Ten to twenty years ago, reliable next-day delivery was a luxury. It was typically only available as a paid add-on unless you were shopping with the largest retailers or spending over a certain amount.
Today, customers expect rock-solid fulfillment from the moment they click “buy” to the moment the package arrives at their door.
Statistics cited by Shopify show that 60% of consumers now expect same-day, next-day, or two-day delivery, with 58% of those shoppers expecting it to be free.
Moreover, 75% of shoppers say free shipping influences their purchasing decisions, while 53% are swayed by flexible shipping options.
The challenge is, as your Shopify store grows, maintaining a high level of fulfillment service only becomes more demanding.
What worked when packing orders in your living room might not cut it when dealing with hundreds of daily shipments. This is where many eCommerce entrepreneurs face one of their first bottlenecks.
This guide is about bridging that gap – helping you deliver on fulfillment demands as your business scales.
We’ll explore how to develop your Shopify fulfillment strategy, from Shopify’s built-in tools to third-party logistics (3PL) providers who can handle the heavy lifting as you grow.
In this article
First Things First – What is Order Fulfillment?
Order fulfillment is the process of managing and executing customer orders from start to finish. It encompasses several key steps:
- Inventory management: Tracking stock levels and storage
- Order processing: Receiving and organising incoming orders
- Picking: Locating the ordered items in the warehouse
- Packing: Safely preparing items for shipment
- Shipping: Sending packages to customers via carriers
- Returns handling: Processing and managing product returns
In essence, an efficient fulfillment process ensures that the right products reach the right customers at the right time.
It’s about more than just delivering products but maintaining customer satisfaction throughout the order cycle.
The Fulfillment Conundrum: Make or Break for Shopify Stores
You’ve poured your heart into finding, building, and marketing the perfect product.
Your Shopify store looks slick, your marketing is on point, and the orders start rolling in. It’s going swimmingly – until fulfillment becomes a sticking point.
Keon Ghaharian, co-founder of Dope Ropes, knows this scenario all too well. He told us at J&J Global Fulfilment:
“It very much started as one of those basement business stories you hear about, with stock being held at my parent’s house!”
Many Shopify owners start out this way, and it works… for a while. Growth can later confront you with a choice: scale up your fulfillment operation or watch your business implode under the weight of its own progress.
Why Effective Fulfillment is Essential
As your Shopify store grows, so does the importance of your fulfillment process.
The truth is, most of your customers don’t see (or care about) what’s happening behind the scenes. Whether you’re shipping ten parcels a day or 10,000, they expect the same level of service.
But beyond serving customers, effective fulfillment gives you an edge against competitors and helps you streamline time-consuming back-end processes like handling returns.
Here’s why effective fulfillment is fundamental to success as a Shopify merchant:
- Customer Satisfaction: Quick, accurate deliveries keep customers coming back. Shopify says that 23% of shoppers abandon their carts because there is no guaranteed delivery date.
- Differentiation: Efficient fulfillment provides data to your buyers that help you differentiate. Consider that 54% of consumers find available inventory alerts valuable when shopping online.
- Useful Data: Modern fulfillment systems provide valuable insights. This aligns with the 49% of brands investing in delivery transparency and promises.
- Business Focus: When you’re not personally packing every box, you can dedicate more time to growth.
- Returns Handling: Returns happen. Handle them smoothly, and you’ll keep customers coming back. 68% of shoppers value free returns, and effective returns handling helps keep costs down for you, the retailer.
Understanding Shopify’s Native Fulfillment Options
Let’s move on to discuss the options for fulfilling your Shopify orders.
Shopify recognises the need to support customers with this task and offers several built-in features to help merchants manage their orders. This includes Shopify Shipping and the Shopify Fulfilment Network (SFN).
Shopify Shipping
Shopify Shipping is the platform’s basic fulfillment tool, available to all Shopify merchants. It allows you to:
- Buy and print shipping labels directly from Shopify
- Get discounted rates with major carriers (USPS, UPS, DHL Express)
- Automatically calculate shipping rates for customers at checkout
- Track shipments and share tracking information with customers
While Shopify Shipping is a solid starting point for progressing beyond fully manual fulfillment processes, it’s best suited for smaller operations.
Shopify Fulfilment Network (SFN)
Launched in 2019, the Shopify Fulfilment Network is Shopify’s answer to Amazon FBA.
It’s a network of fulfillment centers that Shopify merchants can use to outsource their order fulfillment. Key features include:
- Distributed inventory across multiple fulfillment centers
- Order routing optimisation
- Integration with your Shopify store
- Returns handling
SFN is still relatively new and has many limitations in terms of global reach and product types it can handle. Perhaps most notably, it’s only available for orders delivered in the United States.
