We review the best third-party logistics (3PL) companies based on services offered, value, scalability, and feedback from business owners.
Best 3PL Companies in 2024
This article is part of a larger series on Retail Management.
Third-party logistics (3PL) companies provide outsourced logistics services, such as order fulfillment, shipping, freight distribution, and import/export. The best 3PL services ultimately help optimize your supply chain and scale your business.
Based on our evaluation, the best 3PL companies for small businesses are:
- ShipBob: Best order fulfillment & ecommerce 3PL
- Red Stag: Best for special product handling order fulfillment
- NTG: Best carrier network for small business freight
- Redhawk: Best for freight distribution
- Flexport: Best all-in-one 3PL solution
When looking for a 3PL company, try using the free service of WarehousingAndFulfillment.com. They match your needs with over 500 prescreened 3PL fulfillment companies. Visit their site for free quotes.
Visit WarehousingAndFulfillment.com
The Fit Small Business editorial policy follows strict standards to ensure our best answers are based on accuracy, clarity, authority, objectivity, and accessibility.
I have over 10 years of experience managing several Shopify ecommerce stores and Amazon private label brands that outsource their order fulfillment to 3PL providers, so I factored in my experience in our evaluation while adhering strictly to the Fit Small Business editorial policy.
You can learn more about our evaluation in the methodology section below.
Retail Software Expert at Fit Small Business
Best 3PL Companies Compared
Ecommerce Order Fulfillment | Freight Management & Discounts | Warehousing & Storage Locations | Import & Export Services | Shipping Partners | |
|---|---|---|---|---|---|
 | ✓ | ✓ | 50+ | China to US only | FedEx, UPS, USPS, DHL + more |
 | ✓ | ✕ | 2 | ✕ | UPS, USPS, FedEx, Amazon, OnTrac |
 | ✕ | ✓ | 5,000+ | North American regions only | 80,000+ carriers |
 | ✕ | ✓ | North American regions only | 3,200+ carriers (US, Canada) | |
 | ✓ | ✓ | 40+ | ✓ | 80,000+ carriers |
Which 3PL Company Is Right for You?
Not sure which 3PL company is right for your business? Take this four-question quiz for our personalized recommendation (you won’t be redirected to another screen):
ShipBob: Best Order Fulfillment & Ecommerce 3PL
Pros
- Two-day shipping within continental US
- Wide global order fulfillment network
- Returns management
Cons
- High storage fees
- Varied and mixed user reviews
- Lacks Etsy and Groupon integrations
Overview
Who should use it:
ShipBob is our top pick for the best order fulfillment company for small businesses and one of our recommendations for the best 3PL companies because its Growth Plan makes it a great partner for startups. It also provides features that will help as you grow like global fulfillment services if you decide to expand internationally.
Fulfillment centers handle inventory, processing orders, and shipping goods for other businesses (typically ecommerce stores). Learn more in our guide to how order fulfillment centers work.
Why we like it:
ShipBob is one of the most affordable order fulfillment providers we have evaluated. Its pricing options are startup-friendly, yet its features are ready to support businesses ready to scale and go global. From dropshipping and custom packaging needs to two-day discounted shipping in the continental US (plus same-day options), ShipBob delivers.
ShipBob also offers FreightBob—an end-to-end managed freight and inventory distribution program for importers. ShipBob clients who import stock from China can use FreightBob to reduce time-in-transit, lower freight costs, and distribute inventory strategically across ShipBob fulfillment centers.
Pricing
For its fulfillment service, ShipBob charges a single fulfillment fee for each order, which includes pick and pack (up to four picks), basic packaging materials, and shipping costs.
Clients’ bills are assessed and updated daily, and all charges are visible in a fully itemized format from your dashboard. In the same tab, shipping details can be toggled to estimate variable order costs.
We reached out to ShipBob and they gave us the following ballpark pricing information below. To get pricing for freight and import services, contact ShipBob.
