3PL Contract Terms Compared: Notice, Repricing, Liability

The short answer

Of the eight fulfillment providers here, four publish the agreement you would actually sign: Flexport, ShipBob, ShipMonk and Simpl Fulfillment. The other four, eFulfillment Service, Fulfillrite, Red Stag and ShipCalm, publish website terms of use and describe their contract terms on FAQ, guarantee or pricing pages. Those are marketing statements, not contract text. If a provider's agreement isn't public, ask for it before you sign, because that document, not the sales page, decides how hard it is to leave.

The four published agreements differ most on four points. ShipMonk's runs in one-year terms that renew automatically unless you give notice at least 30 days before the term ends, and the same terms also let you close the account on 30 days' written notice; Simpl's runs in three-month terms with 60 days' notice; ShipBob and Flexport let you terminate at any time. All four allow price changes during the term, mostly on 14 to 30 days' notice; Simpl's surcharges and non-standard fees can change on five days' notice, and ShipMonk's can reprice without notice if your volume falls short of the estimate you gave at signing. Every one of the four limits what it pays for inventory lost in its warehouse, each on a different measure. And all four can hold or sell your stock over an unpaid balance.

This page covers contract terms. Monthly minimums, which several of these providers also set, are on our minimums comparison.

Term, renewal, notice and repricing side by side

Lost inventory, lost parcels and liens side by side

"Not published" means the provider pages listed under Sources don't state it; a signed agreement may still cover it.

Term length and auto-renewal

The published agreements here run from no fixed term at all to one year with automatic renewal.

ShipMonk's terms set the longest term. Section 2.1 says the agreement "continues for the initial period of one (1) year, unless and until earlier terminated as provided under this Agreement or applicable law," and "automatically renews for additional successive one (1) year terms unless and until either Party provides written Notice of termination at least thirty (30) days before the end of the then-current term." Section 6.11 of the same document says "Company may close the Account for any reason, upon giving ShipMonk 30 days prior written notice," with merchandise returned at ShipMonk's standard pick and pack rates. Before you sign, ask ShipMonk in writing how those clauses would apply if you wanted to leave mid-term, and what you would still owe.

Simpl's terms run in shorter cycles. Section 6 says the agreement continues "for a period of three (3) months" and "shall automatically renew for additional successive three (3) month terms unless and until either Party provides written Notice of Termination at least sixty (60) days before the end of the then-current term." Payment obligations continue through the end of the current term after notice is given. Our help article on contract length shows how to work out the notice deadline from your term's end date.

ShipBob and Flexport publish no fixed term. ShipBob's terms, section 14.1: "You have the right to terminate this Agreement at any time and for any reason, provided you do not have a balance due and owing." ShipBob may terminate on 30 days' written notice, and goods left more than 30 days after termination can be disposed of at your cost. Section 14.3 adds that before you remove your goods you pay outstanding fees plus "a good faith estimate of fees that will become due for Services that will be incurred as a result of removing all Goods," settled up afterwards against the actual cost. Flexport's terms, still titled the Deliverr terms, say in section 7: "You have the right to terminate your account at any time by sending a cancellation request."

Among providers without a public agreement, Fulfillrite's FAQ says it operates "month-to-month with a 30-day minimum commitment and no early-termination fee" and asks for 30 days' notice before closing an account. ShipCalm's FAQ says "All of our agreements are month to month with a 90-day notice period." eFulfillment Service's guarantee page says you "can always cancel your service at any time, without penalty." Red Stag's pricing page says "we don't lock you in" and offers a 30-day free trial, while its homepage offers "month-to-month flexibility or a long-term contract," so the term is whatever you agree in the service agreement.

How prices can change during the term

A quote is a starting point. The agreement says when it can move.

