Third-party logistics (3PL) companies provide outsourced logistics services—including order fulfillment, shipping, freight distribution, and import/export. 3PL services can help retailers and ecommerce sellers, and wholesale distributors manage their supply chains and scale their businesses.
Not all third-party logistics companies offer the same services and capabilities. The right 3PL for you depends on your business needs.
The five best 3PL companies for small businesses are:
- ShipBob: Best 3PL company for order fulfillment with or without import freight management services
- Red Stag Fulfillment: Best for order fulfillment and shipping of oversized, high-value, or special-handling products
- NTG: Best freight broker for competitive truck, LTL (less than load), and rail carrier rates
- Redhawk: Best freight broker for growing companies that need freight shipping, storage, and distribution within North America
- Flexport: Best all-in-one 3PL solution
Tip: Consider WarehousingAndFulfillment.com when looking for a 3PL company. This free service matches your needs with over 500 prescreened 3PL fulfillment companies. Visit their site for free quotes.
Visit WarehousingAndFulfillment.com
Best 3PL Companies Compared
Ecommerce order fulfillment | Freight management and discounts | Warehousing and storage | Import/Export services | Shipping partner options | |
---|---|---|---|---|---|
✓ | ✓ | ✓ 40+ warehouse locations | ✓ (China to US only) | FedEx, UPS, USPS, DHL, and more | |
✓ (Amazon Prime eligible) | ✕ | ✓ 2 warehouse locations | ✕ | UPS, USPS, FedEx, Amazon, OnTrac | |
✕ | ✓ | ✓ 5,000+ warehouse locations | ✓ (North American regions only) | 80,000+ carriers | |
✕ | ✓ | ✓ 1 warehouse location (4 facilities) | ✓ (North American regions only) | 3,200+ carriers (US, Canada) | |
✓ | ✓ | ✓ 40+ warehouse locations | ✓ | 80,000+ carriers | |
*Seller-fulfilled Prime (SFP)-eligible shippers can deliver Amazon Prime orders directly to domestic customers from their own warehouse. Using SFP enables you to display the Prime badge on your Amazon listings, which can increase visibility and sales.
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
- Affordable two-day shipping anywhere in the continental US
- Wide global order fulfillment network
- Special services for startups, importers, dropshippers, and warehouses
- Powerful free order management software
Cons
- High storage fees
- Cannot fulfill Amazon SFP (Seller-Fulfilled Prime) orders
- Monthly minimum usage fee requirements
ShipBob Deciding Factors
- Fulfillment services: Scalable, small business-friendly ecommerce order fulfillment and distribution
- Freight services: End-to-end import freight management and distribution services
- WMS: Warehouse management software for self-managed fulfillment operations
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
- FBA prep services
- Retail dropshipping program
ShipBob Overview
ShipBob provides efficient order fulfillment and 3PL services from its wide network of 40+ facilities. The company delivers powerful order management software, affordable services, and over 75 integrations with online marketplaces, ecommerce platforms, and other tools.
ShipBob’s Growth Plan makes it a great partner for startups, and its global fulfillment services can help businesses expand internationally. Overall, it’s our top pick for the best order fulfillment company for small businesses, and one of our recommendations for the best 3PL companies.
What is a fulfillment center?
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.
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.
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.
To get pricing for freight and import services, contact ShipBob.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $975 for full implementation or $0 for self-onboarding | A dedicated specialist manages onboarding, account setup, stock migration, and platform integration |
Receiving | $35 per hour first two hours and $45 per hour following | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $40 per pallet monthly; $10 per shelf monthly; or $5 per bin monthly | Storage, security, space optimization, and inventory management |
Fulfillment Fee | Calculated per package based on weight and shipping distance | Pick and pack, packaging materials, and shipping |
Pick and Pack | $0 for the first 4 picks, 25 cents per additional pick | Picking items from inventory and packing them for shipment |
Packaging Materials | Included in fulfillment fee | Standard boxes, poly mailers, bubble mailers, book folds, and dunnage |
Shipping | Included in fulfillment fee (Discounted rates available with 5 carrier partners) | Shipping costs vary depending on the size, weight, and destination of your goods |
Returns | $3 per order (plus shipping cost) | Return processing, quality check, and restocking |
Special Projects | $45 per person-hour | Versatile labor to handle open-ended additional needs, such as product labeling and supplier management |
- Advanced warehouse network: Large network of 35 warehouses in the US for optimized inventory distribution.
- Global reach: DDP (delivery duty paid) cross-border shipping and eight non-US warehouses for local fulfillment to reach international customers.
- Startup-friendly and scalable: Low minimum monthly spend of $250 and resources to support unlimited growth.
- Simple onboarding: New ShipBob clients benefit from a dedicated Implementation Specialist for 30 days, ensuring seamless stock and order management integration.
- Growth Plan: Program for startups and microbusinesses provides tools to help scale and the option to self-onboard for free (or purchase premium onboarding with an Implementation Specialist for $499).
- Branded packaging: Custom packaging for your products, including branded packaging, marketing inserts, and gift notes.