- Onboarding: Starting at $499 (if availing of the Growth plan); self-onboarding available
- Storage fees:
- Pallet (48 x 40 x 54 inches): $40/month
- Shelf (42 x 12 x 23 inches): $10/month
- Small Shelf (22 x 12 x 14 inches): $7.50/month
- Bin (21 x 7 x 11 inches): $5/month
- Receiving
- Cost for the first two hours: $35
- Cost for each succeeding hour: $45/hour
- Picking: $0.26 per unit
Note: Prices are based in the US as a country of fulfillment and are subject to a 3% credit card processing fee.
Standout Features
- Affordable fulfillment pricing
- Discounted freight and shipping rates
- B2B fulfillment with EDI compliance
- 99.95% accuracy rate
- Works with UPS, USPS, FedEx, DHL, and smaller regional shipping carriers
- Fulfillment by Amazon (FBA) prep services
- Retail dropshipping program
- Large network of warehouses in the US for optimized inventory distribution
- DDP (delivery duty paid) cross-border shipping and eight non-US warehouses for local fulfillment to reach international customers
- Low minimum monthly spend of $250 and resources to support unlimited growth
- Custom packaging for your products, including branded packaging, marketing inserts, and gift notes
What ShipBob is Missing
- Integrations with marketplaces: ShipBob doesn’t integrate with Etsy or Groupon. If these platforms are crucial for your business, it isn’t a good fit. Consider Flexport instead.
- Export or domestic freight services: Other than China-US shipping and the management of inventory distribution to its network of warehouses, ShipBob does not work freight. We recommend Redhawk Logistics for North American freight needs.
At the time of publication, ShipBob user reviews earned the following scores on popular user review sites:
- Capterra: 3.7 out of 5 based on 100 reviews
- G2: 3.6 out of 5 based on more than 100 reviews
- Trustpilot: 4.3 out of 5 based on more than 710 reviews
Here is a summary of what ShipBob users like and dislike based on most recent reviews from third-party websites.
ShipBob users like:
- Responsive support from dedicated account representative
- Software functionality and interface
- Low shipping costs
ShipBob users don’t like:
- Customer support issues
- Billing discrepancies
- Unmet service-level agreements (SLAs)
- Using bigger boxes as needed, hence an increase in shipment costs
Red Stag: Best for Special Product Handling Order Fulfillment
Pros
- Accepts products that are considered dangerous or hazardous
- Fast turnaround times with affordable shipping and handling for oversize items
- Low order minimums and no long-term contracts
Cons
- Only two warehouse locations—not ideal for inventory distribution
- Dashboard and user interface are not user-friendly
- Costly pick-and-pack fees
Overview
Who should use it:
Red Stag Fulfillment specializes in order fulfillment for products that need special handling—oversized, heavy, bulky, and fragile goods, as well as high-value luxury items—and dangerous or hazardous products (like ammunition). If your business provides any of these products, Red Stag is your best option.
Why we like it:
Red Stag packs your orders with the intention of protecting merchandise and reducing dimensional weight. It can even create custom nonstandard boxes for your products, along with custom packing materials and inserts. This is unlike ShipBob (which receives complaints about using larger boxes than are needed).
Red Stag also offers excellent customer service and 100% accuracy guarantees with a $50 payout for any error (plus the cost to fix the issue or replace the merchandise). It has just three warehouses in two locations, but can still ship to 97% of US addresses in two days or less. With over 6 million square feet of warehouse space, the service is highly scalable.
Pricing
Red Stag pricing is custom to each client based on a combination of order volume, package weights, and SKU count. We confirmed this with the Red Stag’s team and they said they provide free onboarding and discounted rates with carriers.
Note though, that because of its specialized services, Red Stag may be more expensive than other ecommerce 3PLs. If your business needs only simple storage and fulfillment of lightweight, small, and/or manageable items, consider others on our list.
Standout Features
- Flexible 200-order monthly minimum
- 30-day risk-free trial
- Two US warehouse locations
- Industry-leading 100% accuracy guarantee with $50 payouts for each error
- 48-hour guaranteed receiving and unloading turnaround time
- Same-day ecommerce shipping with generous cutoff times
- 0.02% error rate
- Works with UPS, USPS, FedEx, Amazon, and OnTrac
- Facility equipped with liability insurance and advanced 24/7 security
- Exceptional client services 7 days/week and specialized stock storage and tracking procedures for its sellers
What’s Missing
- International fulfillment: While it can ship internationally, Red Stag does not have warehouses outside the US. Consider ShipBob for greater distribution options.
