7 Biggest Red Flags to Watch Out for When Choosing a 3PL

Choosing a 3PL can feel a bit like dating — everyone says they’re reliable, transparent, and “here to help you scale.” But once you sign the contract, reality sometimes looks very different.

The truth is, most red flags appear before you even onboard. You just need to know what to look (and listen) for.

After working with dozens of brands and hearing hundreds of 3PL horror stories, here’s what we’ve learned founders should never ignore when choosing their next fulfilment partner.

1. They Promise the World — Instantly

If a 3PL says “yes” to every request without asking follow-up questions about your products, volumes, or SKUs — run.

Good 3PLs ask a lot of questions upfront. They’ll want to understand your order flow, packaging requirements, returns process, and brand expectations before committing.

🚩 Red flag: “We can start next week — no problem.”

✅ Green flag: “Let’s do a discovery call to understand your SKUs, workflows, and tech setup before confirming timelines.”

2. They Work With All Types of Brands

When a 3PL proudly says they work with every kind of brand — from car parts to fashion to Amazon brands — that’s not a strength, it’s a warning sign.

Every product category has completely different handling requirements. A warehouse optimised for pallets and cartons won’t handle delicate fashion items or beautifully packaged beauty products with the same care.

🚩 Red flag: “We work with all categories — we can handle anything!”

✅ Green flag: “We specialise in specific categories like fashion, beauty, or lifestyle — and know how to do it properly.”

3. Their Sales Team Is Bigger Than Their Operations Team

If a 3PL has a slick marketing presence and a big sales team but can’t tell you how many pickers or account managers they have, that’s a concern.

A 3PL that needs to constantly find new clients to replace the ones leaving is a churn cycle waiting to happen.

🚩 Red flag: Constant Meta ads, big sales team, but no clear ops structure.

✅ Green flag: Their investment goes into people, processes, and performance — not just ads.

4. Pricing Is Vague

Many 3PLs will quote storage pricing by “bin” or “linear metre” — but never actually explain what that means in practice.

You might think your stock takes up one or two bins, only to receive an invoice for ten. Without transparency, you have no control or predictability over your storage costs.

🚩 Red flag: “We charge per bin or per metre — it depends.”

✅ Green flag: “Here’s how we measure your stock footprint and calculate exact storage — so you’ll always know what you’re paying for.”

5. They Charge Upfront Integration or Setup Fees

If a 3PL charges a large “setup” or “integration” fee before they’ve even proven themselves, be cautious.

Integrations should be part of doing business, not a hidden revenue stream. Many 3PLs use setup fees as a way to lock you in before service even starts.

🚩 Red flag: “There’s a $1,000 setup fee to connect your Shopify.”

✅ Green flag: “We’ll help you integrate and test your connection as part of the onboarding process — no hidden upfront costs.”

6. They Can’t Give You Client References

Any established 3PL should be happy to share client references or case studies.

If they avoid it, it could mean they’ve had high churn or unsatisfied clients.

🚩 Red flag: “We can’t share client names for privacy reasons.”

✅ Green flag: “Here are a few similar brands we’ve worked with — you’re welcome to reach out to them.”

7. They Lock You Into Long-Term Contracts (and Charge Exit Fees)

If a 3PL requires you to sign a 12- or 24-month contract with hefty penalties for leaving early — that’s a massive red flag.

Fulfilment partnerships should be based on trust and performance, not legal handcuffs. And if they mention an “exit packing” or “offboarding” fee (charging you just to retrieve your own stock), that’s an even bigger warning sign.

🚩 Red flag: “We require a 12-month commitment and charge a repacking fee if you leave.”

✅ Green flag: “No lock in contract and will pack up your stock for free should you wish to leave”

Final Thoughts

The best 3PLs won’t just tell you what you want to hear — they’ll ask the hard questions, show you their systems, and help you make an informed decision.

At Freckl, we built our 3PL to be the partner we wished existed when we ran our own eCommerce brands:

• Boutique, founder-first approach

• Transparent pricing

• Category expertise in fashion, beauty, and lifestyle

• Tech-driven visibility

• Thoughtful, branded packing

If you’re in the process of choosing a 3PL and want an honest conversation (not a sales pitch), let’s chat.Freckl was built by founders, for founders — so you can scale without the stress.

💬 FAQ: Choosing the Right 3PL

Q1: What are the biggest red flags when choosing a 3PL? Look out for vague pricing, “we handle everything” promises, large setup fees, and poor transparency. A reliable 3PL will ask detailed questions about your products and processes before onboarding you — exactly how Freckl approaches every new brand conversation.

Q2: Should I avoid 3PLs that charge setup or integration fees?Not always, but high upfront fees before any proof of service are a warning sign. Setup should be part of the onboarding — not an extra charge.👉 Freckl has no setup or integration fees — we believe you shouldn’t have to pay just to get started.

Q3: How do I know if a 3PL suits my brand?Ask if they specialise in your product type, how they handle packaging and returns, and whether they offer live visibility into your stock.Freckl specialises exclusively in fashion, beauty, and lifestyle brands, so every workflow, packaging detail, and communication style is designed with those industries in mind.

Q4: What’s a good question to ask during the first 3PL meeting?Ask, “Can I speak to some of your existing clients?” Any trustworthy 3PL should be happy to connect you with brands they currently work with. If they hesitate or make excuses, it could be a sign of high churn or unhappy clients. At Freckl, many of our long-term clients are open to sharing their experience — we believe transparency builds trust from day one.

Q5: Why do boutique 3PLs like Freckl perform better for fashion and beauty brands?Because boutique teams give more care, attention, and communication than large-scale providers.Freckl’s founder-led team understands presentation, product care, and the pace of eCommerce — because we’ve been on the other side as brand owners ourselves.

Read More:

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