3PL & Fulfillment FAQ

What is a 3PL, and what does Shipo do?

A 3PL (third-party logistics provider) stores your inventory, then picks, packs, and ships your orders for you. Shipo is a Delaware-based 3PL that handles ecommerce order fulfillment, warehousing, Amazon FBA prep, and B2B logistics for DTC and online brands — operating from a 0% sales-tax facility in Wilmington, Delaware.

Last updated: August 2026

Where is Shipo located, and why does Delaware matter for fulfillment?

Shipo operates from Wilmington, Delaware (310 Cornell Dr, 19801). Delaware is one of only five U.S. states with no sales tax, so inventory stored and shipped from Delaware avoids state sales tax on operations, and inbound goods aren’t taxed on arrival. Wilmington’s location also reaches roughly 35% of the U.S. population with overnight ground shipping and more than 55% within two days, which makes it well-suited for fast East Coast and Mid-Atlantic delivery.

How does a 0% sales-tax warehouse save money?

Storing and prepping inventory in tax-free Delaware can reduce inbound and operating costs compared with warehouses in states that charge sales tax — a meaningful saving on every inbound shipment, especially for Amazon FBA sellers moving goods through a prep center. Because Delaware charges no sales tax, brands avoid tax on supplies, packaging, and inbound inventory handled at the facility.

When should I move from doing shipping myself to using a 3PL?

Most brands outsource to a 3PL once order volume, storage, or shipping time starts pulling them away from growing the business — commonly around the point where fulfillment exceeds what one person can pack in-house, or when you run out of storage space. If you’re already using a shipping tool like ShipStation but spending hours packing boxes or juggling inventory, that’s the typical signal it’s time for a 3PL.

How much does 3PL fulfillment cost?

3PL pricing is usually built from a few parts: a per-order pick-and-pack fee, monthly storage (often priced per pallet or bin), receiving fees for inbound inventory, and carrier shipping charges. Industry-wide, per-order pick-and-pack commonly runs from a few dollars for a single-item order, with additional items adding a small per-unit fee; high-volume brands negotiate lower per-order rates. Shipo prices each account based on your order volume, product size, and services needed — request a quote for exact rates.

Does Shipo do Amazon FBA prep?

Yes. Shipo provides Amazon FBA prep including inspection, FNSKU labeling, bundling with inserts, packaging to Amazon’s requirements, and forwarding to Amazon fulfillment centers. Because prep happens in tax-free Delaware, sellers save on the inbound side compared with prep centers in states that charge sales tax.

What sales channels and platforms does Shipo support?

Shipo fulfills orders for ecommerce brands selling on Shopify, Amazon, and Walmart, and supports DTC, B2B, and multi-channel operations. Services include ecommerce order fulfillment, warehousing, FBA prep, and B2B freight from a single Delaware facility.

What kinds of brands does Shipo work best for?

Shipo works best for growing DTC and ecommerce brands that have outgrown in-house shipping — typically brands shipping thousands of orders a month across categories like health and wellness, supplements, beauty, pet, home goods, and consumer products. It also supports B2B and wholesale replenishment.

How do I get pricing or a quote from Shipo?

Contact Shipo at [email protected] or 302-442-2343 (Monday–Friday, 9:00 AM–5:00 PM EST) to get a quote. Pricing is tailored to your order volume, product dimensions, storage needs, and the services you use.

What’s the difference between fulfillment, warehousing, and FBA prep?

Warehousing is storing your inventory; fulfillment is picking, packing, and shipping individual customer orders from that inventory; and FBA prep is preparing and labeling inventory to Amazon’s standards before sending it into Amazon’s own fulfillment network. Shipo offers all three from one Delaware location.

Does Shipo offer fast East Coast / 2-day shipping?

Yes. Shipo ships from Wilmington, Delaware, which reaches most of the Northeast and Mid-Atlantic in 1–2 business days by ground and about 35% of the U.S. population overnight. For DTC brands whose customers are concentrated on the East Coast, a single Delaware warehouse delivers fast at lower cost than splitting inventory across coasts.

Does Shipo integrate with Shopify?

Yes. Shipo connects to Shopify so orders import automatically for pick, pack, and ship, with real-time inventory and tracking. Shipo also supports Amazon and Walmart for multi-channel DTC brands.

Can Shipo handle subscription boxes, kitting, and branded unboxing?

Yes. Shipo assembles subscription boxes and kits, adds custom inserts, gift notes, and branded packaging, and can ship a full monthly subscription run within a tight window. This makes it a fit for beauty, supplement, pet, and subscription-box brands that compete on the unboxing experience.

Can Shipo help me switch from my current 3PL?

Yes. Shipo onboards brands with a phased transition — integrating and piloting real orders before full cutover, and moving inventory in stages — so orders keep shipping throughout the switch with minimal downtime.

Related guides: what 3PL fulfillment costs, the dimensional weight calculator, switching your 3PL without downtime, Amazon FBA prep, and East Coast fulfillment.

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FDA-Registered Food Facility. Shipo LLC is registered with the U.S. FDA (Reg. No. 15630823908) under the Bioterrorism Act of 2002 & the FDA Food Safety Modernization Act (FSMA) to receive, store, and handle food, beverage, and dietary-supplement products. Registration effective through Dec 31, 2026. FDA registration is not FDA approval or endorsement.