- Cost-affordable options for small, lightweight, manageable goods: Red Stag’s operation and pricing are geared towards special handling, so it’s not the most affordable option for easy-to-ship items. We recommend ShipBob.
As of the time of this writing, here is a summary of what Red Stag users like and dislike based on the most recent reviews from third-party websites.
Red Stag users like:
- Operational accuracy
- Responsive and courteous client support
- Reduced customer complaints
- Superior performance compared to other companies
Red Stag users don’t like:
- Previous shipping limitations (now resolved)
- Difficulty obtaining a quote
- Fulfillment software interface not user-friendly
NTG: Best Carrier Network for Small Business Freight
Pros
- Discounted quotes for multiple freight-shipping carriers
- Helpful and responsive account managers
- Informative, cloud-based transportation management system (TMS)
Cons
- No third-party order fulfillment or distribution services
- Reported overcharges
- Difficult dispute process
Overview
Who should use it:
Nolan Transportation Group (or NTG) is well-suited for business owners—startups, young businesses, and new freight shippers (especially in regard to client support and service options)—on a tight budget because it provides discounted rates through volume and partner relationships, with a “No Hidden Costs” policy.
NTG is also for busy entrepreneurs looking to save time because NTG experts can schedule, book, and track shipments on your behalf. Its reps know how to spot savings opportunities through flat-rate freight classification and negotiated dimensional rates. They also know how freight insurance works and ensure your loads are properly covered.
Why we like it:
NTG is a 3PL freight brokerage service that saves you money and time on inbound, outbound, and point-to-point freight shipments—making it one of the best 3PL companies. Using NTG, you get access to thousands of carriers, along with a suite of tools to manage shipments yourself.
The company’s multimodal services include less-than-truckload (LTL) freight shipping and strategic full truckload (FTL) shipping, and refrigerated, expedited, drayage, and intermodal solutions. Warehousing is also available through NTG’s network of over 5,000 vetted facilities with on-site drop trailer solutions, container transloading, cross-docking, palletizing, and labeling services.
Pricing
There’s no added fee or surcharge to use NTG’s brokerage service. You select the freight carrier and shipping rate, and NTG receives a commission from the carrier. Plus, there’s no cost to open an NTG account. Added services, such as freight spend analysis, are available and generally free for regular clients, too.
Standout Features
- LTL, strategic full truckload (FTL), final mile, dry van, flatbed, refrigerated, and drayage shipping
- Short- and long-term storage in over 5,000 vetted warehouses
- Vast carrier network of more than 850,000 drivers
- No minimum shipment frequency
- Advanced proprietary digital logistics platform and transportation management system app
- Logistics app (called Beon) provides mobile, on-demand access to its services, equipped with machine learning capabilities and ecommerce integrations
What’s Missing
- Fulfillment services: NTG’s freight-focused services include warehousing, but it doesn’t offer inventory management, parcel shipping, distribution, or order fulfillment services. Consider ShipBob, Red Stag Fulfillment, or Flexport.
Here is a summary of what NTG users like and dislike based on the most recent reviews from third-party websites.
Note: NTG acquired FreightPros in October 2020, and since then, there has been a significant drop in its reviews.
NTG Users Like
- Responsive and effective client support
- Ease of use
- Fast and consistent shipping
- Competitive prices
NTG Users Don’t Like
- Hidden fees and overcharges
- Shipment classification errors
- Difficult dispute process
- Shipment cancellations
Redhawk Logistics: Best for Freight Distribution
Pros
- Access to discounted quotes from 70+ LTL carriers, including project
- Helpful and responsive account managers
- Asset-based warehousing and distribution services
Cons
- No parcel order fulfillment
- Support platform designed for enterprise-level clientele
- Limited network of carriers
Overview
Who should use it:
Redhawk Logistics is best suited for sellers based in North America because of its varied freight options across the US, Mexico, and Canada. It can also work with bulk order fulfillment for manufacturers, wholesalers, and importers who don’t want to manage their own distribution.
