Why Cheap 3PLs Fail
Why Cheap 3PLs Fail
If you’re shopping for a 3PL, you’ll see a wide range of pricing. Some providers look shockingly cheap. Free setup. Free storage. Pennies per unit.
That usually doesn’t end well.
This isn’t opinion. It’s operational reality.
Cheap fulfillment has to cut somewhere
A warehouse has only a few levers:
- Labor
- Process
- Technology
- Communication
- Accountability
If pricing is far below market, something is being sacrificed.
Usually it’s labor quality and process discipline.
That shows up as:
- Inventory discrepancies
- Missed shipments
- Incorrect prep
- Slow responses
- “We’ll look into it” emails that go nowhere
These issues don’t appear on day one. They show up once inventory is already moving and switching providers becomes painful.
“Free” is rarely free
Free setup and free storage are common sales tactics.
What happens next is predictable:
- Higher per-unit handling
- Surprise minimums
- Ad hoc charges
- Or operational shortcuts that reduce cost for the warehouse, not you
Receiving inventory incorrectly once costs more than most setup fees ever will.
Cheap 3PLs churn clients
High-volume, low-price warehouses survive on churn.
They assume:
- Some clients leave
- New ones replace them
- Accuracy problems are “part of the business”
If you care about long-term stability, that model should concern you.
The real cost shows up later
The biggest cost of a bad 3PL is not the invoice.
It’s:
- Time spent fixing errors
- Stockouts caused by missed replenishments
- Amazon penalties
- Customer support fallout
- Replatforming inventory when things break
Those costs compound quietly.
THE BOTTOM LINE
If price is the primary decision driver, cheap options can make sense.
If reliability, predictability, and control matter, cheap fulfillment almost always fails at the worst possible moment.
A good 3PL is not cheap.
A cheap 3PL is rarely good.
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Family-owned and committed to excellence, Swifthouse is a Philadelphia-based warehouse, servicing the East Coast and beyond for more than 15 years. We continually invest in technology, processes, people and facilities to optimize and expand our service offerings.