Ultimately, while Shopify’s native options can work well initially, many merchants find themselves seeking out more flexible, scalable options.
Third-Party Fulfillment (3PL) For Shopify Sellers
As your Shopify store grows, you might find that neither in-house fulfillment nor Shopify’s native options can keep up with your needs. This is where third-party logistics providers (3PLs) come into play.
A 3PL is a company that provides outsourced logistics and fulfillment services. They receive your inventory, store it in their warehouses, process incoming orders from your Shopify store, pick and pack items, and ship them to your customers.
3PL companies essentially act as an outsourced shipping department, managing everything from inventory storage to last-mile delivery.
While this might seem expensive at first glance, partnering with a 3PL can actually lead to cost savings as your order volume increases. For example, they’ve often secured cheaper rates with carriers and saved time handling returns.
J&J Global Fulfilment is an example of a 3PL partner that caters to a huge range of retailers and eCommerce businesses, including Shopify merchants of all sizes.
Founded in 2010, we’ve created a global operation with fulfillment centers across the UK, Europe, North America, and Australia.
With easy Shopify integration and access to our ControlPort™ order management system, J&J enables you to scale your fulfillment processes with same-day shipping, deep analytics, and first-class returns.
The result is a simple yet scalable fulfillment solution that delivers speed, savings, and stacks of other useful features for Shopify businesses. We’ll discuss them in detail shortly.
The Strengths and Drawbacks of 3PL For Shopify
Here’s a breakdown of the strengths and drawbacks of partnering with a 3PL:
| Benefits of 3PLs | Potential Drawbacks |
|---|---|
| Scalability: Handle large increases in orders without hiring more staff or expanding your space, whether that’s a garage or warehouse. Superb for seasonal peaks or unexpected growth. | Less Control: You’re trusting a key part of your business to another company. This means less direct oversight of the fulfilment process. |
| Expertise: 3PLs know the ins and outs of shipping, including regulations and best practices. This takes time and stress off your plate, and is particularly useful when handling international ordering. | Upfront Costs: Many 3PLs have setup fees or require a minimum number of orders. However, this varies widely from provider to provider. |
| Cost Savings: While 3PLs aren’t free, you might save money overall. Think lower shipping rates, no warehouse rental, and more efficient operations. | Pricing Structure: Some 3PLs have complex pricing models. Understanding all the costs and how they apply to your business can take time. |
| Time Savings: Outsourcing fulfilment frees up hours every day. Use this time to focus on growing your business, not packing boxes. | |
| Global Reach: Many 3PLs have warehouses worldwide. This lets you store products closer to your international customers, speeding up delivery times. | |
| Technology: Good 3PLs offer software that works well with Shopify. Expect features like real-time inventory updates, order tracking, and detailed analytics. |
Comparing 3PL Versus Shopify’s SFN
As your Shopify store grows, there comes a point when handling fulfillment in-house is no longer feasible.
It’s a good problem to have – more orders mean your business is thriving – but it also means you need to find a better way to handle the fulfillment process.
That’s where the decision between using a 3PL provider like J&J or Shopify SFN comes into focus. So how do they stack up when compared directly?
| Feature | J&J Global Fulfilment | Shopify Fulfilment Network |
|---|---|---|
| Experience | Established in 2010; over a decade of specialised e-commerce fulfilment experience | Launched in 2019; relatively new to the fulfilment scene |
| Global Reach | UK, EU, US, Canada, and Australia; allows inventory storage closer to worldwide customers | Limited to United States only; recently retreated from Canadian operations |
| Scalability | Supports businesses from startups to enterprise-level; flexible infrastructure accommodates growth and seasonal spikes | Capped at 200 orders per day and 2,000 SKUs; may limit growth potential |
| Technology | Proprietary ControlPort™ software; unified platform for seamless operations, real-time visibility, and advanced analytics | Relies on various 3PLs’ systems; potential inconsistencies in reporting and inventory management |
| Same-day Dispatch | Industry-leading 98% same-day dispatch rate | No published metrics on dispatch rates |
| Order Accuracy | Exceptional 99.9% order accuracy rate | No published accuracy rates |
| Custom Solutions | Tailored services, including custom packaging, kitting, and specialised handling | Appears to offer a more standardised, one-size-fits-all approach |
| Product Flexibility | Handles diverse product range, including regulated items | Restrictive – no beauty, medical, or perishable products |
| Carrier Network | Extensive partnerships for optimal shipping rates | Limited carrier options |
| Returns Processing | Fully managed, efficient returns solution | Basic returns handling |
| Analytics | Advanced reporting and insights via ControlPort™ | Basic reporting within Shopify admin |
| Setup Process | Rapid onboarding for quick launch | Application required, potential delays |
Integrating 3PL Services with Shopify
Connecting a 3PL to your Shopify store is a key step in scaling your eCommerce business. When implemented correctly, it creates a seamless process from the moment a customer places an order to the point when their package arrives at their doorstep.
