.

Key features:

• Four warehouses in Illinois, Nevada, Pennsylvania, and Canada

• Cold-chain and temperature control options

•  Safe Quality Food (SQF), Food and Drug Administration (FDA), and Health Canada certifications

• Returns management integrations with Loop and AfterShip