As e-commerce businesses expand, the limitations of in-house fulfillment solutions like Shopify Fulfillment Network (SFN) become increasingly apparent. While SFN is relatively straightforward in its seamless integration for Shopify users, its scalability constraints can ultimately serve as roadblocks to growth down the line. This is especially the case for brands operating across multiple sales channels or experiencing rapid demand spikes in response to seasonality or changing trends.

This is exactly where third-party logistics (3PL) providers like ShipTop shine. ShipTop enables businesses to streamline operations, improve delivery times, and scale efficiently in a tailored way, offering a level of customization and control that’s hard to match with native fulfillment platforms. So whether your business is managing bulk wholesale orders, customizing packaging for retail, or expanding internationally, ShipTop is ready to be able to adapt to your brand’s next phase.

Understanding the Limitations of Shopify Fulfillment Network

SFN is tailored for Shopify merchants and provides integrated order management and fulfillment services. That said, it’s not a one-size-fits-all solution for a few reasons, primarily because its limitations start to surface once a business surpasses – or on the other hand, isn’t able to meet – certain types of thresholds:

• Order Volume Requirements: Merchants must process more than 10 orders daily to qualify for the program. For companies who are just starting out, this can be a hurdle, even though they anticipate meeting these goals in the future.
• SKU Limitations: On the other hand, SFN is only able to support stores with fewer than 2,000 SKUs, which can end up restricting brands who want to have multiple product variations.
• Geographical Constraints: As of today, fulfillment is only available in the U.S. and Canada, which limits global reach and calls for additional partnerships and potentially multiple logistics vendors.

These restrictions will create friction as brands grow, and since SFN has limited options when it comes to branding, packaging, and integrations, this can cost a brand its identity and efficiency when trying to scale and diversify your product offering strategically. 

The 3PL Advantage: Unlocking Custom Growth Pathways

Specialized, third-party logistics providers aim to specialize in handling the most complex parts of the supply chain, which provides growing businesses with the flexibility they need. Choosing a 3PL partner like ShipTop gives brands access to powerful tools and infrastructure they can actually grow into, not out of.

• Scalable Infrastructure: Whether you’re shipping 100 orders a week or 10,000, ShipTop scales with your business, catering to peak-season or trend-fueled volume without delays or interruption.
• Multichannel Fulfillment: ShipTop integrates seamlessly with Shopify, Amazon, Walmart, and other major platforms to provide a consistent customer experience regardless of how an order is placed.
• Tailored Packaging and Kitting: ShipTop supports custom packaging, bundling, and promotional inserts to support a brand’s unboxing experience goals and make it easier to create memorable unboxing experiences.
• Cost Efficiency: According to our data, outsourcing fulfillment can reduce logistics costs by up to 20% compared to managing it in-house.

Beyond just shipping packages, ShipTop can be a partner for brands in helping solve complex operational challenges. Its advanced returns management system, automated restocking, and dedicated client specialists allow companies to streamline their backend operations without forgoing a top-tier customer experience.

Case Study: Scaling with Intention – A Growing Skincare Brand

Here’s a common growth scenario we see at Shiptop. Let’s imagine an up-and-coming skincare brand that’s starting to amass a cult following quickly. Say “GlowTonic Co.” starts with one hero product – a vitamin C serum – and uses an SFN for its early fulfillment needs. But then the serum goes viral on TikTok. Things were working fine up until that point, but the rise in product demand blew up and GlowTonic decided to expand their product offering line to seven SKUs. Next thing they knew, GlowTonic was on track to enter the Canadian market, and was about to strike deals with two retail chains.

That’s when they hit roadblocks:

• SFN couldn’t accommodate the increased SKU count.
• Their wholesale partners needed EDI compliance, which SFN didn’t support.
• The lack of branded packaging options created inconsistencies across their brand.

In this scenario, GlowTonic could switch to ShipTop and notice the following kind of shift. Their retail SLAs would be met without issue, shipping times would be optimized and actually could go down, all while ShipTop would be by their side to advise on and help design branded, compliant packaging that was sure to stand out in-store. In just three months, ShipTop could ultimately become the retailer’s reliable and strategic partner, allowing GlowTonic to scale without setbacks.

Shopify Fulfillment vs. 3PL Fulfillment: Side-by-Side

Let’s visually break down how Shopify Fulfillment compares to a full-service 3PL like ShipTop:

Ultimately, e-commerce companies that transitioned to 3PLs are able to see improvements to their operational efficiency within months of making the change.

The Importance of Fulfillment Models as You Scale

Your brand strategy doesn’t stay static as your company grows – and neither should your fulfillment strategy. As brands evolve from DTC startups to hefty omnichannel retailers with satisfied shoppers worldwide, their logistics needs shift dramatically. Shopify’s native fulfillment system isn’t built to accommodate hybrid fulfillment models, which are becoming the norm.

3PLs like ShipTop support a variety of complex scenarios:

• B2B Fulfillment: Retail and wholesale orders, often requiring EDI integration and strict compliance.
• Custom Kitting: Building product bundles, influencer kits, or seasonal gift sets.
• Subscription Fulfillment: Flexible recurring shipments tailored to customer preferences.

Overall, brands that embrace agile fulfillment models enjoy higher customer retention. 

What to Look for in a Fulfillment Partner

As you consider scaling, picking the right 3PL is crucial. ShipTop offers services specifically geared toward high-growth e-commerce brands, with clear advantages over basic fulfillment platforms:

• Transparent Pricing: ShipTop offers flexible, all-in pricing models without hidden fees.
• Ecommerce Fulfillment Specialists: Clients are paired with experts who proactively identify areas for improvement.
• Automated Workflows: ShipTop automates order routing, inventory syncing, and returns for greater efficiency.

Additionally, ShipTop’s onboarding process helps startups transition smoothly, setting the foundation for long-term success.

Final Thoughts: Scale Without Sacrifice

Shopify Fulfillment Network is a great entry point. But growth demands flexibility, control, and reliability. Brands looking to expand across channels, customize their packaging, or reduce costs will eventually outgrow SFN’s limitations.

With coast-to-coast coverage, enterprise-level automation, and dedicated ecommerce fulfillment specialists, ShipTop is built to support your business through every growth milestone. If you’re looking to scale without sacrificing brand identity, speed, or customer satisfaction, it’s time to make the switch.