Over the last decade, retailers worldwide have seen exceptional growth thanks to a massive surge in online shopping and e-commerce sales. In 2014, global retail e-commerce sales totaled just over $1.3T, but sales are projected to reach a whopping $6.3T by the end of 2024.

Unsurprisingly, this e-commerce boom has led to major changes within the 3PL landscape. Now more than ever, 3PLs need to be aware of their clients' specific needs and fully transparent about their fulfillment offerings.

We recently sat down with Brian Kirst to discuss all these changes in more detail. Brian is the Chief Commercial Officer at SnapFulfil and has nearly 30 years of experience in third-party logistics and digital transformation. He had much to share about how online growth has forever changed the way consumer brands and 3PLs do business.

The Far-Reaching Impact of the E-commerce Boom

The e-commerce boom has grown more than just sales—it's also grown options. Customers have far more choices in what they can buy online than ever before.

Prior to the boom, online purchases were limited by the supply chain. For example, purchasing perishable or frozen goods online came with obvious problems. But the rise of e-commerce has also seen a rise in supply chain innovation to meet those challenges.

As Brian puts it, “The automation and technology that go into those delivery processes are continuing to drive people online. Even as brick-and-mortars are starting to claw back a bit, emerging brands have the ability to say, ‘This is something folks never thought they could get online, and we're going to be able to provide it."

Not only has the e-commerce boom led to expanded product offerings, it’s changing how customers shop, as well. 

Subscription services have completely reshaped online shopping by providing convenient, recurring deliveries for customers (and a steady cash flow for retailers). The global e-commerce subscription market is expected to surpass $904B in 2026, and it’ll likely only go up from there.

Brands are becoming more innovative with what they're able to bring to consumers without a brick-and-mortar presence,” Brian says. “The subscription services we're seeing offer repeat purchasing, and you can’t do that the same way in a brick-and-mortar setting. Subscriptions help retailers take advantage of having a captive audience by upselling to those customers.”

By capitalizing on this new model, retailers have grown their product catalog—and their revenue.

Retailers' Needs Have Changed to Meet Rising Demand

As sales increase and new subscription models are created, brands' fulfillment needs become increasingly complex. Retailers now require a robust digital infrastructure and greater data analytics capabilities to meet the rising demands of online shoppers.

Using advanced analytics, retailers can gain valuable insights into customer preferences and buying patterns. This enables brands to make smarter, data-driven decisions for purchasing, marketing, and more.

In addition, the standards for a retailer’s fulfillment partner have also leveled up. E-commerce stores are looking for improved communication and greater involvement from their 3PL provider.

Brian has seen these changes firsthand during his career.

Before the e-commerce boom, a 3PL would be one-touch and the retailer was responsible for the customer experience,” he says. “But now, the fulfillment provider is intimately involved in the experience, from the time in transit to the way products are packaged to the last touch before the product gets to that customer.”

With a higher volume of sales, it’s necessary for retailers to negotiate service-level agreements (SLAs) that guarantee timely deliveries while balancing costs. But speed isn’t enough—SLAs need to provide visibility into shipment tracking to satisfy customers’ demand for transparency.

Customer Expectations Continue to Evolve and Expand

Today’s customers want a thoughtful and satisfying shopping experience, even when they’re not buying in person. While e-commerce is largely disrupting brick-and-mortar buying, it takes considerable effort to replicate in-store interactions in the online space. This is especially true for luxury brands who rely on the look and feel of their stores to create an elevated experience. 

That same luxury feeling has to be reflected online through personalization and product packaging. Seventy-two percent of American consumers say a product's packaging often influences their purchases. And 88% of online shoppers say they’re more likely to keep shopping on a retail website that gives them a personalized experience.

As customers’ expectations change, 3PLs need to adapt to help their clients.

In many ways, increased customer expectations “translate upstream into tasks that have to be accommodated by a fulfillment provider,” explains Brian.

For example, 3PLs should offer to add custom inserts to each package, addressed to the individual consumer. 

This gives shoppers a unique and personal unboxing experience, comparable to receiving one-on-one service from a brick-and-mortar.

Overall, evolving customer expectations put significant pressure on retailers—and, by extension, 3PLs—to reevaluate their fulfillment practices. Retailers need to have the right systems in place to provide memorable and distinct online shopping experiences for every customer.