• ShipMonk, section 6.4: 30 days' notice for changes "due to market forces and/or in response to currency fluctuations." Then: "After the first 90-days of the Initial Term, ShipMonk reserves the right to automatically revise pricing without notice if actual volume does not meet or exceed the initial volume estimates provided by the Company at the time of contract execution." And: "The Pick Fee is subject to a five percent (5%) increase on each anniversary of the effective date." The volume estimate you give at signing matters under this clause.
• ShipBob, section 5.2: carrier surcharges pass through with "commercially reasonable efforts to provide fifteen (15) days prior written notice," except that if a carrier affected by a force majeure event imposes surcharges, ShipBob passes them on with "the same notice, if any, that ShipBob receives." And "ShipBob may, in its discretion, change other Fees upon thirty (30) days' prior written notice to you." Fee changes apply only to orders completed after the effective date.
• Flexport, section 1.2: changes to the terms or fee schedule "will become effective thirty (30) days after we post or send you notice of such changes," and if a change isn't acceptable "your only remedy is to stop using the Services and send a cancellation request."
• Simpl, section 3(I): "Pricing is subject to change at any time within 14 days written notice to the Customer. Surcharges and any other non-standard fees are subject to change anytime with a 5 day notice to the customer."
• eFulfillment Service, Fulfillrite, Red Stag and ShipCalm don't publish a repricing clause. Ask how rate changes are notified and whether a change lets you leave early.

If a provider also has a monthly minimum, ask whether a price change moves the minimum too. Current fees for ShipBob and ShipMonk are on our ShipBob pricing and ShipMonk pricing pages.

What the warehouse-loss clauses pay

Every published agreement limits what the 3PL owes when stock goes missing or gets damaged inside its building, and each uses a different measure of value. Read the measure, not just the cap.

• ShipBob, sections 13.3 and 13.4: a "0.5% shrink allowance" calculated as "total net units divided by total inbounded units" over a rolling twelve months, below which losses are "not reimbursable." Only claims above it are "eligible for review," and liability is the "actual product value of the lost or damaged goods which shall be measured by the original purchase invoice from the manufacturer or supplier," and "subject to a cap of $1.00 per pound." Aggregate liability for all claims is the lesser of $10,000 or 100% of the fees you paid in the three months before the event.
• Flexport, section 9.2: a "1.5% yearly shrinkage allowance" based on the value of your products in the facility at the start of the period plus net new receipts, measured annually. Above it, lost or damaged products are "limited to the commercial invoice value of the affected Product/s or forty percent (40%) of the retail value of the affected Product/s, whichever is less." The section then says, "notwithstanding the foregoing," that Flexport isn't liable for direct damages above the fees you paid in the six months before the claim, and that its "maximum liability for inventory loss will be limited to five percent (5%) of the total product value or one month of the average billable storage, whichever is lower." Ask Flexport how those caps would apply to a loss your size.
• ShipMonk: section 5.2 of the terms says ShipMonk "specifically disclaims liability of loss except for instances of Gross Negligence," and section 5.4 says that if you choose not to insure, ShipMonk "will, under no circumstances, be liable for any loss or damage to the inventory." Its service level agreement reads differently: liability "up to $10/unit for full cartons that are missing after they were received and accounted for in our system," with a valid purchase order and proof of payment, or "up to $250/unit" for shrink under the paid Verified Inventory program, plus credits at "the average replacement cost (i.e. declared value)" for breakage above 2% in a month. The agreement and the SLA read differently, so ask which document a claim is paid under.
• Simpl, sections 5(D) and 8: you agree "to maintain an insurance policy that covers the full value of the Company Goods," and if you don't, "Simpl shall under no circumstances be liable for any loss or damage to the inventory stored at Simpl facilities." Section 8 says Simpl isn't liable for loss "except to the extent that such damage, theft, or loss results from (a) Simpl's failure to take commercially reasonable steps to prevent any such damage, theft or loss or (b) the negligence or the intentional wrongful acts or omissions of Simpl," with total liability capped at the "monies paid or payable" to Simpl "excluding carrier fees or other third party fees." Ask Simpl how a claim for uninsured stock would be handled under those two sections, as you would any provider.
• Red Stag's guarantee page: "If any item is lost or damaged, we'll reimburse you for your cost." Its FAQ says each guarantee "applies to the services covered by your service agreement with us," which isn't public.
• Fulfillrite's FAQ: "We do not provide insurance coverage on stored goods, so we recommend carrying your own inventory insurance."
• eFulfillment Service publishes no warehouse-loss term. Its website terms of use cap liability generally, but they describe themselves as the agreement for using the website and say a signed master service agreement controls EFS's services, so they don't tell you what EFS pays for lost stock. Ask for the master service agreement.

