The unit of work
Ecommerce picks one to three units into a tote. Retail builds cases onto a pallet to a tie and high. Different equipment, different layout, different people.
Comparison
Retail fulfillment and ecommerce fulfillment are different jobs
They share a building and almost nothing else. Understanding where they diverge explains why most 3PLs are good at exactly one of them, and why doing both under one roof is unusual.
- Annual capacity of 1 million orders
- Explains why most 3PLs specialise
- Covers what splitting across two providers costs you
- Useful whether or not you ever talk to us
The situation
Most brands discover this the week a retail order lands
Your DTC 3PL has been excellent for two years. Then a buyer says yes, and it turns out nobody in the building has ever built a compliant pallet.
- A PO with a routing guide nobody at your provider will read.
- A delivery window rather than a ship-by date.
- Case labels, GS1 marks and placards that were never part of the spec.
- A shipment notice that matches what is on the pallet.
- A deduction weeks later against a PO nobody can reconstruct.
- Wholesale moved to a second warehouse, so inventory splits.
- Two systems, two numbers, and a reconciliation job nobody wanted.
The unit of work
Cases onto a pallet, not eaches into a tote
This is the concrete difference the whole page is about.
What we run
Where the two operations diverge
Timing
Ecommerce ships by a daily cutoff. Retail delivers inside a window, and being early can be as bad as being late.
Labelling
Ecommerce needs a carrier label. Retail needs case labels, GS1 marks, placards and sometimes item-level tickets.
Paperwork
Online orders need tracking updates. Retail shipments need matching shipment notices, freight paperwork, and routing requests.
Cost of failure
A wrong ecommerce order costs a refund and a customer. A wrong retail shipment costs a chargeback, then a scorecard position, then eventually shelf space.
Who notices
One consumer versus a category buyer with a deduction attached.
The consequence
Why splitting them is expensive
Two inventory numbers, neither right
When warehouses keep separate stock records, it is harder to know what is available. That can lead to overselling or holding extra inventory.
Duplicate safety stock
Neither site can see the other, so both hold a buffer. You are financing the same protection twice.
Transfers cost money and lose units
Moving stock between warehouses adds freight and handling. Clear transfer records and receiving checks help keep the counts aligned.
Two of everything else
Two onboardings, two account managers, two rate cards, two sets of rules, and a reconciliation job at month end that nobody volunteers for.
Reference
Side by side
Scroll the table sideways to see every column
| Ecommerce | Retail | |
|---|---|---|
| Pick unit | Eaches into a tote | Cases onto a pallet |
| Order size | 1–3 units typically | Tens to hundreds of cases |
| Deadline | Daily ship cutoff | A delivery window, both ends enforced |
| Labelling | Carrier label | Case labels, GS1, placards, item tickets |
| Documents | Tracking back to the store | Shipment notice, freight paperwork, routing request |
| Carrier | Parcel | LTL or truckload, often retailer-routed |
| Failure cost | Refund and a lost customer | Chargeback, scorecard, shelf space |
| Optimised for | Speed and pick density | Accuracy and compliance |
FAQ
Questions we get asked
Not covered here? Ask us directly and you will get a specific answer rather than a brochure.
Ask a questionCan one warehouse do both well?
Yes. Ask to see both workflows, including parcel packing, pallet preparation, retail documents, and inventory allocation.
How do I know if my 3PL can handle retail?
Ask for examples of retail orders they handle today. Walk through routing guides, shipment notices, pallet labels, and how requirement changes reach the warehouse team.
We are DTC only. Does this matter?
Only if retail is plausible within the life of the contract you are about to sign. If it is, choosing a provider who can already do it is much cheaper than switching later.
What do you run?
Nile has capacity for 1 million orders per year and has shipped more than 20 million packages company-wide, all time. Retail freight and ecommerce parcels are both part of the operation.
Next step
What does your channel mix need?
Tell us where you sell and how your orders ship. We’ll help you plan the retail and ecommerce work together.