The technical integration typically involves these steps:
- API Connection: Most 3PLs will have an API that can connect directly to your Shopify store. This enables data to flow back and forth between your store and the fulfillment centre in real time.
- Inventory Sync: Keeping your 3PL’s inventory system in sync with your Shopify stock levels is an essential component of integration. It prevents you from accidentally selling products you don’t have in stock and provides you with a clear indication of where your products are, and in what quantity.
- Order Routing: You’ll need to set up Shopify to automatically send orders to your 3PL for processing. This also usually means instructing Shopify which products should be fulfilled from which locations.
- Returns Management: Integrating your Shopify store with your 3PL’s returns process makes handling customer returns and exchanges a breeze. Returns are handled on your behalf and can be monitored from your dashboard.
One more thing – before going live, thorough testing is essential. Run test orders, check inventory updates, and ensure tracking information flows back to your Shopify store correctly.
This helps catch and fix any issues before they affect your customers.
Understanding The 3PL Fulfillment Process
How does 3PL fulfillment actually work? There’s a lot going on behind the scenes.
Here’s a breakdown of how your product moves from the warehouse shelf to the customer’s doorstep:
1. Receiving and Storage
The whole process kicks off when you send your products to the 3PL’s warehouse. As soon as your inventory arrives, the warehouse team gets to work.
They carefully count and inspect each item, ensuring everything matches what they were expecting. Then, they log the products into the warehouse management system, often using barcodes to make it easy to locate items later.
2. Order Processing and Picking
When a customer hits “buy” on your Shopify store, it assigns the order to fulfillment staff.
Pickers use handheld devices to navigate the warehouse and track down the items for each order. As they pick each product, they scan it, automatically updating the inventory.
3. Packing and Shipping
After picking, the orders head over to the packing stations to prepare orders to leave the warehouse.
Packages are weighed and measured, shipping labels are applied, and orders are sorted based on which carrier they’re heading out with.
Many 3PLs have connections with multiple carriers, so they can offer a variety of different shipping options to fit your needs and budget.
4. Returns Processing
When a customer decides to send something back – which is more common than ever – the 3PL has it covered (provided they manage returns like we do at J&J).
They receive the item, check it, and then follow your pre-set rules for what to do next (restock it or return it to sender). The inventory gets updated, and refunds or exchanges are processed.
Throughout these processes, from the moment your inventory arrives to the second a return is processed, the 3PL’s systems constantly communicate with your Shopify store.
That means you and your customers are always informed about inventory levels, order status, and tracking information.
Choosing the Right Fulfillment Strategy For You
Selecting the best fulfillment strategy for your Shopify store isn’t a one-size-fits-all decision. It hinges on numerous factors unique to your business.
Step 1: Factors to Consider
First, weigh up the following factors to give you a solid idea of where your business is right now and where it might be in the future:
- Order Volume: How many orders do you process daily, weekly, or monthly? If you can’t cope, your current systems are bloated or expensive, or you expect a rapid increase, it might be time to consider 3PL.
- Product Characteristics: Consider your products’ size, weight, and special handling requirements.
- Storage Needs: Do you have seasonal fluctuations or a large product catalogue requiring additional storage space?
- Geographic Distribution of Customers: Are your customers concentrated in one region or spread across the globe?
- Budget: What can you afford to invest in fulfillment, and how does this balance against potential savings or growth?
- Growth Projections: Where do you see your business in 6 months? A year? Five years?
- Customer Expectations: What shipping speeds and services do your customers expect?
Step 2: Comparing Fulfillment Approaches
With those factors in mind, it’s time to weigh up the main three fulfillment approaches: in-house, Shopify’s native shipping features, and 3PL.
| Fulfilment Method | Pros | Cons | Best for |
|---|---|---|---|
| In-House Fulfilment |
|
|
New businesses with low order volumes, businesses with highly customised products, or those requiring special handling. |
| Shopify’s Native Options |
|
|
Small to medium-sized Shopify stores with straightforward fulfilment needs primarily serve customers where SFN operates (the US currently). |
| Third-Party Logistics (3PL) |
|
|
Growing Shopify stores with increasing order volumes, businesses expanding geographically, or those needing professional fulfilment without building infrastructure. However, today, it’s fair to say that even smaller businesses are turning to 3PL in order to deliver smooth, reliable fulfilment from the get-go. |
Step 3: Making the Decision
Now that you’ve assessed your current situation, projected future needs, and evaluated the available options, it’s time to make the decision.