The two allowances aren't on the same scale: ShipBob counts units over a rolling year, Flexport counts inventory value over a year, so 0.5% and 1.5% can't be compared directly.

To see how far apart the measures sit, take a made-up product: a candle that cost you $4 from your supplier, weighs one pound and retails for $20. Suppose 100 units go missing in the warehouse, beyond any allowance. These are the most each published formula allows before the aggregate caps, not what a claim would pay; eligibility and proof still apply:

• ShipBob: no more than $100. Value is measured by the $4 invoice cost, but capped at $1.00 per pound, and the candle weighs a pound.
• Flexport: no more than $400. The $4 invoice value is less than 40% of the $20 retail price, and the overall inventory-loss cap can bring it lower.
• Red Stag: its guarantee statement says it reimburses your cost, $400 here, for services covered by your service agreement, which isn't public.
• ShipMonk: the SLA's ceiling of $10 a unit for missing full cartons is above the candle's $4 cost, so it doesn't tell you what you'd be paid, and it applies only to full cartons backed by a purchase order and proof of payment. The higher $250 ceiling needs the paid Verified Inventory program. The agreement itself disclaims loss short of gross negligence.
• Simpl: no per-unit formula is published. What Simpl owes turns on whether the goods were insured and on the section 8 standard above, within the fees cap.

On the same $400 loss, one formula stops at $100, two go no higher than your cost, and two don't produce a figure from the published text: ShipMonk's SLA gives only a ceiling above the candle's cost, and Simpl's answer turns on insurance and fault. That is why the measure matters more than the headline. ShipMonk's and Simpl's agreements both make you responsible for insuring the stock, and Fulfillrite recommends it; a policy that names the warehouse as a storage location is the one piece of this you control.

Who pays for a lost or damaged parcel

Once a package leaves the warehouse, the providers that publish a process point to the carrier claim, but the path differs.

• ShipBob, sections 8.3 and 13.1: a lost parcel must be claimed within 45 days of the estimated delivery date and a damaged one within 30 days of actual delivery; liability "for goods lost in transit shall not exceed one hundred dollars ($100.00) per parcel"; and "ShipBob will only pay a claim to you if and after ShipBob has received payment for that claim from the Carrier responsible for the loss or damage."
• Flexport, section 9.2: in-transit products are "limited to any reimbursement amount/s provided by the aforementioned third-party carrier, not to exceed $100 per parcel."
• ShipMonk's SLA: "Claims for goods damaged during the shipping process will be submitted directly to the carrier." The terms and SLA listed under Sources don't describe a process for parcels lost in transit.
• Fulfillrite's FAQ: "the claim goes through the carrier. We help you file it and provide the shipment documentation carriers require."
• Simpl files the carrier claim for lost or damaged packages it shipped. Insured shipping is available, and coverage and declared-value limits depend on the carrier.
• eFulfillment Service, Red Stag and ShipCalm don't publish a parcel-claim process on the pages listed under Sources.

The practical questions are who files the claim, how long it takes, and whether the 3PL pays you before the carrier pays it. The carrier side, including deadlines and what a claim needs, is in our guide to a lost USPS package.

Liens, holds and unpaid accounts

If you fall behind on a bill, or dispute one, the agreement decides whether your inventory keeps moving.

• ShipBob, section 6.8: "a general and continuing warehouseman's lien and security interest" against all goods in its care, and ShipBob "has the right to withhold delivery or release of any Goods if you are in breach of any indebtedness or obligation to ShipBob, even if such indebtedness or obligation is unrelated to the Goods being held." Section 14.2: if a default isn't cured within 60 days of notice, ShipBob may "sell or otherwise dispose of your Goods at your cost." Late balances accrue interest at 18% APR in the US under section 5.7.
• Flexport, section 3.10: "an actual or constructive lien and security interest" on all of your goods, and Flexport or its fulfillment partners "may refuse to surrender possession of your goods and merchandise until all amounts, charges and fees are paid in full."
• ShipMonk, section 6.7: an account unpaid more than 30 days may be reclassified as an "Abandoned Account" at ShipMonk's discretion, and one unpaid more than 60 days "will automatically be deemed an Abandoned Account." At that point the merchant "immediately forfeits its rights of ownership of such Company's Inventory up to the cumulative amount necessary for payment," inventory becomes unavailable, and "liquidation proceedings would begin." Late invoices carry a 5% fee with a $30 minimum under section 4.3, "unless the invoice is currently being disputed."
• Simpl, sections 5(B) and 5(G): "Simpl shall have a priority security interest in all Products in inventory," and the abandoned-account clause is worded the same way as ShipMonk's: discretionary after 30 days unpaid, automatic after 60, after which the client "immediately forfeits its rights of ownership" up to the amount owed and "liquidation proceedings will begin." Section 3(E) separately allows Simpl, after 30 days unpaid, to "sell the Company Goods and offset" the proceeds against the balance. Late invoices carry a 5% fee with a $30 minimum under section 3(B), "unless the invoice is currently being disputed."
• eFulfillment Service, Fulfillrite, Red Stag and ShipCalm publish no lien or abandoned-account terms. Ask whether the signed agreement has them.

