Why Do Most 3PLs have Monthly Shipment Minimums?
Why Do Most Fulfillment Companies Have Monthly Shipment Minimums?
Fulfillment companies help ecommerce brands deliver products efficiently. Yet many impose monthly shipment minimums, often causing prospects to be disqualified as leads. Commission-driven sales teams frequently remove these prospects from the sales pipeline. For most 3PLs, which rely on labor-intensive processes, smaller clients often aren’t worth the trouble. The risk-to-reward ratio is skewed. A negative one-star review from a client shipping fewer than 100 orders a month carries the same weight as a one-star review from a million-order client. Meanwhile, a small seller may be on the verge of scaling—or they may never grow at all.
These monthly shipment minimums aren't arbitrary—they're essential for financial stability, operational efficiency, and service quality in most 3PLs, which are heavily dependent on manual processes. However, not all fulfillment providers take this approach.
The Purpose of Monthly Shipment Minimums
Monthly shipment minimums protect fulfillment companies from revenue swings while optimizing resources. Running a warehouse requires significant investments in labor, technology, and infrastructure. Minimums ensure those resources aren't wasted.
Without predictable order volumes, warehouses risk idle staff, empty packing stations, and wasted capacity—all of which erode profits. Minimums create a baseline for planning, ensuring warehouse systems and automation tools stay productive.
Why Shipment Minimums Matter for Fulfillment Efficiency
Shipment minimums balance costs with performance by keeping operations steady. Fulfillment centers need consistent order flow to:
Avoid Waste: Prevent idle staff and unused space.
Enable Consistency: Standardize workflows, reducing errors and delays.
Sustain Investment: Ensure ROI on automation and logistics tech.
A steady volume allows companies to maintain service levels without fluctuating staffing or cutting corners.
Operational Benefits Beyond Revenue Protection
Minimums do more than protect profits—they create predictability. For most 3PLs, predictability is key. They can easily manage surprise increases in order volume—if a client shipping 20,000 orders per month suddenly ships 50,000 in a weekend, the revenue justifies the additional spending. But if that same client drops to 1,000 orders a month, layoffs may become necessary to avoid wasted resources. Here's how:
Stable Staffing: Consistent volumes reduce reactive hiring and layoffs.
Reduced Variability: Smoother order flow prevents bottlenecks.
Simplified Billing: Standardized shipment volumes streamline invoicing.
This stability means reliable service, even during demand spikes.
Onboarding Complexity and the Need for Minimums
Bringing on new clients involves significant effort. Custom workflows, system integration, and staff training require time and resources. Minimums help justify these investments.
Without minimums, fulfillment centers risk onboarding clients with low, inconsistent volumes, leading to underutilized capacity and unrecovered costs.
The Hidden Cost of Handling Exceptions
Low-volume shipments disrupt operations. Processing sporadic, small orders adds labor and administrative strain. The consequences:
Higher Labor Costs: Manual interventions increase payroll.
Operational Delays: Irregular orders create inefficiencies.
Billing Complexity: Small shipments complicate invoicing.
Minimums discourage erratic patterns that can overwhelm resources.
How Minimums Support Client Growth
Minimums aren't just protective—they benefit clients too:
Consistent Service: Steady volumes ensure reliable service quality.
Incentivized Growth: Encourages brands to hit growth milestones.
Priority Handling: Higher-volume clients often get faster service.
By aligning shipment minimums with growth goals, both parties thrive.
Overcoming Minimums as a Smaller Brand
For smaller brands, minimums can seem daunting—but there are workarounds:
Batch Fulfillment: Ship larger, less frequent orders.
Bundling Promotions: Use marketing to encourage bulk orders.
Flexible Tiered Services: Seek partners with adaptable terms.
Open communication with fulfillment partners can lead to flexible, growth-focused terms.
The Competitive Imperative: Why Minimums Matter
In a cutthroat fulfillment market, minimums aren't just about stability—they're about survival. Fulfillment companies operate in a space where every square foot and labor hour must generate profit.
Minimums prevent waste, control complexity, and ensure long-term partnerships stay profitable for all parties. Choosing a fulfillment partner that balances efficiency with flexibility can give ecommerce brands the edge they need.
Why Amplifier is Different
At Amplifier, we've taken a different approach. We've invested millions in technology to eliminate the costly, high-touch processes that make small clients unworkable for most 3PLs. Through automated sign-ups, self-service billing, provisioning, inventory scheduling, and collections, we've built a system where small brands can access world-class fulfillment without overwhelming our operations.
By automating these touchpoints, Amplifier can say yes where most fulfillment centers say no—empowering brands of all sizes to scale confidently.
Final Takeaway: Minimums aren't barriers—they're tools for sustainable, scalable success. And with the right technology, they don't have to exclude small brands from elite fulfillment services.
Overcoming Minimums as a Smaller Brand
For smaller brands, minimums can seem daunting—but there are workarounds:
Batch Fulfillment: Ship larger, less frequent orders.
Bundling Promotions: Use marketing to encourage bulk orders.
Flexible Tiered Services: Seek partners with adaptable terms.
Open communication with fulfillment partners can lead to flexible, growth-focused terms.
The Competitive Imperative: Why Minimums Matter
In a cutthroat fulfillment market, minimums aren't just about stability—they're about survival. Fulfillment companies operate in a space where every square foot and labor hour must generate profit.
Minimums prevent waste, control complexity, and ensure long-term partnerships stay profitable for all parties. Choosing a fulfillment partner that balances efficiency with flexibility can give ecommerce brands the edge they need.
Why Amplifier is Different
At Amplifier, we've taken a different approach. We've invested millions in technology to eliminate the costly, high-touch processes that make small clients challenging for most 3PLs. Through automated sign-ups, self-service billing, provisioning, inventory scheduling, and collections, we've built a system where small brands can access world-class fulfillment without overwhelming our operations.
By automating these touchpoints, Amplifier can say yes where most fulfillment centers say no—empowering brands of all sizes to scale confidently.
Final Takeaway: Minimums aren't barriers—they're tools for sustainable, scalable success. And with the right technology, they don't have to exclude small brands from elite fulfillment services.