3PLs Need Trust and Transparency to Stand Out

As the expectations from their retail partners have changed, 3PLs are finding that trust and transparency are essential to stand out. 

Increased transparency builds trust between partners, and trust differentiates 3PLs within the fulfillment space. Retailers have to be able to trust 3PLs for seamless logistics, timely deliveries, and ultimately, to uphold their brand reputation and customer satisfaction.

Brian points out that the emphasis on trust and transparency is still relatively new in the world of fulfillment—and has developed alongside the e-commerce boom. 3PLs used to only offer visibility into inventory levels and order statuses. Now the best 3PLs provide their customers the ability to monitor and track performance, costs, and SLAs, helping to build confidence with retail partners.

As more 3PLs have embraced transparency, it's important for them to add a layer of visibility into their invoicing, billing, and freight.

Brian says retailers are “requiring more and more visibility from their 3PL partners. They want to be able to drill down into the actual costs of all the touches and handoffs in the supply chain.”

This visibility is now a value add that brands look for from their fulfillment provider, and it may just be the deciding factor in whether or not a retailer signs on with that 3PL.

3 Tips for Brands Looking to Improve Fulfillment Operations

As online sales continue to grow, many retailers are looking to improve their fulfillment operations to stay competitive within the e-commerce space. These three best practices will help your brand build a strong foundation and lasting 3PL partnerships.

1. Relinquish control and choose a partner you can trust

Entrusting fulfillment logistics to a 3PL partner allows retailers to lean on the fulfillment provider’s expertise. The leading 3PLs have specialized knowledge in supply chain management and shipping processes, which is a huge asset to retailers with a high order volume.

Most 3PLs also have advanced warehouse technologies and analytics tools they can use to enhance efficiency and accuracy throughout the supply chain.

And handing over the fulfillment reins to a 3PL provider means you’ll have more time to focus on core competencies like product development and marketing strategies.

Brian encourages brands to look for a 3PL that prioritizes openness right from the start by allowing site visits and assigning account managers. With those elements at the forefront, it’ll be much easier to trust the 3PL to successfully execute on fulfillment.

2. Proactively and explicitly communicate your needs

When you clearly communicate your shipping and fulfillment needs, it becomes easier to ensure your 3PL partner has the capacity to fulfill every order accurately and on time.

Brian emphasizes that no matter what services you need, the key is to be proactive in your communication. This means addressing your needs ahead of signing a contract or formally committing to a fulfillment plan. That way, you feel confident the 3PL is a good fit for your brand before orders start processing.

If a 3PL has enough availability and inventory at the ready, fulfillment should happen without any delays or unexpected costs—a win-win for everyone involved.

3. Make quick decisions when a 3PL isn’t meeting your needs

Fulfillment partners are trusted to be the last touch before products reach customers. Given their importance, you need to address any issues directly with your partner.

If a 3PL is failing to meet your fulfillment needs, it’s in your best interest to discuss those issues as soon as possible. And if the issues are not corrected, Brian says brands should look to make quick decisions.

He points out that a failing 3PL can have major negative effects on your business, such as increased shipping costs from order processing errors or decreased customer satisfaction from late deliveries.

These missteps can have a serious financial impact and harm your brand’s reputation. Decisions need to be made immediately whenever a 3PL isn’t meeting your needs so you have a chance to protect your cash flow and keep customers happy.

Get Unmatched Supply Chain Visibility with Implentio

Many 3PLs only provide visibility into inventory levels and order status—nothing more. The trouble is, e-commerce fulfillment has a lot of other moving parts you need insight into if you want to streamline your operations.

Implentio offers brands complete visibility into their supply chain processes, including those handled by 3PL providers. The Implentio platform gives brands actionable data so they know exactly what's happening at every stage of their supply chain. Plus, it enables 3PLs to proactively provide more transparency and build trust in the partnership.

Implentio’s invoice validation feature analyzes fulfillment data to identify billing issues, unmet SLAs, and order exceptions. At the same time, the automated 3PL outreach easily requests credits from 3PLs when necessary, which can be tracked directly in the Implentio system.

I can't stress enough how much value and opportunity there is with Implentio,” Brian said. “Implentio will be disruptive in the 3PL space. Providers aren't traditionally as transparent with their customers as they need to be. I think Implentio will change brands' expectations of their 3PL providers for the better. And ultimately, the consumer will have a better experience because of it.”