The point for a founder is that a billing dispute can stop your orders, not only your account. Our guide to a 3PL holding or shutting down with your inventory covers what to do if that happens, including during a dispute.

One more clause to look for is exclusivity. Simpl's terms, section 2(D), say the client "agrees that Simpl shall be the exclusive provider of the Services," and treat fulfilling orders yourself or through another party as a breach that triggers the termination provisions. ShipBob's, ShipMonk's and Flexport's published terms contain no equivalent clause. If you plan to split volume between two warehouses or keep shipping some orders yourself, ask about exclusivity before you sign.

Questions to ask before you sign

• How long is the initial term, does it renew automatically, and how many days before the end of the term must notice arrive to stop the renewal?
• Can you cancel mid-term, and what do you pay if you do?
• Which prices can change during the term, with how much notice, and does a volume shortfall trigger repricing?
• What is the shrink allowance, is it counted in units or in value, what measure of value applies above it (invoice cost, a per-pound cap, a share of retail), and what is the aggregate cap?
• Who files a carrier claim, who gets paid first, and is there a per-parcel cap?
• Does the provider take a lien on inventory, and can it hold stock over a disputed invoice or a charge unrelated to the goods?
• Is there an exclusivity clause?
• What does it cost to get inventory out at the end: pick fees, pallet fees, a prepaid estimate?

This page summarizes published terms as read in October 2026 and isn't legal advice; have the agreement you're offered reviewed before you sign it. If you're leaving a 3PL, the contract is step one in our guide to switching 3PLs.

Simpl Fulfillment is a 3PL in Austin and one of the eight providers compared here. Our terms are quoted from our public terms page, section by section, the same way as everyone else's.

Sources

• ShipBob terms of service, date of last revision May 22, 2026: sections 5.2, 5.7, 6.8, 8.3, 13.1, 13.3, 13.4, 14.1, 14.2 and 14.3.
• ShipMonk terms of service, footer dated 2019/11: sections 2.1, 4.3, 5.2, 5.3, 5.4, 6.4, 6.7 and 6.11. ShipMonk service level agreement: inventory and breakage sections.
• Flexport (Deliverr) terms of service for distribution and fulfillment services, effective May 1, 2025: sections 1.2, 3.10, 7 and 9.2.
• Simpl Fulfillment terms of service: sections 2(D), 3(B), 3(E), 3(I), 5(B), 5(D), 5(G), 6 and 8.
• eFulfillment Service 100% satisfaction guarantee and terms of use, including the clause on a master service agreement.
• Fulfillrite FAQ.
• Red Stag Fulfillment total fulfillment value page, service guarantees, FAQ and homepage.
• ShipCalm FAQ.

Updated October 2026.

FAQs

Do 3PLs require long-term contracts?

Not all of them. Among providers that publish their agreements, ShipMonk's runs in one-year terms that renew automatically unless you give written notice at least 30 days before the term ends (a separate clause allows closing the account on 30 days' notice), Simpl Fulfillment's runs in three-month terms with 60 days' notice, ShipBob's lets you terminate at any time provided no balance is owed, and Flexport's lets you cancel at any time. Fulfillrite, ShipCalm and eFulfillment Service describe month-to-month or cancel-anytime arrangements on their sites, and Red Stag offers month-to-month or a long-term contract. Ask for the agreement itself, because a sales page that promises flexibility still comes with signed terms.

What does auto-renewal mean in a 3PL contract?

