Which Fulfillment Model Is Right for Your E-Commerce Brand?

You’ve got the products. You’ve got the store. Orders are starting to roll in. But here’s the real question: how are you going to get those packages to your customers?

That’s where fulfillment comes in. It’s everything that happens after someone hits “buy”—storing, packing, shipping—and it can seriously make or break your customer experience. For Canadian e-commerce businesses, having the right fulfillment setup isn’t just nice to have—it’s a game changer.

And the stakes are high. Online shopping in Canada is booming, with the market expected to top $74 billion in 2025. Globally, e-commerce sales are headed toward a massive $7.4 trillion. That’s a lot of orders—and a lot of pressure to deliver quickly and reliably.

Plus, today’s shoppers aren’t just looking for great products—they expect fast, free shipping too. In fact, 66% of customers expect free delivery, and nearly half will ditch their cart if shipping costs are too high.

So how do you keep up?

Choosing the right fulfillment model is the first step. Whether you’re doing everything yourself, working with a 3PL partner, testing the waters with dropshipping, or mixing things up with a hybrid approach—there’s no one-size-fits-all answer.

In this blog, we’ll walk through the four main fulfillment models and break down which one might be the best fit for your business. Let’s help you turn fulfillment from a stress point into a strength.

Fulfillment models overview

Each model offers different advantages and challenges depending on factors like business size, order volume, and growth plans.

1. Self-fulfillment (in-house)

Self-fulfillment is the DIY approach to handling orders. You’re in charge of everything—from storing your products to packing and shipping them out. This gives you total control over how things are done, but as your business grows, it can start feeling overwhelming. What works for a few orders a week might not be sustainable when you’re processing dozens (or hundreds!) daily.

How it works:

• Storage: Your inventory lives wherever you can fit it—your home, garage, rented warehouse, or even the backroom of your retail space. It’s cheap (or free), but as stock piles up, space can quickly become an issue.
• Order processing: You or your team pick and pack each order by hand. This means you can add personal touches (like handwritten thank-you notes or custom wrapping), but it also takes a lot of time—especially when orders start rolling in fast.
• Shipping: You’re responsible for getting orders out the door. That might mean daily trips to the post office or scheduling carrier pickups. Managing shipping yourself gives you flexibility, but you might end up paying higher rates than larger retailers who negotiate bulk discounts.

 

Who it’s best for:

• Small businesses and startups with low order volume—when you’re just starting out, self-fulfillment helps keep costs down and lets you control every part of the process.
• Businesses that want full control over packaging and branding—you can use your own packaging, include freebies, or even add a personal touch that makes your brand memorable.
• Retailers with unique or handcrafted products that require personalized touches—when your products are one-of-a-kind, you might prefer handling them yourself to ensure quality before they reach customers.

 

Pros & cons of self-fulfillment

Pros	Cons
✅ Full control over operations, quality, and branding.	❌ Time-consuming and labor-intensive.
✅ Ability to offer personalized packaging (e.g., thank-you notes, custom wrapping).	❌ Requires investment in storage space, staff, and equipment.
✅ Direct inventory oversight—no third-party involvement.	❌ Limited scalability—handling large order volumes can be challenging.
✅ No external fulfillment costs (aside from shipping fees).	❌ Risk of inefficiencies—manual processes can slow down fulfillment speed.

Self-fulfillment is a great way to start, but once orders pick up, it can quickly become a full-time job. At that point, many businesses start looking at other fulfillment options—like outsourcing to a 3PL or mixing self-fulfillment with other methods for efficiency.

2. Third-party logistics (3PL)

A third-party logistics provider (3PL) takes fulfillment off your plate, handling storage, packing, and shipping so you don’t have to. Instead of managing a warehouse, hiring staff, and coordinating shipping yourself, you send your inventory to a 3PL, and they take care of the rest. This makes it a great option for businesses looking to scale without getting bogged down in logistics.

How It Works:

• Storage: You send your inventory to the 3PL’s fulfillment center, where they store it in their warehouses. This frees up your space and eliminates the hassle of inventory management, but you’ll need to pay storage fees based on volume.
• Order Processing: When a customer places an order, the 3PL’s team picks, packs, and ships it using their own systems. They typically have efficient processes in place, ensuring faster turnaround times than self-fulfillment.
• Shipping: The 3PL ships orders using their carrier network, often at discounted bulk rates that individual businesses wouldn’t be able to negotiate. This can help reduce shipping costs and provide faster delivery options for customers.

