Switching fulfillment providers: 7 signs US brands shouldn't ignore

We’ve all been there: you’re eagerly waiting for your new online purchase, and instead of that exciting delivery knock, you’re left staring at your tracking page like it’s going to suddenly change. Spoiler alert: it won’t. Cue the flood of “Where’s my order?” (WISMO) emails, and your customer service team is suddenly entangled in a logistical nightmare.

If your fulfillment provider consistently fails to meet Service Level Agreements (SLAs), makes errors that harm brand reputation, or doesn't give you the tools you need to grow your business, it might be time for a change.

Our at-a-glance checklist: Is it time to switch fulfillment provider?

If you recognize the below problems as your own, your fulfillment operation could be holding your business back from reaching its potential.

• Your provider regularly misses SLAs
• Your order error rate is rising
• Your operation struggles to scale during peak season
• Your customer complaints are trending upwards
• You lack real-time visibility into inventory or orders
• Your tech stack feels outdated or integration failures are common
• The support you receive is slow or unresponsive

If you tick two more or more of these boxes, it's time to reassess your fulfillment partnership.

Sign 1: Chronic missed SLAs and late deliveries

Your customers expect their orders faster than ever. And we'll be real: they don't care for your excuses, they just want their packages. So, when your fulfillment partner is failing to meet SLAs, customer trust in your brand's ability to deliver (literally) breaks down quickly. 

Put simply, 84% of customers won't come back after just one poor delivery experience. That's a big proportion who don't have the patience for just one mistake. So, if your fulfillment provider is consistently letting you down, or not giving you the tools to handle bad delivery events effectively, it could be time to explore other options.

Sign 2: Rising order errors, damages or wrong items shipped

If you're noticing an upward trend in picking, packing or shipping errors, these costly mistakes can soon add up. These errors don't just harm your bottom line, but also your brand's reputation, making it more difficult for you to attract new customers in the long run. Research shows that 93% of consumers read reviews before making a purchase, so if yours are filled with complaints linked to fulfillment mistakes, your business will feel the hit as a result.

Occasional errors are inevitable, but if your customers are repeatedly reporting incorrect items, damaged goods or delayed deliveries, it's a big warning sign that your provider is dropping the ball.

Sign 3: Low scalability potential, especially during peak periods

As a business grows, it's natural to out-scale what some legacy providers can offer, leading to performance bottlenecks.

If things start to crack when the pressure's on (such as during Black Friday or other promotional events), it's a clear sign that your current partner might be holding you back.  

Sign 4: Unexpected cost increases or hidden fees

Costs spikes in warehousing, labor or surcharges — without service improvements — are valid reasons for frustration.

Warehouse and logistics costs are increasing in the US, which is important to keep in mind when any pricing conversations take place. However, if your fulfillment provider continues to hike costs without explanation or reason, you're within your right to question it.

Sign 5: Outdated technology or poor integration capabilities

Technology is a core driver of business growth when it comes to fulfillment. Tech limitations, such as a lack of real-time inventory visibility, are among the top reasons for brands leaving their current provider.

Without the latest tools at your disposal, there's an increased likelihood of mistakes in areas such as predicting demand or tracking product levels, which can lead to costly stockouts or excess inventory.

Sign 6: Poor communication and slow support response times

Slow or poor support is another top reason for brands making a switch. Response times over 24 hours or a lack of proactive alerts can make you feel as though you're flying blind, which ultimately trickles through to the consumer.

You should feel confident in your provider, not just from an operational standpoint, but a sense that they've got your back when demand surges.

Sign 7: Competitors are gaining an advantage

If your competitors are offering faster shipping and better accuracy, they'll likely outperform you on conversion and retention.

Delivery is a top differentiator for repeat purchasing; if your provider consistently makes logistical mistakes, or doesn't give you the tools to deal with bad delivery events, your competitors with access to these resources will benefit as a result.

What to look for in a new fulfillment partner

If you've read through this blog post and are thinking 'it's time for a change,' here are some key metrics to look out for in your new provider.

• Service performance: On-time delivery rates of > 97% and error rates of < 1%
• Technology and visibility: Real-time inventory visibility, eCommerce integrations, and automated routing, batching and forecasting tools
• Scalability and network: Multi-node US or global networks for faster coverage + the ability to scale during peak periods
• Support and relationship management: Dedicated account management and customer support teams

How to switch fulfillment providers with minimal disruption

When you're ready to start your switching journey, follow these steps to ensure it's as straightforward as possible.

Step 1: Audit your current provider

Track or compile key KPIs to benchmark against new partners. Include things like:

• On-time delivery (OTD)
• Error rate
• Inventory/forecasting accuracy

Step 2: Assess potential providers with a checklist

Create a checklist of areas you'd like to improve in or ask potential new partners about.

• Performance KPIs
• Technology
• Onboarding
• References/case studies
• Scalability potential
• Future growth/business goals

Step 3: Create a transition timeline

Once you've found the right fit, plan the following areas as you migrate from one provider to another.

• Inventory transfer
• Tech integrations
• Carrier labels
• Test orders

Step 4: Communicate and switch

If there's a potential for delays during the changeover, make sure to keep your customers informed.

Phased migrations and dual-run windows can help to avoid order disruption in many cases, but your new provider should handle this in the onboarding process if necessary.

Once you've switched, monitor your KPIs closely for the first 30 days and benchmark against your previous provider.

Looking to switch?

If you’re tired of missed SLAs, frustrated customers, and growing operational costs, it’s time to make a change. Switching to a fulfillment provider that can reliably meet SLAs isn’t just about avoiding headaches — it’s about safeguarding your revenue, your reputation, and your customer relationships.

Want a partner to consider right now? Enter fulfilmentcrowd. With a track record of success, industry-leading technology, and a commitment to meeting SLAs, we ensure that your business runs smoothly and your customers are happy.

Here’s why making the switch to fulfilmentcrowd is your best option:

• Proven reliability: We consistently meet SLAs, ensuring your customers get their orders on time, every time.
• Cost-efficiency: By reducing missed deliveries and operational inefficiencies, fulfilmentcrowd helps lower customer service costs and increase profitability.
• Peak-season performance: Whether it’s Black Friday, Christmas, or any other busy period, our technology and infrastructure are built to handle the pressure.
• Global network and US presence: With premium fulfillment centers placed strategically in the US and all over the world (16, to be exact), we've got the network and the infrastructure to support even the loftiest of business goals.
• Technology-first mindset: Tech is at the heart of everything we do. Driven by user feedback and refined by our team of 40 in-house developers, our intelligent platform reduces human error and gives brands the confidence to succeed in every area of fulfillment and logistics.

“fulfilmentcrowd has exceeded our expectations, delivering an impressive 60% year-on-year growth while reducing our shipping costs by 25%. On top of that, our dispatch rate has skyrocketed to 99.9%! The trust we’ve built with fulfilmentcrowd has been invaluable to us as a rapidly expanding company.”

Davinia Taylor, CEO at WillPowders

Don’t let missed SLAs hold you back

Consistently missing SLAs is a business killer. From lost customers to damaged reputation, the ripple effects of fulfillment errors can impact every aspect of your brand.

Here’s the good news: you don’t have to settle for a fulfillment provider that keeps dropping the ball.