If you sell large cargo, from steel coils to prefabricated houses, Redhawk Logistics can handle your loads. It specializes in bulk freight storage and distribution for manufacturers, wholesalers, and importers, focusing on large, oversized items for heavy industry and construction.
Why we like it:
Redhawk Logistics is the only 3PL we found with its own proprietary TMS system that integrates with more than 70 LTL carriers. You can use it to compare LTL vs parcel rates, tender shipments, create shipping labels, and get reports and analytics.
Redhawk Logistics can also identify the correct National Motor Freight Classification (NMFC) numbers to help lower your freight class and look for carriers that negotiate volume rates, waive dimensional weights, or ship under a flat class to help reduce your freight spend.
Pricing
Like NTG, most of Redhawk Logistics’ fees are built into freight shipping and service rates; you submit your needs and receive bids from carriers. Advanced needs, such as distribution, are quoted.
Redhawk Logistics prices are extremely competitive with other top broker services and it generally delivers low rates, even for occasional and low-volume shippers. Larger accounts can receive volume freight or class-based discounts, too.
Standout Features
- LTL, FTL, specialized heavy haul, intermodal, drayage, break-bulk, dry van, flatbed, and refrigerated shipping
- Short- and long-term storage in four warehouses strategically located in Ohio—with distribution and sort-store-repack services
- Proprietary web-based Transportation Management System (TMS)
- Network of over 3,200 recommended carriers
- Competitive pricing, discounted rates with easy and fast quotes
- Efficient customer services from personal account managers
- Projects and heavy haul services
- Custom inbound routing and optimization software
- Educational online resources
- No minimum shipment frequency
What’s Missing
- Ecommerce fulfillment: Like NTG, Redhawk Logistics focuses on freight. While it can help with bulk order fulfillment, consider ShipBob or Red Stag for regular ecommerce.
At the time of publication, Redhawk user reviews earned the following scores on popular user review sites:
- Google Business Listing: 4.2 out of 5 based on more than 50 reviews
- BBB: No complaints filed
Here is a summary of what Redhawk Logistics users like and dislike based on the most recent reviews from third-party websites.
Redhawk Logistics users like:
- Efficient loading and unloading
- Flexibility
- Fast and consistent shipping
- Friendly and helpful support staff
Redhawk Logistics users don’t like:
- Communication delays
- Billing issues
- Classification errors
- Poor layover compensation
Flexport: Best All-in-One 3PL Solution
Pros
- Large warehouse network
- Robust digital logistics software
- Highly rated user reviews
Cons
- Cannot fulfill global Amazon SFP orders
- Pricey storage cost fluctuations
- Higher quotes vs other 3PLs
Overview
Who should use it:
Flexport’s primary focus is digital freight brokerage through partnerships with hundreds of carriers, making them well-suited for small businesses, infrequent shippers, and even enterprise-level customers.
It can also provide services for businesses that do international importing, logistics, and expansion because of its extensive customs services and global partner network.
Why we like it:
With the acquisition of ecommerce fulfillment company Deliverr (part of Shopify Logistics and one of our recommended best order fulfillment companies for small businesses), Flexport now provides comprehensive ecommerce and wholesale order fulfillment.
It can be used as an all-in-one solution to manage your supply chain, or you can select individual services that suit your needs.
Pricing
Like our other recommended brokers, there’s no added surcharge to book freight and other services using Flexport. Many of its consulting services are also available for free, even if you don’t ship through Flexport. For rates, visit the company’s website.
See its ballpark pricing on common line items in Flexport quotes and invoices and learn what costs are commonly not included in quotes.
