Small ecommerce businesses in Canada are facing a constant barrage of challenges, all of which must be dealt with while the ground constantly shifts under their feet. If they’re still fulfilling orders in-house, that pressure increases exponentially.
Contracting a reputable third-party logistics (3PL) company can take so much off your plate, and let you get back to doing the business tasks you love. It may surprise you to hear you’ll almost certainly reduce overall fulfillment costs, even when factoring in the cost of 3PL fulfillment services.
Then why isn’t everyone doing it?
Well, most will be by the end of this decade, especially if they’re serving an international market.
“The Canada 3PL Market was valued at USD 19.84 billion in 2025 and estimated to grow from USD 20.7 billion in 2026 to reach USD 25.59 billion by 2031, at a CAGR of 4.33% during the forecast period (2026-2031),” predicts Mordor Intelligence. “By end user, E-commerce captured 27.10% of the Canada Third-Party Logistics market share in 2025 and is advancing at a 6.67% CAGR to 2031. Dropship expectations for two-day delivery and seasonal demand spikes lift warehouse automation ROI.”
The smallest businesses and individual sellers could still get away with in-house fulfillment. Additionally, a hybrid fulfillment model utilizing marketplace fulfillment in combination with in-house (such as selling from your website and also using Fulfillment by Amazon) will continue to work for micro-sellers. Business models like dropshipping can also change the game.
To help you decide if it’s time to outsource your ecommerce fulfillment, here are a few signs to consider:
You Need an Expert
Whether it’s receiving shipments in the US or reducing packing materials, third party fulfillment companies are experts at optimizing the process. They can do more, and they can do it better, faster and cheaper. That level of expertise can be priceless for Canadian startups and established businesses alike.
In-house Fulfillment is too Expensive
One of the first lessons we learn in selling products online, is the shipping costs in this country can quickly cripple a small business startup. From storage to staff, order fulfillment can get really expensive, really fast. While you will have to pay fees to a third party for order fulfillment services and warehouse storage, it’s a fraction of the cost of doing it in-house. Do some calculations now, so you’ll know when it becomes more profitable to outsource. It’s also important to factor in what profit potential can be added by expert 3PL companies, as suggested in 7 Surprising Ways to Boost Ecommerce Profits with 3PL Fulfillment.
You’re Falling Behind
Canadians are becoming more demanding when it comes to shipping speed and that starts with getting the order out the door. All orders should be shipped within 24 hours. It’s the one point of the process that is entirely under your control and consumers will note it when they track their shipment. If you’re missing that 24 hour deadline, it’s time to hire more people or consider a fulfillment company.
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Shipping is Taking too Long
We tend to wash our hands of shipping after the package leaves the facility. If it’s a shipper delay it isn’t your fault, right? Maybe not, but if it takes too long it will still reflect poorly on you. One benefit of the larger fulfillment companies is they often have multiple warehouses spread strategically around Canada or the world. ShipBob, for example, boasts over 60 fulfillment centres! That can shave several days off of your delivery time and save you money too.
“Rising delivery expectations, stricter marketplace standards, and regional carrier preferences mean legacy fulfillment models are no longer sufficient,” says Ecommerce in 2026. “Marketplace algorithms now reward delivery speed, stock reliability, and service performance, directly tying operations to ranking and conversion.”
Using ShipBob as the 3PL example to beat, 99.6% of their orders ship on time.
You’re Planning for Global Growth
The logistics of shipping outside of Canada can be intimidating and expensive. This is where third party fulfillment really shines as an easy solution to a rather complicated problem.
Why is 3rd-Party Fulfillment Critical for Small Canadian Businesses?
Fulfillment used to mean processing an order and taking it to the post office or courier. As you grew, you’d hire more people to handle the volume. Today, fulfillment involves flexibility, tech, integration, dynamic laws, distribution, and cost optimization, just to remain in the game. Having someone else navigate all that is beyond valuable. As more and more expertise is required to operate on a global stage, it becomes critical.
There’s a whole world beyond just shipping the orders that 3PL companies can help you with. They can handle your inventory from receiving to storage to shipping, for starters. In fact, you may never touch your inventory yourself. It can be received, sorted, packaged, stored and shipped by your competent partners.
Warehouse management will be another massive chore you can say goodbye to. Your 3PL provider is an expert at warehouse management and order processing. They have highly-sophisticated systems already in place and are ready to handle any size order, storage, and any equipment required. As ecommerce sales channels become more complicated, professional management is critical to ensure you meet the expectations of your customers as you grow.
Additionally, the locations of their warehouses can make a huge difference in the time and cost of delivery. 3PL companies bring established networks of shippers and warehouses, all tracked in real time by sophisticated systems and the latest tech. That makes delivery more efficient and less expensive.
The benefits of using a third-party logistics company extend well beyond what you might normally consider. For example, the flexibility offered by these services can make peak seasons or temporary sales spikes simple to navigate. Did your video go viral? No problem. Did your Dragon’s Den pitch air? They’ve got you covered. Multiple warehouses can also facilitate shifting inventory to cover local shortages, or serve as an alternate shipping point to avoid a natural disaster somewhere else. All of it can happen without any concerns about additional staff or other associated costs.
The stability and scalability of third-party fulfillment facilitates manageable online growth. In the online world of global commerce, that maneuverability is crucial. This year, automation, unified fulfillment, and real-time inventory visibility will be baseline requirements for scalable growth.
Are you considering third-party logistics (3PL) for your Canadian small business? For further guidance, read Canadian Third Party Logistics (3PL) for Online Sales and Ecommerce.
Please share your experience or questions in the comments below, or join us in the Online Business Canada Facebook group.
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Last Updated on March 15, 2026 by Melody McKinnon, Online Business & Marketing Manager
