7 E-Commerce Logistics Pain Points Outsourced Fulfilment Solves

While logistics is a vital component of success, it can also be a significant source of frustration and inefficiency. Many brands discover that managing logistics in-house diverts time, money and focus away from their true strengths: product innovation, marketing and customer engagement.

If you’ve ever scrambled to find stock that your system swore you had, or watched peak season turn your warehouse into chaos, you’re not alone. Logistics is often the make-or-break factor for fast-growing brands. This article explores the most common pain points businesses face in logistics and fulfilment, and how forward-thinking solutions – particularly through a third-party logistics (3PL) partnership – can transform these challenges into opportunities for growth.

Jump to:

• 1 – Operational Inefficiencies
• 2 – Cost Challenges
• 3 – Scalability & Growth Limitations
• 4 – Technology & Integration Gaps
• 5 – Customer Experience Issues
• 6 – Compliance & Regulatory Burdens
• 7 – Strategic Focus
• Good Logistics is a Growth Enabler

1 – Operational Inefficiencies

Order Fulfilment Delays

Order volumes often spike unpredictably – during peak seasons, influencer flash sales, or product launches. Without robust operations and infrastructure, delays occur, leading to dissatisfied customers and a damaged reputation.

Solution: Scalable fulfilment capacity, automated warehouse systems and demand forecasting can keep orders moving efficiently, even during demand surges.

Inventory Management Issues

Manual or outdated stock tracking often causes overstocking, stockouts, and lost sales. Inefficient inventory management also increases holding costs and reduces working capital.

Solution: Real-time inventory tracking, integrated software, and predictive analytics ensure stock accuracy and visibility across multiple sales channels.

Limited Warehouse Capacity

Many businesses outgrow their existing facilities, leading to space shortages and poor geographic coverage for their customer base.

Solution: Partnering with a 3PL provides access to strategically located warehouses, improving reach and reducing delivery times.

High Error Rates

Poor training and or manual picking and packing increase the risk of errors, which drive up returns and harm customer trust.

Solution: Barcode scanning, continuous improvement, and AI-driven quality control reduce errors and improve fulfilment accuracy.

Limited Capability in White Glove Solutions

Specialised white glove services such as product personalisation (engraving, embroidery, embossing), gift wrapping and kitting may be limited, costly or inconsistently executed in-house.

Solution: Partnering with a 3PL company experienced in value-added services provides opportunity to add something special to online orders and ensures a polished customer experience.

2 – Cost Challenges

High Labour Costs

Recruiting, training, and retaining warehouse staff requires significant time and financial investment.

Solution: Outsourcing to a 3PL helps reduce labour expenses by leveraging shared resources and expertise.

Operational Overhead

The cost of running warehouses, insurance, equipment, Health and Safety and technology infrastructure can be substantial.

Solution: Flexible outsourcing reduces overhead while allowing businesses to benefit from state-of-the-art facilities without large upfront investments.

Inefficient Shipping Costs

Smaller-scale shipping operations often miss out on bulk discounts and carrier partnerships. This drives the cost of shipping up and limits the options brands can provide to their customers.

Solution: 3PLs leverage volume discounts and established carrier relationships, to reduce shipping expenses and provide a wider range of delivery options.

Scalability Costs

Expanding in-house infrastructure requires capital-intensive investments in new facilities and technology.

Solution: 3PLs provide scalable solutions that flex and adapt to growth – reducing risk and upfront costs.

3 – Scalability & Growth Limitations

Seasonal Demand Peaks

Spikes during peak seasons, launches or marketing campaigns can overwhelm in-house systems, infrastructure and resource.

Solution: Flexible logistics partners offer variable capacity to smoothly handle fluctuations.

Expanding Markets

Global growth demands multi-regional warehousing, customs expertise, and omnichannel fulfilment.

Solution: 3PLs provide the infrastructure and expertise to support international expansion and omnichannel fulfilment – seamlessly.

Lack of Flexible Solutions

Rigid systems limit the ability to adapt to new sales channels, such as marketplaces or pop-ups.