Standout Features
- Online marketplace and ecommerce fulfillment from over 40 US warehouses
- Network of over 80,000 carriers
- Advanced online platform for booking, tracking, and analytics, driven by AI
- Warehouse communication tools
- Freight and shipping discounts
- No minimum volume or frequency
- Ocean, air, and trucking freight
- Extensive specialty freight methods
- Online marketplace and D2C order fulfillment
- Robust customs services and global partner network
- Carbon emissions offsetting for consolidated freight services
What’s Missing
- Full seller control over fulfillment such as branding and custom packaging: Flexport’s order fulfillment is tailored for competitive marketplaces, potentially limiting seller control. For those with independent online stores seeking cost-effectiveness and simplicity, check out Red Stag or ShipBob. Additionally, Deliverr’s restriction on custom packaging compromises branding and unboxing experiences.
At the time of publication, Flexport user reviews earned the following scores on popular user review sites:
- Capterra: 4 out of 5 based on almost 20 reviews
- G2: 4.4 out of 5 based on more than 10 reviews
- Trustpilot: 3.5 out of 5 based on more than 75 reviews
Here is a summary of what Flexport users like and dislike based on the most recent reviews from third-party websites.
Flexport users like:
- Robust digital platform
- Easy-to-use software
- High-level guidance and consulting
- Frequent innovations (updates)
Flexport users don’t like:
- Need to relearn platform interface due to frequent UX updates
- Unresponsive customer support
- Better experience working directly with carriers and forwarders
- Expensive for low-volume shippers
Runners-up: Suggested Third-party Logistics Companies
We’ve already recommended our bets for the best 3PL companies, but there are more options on the market. Here are additional solutions for more specific needs.
3PL Company | Recommended For |
|---|---|
Migrating from in-house to outsourced fulfillment | |
Support in in-house fulfillment with scalable resources | |
Amazon-focused sellers | |
Global 3PL for sea, air, rail, and land freight and cargo | |
Cross-border order fulfillment from Hong Kong distribution centers | |
Managing B2B and B2C logistics under one roof |
When to Use 3rd Party Logistics Companies
Many small businesses opt to perform logistics-related tasks themselves—such as booking and managing freight or performing in-house order fulfillment. These processes are often easy to manage during the startup phase but become impractical as business scales.
Here are six signs your business might need to use a third-party logistics company:
1. Your logistics costs are steadily increasing: A 3PL logistic company can help you scale more smoothly.
2. Your logistics team is overwhelmed: The best 3PL companies for small businesses bring expertise and the staff level needed for your tasks.
3. Customer service complaints are rising: A 3PL logistic company can make deliveries more efficient to improve customer satisfaction.
4. Your inventory is outdated and inaccurate: The best 3PL for small businesses can provide improved visibility, analytics, and operational efficiencies to optimize stored inventory.
5. You’re moving to a new facility or sales region: A good 3PL for small businesses can help you set up the warehouse, move products, and get started on the right foot.
6. You want to reduce risk costs: A 3PL takes on the burden of warehouse work and management.
How to Choose the Best 3PL Company for Your Small Business
After figuring out whether you need to outsource your logistics, the next step is to find and choose a 3PL provider that can supplement or take over your logistics operations, the extent of which is up to you. We provide some definitive steps below to make this process easier.
Step 1: Figure Out Your Business Needs & Compare It to a 3PL’s Service
The first step is to identify which aspects of your logistics need to be outsourced or better to be handled by experts. Consider asking yourself the following:
- Do I need just the basics—pick, pack, and ship?
- Would it be better if someone handles my inventory for me?
- Do I need kitting services—custom packaging, gift notes, and protective wrapping?
- Do my customers prefer 2-day shipping?
- Will my business benefit from automatic inventory updates because of fast product turnover?
- Do I want them to handle returns for me, too?
When you determine your needs, it is easier to find a provider by way of elimination. Simply cross out those that do not offer the features you need.
Step 2: Set a Budget & Compare Providers’ Quotes
A lot of 3PL providers do not provide pricing from the get-go. You need to request a quote (like we did during our evaluation) and they will get back to you with some questions so they can provide an accurate estimate of your costs.
Absolutely ask as many providers as you can for comparison. Some offer deep discounts based on order volume, and others offer specialized services (such as kitting) as a more affordable add-on.