 

Who it’s best for:

• Growing e-commerce brands that need to scale fulfillment without hiring staff—when orders start piling up, a 3PL can handle the workload without requiring you to expand your team or storage space.
• Businesses with high order volumes or seasonal demand spikes—if your sales fluctuate throughout the year, a 3PL can ramp up fulfillment during busy seasons and scale back when things slow down.
• Retailers who want faster shipping times and negotiated carrier rates—by leveraging a 3PL’s shipping infrastructure, businesses can offer 2-day or even same-day shipping without the overhead of managing their own logistics.

Pros & cons of 3PL

Pros	Cons
✅ Reduces workload—logistics are handled by experts.	❌ Less direct oversight—must trust the 3PL’s quality.
✅ Scalable—3PL can expand operations as you grow.	❌ Fees for storage, handling, and shipping can increase costs.
✅ Often lower shipping rates due to carrier partnerships.	❌ Requires integration with 3PL systems and communication.
✅ Ability to offer faster shipping speeds, even internationally.	❌ Service quality varies—choosing a reliable 3PL is critical.

Outsourcing fulfillment to a 3PL is becoming increasingly common—57% of e-commerce businesses now outsource some or all of their fulfillment. While it is the most proven way used by most brands to scale their operations, it also means relying on an external provider. Hence, choosing the right 3PL is key to ensuring a smooth customer experience and keeping fulfillment costs in check.

3. Dropshipping

Dropshipping is the easiest way to sell online without dealing with inventory. Instead of stocking products yourself, you partner with a supplier who stores and ships orders for you. This means no storage costs, no packing, and no post office runs—but it also means you have less control over shipping and product quality. It’s a great model for getting started, but it comes with a few trade-offs.

How it works:

• Storage: You don’t need to rent a warehouse or fill up your garage with products—your supplier takes care of that. This keeps your overhead costs low, but since you don’t control the inventory, stock availability can sometimes be unpredictable.
• Order processing: When a customer places an order on your website, you simply pass it along to your supplier, who handles everything from packing to shipping. This saves you time, but it also means you rely on their efficiency.
• Shipping: The supplier ships the order directly to your customer. No need to handle logistics, but you don’t control the shipping speed. If the supplier is slow or uses cheap packaging, your customers might not be happy—and you’ll be the one handling complaints.

 

Who it’s best for:

• Entrepreneurs testing new product ideas with minimal risk—dropshipping lets you try different products without investing in inventory upfront. If something doesn’t sell, you simply remove it from your store.
• Businesses that want to avoid inventory costs—you only pay for products after customers buy them, so there’s no money wasted on unsold stock.
• Retailers looking for a side business or passive income stream—since your supplier does the heavy lifting, you can focus on marketing and customer service, rather than packing orders.

 

Pros & cons of dropshipping

Pros	Cons
✅ No need to invest in inventory upfront—pay only when a sale is made.	❌ Lower profit margins—suppliers take a cut.
✅ No storage or warehouse space required.	❌ Less control over fulfillment speed and packaging quality.
✅ Easy to scale and test new products.	❌ Relies on supplier reliability—if they run out of stock, your customers may face delays.
✅ Simple to get started—low initial investment.	❌ Can lead to customer service challenges if suppliers are slow to respond.

Dropshipping is a great way to start an online store with little investment, but it’s not perfect. Margins are lower, and supplier reliability can be a gamble, so finding trustworthy partners is key to keeping your customers happy.

4. Hybrid fulfillment

Hybrid fulfillment is the best of both worlds—you don’t have to choose just one fulfillment model. Instead, you mix and match different methods based on what works best for your business. Maybe you handle some orders yourself, outsource others to a 3PL, and even dropship certain products. This approach helps keep costs down, improve efficiency, and stay flexible, but it does take good coordination to manage multiple fulfillment channels smoothly.

How it works:

• Combination Approach: Some products are self-fulfilled, some go through a 3PL, and others might be drop shipped. For example, you might pack and ship bestsellers yourself to add a personal touch while using a 3PL for bulkier or high-volume items that are harder to manage in-house.
• Dynamic Scaling: When order volumes are low, you might keep fulfillment in-house, but as sales pick up, you shift some orders to a 3PL or supplier. This keeps you from getting overwhelmed while ensuring customers still get their orders on time.
• Seasonal Adjustments: You may handle fulfillment yourself during slow months, but during peak seasons (like Black Friday or the holidays), you outsource the extra orders to a 3PL. This way, you don’t have to pay for extra warehouse space year-round—you just scale up when you need to.