The agreement rolls into a new term of the same length unless one side gives written notice before a deadline. ShipMonk's terms renew for successive one-year terms unless notice arrives at least 30 days before the current term ends, and Simpl Fulfillment's renew for successive three-month terms unless notice arrives at least 60 days before. Miss the deadline and the agreement renews. Simpl Fulfillment's terms keep payment obligations running through the end of the current term. ShipMonk's term clause also allows earlier termination as the agreement provides, and a separate clause lets you close the account on 30 days' written notice, so ask ShipMonk in writing how the two would apply to your exit. Either way, put the notice date in your calendar the day you sign.

Can a 3PL raise prices during the contract?

Under the published agreements, yes, on notice. ShipMonk's terms allow changes on 30 days' notice for market or currency reasons, repricing without notice after the first 90 days if your volume falls short of your estimate, and a 5% pick-fee increase on each anniversary. ShipBob gives 15 days' notice on carrier surcharges where commercially reasonable, or only the notice it receives when a carrier affected by a force majeure event imposes surcharges, and 30 days on other fees. Flexport's changes take effect 30 days after it posts or sends notice. Simpl Fulfillment's terms allow price changes on 14 days' written notice and surcharge changes on five days' notice.

Who pays if a 3PL loses my inventory?

Usually you, up to an allowance, and above it the 3PL's terms set a formula and a cap. ShipBob's allowance is 0.5% counted in units over a rolling 12 months; only losses above it are eligible for review, valued at original purchase invoice cost up to $1.00 per pound, and all claims together are capped at the lesser of $10,000 or the fees you paid in the prior three months. Flexport's allowance is 1.5% a year, measured on inventory value; above it, a loss is limited to the lesser of invoice value or 40% of retail, and overall caps on direct damages and inventory loss apply notwithstanding that formula. ShipMonk's agreement disclaims loss except for gross negligence, while its service level agreement sets a ceiling of up to $10 a unit for missing full cartons. Simpl Fulfillment's terms require you to insure the goods and exclude liability for uninsured inventory, while a separate clause accepts liability for negligence or failure to take commercially reasonable steps, capped at the fees paid or payable to Simpl, excluding carrier and other third-party fees. Red Stag's guarantee page says it reimburses your cost if an item is lost or damaged, and its FAQ says the guarantee applies to the services in your service agreement.

Who pays when a carrier loses a package my 3PL shipped?

Where a 3PL publishes its process, the claim goes to the carrier, and the terms say who files it and when you get paid. ShipBob's terms cap its liability for goods lost in transit at $100 a parcel, want a lost-parcel claim filed within 45 days of the estimated delivery date, and say ShipBob pays a claim only after the carrier pays ShipBob. Flexport limits in-transit products to the carrier's reimbursement, not more than $100 a parcel. ShipMonk's service level agreement says claims for goods damaged in shipping go directly to the carrier, and Fulfillrite says claims go through the carrier, with its help to file. Simpl Fulfillment files the carrier claim for packages it shipped, and insured shipping is available with coverage that depends on the carrier.

Can a 3PL hold my inventory over an unpaid invoice?

Under the published agreements, yes. ShipBob's terms give it a warehouseman's lien on all goods, let it withhold release over any debt even one unrelated to the goods held, and let it sell the goods if a default isn't cured within 60 days. Flexport's terms give it a lien and let it refuse to surrender goods until all charges are paid. ShipMonk's and Simpl Fulfillment's terms both deem an account abandoned after 60 days unpaid, after which the merchant forfeits ownership up to the amount owed and liquidation begins, and Simpl's terms also take a priority security interest in inventory. The providers without public agreements don't publish lien terms, so ask.

How much notice do I need to give to leave a 3PL?

It ranges from none to 90 days among the providers here. ShipBob and Flexport accept a termination or cancellation request at any time. Fulfillrite asks for 30 days, ShipMonk's terms require written notice at least 30 days before the end of the current one-year term (with a separate clause allowing account closure on 30 days' notice), Simpl Fulfillment's require at least 60 days before the end of the current three-month term, and ShipCalm's FAQ says 90 days. Notice is only part of the exit; also budget for pick or pallet fees to ship inventory out, and at ShipBob a prepaid estimate of those fees before goods are released.