3PL vs. In-House Fulfillment: Which Model Fits Your Growing E-commerce Business

Katherine Wroth • October 28, 2024

As your e-commerce or omnichannel business expands, regular reviews of your fulfillment logistics strategy will be necessary. The right fulfillment model can streamline operations, improve customer satisfaction and boost profitability—but the wrong one can create bottlenecks and added costs. Here’s a guide to help you evaluate which model suits your business best and align your fulfillment strategy with your goals.


What Is 3PL Fulfillment?


Third-party logistics providers (3PLs) offer businesses end-to-end supply chain solutions by managing your warehousing, picking and packing, shipping and often customer returns. If your company has complex logistics needs or is experiencing rapid growth, outsourcing to a 3PL partner can bring scalable expert support that helps you maintain high-quality service.


Benefits of 3PL Fulfillment:


  1. Scalability and Flexibility: 3PLs adapt to your business’ changing needs, expanding your capacity during peak seasons or scaling back during slower periods.
  2. Advanced Technology and Expertise: The top 3PL providers use cutting-edge logistics technology and possess deep industry expertise, helping businesses stay efficient without heavy tech investment.
  3. Focus on Core Competencies: Freeing your team from logistical complexities allows them to prioritize core business activities like product development and marketing.


Potential Drawbacks of 3PL:


  • Less Control: Relying on a third party means losing some operational oversight, which can concern companies with unique handling requirements or customer service standards.
  • Integration Challenges: Synchronizing a 3PL’s technology and processes with your own can pose initial challenges, requiring setup time and communication alignment. At Barrett, our IT experts work closely with your team to address compatibility issues from day one. We optimize data flow and establish reliable processes, so your operations remain uninterrupted and efficient.


What Is In-House Fulfillment?


In-house fulfillment involves handling all logistics activities within your organization. You retain full control over inventory, warehousing and order processing. Companies with predictable demand and more specialized handling needs or those who want to maintain complete oversight of their operations often choose in-house fulfillment.


Benefits of In-House Fulfillment:


  1. Total Control: In-house operations mean businesses retain oversight on every fulfillment aspect, from packing to shipping.
  2. Brand Experience: For brands focused on delivering a unique hands-on experience to customers, in-house fulfillment allows customization that may be harder to achieve through a 3PL. At Barrett, we offer tailored solutions that mirror the high-touch experience you aim to deliver. From customized packaging to personalized handling, Barrett ensures that every step reflects your brand’s standards and creates memorable customer experiences.
  3. Data Ownership: Companies handling fulfillment internally have direct access to fulfillment data, enabling real-time adjustments and insights.


Potential Drawbacks of In-House Fulfillment:


  • High Operational Costs: Renting space, hiring staff and investing in logistics tech add up. Overhead costs can escalate as demand grows, especially without economies of scale.
  • Resource Intensive: Managing an in-house fulfillment team and process diverts significant resources from other business areas, making it challenging for smaller teams.
  • Scalability Limitations: Scaling in-house fulfillment to match high-volume periods such as holiday seasons can strain resources and lead to delays.


Deciding Factors: When to Choose 3PL vs. In-House Fulfillment


While both models have their merits, a few deciding factors can help guide you:


  1. Volume and Demand Fluctuations
    If your business experiences seasonal spikes or fluctuating order volumes, a 3PL can offer flexible support without requiring additional space or staff.
  2. Budget Constraints
    3PLs often require less upfront capital than establishing an in-house operation. With a 3PL, costs are variable based on usage, while in-house expenses are primarily fixed.
  3. Control Requirements
    In-house fulfillment may offer the best solution for companies that need total control to deliver a specific brand experience or meet unique handling requirements. However, it’s important to note that 3PLs like Barrett offer personalization and VAS services.
  4. Growth Goals
    Rapidly growing companies benefit from 3PL's scalability, which provides the infrastructure to expand into new regions or handle increased order volumes without the stress of constant reinvestment.