 

Who it’s best for:

• Businesses that need a balance between control and scalability—you get to stay hands-on where it matters while outsourcing where it makes sense.
• Retailers with different fulfillment needs—for example, self-fulfilling local orders while using a 3PL for international shipments to ensure faster and more cost-effective deliveries.
• Brands that deal with seasonal fluctuations—instead of investing in year-round storage and staff, you can scale up only when needed, keeping operations lean and efficient.

Pros & cons of hybrid fulfillment

Pros	Cons
✅ Flexible—choose the best method per product or region.	❌ More complex to manage multiple fulfillment systems.
✅ Cost-effective—balance in-house and outsourced fulfillment.	❌ Requires strong coordination to avoid errors.
✅ Provides a backup option—reduces risk if one method fails.	❌ Inventory is spread across multiple locations, requiring good tracking.
✅ Helps manage peak-season demand without overcommitting resources.	❌ Requires investment in inventory management software to track multiple channels.

Hybrid fulfillment gives you flexibility, cost savings, and control, but it does require solid inventory tracking and strong coordination to keep things running smoothly. When done right, it’s a smart way to grow without overcomplicating logistics.

Factors to consider when choosing your e-commerce fulfillment model

There’s no one-size-fits-all approach when it comes to fulfillment. The best model for your business depends on what you sell, where your customers are, how fast you’re growing, and how much control you want over logistics. Whether you’re thinking about self-fulfillment, outsourcing to a 3PL, dropshipping, or a hybrid model, here’s what to keep in mind when making your decision.

1. Product type & size

The kind of products you sell directly impacts how you store, handle, and ship them—which in turn influences the best fulfillment strategy for your business. 

Product type & size	Description	Fulfillment method
Small, lightweight products(e.g., phone cases, jewelry, clothing)	Easy to store and ship, making them manageable for in-house fulfillment.	Self-fulfillment may be a good option in the early stages.
Bulky or heavy items(e.g., furniture, gym equipment)	Take up significant space and require special handling.	A 3PL with freight capabilities is a better choice.
Fragile or perishable items(e.g., glassware, chocolates, cosmetics)	Require climate-controlled storage and extra care.	A specialized 3PL that offers temperature control and careful handling.
High-value products(e.g., luxury watches, electronics)	Need secure storage and insured shipping.	A 3PL with extra security measures for expensive goods.
Broad product catalog(many SKUs)	Managing a large inventory in-house can be complex.	A 3PL with an automated tracking system helps prevent stock issues.

Example: A Canadian chocolatier would need a climate-controlled warehouse to prevent melting in summer—something a specialized 3PL could provide.

2. Order volume & growth trajectory

How many orders you ship per day—and how fast you’re growing—determines whether you should handle fulfillment yourself or outsource it.

Order volume & growth trajectory	Description	Fulfillment method
Low order volume(Under 10 orders/day)	Manageable with a small workspace and basic shipping setup.	Self-fulfillment is a practical option.
Medium order volume(10–100 orders/day)	Requires structured processes, packing stations, and possibly extra staff.	A 3PL could help free up time and streamline operations.
High order volume(100+ orders/day)	Needs scalable fulfillment with automation and staff to manage peaks.	Outsourcing to a 3PL ensures efficiency and scalability.
Seasonal spikes(e.g., holiday rush)	Orders double or triple in certain months, requiring temporary labor and infrastructure.	A 3PL can provide the necessary flexibility and resources.
Future growth plans	Expanding to new markets (e.g., Amazon, international scaling) requires adaptable fulfillment.	A fulfillment solution that scales with business growth is ideal.

Tip: Plan for the next 6–12 months, not just your current state. Many businesses start with self-fulfillment, but once order volume outgrows their capacity, they transition to a 3PL before fulfillment bottlenecks start hurting sales.

3. Customer location & shipping destinations

Where your customers are located affects shipping times, costs, and overall fulfillment efficiency.

Customer location	Description	Fulfillment method
Local customers(Same city or province)	Easier to manage with local shipping options.	Self-fulfillment works well; same-day courier or local pickup is an option.
Nationwide customers(Across Canada)	Shipping costs and delivery times can be optimized.	A centrally located fulfillment center (e.g., in Ontario) helps reduce costs.
Coast-to-coast shipping(Toronto to Vancouver, etc.)	Long shipping distances can increase costs and delivery times.	A 3PL with warehouses in both Eastern and Western Canada can shorten delivery times and reduce costs.

