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Ep. 1- 5 3PL Red Flags to Watch Out For

Ep. 1- 5 3PL Red Flags to Watch Out For

Tthe 5 biggest 3PL red flags I’ve seen.

Keyan Bazargan
August 14, 2025

711 in Tokyo is MUCH healthier than in the USA. Fresh, high quality chicken and rice costs $5-6 per meal. Japan has over 21,000 711 stores and most food is made fresh daily and delivered multiple times per day. It’s a big contrast compared to the “fresh” food that most people wouldn’t dare touch in the USA 711’s.

In Today’s Email:

The 5 biggest red flags I’ve seen. 🚩
Bookmarks - tactical advice from DTC founders. 🧠

THE 5 BIGGEST 3PL RED FLAGS 🚩

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I’ve visited close to 20 3PL’s in person, met over 100 virtually, and worked with dozens running global operations for an 8-figure brand.

Here are 5 things to look out for in your search 👇

#1 - Cleanliness

I’ve observed a strong correlation between cleanliness and performance. You will only know this if you visit in person.

#2 - Confusing Pricing

If your 3PL hands you a generic rate card and does not help you interpret what your actual costs will be, red flag.

#3 - Lack of Focus

If you’re in clothing, you’re better off going to the 3PL that specializes in clothing fulfillment.

With some exceptions, avoid 3PL’s that try to service everyone and offer everything.

#4 - Long Term Contracts

You may hear something along the lines of “We have a long term contract because of the time commitment/cost of onboarding.” In 2025, if their onboarding isn’t quick and seamless, that’s not good. The best 3PL I’ve ever worked with didn’t make us sign an agreement at all.

#5 - Profit Based Pricing

This one is rare, but if a company asks for a percentage of your profit margins, instead of flat fee pricing, run away. It will probably be 5x more expensive. Protect your margins by understanding fair market value for the service.

BOOKMARKS

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Thanks to shopify markets, its easier than every to get started.
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See you all next Thursday 👋

Keyan

PS: Whenever you’re ready… we help founders reduce COGS by 10% and eliminate logistics overwhelm. If you’d like to work together, just reply “Ops” and I’ll shoot you details.