In retail, growth is a good challenge to have. When business booms, it’s an exciting time but one that can be fraught with new complexities, especially when it comes to shipping. Stores that try to grow without first making their Shopify Shipping processes as efficient as possible are likely to run into trouble because, let’s face it, shipping and fulfillment take a lot of time and effort.
Today’s shipping expectations are constantly evolving. That said, two things have remained consistent: The vast majority of customers are price-sensitive to shipping costs, and 90% of consumers want their order within 2-3 days. Moreover, orders must arrive on time.
These expectations put a lot of pressure on Shopify store owners to fill their orders quickly, often leading to mistakes when fulfillment operations aren’t set up correctly or ready to scale. Things can quickly become hard to handle, which is why businesses will often use services like the shipping tools built into Shopify.
Read on to learn more about how brands can streamline Shopify Shipping and integrate with a 3PL for smarter fulfillment and faster delivery.
What is Shopify Shipping?
Shopify shipping is a built-in platform feature that gives store owners the power to manage and fulfill their orders. It’s a helpful tool for small startups and growing brands alike. Shopify Shipping lets retailers integrate with carriers both domestic and abroad, and third-party logistics services (3PLs) as brands grow, making it easier to track orders and inventory across their operations. The tool helps brands fulfill faster while:
- Getting access to more shipping rates
- Selecting from discounted carrier rates (UPS, USPS, DHL, etc.)
- Purchasing and printing shipping labels
- Scheduling carrier pickup times
- Tracking delivery status in real time and receiving automatic updates
- Integrating with tech-enabled 3PLs
Shopify Shipping was designed with merchants managing fulfillment in-house or light warehouse support in mind.
Limitations of Shopify Shipping for scaling brands
There’s no doubt that Shopify Shipping is great for startup or self-fulfillment. However, it has limitations as order volume grows and brands expand their channel. By design, it was meant for manual label printing and retailers with no need for warehouse flexibility. But as brands enter multi-location and more customized fulfillment operations, inventory management, shipping, and delivery become more complex.
The good news is that even as a brand scales, Shopify can remain a valuable part of its overall logistics strategy.
Where a 3PL fits into fulfillment operations
When brands have outgrown self-fulfillment or are scaling their operations, a 3PL often becomes part of their logistics network. 3PL providers handle a range of services, including receiving and storage, inventory management, order fulfillment, packing, and shipping.
The right 3PL will often offer brands more, such as customized fulfillment, value-added services, multiple warehouse locations, and negotiated carrier pricing. The expertise a 3PL offers can make them a great retail partner that reduces workload and errors and helps streamline omnichannel fulfillment.
Shopify Shipping + 3PL: How it works
Shopify integrates directly with many 3PL providers, allowing real-time syncs of inventory levels, order data, shipping updates, and tracking. With a Shopify-3PL integration. Orders from Shopify route automatically to the 3PL warehouse for picking, packing, and shipping. In addition, Shopify will still display branded order status and tracking on the customer side, and merchants can still use Shopify Shipping for any in-house or hybrid fulfillment needs.
Key benefits of a Shopify + 3PL integration strategy
Shopify’s “About Us” page touts the millions of users using the platform, making it an essential part of many retailers’ tech stack. As more 3PLs modernize, it lets brands leverage the power of both partnerships in a way that streamlines their fulfillment operations. Along with syncing data for robust real-time visibility, using Shopify along with a 3PL offers these key benefits:
- Shopify merchants using a 3PL that can integrate with Shopify experience faster shipping and broader reach with a larger network of warehouses. In fulfillment, location is everything, and having better access to customer hubs is highly beneficial.
- Using a 3PL automates fulfillment, including label generation and order routing.
- Brands get reduced shipping costs through a 3PL’s negotiated carrier rates.
- A stronger fulfillment network provides better tracking and faster delivery, improving the customer experience.
- It’s an omnichannel world. Brands now sell DTC, on marketplaces, through social commerce, and more, and using a 3PL makes it easier to get inventory where it needs to be.
The Shopify + Hiyo + Kase integration in action
In a recent customer story, Kase highlighted how Hiyo uses Shopify, leveraging Kase’s integration to automate their fulfillment processes. Once an order is placed on Hiyo’s Shopify store, the Kase app identifies all details, starting the order fulfillment cycle with no need for manual intervention.
“The integration with Shopify is performing very well, and it’s simple to keep up to date,” says Jack Dampf, VP of Operations at Hiyo. “With our recent packaging change, we had to relink a few things within Kase, and all of the history immediately synced over to Shopify with no hiccups.”
Signs it’s time to use a 3PL
If you’re spending more time shipping than growing your business, chances are it’s time to look into using a 3PL. Often, brands struggle when order volume and storage get too much, and shipping errors and delays increase. Another common period to onboard with a 3PL is when brands are expanding into retail, marketplaces, or cross-border selling.
Shopify Shipping is powerful but pairing it with a 3PL takes things to the next level of efficiency and growth. Whether you’re looking to simplify logistics, scale faster, or deliver a better customer experience, a 3PL can bridge the gap. Talk to a Kase fulfillment specialist today to find out how we integrate seamlessly with your Shopify store.