Making the Right Decision


The choice between 3PL and in-house fulfillment ultimately depends on your business's needs, resources and goals. At Barrett Distribution, we see firsthand how the right logistics partnership can elevate a company, whether it’s through efficiency, customer experience or sheer operational power. Consider your long-term vision and how each model aligns with your strategy. You can choose a fulfillment model that drives your success by evaluating these factors.


Whether you're looking to outsource or improve your in-house capabilities, the key is understanding your priorities and selecting a solution that aligns with your growth trajectory.


Reach out to Barrett for a deeper insight into how we can support your fulfillment journey.

Recent Blog Posts

By Katherine Wroth January 8, 2025
Are fulfillment errors holding back your e-commerce growth? Are your warehouses positioned to cut down on shipping times and costs? Is your fulfillment strategy scalable enough for business growth and seasonal demand? Are you creating a fulfillment experience that drives repeat purchases and customer loyalty? If these questions make you question your current approach, it’s time to rethink your fulfillment strategy. This blog will guide you through the key elements of a successful fulfillment strategy and how to overcome common obstacles to ensure sustainable growth. 📈 Order Volume: Scaling for Growth Order volume is one of the most critical factors to consider when designing your fulfillment strategy. For businesses with smaller volumes, manual processes or in-house fulfillment might suffice. However, as your business grows, increased order volumes can quickly overwhelm your existing systems. Scaling for higher order volumes often requires additional resources such as automation and skilled labor. Automation tools like warehouse robots or conveyor systems can improve efficiency and reduce bottlenecks. At Barrett, we invest in technology , so you don’t have to. Our facilities are equipped with drones and Autonomous Mobile Robots (AMRs), providing the scalability and flexibility needed to meet increasing demands. Customers can experience faster shipping times and a more seamless shopping experience. ⏩ Speed and Accuracy: The Cornerstones of Customer Loyalty Fast delivery is no longer optional. It is the new standard that customers today expect and demand. However, speed without accuracy can lead to mistakes that erode trust and loyalty. Fulfillment strategies prioritizing speed and accuracy are essential for reducing errors, minimizing returns and fostering long-term customer relationships. To achieve this balance, consider adopting advanced order management systems that streamline the picking and packing. At Barrett, we use License Plate (LP) accuracy, barcode scanning and real-time inventory tracking to ensure orders are fulfilled accurately and efficiently. 📍 Warehouse Location: Optimizing for Efficiency The proximity of your warehouses to your customers can significantly impact shipping times and costs. Strategically located warehouses reduce transit times and help meet customers' expectations for fast delivery. A network of distribution centers in key regions allows you to ship products from locations closer to your customers, lowering shipping costs and improving delivery speeds. Partnering with a 3PL like Barrett, with established facilities nationwide, can help you expand your geographic reach without needing heavy capital investment in real estate. ✅ Scalability: Planning for the Future Your fulfillment strategy should be designed to grow with your business. A flexible and scalable approach ensures that you can adapt to seasonal fluctuations, new product launches and increased order volumes as your business evolves. For example, outsourcing fulfillment to a 3PL provider can provide the infrastructure and expertise needed to scale up quickly during busy seasons like the holidays without overextending your internal resources. A scalable solution lets you focus on core business activities like marketing and product development. Insider tip: Some 3PL providers take on new clients without considering whether they can handle the volume over time. At Barrett, we’re committed to long-term partnerships, growing with you every step of the way. 📦 Customer Experience: The Final Touch Fulfillment is not just about getting products to customers—it’s about creating a memorable experience. Details like easy returns, eco-friendly packaging and personalized touches can leave a lasting impression and build customer loyalty. Personalized fulfillment can include branded packaging, handwritten thank-you notes or special offers can enhance the unboxing experience and encourage repeat purchases. Similarly, a smooth and hassle-free return process shows customers that their satisfaction is a priority, further strengthening their trust in your brand. Ready to Build Your Fulfillment Strategy? With over 80 years of expertise, Barrett Distribution delivers personalized, scalable 3PL solutions tailored to your unique needs. From advanced technology to strategically located warehouses, we equip your business with the tools and expertise to streamline operations and fuel growth. Let’s build your winning fulfillment strategy today. Contact us today to connect with a Barrett 3PL expert for a complimentary supply chain consultation.