Step 3: See If the 3PL has Built-in Integrations & Data Analytics
You are likely to have an established online store through an ecommerce platform. Find out if the 3PL company has API integrations to your ecommerce platform so it is easier to sync inventory and order fulfillment.
Look for those with built-in integrations already set up. You would not want to be bothered by setting these things up yourself.
We also recommend looking into whether a 3PL company can provide you with data analytics to help you improve your inventory management, like identifying stocks that are slow- and fast-moving, and how many orders you have in a specific period of time.
Step 4: Check the 3PL’s Fulfillment Location Centers
Check how many fulfillment centers the 3PL owns and operates and where each one is located. This will dictate your shipping strategy—if you can provide the fastest and most affordable shipping option to your customers—and a distributed inventory strategy.
How We Evaluated the Best 3PL Companies for 2024
Most small businesses need a 3PL company to handle logistics in specific operational areas, such as ecommerce order fulfillment, freight shipping, or import and export logistics. There are large 3PL companies that deliver all of these services. However, the best 3PL for small businesses that focus on a few core logistics services generally deliver the best value for small businesses.
Based on the range of logistics services that small businesses need, we evaluated the best 3PL providers on the following criteria:
- Range of services: Most small-business-friendly 3PL providers focus on fulfillment, freight, or some combination of the two.
- Customer service: Logistics is a time-sensitive business, and the top 3PL companies assign clients dedicated account representatives for instant support.
- Cost and value: Costs for 3PL services vary based on many factors, so we focused on services that deliver price transparency and no hidden fees.
- Startup-friendliness and scalability: Low order minimums and a ramp-up period are crucial for young small businesses, and scalability ensures a 3PL can efficiently meet demand.
- Simple onboarding: Free account startup and a well-planned onboarding process are key factors for any small business moving to the 3PL outsourcing model.
- Integrations: Connectivity between your website, order management, accounting, and other mission-critical systems ensures accuracy and timeliness.
- Management systems: Top 3PL companies provide clients with intuitive account management dashboards to oversee operations, check statuses, and pull reports.
Overall, we recommend ShipBob as one of the top 3rd party logistics companies, particularly for ecommerce fulfillment. ShipBob offers affordable fulfillment and import services with the flexibility many small businesses need to thrive. Clear pricing, functional special features, discounted fast shipping, and a large warehouse network put ShipBob ahead of the pack for small business 3PL needs.
3PL Companies Frequently Asked Questions (FAQs)
Click through the tabs below to find the answers to the most asked questions about 3PL companies.
The first step is to understand what your company’s logistical pain points and priorities are, what your budget is, and what any future goals are. You should also take into account where you ship, your volume, and what channels you sell through. Third-party logistics companies vary widely in range, pricing, and expertise.
Once you know what you want, make a checklist and do your research. Be sure to look for companies that operate in your region. You can contact companies for information, but keep in mind that many customize plans to you, so the better information you provide, the easier for them to answer your questions accurately.
3PL (or third-party logistics) refers to any third-party service that relates to the planning and organization of how goods are moved, stored, and kept track of. Fulfillment providers are a type of 3PL company that specializes in the process of getting parcels to consumers.
While fulfillment companies focus specifically on receiving, storing, processing, and shipping customer orders, other 3PL companies can help with international freight, customs clearances, and LTL and FTL shipments.
4PL companies handle everything a 3PL company does—plus resources, technology, and infrastructure. Instead of outsourcing only your ecommerce logistics, you hire a 4PL company to handle the entire supply chain management and logistics. 4PL solutions are typically used by enterprise-level businesses.
Bottom Line
There are thousands of 3rd-party logistics companies that can take the burden of managing supply chain and order fulfillment off your shoulders. Whether you need ecommerce fulfillment, freight solutions, or both, finding the perfect fit takes time. It’s always best to review many of the top 3PL companies when making this important decision.
We recommend starting your search for the ideal 3PL partner with WarehousingAndFulfillment.com. This free matchmaking service assesses your needs against more than 600 prescreened 3PL companies to find you the perfect fit.