How to Choose the Right 3PL for Your Apparel Brand: A Step-by-Step Guide

Growing an apparel brand means facing unique challenges that other types of businesses might not encounter. From dealing with high return rates to managing an endless number of SKUs and variations, every step presents a new problem to solve. One of the most important decisions you’ll make is choosing the right Third-Party Logistics (3PL) provider to help manage these complexities.

Here are five crucial elements to consider when selecting a 3PL for your apparel brand—and how getting them wrong can lead to unnecessary costs and inefficiency.

Apparel-Specific Services

Not every 3PL is equipped to handle apparel. In this industry, you might need more than just basic storage and shipping. Ask potential 3PLs if they offer services like relabeling, tagging products, steam cleaning returns, and handling damaged goods. Some 3PLs may have systems in place to refurbish slightly blemished items so they can be restocked instead of being written off as wasted inventory.

For example, if a returned garment has a small stain, a 3PL with experience in apparel can typically clean it and get it back in your available stock. This saves you money compared to selling the item as a loss. Be clear upfront about the specific services you need—both now and in the future—so you can evaluate whether the 3PL can provide them.

Key Questions to Ask:

• Do you offer steam cleaning or other ways to refurbish returned items?
• How do you manage product relabeling or retagging?
• Have you worked with apparel brands in the past?

Efficient Receiving Process

Inventory accuracy starts with proper receiving, and this step is vital in an industry that deals with so many SKUs, sizes, and variations. Some 3PLs are set up to receive a limited number of SKUs, while others can handle the complexity that apparel brands bring.

When stock doesn’t get entered into the system accurately, it sets off a chain reaction. Imagine if a medium-size shirt was recorded as small—customers end up getting the wrong size, costing you not only in returns, but in customer dissatisfaction and lost future sales.

If your brand deals with hundreds of variations in styles and sizes, you’ll need a 3PL that regularly processes high SKU counts. Make sure they have the necessary systems and checks in place to prevent errors at this crucial first step.

Key Points to Clarify:

• How do you handle a large number of SKUs and product variations?
• What quality checks are in place when receiving products?
• Can you provide reporting on receiving errors?

Inventory Management Technology

Accurate and up-to-date inventory data is essential for managing an apparel brand, especially when you're selling across multiple platforms like Shopify or WooCommerce. For forecasting, restocking, and avoiding overselling, you depend on fast and reliable information on what’s in your warehouse.

Some 3PLs offer near real-time inventory updates, while others might take up to a day to sync. In an industry where a single SKU might only have 10-20 units available, even a slight delay or error can cause problems like overselling.

Ask how the potential 3PL manages their inventory and how often the data updates. For smaller brands or brands with limited runs, a small inventory discrepancy can lead to big frustrations.

Things to Consider:

• How quickly does the inventory system update?
• Is the inventory data you provide to clients real-time?
• Can the system integrate with your eCommerce platform?

Storage Solutions and Costs

Storage rates can vary greatly between 3PLs, and the method they use to calculate costs is especially important for apparel brands. Make sure you understand how they charge for storage—by cubic volume or by bin location—and what the implications are for your budget.

Apparel brands often deal with a massive number of SKUs, which means you might take up more individual storage locations (bins) than a company that deals in bulk quantities of just a few products. If you're not careful, your storage bill could skyrocket.

Ask whether the 3PL separates overstock from active picking locations. Keeping lower-demand items in overstock storage, which is usually cheaper, can save you money compared to storing everything in more expensive active picking locations.

Important Questions:

• Do you charge by the cubic volume or by bin location?
• How do you manage overflow inventory?
• What reports do you provide on stale or slow-moving stock?

Returns Processing

Returns are more complicated in the apparel industry than in many others. Some brands want to simply resell returned items, while others need detailed inspections to check for stains, wear, or damage before an item can be restocked. Whether to clean and refurbish an item or discard it will depend on your specific business model and preferences.

A 3PL that specializes in apparel should be able to support your return processes and even help you develop new ones based on what’s most cost-effective. Whether it's restocking, inspecting, or even fixing items—ask whether the 3PL can handle these steps in a way that works for your business and doesn’t eat into your margins.

Factors to Discuss:

• How do you process returns for apparel brands?
• Are you capable of inspecting and refurbishing returned garments?
• Can we create custom processes for different types of returns?

Conclusion

Choosing the right 3PL for your apparel brand goes beyond finding someone who can store and ship your products. It’s about making sure they can handle the unique needs of fashion brands, from high SKU counts and quick inventory turnover to complex returns and precise inventory management.

By asking the right questions and focusing on these five key areas, you'll set your brand up for smoother operations, fewer errors, and ultimately, greater success. Don’t leave this decision to chance—do your research and make informed choices that will allow your brand to scale seamlessly.

Happy shipping!