By Katherine Wroth January 7, 2025
Franklin, MA, Jan. 7, 2025 – Cavender’s , a leader in Western wear with 99 locations across 15 states, has selected Barrett Distribution Centers as its new third-party logistics (3PL) provider for Direct-to-Consumer (D2C) fulfillment. This partnership will help Cavender’s streamline its supply chain, improve the customer experience and scale its retail operations. “With Barrett’s 81+ years of logistics expertise and our state-of-the-art facility in Forney, Texas, we’re confident this partnership will enable Cavender’s to serve their D2C customers better while freeing up resources to deliver an exceptional in-store experience,” said Alex Glanzer , General Manager at Barrett. Barrett’s new Dallas facility, equipped with drones and Autonomous Mobile Robots (AMRs), provides Cavender’s with the scalability and flexibility needed to meet increasing demand. Strategically located, the facility enhances fulfillment speeds and ensures consistent service quality as Cavender’s expands its footprint. Customers will experience faster shipping times and a more seamless shopping experience. “Cavender’s dedication to quality and tradition aligns perfectly with Barrett’s logistics expertise. Together, we’re building a strong foundation for success and ensuring Cavender’s can focus on what they do best—outfitting customers with quality Western wear,” said Edward Ryan , Vice President of Customer Solutions at Barrett. Barrett’s Forney facility also plays a critical role in its Texas expansion initiative, designed to enhance e-commerce fulfillment capabilities for regional brands. As Cavender’s continues to scale, Barrett’s deep apparel and accessories logistics expertise will provide the customized support needed to meet growing customer demand. About Cavender’s Cavender's has established itself as the premier Western clothing store for the American South and Southwest. Cavender's remains a family business, run by James and Pat's sons, Joe, Mike and Clay, who oversee the growth, development and day-to-day operations. Boots are the roots for Cavender's and the Cavender family wanted to share their love of the western lifestyle with others. Cavender's continuously seeks the best in design, style and authentic western craftsmanship for our customers. At Cavender's you can expect to find just what you're looking for from friendly folks offering a helping hand because "This is How We Live". About Barrett Distribution Since 1941, Barrett has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. Barrett continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15 times, Barrett is big enough to do the job and still small enough to deeply care about your business. eCommerce brands interested in a new 3PL partnership may contact Barrett directly here . 
By Katherine Wroth December 3, 2024
Over the years, we’ve had conversations with countless companies and specific themes come up repeatedly when discussing why they’re ready to make a switch. Here are three common challenges businesses face when looking for a new 3PL partner and how Barrett can help solve them: 1. Missed SLAs (Service Level Agreements) Missed SLAs can disrupt your entire supply chain, leading to dissatisfied customers and lost revenue. Consistency in meeting deadlines and delivery standards is crucial for your reputation. At Barrett, we prioritize transparency and operational excellence to ensure your SLAs are not just met but exceeded. 2. Complex Transaction Rates Hidden fees and overly complicated pricing structures can make it difficult to forecast costs and maintain your bottom line. We believe in clear and straightforward pricing models that align with your business goals, providing the predictability you need to focus on growth. 3. Difficulty Scaling with Demand Your business needs a 3PL partner that can grow WITH you, whether it’s seasonal demand, expanding into new markets, or handling rapid e-commerce growth. Barrett offers scalable and personalized solutions designed to flex with your needs, ensuring you have the resources and infrastructure to thrive in any market condition. A Partner Invested in Your Success We go beyond traditional 3PL services by becoming a strategic partner invested in your success. Our team takes the time to understand your unique challenges and craft tailored solutions that drive efficiency and customer long-term satisfaction. Complimentary Supply Chain Consultation with Barrett Is your supply chain facing these challenges? We’re here to help. Contact us today for a complimentary supply chain consultation and discover how Barrett can provide the solutions you need to scale your business with confidence.
More Posts
Share by: