The second half of the year is the most critical period for e-commerce in Southeast Asia. Platforms and brands see their highest volumes as shoppers flock to year-end holiday sales and promotional campaigns. In 2024, the region’s e-commerce GMV reached US $145.2 billion, growing 12% year-on-year, with much of that growth concentrated in the latter part of the year.
A major driver of this surge is the rise of Double Day shopping festivals such as 10.10 and 11.11. According to Bain & Company, 43% of shoppers made their first online purchase during a Double Day promotion. Some categories also witnessed a sales surge 0f 956% compared to non-sale days.
For brands relying on 3PL Singapore providers or regional fulfillment networks, this surge can either unlock massive growth or expose weak links in logistics. When fulfillment systems are unreliable, switching 3PL providers becomes more than a cost decision. It is a strategic move to protect customer experience and long-term growth.
Late deliveries and stock outs during high-demand events can erode trust and damage reputation at the very moment when customer expectations are highest. This is why having a structured transition plan for switching 3PL is essential. With the right approach, businesses can change providers smoothly and ensure that peak sales periods become opportunities rather than operational risks.
Signs It’s Time to Think About Switching 3PL Providers
Switching 3PL providers is not a decision businesses make lightly. It often comes after months of frustration and operational challenges that impact both sales and customer trust. If you are noticing any of the following issues, it may be the right time to consider a change.
Consistently late deliveries and missed SLAs
Delivery delays are one of the biggest pain points for customers in Southeast Asia. A survey found that over 90% of customer complaints are tied to late deliveries or poor visibility. Failed or delayed deliveries are not just an inconvenience; They cost the e-commerce industry up to US $2.15 billion every year in refunds and lost sales. If your 3PL frequently misses SLAs, it is a clear sign that your logistics backbone may not be keeping up with your business growth.
Lack of integrations with key platforms
Modern e-commerce is built on seamless connectivity. If your 3PL does not integrate well with platforms like Shopify, Shopee, Lazada, or TikTok Shop, you are likely spending extra time on manual updates and reconciliations. This not only slows down fulfillment but also increases the risk of human error during high-volume sales periods such as 11.11 or 12.12.
Inability to handle cross-border shipping or scaling demands
Southeast Asia’s e-commerce growth is powered by cross-border trade. Globally, around 31% of all online sales in 2025 are expected to come from cross-border purchases. Customers now expect brands to deliver across markets quickly and affordably. If your current 3PL cannot support international shipping or struggles to scale during demand surges, it will hold back your expansion plans and hurt customer satisfaction.
Rising costs without improvements in service quality
Costs naturally rise over time, but they should be matched by better technology or more reliable service. If your 3PL has increased fees while performance has stayed the same, or even declined, it is a strong sign to reevaluate your options. Higher costs without added value are unsustainable in a competitive e-commerce environment.
Poor communication and lack of transparency
Visibility is critical in fulfillment. Yet, 34% of shoppers are unhappy with the overall delivery experience, with many citing poor communication as the reason. If your 3PL fails to provide real-time tracking or responsive customer support, it erodes customer trust and damages your brand reputation.
Prepare Your Business for Switching 3PL Partners
Switching 3PL providers should never be done hastily. The more preparation you invest upfront, the smoother the transition will be when you move to a new partner. This stage is about creating clarity and reducing the risks that can arise during peak seasons.
Audit inventory and SKUs
Before switching 3PL, take stock of your current inventory. Make sure SKUs are standardized, duplicate entries are cleaned up, and data is consistent across systems. Accurate inventory data prevents order errors and ensures that the new 3PL can onboard your catalog without delays.
Review contracts and exit clauses
Many 3PL agreements include notice periods, penalties, or minimum commitments. Reviewing these terms early will help you avoid unexpected costs or disruptions. A clear understanding of contract timelines also ensures you can plan your transition at the right moment, ideally before peak season begins.
Benchmark KPIs
To measure the success of switching 3PL, you need a baseline. Record your current fulfillment accuracy, order-to-delivery times and cost per order. These benchmarks will help you evaluate whether the new 3PL is actually delivering better performance and ROI.
Factors to Consider When Switching 3PL Providers
Choosing the right logistics partner is essential when switching 3PL providers. Beyond cost, the following factors can make or break your fulfillment performance and customer experience.
Regional network and warehouse locations
An extensive regional network can dramatically reduce delivery times. For instance, Locad’s distributed warehouse network across Southeast Asia enables 97.3% same-day fulfillment and 96.3% on-time dispatch. This kind of hyperlocal strategy not only improves speed but can also reduce logistics costs by 6%.
Technology and integrations with sales channels
Marketplace usage is surging in Southeast Asia. More than 50% of shoppers in the region search directly on platforms like Shopee and Lazada instead of using Google, which makes platform integration critical. A 3PL with strong integrations ensures faster order processing and fewer errors, especially during sales events like 11.11 or year-end holidays.
Scalability during peak sales seasons
Logistics capacity is tested most during mega campaigns. A regional study showed that 67% of consumers say Double Day and holiday sales shape their buying habits, highlighting how these events drive a huge share of transactions. A 3PL partner must be able to scale quickly to handle demand surges, maintain delivery speed, and prevent stockouts when switching 3PL.
SLA commitments for speed, accuracy, and returns
The Southeast Asia E-Commerce Logistics Report notes that long delivery times remain one of the top reasons for cart abandonment. When switching 3PL, carefully review SLAs to ensure speed, accuracy, and return handling are aligned with customer expectations.
Customer support and transparency
Good logistics partners offer more than just storage and delivery. Transparent reporting, real-time tracking, and responsive support are critical for managing operations smoothly. When switching 3PL providers, reliable communication ensures that issues are resolved quickly and that you maintain visibility across your supply chain.
How to Switch 3PL Providers Step by Step
Transitioning to a new 3PL partner requires precision and coordination. Below is a detailed, evidence-informed roadmap to help guide the process effectively:
1. Plan the Migration Timeline
Avoid switching 3PLs during major shopping seasons like Double Day events or year-end holidays. Industry best practices emphasize that such periods significantly raise the risk of operational hiccups and customer dissatisfaction. By planning the migration during slower months or typical restock cycles, you reduce disruption and preserve service quality.
2. Align Stakeholders Across Your Organization
Switching 3PL providers touches multiple functions: operations, finance, IT, and customer service. Engaging all relevant teams early ensures clear accountability and smoother execution. Pilot testing strategies further reinforce collaboration, providing a reality check before scaling up.
3. Run a Pilot Test in Parallel
Conduct pilot orders with the new 3PL while still operating the current system. This “dry run” approach helps uncover issues in integrations, order accuracy, or fulfillment workflows before fully committing. Pilot testing is proven to reduce errors and allow teams to iron out problems early.
4. Phase Out the Old Provider Gradually
Instead of an abrupt switch, phase out your current 3PL by migrating small SKUs or a subset of orders initially. This gradual approach minimizes risk and gives you confidence in the new provider’s stability while maintaining fulfillment continuity.
5. Execute Full Transition Once Stable
After pilot runs confirm reliability, complete the migration by transferring the remaining inventory and order flows to the new provider. Continue monitoring key performance indicators like delivery times, fulfillment accuracy, and customer feedback to ensure everything remains on track.
How Locad Helps Mitigate Risks When Switching 3PLs
Switching 3PLs during peak season might feel like a big leap, but with Locad it becomes a structured, low-risk transition. Every stage of the switch is designed to reduce friction and keep your operations running smoothly.
Fast-track onboarding in just 7 days
Locad’s Fast Lane program is built for urgency. From contract sign to go-live, your fulfillment setup is deployed in only 7 days. A dedicated onboarding manager guides you through SKU mapping, system integration, and inbound inventory, making sure you are fully prepared for major sales events like 11.11.
Multi-nodal warehousing network across Southeast Asia
Locad operates a distributed warehouse network across key locations in Southeast Asia, giving brands the flexibility to position inventory closer to their customers. This multi-nodal setup allows you to split stock across multiple sites to reduce last-mile costs, scale storage during campaign periods, and move inventory in quickly with streamlined inbound processes.
Omnichannel-ready from day one
Locad enables brands to manage D2C and B2B fulfillment from the same system. Warehouses are B2B-ready with carton-level and palletized storage, while custom packing rules and SKU bundling can be configured to meet retail requirements. All of this is tracked from a single dashboard across storefronts, marketplaces, and retail accounts.
Dedicated customer success with built-in backup
Support does not end once you go live. Every brand is assigned a Customer Success Manager (CSM) to handle issue resolution and ongoing fulfillment strategy. To ensure continuity, Locad also introduces a backup CSM with full account context if your primary contact is unavailable, so you are never left unsupported.
Go-live support phase with elevated care
For the first 30 days after go-live, Locad provides enhanced support. This includes weekly check-ins, faster ticket resolution, and real-time dashboard monitoring to flag potential issues before they escalate. You also receive proactive advice on optimization as your volume scales through the season. The result is not just being “live” but being performance-ready.
Switch to Locad in Just 7 Days
Locad makes switching 3PL simple, fast, and risk-free with our Fast Lane onboarding program:
- Fast Lane: Complete onboarding and go-live in just 7 days.
- Stock Transfer: Enjoy free bulk stock transfer for your first inbound
- Waived Fees: No implementation or minimum fees for the first month.
Conclusion
Growth in e-commerce depends on reliable fulfillment. The ability to deliver on time and meet customer expectations often comes down to choosing the right 3PL partner. Switching 3PL may feel like a challenge, but it is also an opportunity to streamline and scale with confidence. With Locad, the process is clear and supported from start to finish, so your brand can stay focused on winning new customers and driving sales.