Solution: Systems that plug in easily into new sales channels, from marketplaces to TikTok Shop to pop-ups.

Cookie-Cutter Solutions

Standardised approaches may not meet the unique needs of each brand.

Solution: Tailored logistics that fit the way your brand works, keeping operations smooth and giving customers the experience they expect.

4 – Technology & Integration Gaps

Outdated Systems

Slow, unreliable software leads to bottlenecks, poor stock visibility and a lack of efficiency.

Solution: Cloud-based warehouse management systems (WMS) integrate seamlessly with e-commerce platforms, providing real-time updates.

Poor Data Analytics

Without data insights, brands cannot forecast demand accurately or optimise stock levels.

Solution: Advanced analytics tools empower smarter decision-making with visibility into KPIs, demand, inventory turnover, and fulfilment performance.

Integration Challenges

Disconnected ERP, CRM, and e-commerce systems create inefficiencies.

Solution: 3PLs with integration-ready platforms streamline operations, ensuring smooth data flow across systems.

5 – Customer Experience Issues

Slow Delivery Times

Customers expect fast, affordable and reliable shipping – often same-day or next-day.

Solution: Distributed fulfilment centres close to carrier hubs enable later order cutoffs and reduced delivery times, helping to meet rising customer expectations. Brands can also take advantage of better rates due to volume discounts fulfilment partnerships can achieve with carriers.

In 2024, £38.3 billion worth of online sales were lost due to delivery issues. Read more about how delivery impacts basket abandonment in our Battling Basket Abandonment Playbook.

High Return Rates

Inefficient returns handling frustrates customers and increases business costs.

Solution: Streamlined reverse logistics simplify returns, improving customer satisfaction and loyalty, and enabling fast re-sale of stock.

Packaging & Branding Limitations

Generic packaging can weaken brand identity and customer trust, signal lower quality and cause missed marketing opportunities. .

Solution: Custom packaging and seasonal branding can elevate the unboxing experience, turning customers into brand advocates.

Inconsistent Service Levels

Variability in order accuracy or delivery undermines consumer trust.

Solution: Standardised processes and quality checks ensure consistent service.

6 – Compliance & Regulatory Burdens

International Shipping Compliance

Navigating customs, tariffs, and documentation can overwhelm in-house teams.

Solution: Experienced 3PLs manage cross-border regulations, reducing delays and compliance risks.

Safety & Quality Regulations

Some products (including beauty, food and supplements) require strict storage and handling standards.

Solution: Specialised and experienced logistics providers ensure compliance with industry-specific requirements.

Returns & Waste Management

Managing expired or recalled products is complex and resource-intensive.

Solution: 3PLs implement efficient waste and returns management systems, that maintain compliance and enhance sustainability.

7 – Strategic Focus

Distraction from Core Competencies

Brands can often lose focus or have to divert their time to fix logistics challenges.

Solution: Outsourcing fulfilment allows businesses to redirect attention and resources towards marketing, product innovation, and customer engagement.

Desire for Expertise

In-house operations often lack specialist knowledge and up to date systems.

Solution: Leveraging 3PL expertise enables brands to operate their fulfilment and delivery at a higher level of efficiency and customer satisfaction.

Global Expansion Goals

Scaling into new markets requires infrastructure that many brands cannot build alone.

Solution: 3PL partnerships provide the global footprint necessary for swift expansion without heavy multi-region investments.

Good Logistics is a Growth Enabler

In a world where speed, accuracy, efficiency, and customer experience define success, the right solutions support growth opportunities and position your brand for long-term success. Logistics and fulfilment are important drivers of customer satisfaction, brand reputation, and global growth.

While the challenges are multiple and significant, businesses do not have to face them alone – with the right 3PL partnership, brands can turn operational pain points into competitive advantages.

ILG is a market-leading 3PL specialising in high-quality order fulfilment and delivery services. Our customers are mostly fast-growth premium brands; many in the beauty, fashion, homewares, lifestyle and wellbeing sectors. Our mission is to help them succeed.

Submit an enquiry to chat with our expert fulfilment team