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Running a small business is a bit like spinning plates while juggling flaming torches—you're always on your toes, constantly shifting focus and ready to tackle the next challenge. And then there's logistics, the invisible cog that keeps the whole circus running smoothly. It's the unsung hero behind every delivered package, every stocked shelf, and every satisfied customer.
A small business, as the name implies, is a business that operates on a smaller scale compared to large corporations. It has fewer employees, lesser revenue, and serves a smaller geographical area. However, size can vary greatly based on the industry and country. For example, in the US, a small business is defined as a firm having fewer than 500 employees.
3PL, short for Third-Party Logistics, refers to companies that provide outsourced logistics services to businesses. These services encompass various aspects of the supply chain, including inventory management, warehousing, order fulfillment, and transportation.
In the logistics spectrum, each "PL" or "party logistics" represents a level of service:
Yes, in many ways. Amazon, through its Fulfillment By Amazon (FBA) program, offers services typical of a 3PL company, including warehousing, inventory management, and order fulfillment. However, Amazon is also a marketplace, making its role in the logistics landscape quite unique.
Small businesses, just like any other, need to manage the flow of goods effectively to meet customer expectations and maintain operational efficiency. Efficient logistics can help small businesses optimize inventory, reduce shipping costs, speed up delivery times, and enhance the customer experience.
3PLs provide all-encompassing logistics solutions, from storing inventory in warehouses to packing orders and shipping them to customers worldwide. They also offer services like inventory forecasting and analytics, helping businesses make informed decisions.
For small businesses, partnering with a 3PL can offer numerous benefits. These include reduced operational costs, better inventory management, broader shipping options, and more time to focus on core business aspects. 3PLs often have a wide network of warehouses and fulfillment centers, enabling businesses to store their products closer to their customers and reduce delivery times.
While 3PLs provide a range of logistics services, 4PLs take it a step further by managing the entire supply chain, including coordinating with various 3PLs. For many small businesses, a 3PL is more than enough to handle their logistics needs. However, large businesses with complex supply chains might opt for a 4PL.
While both 3PLs and 4PLs offer valuable services, for most small businesses, a 3PL is a more cost-effective and practical option. 3PLs provide a broad range of logistics services without the complexity and often higher cost associated with 4PLs. Additionally, 3PLs often have flexible and customizable offerings, which can be great for small businesses with specific logistics needs.
Want to chat with us to get the inside scoop on logistics? Check out our website!
In the grand picture of running an eCommerce business, embracing a third-party logistics (3PL) partner may seem like a big step. Just like any business decision, it comes with its unique set of challenges and considerations.
Your small business should consider hiring a 3PL when managing your inventory, shipping, and order fulfillment starts to feel overwhelming. If you're spending more time packing boxes and handling shipments than growing your brand, it may be time to think about getting some assistance.
One of the main issues small businesses face when searching for a 3PL provider is finding a company that offers the perfect fit for their specific needs and growth plan. Other challenges include navigating contracts, understanding fees, and ensuring order minimums align with your sales volume.
If you find yourself juggling too many orders, struggling to keep up with shipping demands, or your garage is bursting at the seams with stock, it's probably time to consider hiring a 3PL.
Smaller businesses and startups often face the challenge of finding 3PL companies that offer flexible, scalable solutions without sky-high costs or long-term contracts. Especially when it comes to the bigger providers who require massive minimum order counts per month. Which is why it’s good to find a 3PL that can grow with you. Especially those 3PL’s who have a software solution you can start with to streamline your own logistics, before you fully move to their services.
Choosing the right 3PL for your small business comes down to a variety of factors including cost, service levels, the 3PL's warehouse network, and their ability to integrate with your eCommerce platform like Shopify, BigCommerce, eBay or WooCommerce. The right 3PL partner should adapt to your business model as it evolves.
Comparing 3PL companies is not just about price. It's also about the services they provide, their integration capabilities, their order management system, customer satisfaction, and the extent of their fulfillment network.
3PL company options can vary by region. In the US, ShipHero, Whiplash, and Fulfillify have extensive warehouse networks. For businesses based in Canada, ShipHero also provides excellent coverage.
Small businesses can enjoy many benefits when partnering with a 3PL. It allows them to focus more on their core operations, like product development and marketing, while leaving the order fulfillment and logistics challenges to the experts.
Partnering with a 3PL helps small and medium businesses streamline their supply chain management, enhance customer service, and improve efficiency. Plus, a good 3PL provider comes with a variety of packaging materials, shipping options, and eCommerce integrations for a one-stop solution.