Example: A Toronto-based e-commerce store might self-fulfill orders within Ontario but use a U.S. 3PL for American customers to avoid customs issues and offer faster delivery.

4. Order processing speed & technology needs

The faster and more accurate your order processing, the better the customer experience—and technology plays a huge role in making that happen.

Fulfillment technology & tools	Description	Key benefits
Self-fulfillment tools	Requires shipping software, label printers, and barcode scanners. Integration with platforms like Shopify or WooCommerce can automate order processing.	Reduces manual work and streamlines operations for small businesses.
3PL fulfillment technology	Built-in systems connect directly to online stores, automating order processing.	Orders flow seamlessly from the website to fulfillment without manual input.
Inventory visibility	Real-time tracking ensures accurate stock levels and prevents overselling.	Helps businesses avoid stockouts and fulfillment delays.
Advanced fulfillment tech(RFID tagging, AI-driven tracking)	Enhances accuracy to over 97% (compared to the industry average of 66%).	Prevents miscounts, speeds up order picking, and reduces fulfillment errors.

Tip: If you’re not comfortable setting up fulfillment software yourself, a 3PL’s technology can automate most of the process for you.

5. Cost considerations

Each fulfillment model has different cost structures, so it’s important to calculate which is the most sustainable and scalable for your business.

Here’s the content in a table format:

Fulfillment Method	Cost components
Self-Fulfillment	Rent (if warehouse space is needed) Labor costs for packing/shipping Packing materials Carrier fees (often higher without bulk shipping) Software/hardware (e.g., barcode scanners, shipping software)
3PL (Third-Party Logistics)	Storage fees (per pallet or cubic foot) Pick & pack fees (charged per order) Shipping costs (often at discounted bulk rates) Onboarding/setup fees
Dropshipping	Wholesale product cost Per-order fulfillment fees (if charged by the supplier)

Tip: Compare your cost per order in each scenario. For example, if self-fulfillment costs you $5 per order and a 3PL charges $3 per order, outsourcing could actually save you money. Also, consider hidden costs, like the time you spend on fulfillment instead of growing your business.

Take the right fulfillment decision 

Fulfillment is the backbone of your e-commerce business—when it runs smoothly, customers are happy, and operations stay efficient. But when things go wrong, delays, errors, and rising costs can slow you down.

Key Takeaways:

• Fulfillment goes beyond shipping—it includes inventory management, order processing, and returns.
• Speed and accuracy in fulfillment directly impact customer satisfaction and brand trust.
• The right fulfillment model—whether self-fulfillment, 3PL, or a hybrid approach—depends on your business needs.
• Smart inventory management and automation help reduce errors and improve efficiency.

So, what’s next? Take a step back and assess your fulfillment setup. Are delays costing you customers? Is scaling becoming a challenge? If so, the right 3PL partner can take fulfillment off your plate—helping you streamline operations and grow with confidence. That’s where Ecom comes in.

Who are we?

Ecom Logistics is more than just a 3PL provider—we’re your growth partner, helping you to streamline operations, reduce costs, and scale effortlessly. We understand that fulfillment isn’t just about shipping—it’s about delivering great customer experiences while keeping logistics simple and efficient.

As one of the most trusted 3PL partners in Canada, we provide tech-driven, scalable, and sustainable fulfillment solutions designed to fit your business needs—whether you’re shipping across Canada, or managing high-volume peak seasons.

Why businesses choose us

• Strategic Warehouse Locations – With fulfillment centers across Canada, we help you reduce shipping times, lower costs, and reach customers faster.
• Advanced Technology – Our seamless API integrations sync with your WMS and e-commerce platforms, ensuring real-time order updates, automated workflows, and smooth operations.
• Scalable Solutions – Whether you’re handling seasonal peaks, rapid business growth, or high order volumes, our flexible fulfillment network scales with you.
• Comprehensive Fulfillment Services – From e-commerce and B2B fulfillment to subscription boxes, kitting, and Amazon FBA support, we handle everything from storage to last-mile delivery.
• Sustainable Logistics – Our EV-powered deliveries, eco-friendly packaging, and energy-efficient warehouses help businesses reduce their carbon footprint without compromising efficiency.
• Expert Logistics Team – With years of industry experience, our team ensures every order is picked, packed, and shipped with precision—so you can focus on growing your brand.

 

Let’s optimize your fulfillment! Contact us today to see how we can help.