- Evaluate 3PL Providers: Research different 3PLs and compare them to Shopify’s native options and your current process. Consider the expertise, technology, and scalability each option offers.
- Crunch the Numbers: Calculate each option’s potential costs and savings. Don’t just focus on the short term; consider long-term benefits that could save you money down the line.
- Consider Scalability: Choose a solution that can grow with your business. A 3PL partner can offer the expertise, technology, and scalability necessary to take your business to the next level.
Of course, your fulfillment strategy isn’t set in stone. You’ll likely need to reassess and adjust your strategies as your business evolves. The key is to choose a strategy that supports your current needs while allowing for future growth.
Why Choose J&J for Shopify Fulfillment
If you’re looking to offer customers rapid, reliable delivery while streamlining back-end processes, you need a 3PL partner with the knowledge, technology, and reach to help your business thrive.
At J&J, we offer fulfillment services designed specifically for Shopify merchants. We can help you scale your business, whether you’re just starting out in the world of eCommerce or running an established, large-scale business.
Here’s what sets us apart from other 3PL providers:
Seamless Shopify Integration
Our system doesn’t just work with Shopify – it’s designed to maximise the platform’s potential.
The moment a customer completes a purchase, our technology kicks into action.
Real-time inventory updates are pushed to your sales channels, and orders flow into our fulfillment process.
ControlPort™ software provides detailed analytics on your sales patterns, inventory turnover, and fulfillment performance.
This empowers you to make informed decisions about stock levels, product lines, and marketing strategies.
Global Reach, Local Expertise
eCommerce knows no borders, and neither do we. With global fulfillment centers strategically located in the UK, EU, US, Australia, and Canada, we put your products closer to your customers, wherever they may be. This opens up new markets for your business.
However, we never lose sight of personal touch. Whether your order is fulfilled in Manchester or Melbourne, it receives the same care and attention to detail.
Technology-Driven Efficiency
At the heart of our operation is ControlPort™, our proprietary software platform. It allows you to control your fulfillment operation.
With ControlPort™, you can track inventory levels in real-time across all locations, monitor order status from picking to delivery, and generate detailed reports on everything from stock turnover to shipping performance.
Customisation and Flexibility
We understand that every Shopify store is unique. That’s why we offer a range of customisable services to ensure your fulfillment solution is as individual as your brand.
From custom packaging to creating memorable unboxing experiences to kitting and assembly services, we offer a wide range of extra services that others lack.
Proven Results for Shopify Merchants
Don’t just take our word for it. Our case studies speak volumes about the impact of our services.
Keon Ghaharian, Co-founder of Dope Ropes, explained how partnering with us unlocked new possibilities for his Shopify business:
“With James and James, I can stock more and make bigger supplier orders, resulting in cost savings there. In addition, I can now store bigger items such as mats and start selling a bigger range of products to customers.”
Similarly, Andy Caughey from Armadillo Merino has taken full advantage of our ability to meet the most demanding fulfillment requirements:
“We’ve been working with NASA for around four years, supplying garments to astronauts on the International Space Station and for ground-based research. James and James was able to deliver.”
Wrapping Up
Running a successful Shopify store isn’t just about great products – it’s about getting them to your customers quickly and reliably.
By partnering with J&J, you can meet the high expectations of today’s customers, delivering exceptional order fulfillment experiences that drive loyalty and growth.
Meanwhile, you’ll gain the freedom to focus your time and energy on scaling your business and pursuing new opportunities.
With our intuitive Shopify integration, global reach, and powerful analytics, we give you total control and transparency over your fulfillment process.
If you’re ready to stop worrying about shipping and start focusing on what you love, contact us today. We’ll be more than happy to answer your questions.
Or, to get started with our Shopify fulfillment services, speak to an expert today.
FAQs About Shopify Fulfillment and 3PL Services
Q: What happens if a customer returns an item?
A: 3PLs typically manage the entire returns process, including receiving the item, inspecting it, and either restocking it or handling it according to your specific instructions.
Q: Can J&J handle international orders?
A: Absolutely. With fulfillment centers in multiple countries, we’re well-equipped to handle international shipping efficiently and cost-effectively.
Q: How do I track my inventory levels?
A: Most 3PLs provide software that offers real-time visibility into your inventory levels across all fulfillment centers, helping you stay on top of stock. J&J’s ControlPort™ software provides real-time visibility into your inventory levels across all our fulfillment centers.
Q: Can I still use multiple sales channels with 3PL?
A: Yes, most 3PL systems integrate with various e-commerce platforms and marketplaces, allowing you to manage inventory across multiple sales channels.
For example, at J&J, our system integrates with various e-commerce platforms and marketplaces, allowing you to manage inventory across multiple sales channels.
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