The recipe for small business growth isn't complete without a pinch of 3PL magic. The perfect 3PL for your business should fit as snugly as a perfectly packed box. They should be a partner that aligns with your vision, budget, and above all, your customers' needs. So, keep calm, partner with a 3PL, and let them take care of the logistics while you rock the eCommerce world!
Yes, many 3PLs offer scalable solutions specifically tailored to the needs of small businesses.
While 3PL service providers offer a range of benefits, one potential downside is the loss of control over your inventory and shipping process. However, most 3PLs provide visibility and updates through their systems.
Yes, through its Fulfillment By Amazon (FBA) program, Amazon provides 3PL services. However, it's important to review the costs and terms associated with FBA, as it may not be the best fit for all businesses.
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TikTok Shop is discontinuing "seller shipping" on February 25, 2026, a move that will halt fulfillment for any 3PL using non-integrated legacy technology. ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, allowing you to generate compliant labels and avoid a total operational lockout. By migrating to ShipHero before the deadline, 3PLs can eliminate onboarding fees and ensure their clients’ businesses remain active and profitable.
Starting February 25, 2026, TikTok Shop is officially discontinuing "seller shipping" (also known as "bring your own label") for all U.S. local sellers.
This means your clients can no longer use their own carrier accounts for TikTok orders.
As their 3PL, you will be unable to generate labels unless your WMS is directly integrated with TikTok’s new ecosystem. To keep your clients' businesses running, you must transition them to TikTok Shop Logistics Services through a verified partner.
ShipHero can keep your 3PL orders flowing from February 25 onwards.
If you are running your warehouse on legacy systems, you are at risk of a complete TikTok Shop lockout. Your fulfillment—and your revenue—will simply stop that day.
TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.
To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
There are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. Most legacy WMS providers are not currently approved. To avoid a total operational blackout for your clients, you must move to a verified partner like ShipHero.
No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.
No. You can still manage fulfillment from your own 3PL warehouse using ShipHero’s direct integration, which pulls the required TikTok labels and logic directly into your existing workflow.
You will lose the ability to generate shipping labels for any TikTok Shop order. This will result in immediate fulfillment backlogs, client dissatisfaction, and potential loss of contracts.
Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.
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TikTok Shop is introducing mandatory logistics changes that will stop fulfillment for unprepared sellers on February 25, 2026.
ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, ensuring your orders keep moving without interruption. By switching to ShipHero before the deadline, brands can maintain compliance and eliminate onboarding fees during this transition. Here’s everything brands need to know to continue fulfilling orders.
Starting February 25, 2026, TikTok Shop will discontinue "seller shipping" for all U.S. local sellers. This means you can no longer use your own carrier accounts to generate labels for TikTok orders. To stay compliant and keep selling, brands must transition to TikTok Shop Logistics Services.
Relying on legacy systems like Extensiv, Deposco, or Logiwa puts your business at risk of account suspension and shipping delays that kill customer loyalty.
If your current WMS or 3PL is not integrated with TikTok Shop Logistics Services, you will face a total fulfillment blackout on that date. Failure to adapt to these changes risks shipping delays that kill customer loyalty and can lead to account suspension on the platform.
For brands onboarding on or after February 9, 2026, these restrictions are already in effect.
ShipHero has done the due diligence and has built a direct integration to ensure that merchants can fulfill TikTok Shop orders themselves while remaining fully compliant with TikTok’s new label requirements.
To help brands and 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
Currently, there are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. If you are using legacy providers like Extensiv, Deposco, or Logiwa, they are not currently approved to support these specific TikTok Shop requirements. To avoid a total operational blackout, you must move to a verified partner like ShipHero before the deadline.
No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.
You can use Fulfilled by TikTok (FBT) to store and ship items through their network, switch to one of the six approved ERP/WMS systems, or use ShipHero's direct integration.
You must use TikTok Shop Logistics Services, but with ShipHero, you can still manage the fulfillment from your own warehouse using TikTok’s required labels and logic.
This connection type will not support the new label requirements. You must switch to a direct TikTok Shop connection within ShipHero to avoid fulfillment interruptions.
Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.
Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.
AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.
ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.
The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.
A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.
ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.
Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.
AI Picking optimizes warehouse operations in two key ways:
The AI Picking feature delivers a wide range of benefits:
The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.
AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.
AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.
AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.
AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.
These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.
The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.
AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.
IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.
While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.
However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.
AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.
Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.
AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.
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