- Integrations: Native connections with top ecommerce shopping carts, seller marketplaces, and other tools. (Note: ShipBob does not integrate with Etsy or Groupon.)
- Import services: FreightBob program shortens transit time to 15-30 days with faster ships and priority discharge at the ports of Los Angeles and Long Beach. Guaranteed weekly sailings at competitive rates, customs clearance during transit, and skipping destination transload and CFS steps enhance speed and predictability.
- Amazon Prime incompatibility: ShipBob isn’t eligible for Amazon Seller-Fulfilled Prime (SFP), requiring alternative solutions for Amazon Prime orders—such as non-Prime FBM (fulfillment by merchant), using ShipBob’s FBA prep services, or splitting inventory between ShipBob and FBA. Consider ShipMonk for SFP-eligible fulfillment.
- Integration limitations: ShipBob doesn’t integrate with Etsy or Groupon. If these platforms are crucial for your business, it isn’t a good fit.
- No 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.
ShipBob Users Like | ShipBob Users Don’t Like |
---|---|
Responsive support from dedicated account representative | Ease of use and simple onboarding |
Inventory losses | Customer support issues |
Software functionality and interface | Billing discrepancies |
Low shipping costs | Unmet service-level agreements (SLAs) |
Red Stag: Best for Special Product Handling Order Fulfillment
Pros
- Excellent operational transparency and service guarantees
- Fast turnaround times with affordable shipping and handling for oversize items
- Low order minimums and no long-term contracts
- Accepts products that are considered dangerous or hazardous
Cons
- Only two warehouse locations—not ideal for inventory distribution
- Dashboard and user interface are not user-friendly
- Costly pick-and-pack fees
Red Stag Deciding Factors
- Fulfillment services: Scalable, small business-friendly order fulfillment geared towards ecommerce businesses
- Specializes in heavy, oversized, high-value, hazardous, and/or fragile goods
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
Red Stag Fulfillment Overview
Red Stag Fulfillment is one of the only small business-friendly, ecommerce 3rd party logistics companies that specializes in order fulfillment for products that need special handling—including oversized, heavy, bulky, and fragile goods, as well as high-value luxury items. Red Stag is also one of the only providers that can handle dangerous or hazardous products (like ammunition).
Red Stag 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.
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.
3PL Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free |
Receiving | $14.25 per pallet, or $6.25 per non-pallet package | Inbound stock receipt, unpack, and check-in |
Inventory Storage | 75 cents per cubic foot | Climate controlled storage, advanced security, and inventory management |
Pick and Pack | $1.80 to $2.25 for the first item; 32 cents per additional pick | Picking items from inventory and packing them for shipment |
Packaging Materials | 80 cents | Standard boxes, mailers, and dunnage |
Shipping | Discounted rates available with several carrier partners | Shipping costs vary depending on the size, weight, and destination of your goods |
Special Projects | $40 per person-hour | Versatile labor to handle open-ended additional needs, such as assembly, managing suppliers, and more |
- Optimized packaging: 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).
- Special handling: Facility equipped with liability insurance and advanced 24/7 security.
- Best oversized pricing: Cost-effectiveness for shipping and storing oversized items, whereas ShipBob charges extra large-package fees.
- Customer service: Exceptional client services 7 days/week and specialized stock storage and tracking procedures for its sellers. Assistance is just a phone call away.
- 100% guarantee: Zero-shrink and zero-error guarantee, plus a $50 payment to the client for any mistake made on Red Stag’s part (in addition to standard reimbursement).
- Fast service: Inventory is processed and ready to go within two days of receiving it in its warehouse. It promises same-day pick-and-pack for orders coming in as late as 5 p.m. (the most generous cutoff time in the industry), and it has two-day delivery to most of the continental US.
- Simple onboarding: Red Stag plans your startup or migration to its systems—plus, it offers a 30-day free trial (excluding shipping costs) to ensure it’s the right fit.
- Integrations: Native connections with top ecommerce shopping carts, seller marketplaces, and order management for order processing and shipment tracking.
- No international presence: While it can ship internationally, Red Stag does not have warehouses outside the US. Consider ShipBob for greater distribution options.
- Costly 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.
Red Stag Users Like | Red Stag Users Don’t Like |
---|---|
Operational accuracy | Previous shipping limitations (now resolved) |
Responsive and courteous client support | Difficulty obtaining a quote |
Reduced customer complaints | Fulfillment software interface not user-friendly |
Superior performance compared to other companies |
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)
- Access to a large multimodal carrier network
Cons
- No third-party order fulfillment or distribution services
- Reported overcharges
- Concerning user reviews
NTG Deciding Factors
- Freight services: LTL, strategic full truckload (FTL), final mile, dry van, flatbed, refrigerated, and drayage shipping
- Warehousing: Short- and long-term storage in 5,000+ vetted warehouses
Standout Features:
- Competitive pricing with discounted rates
- Easy and fast quotes
- Vast carrier network of 850,000+ drivers
- No minimum shipment frequency
- Advanced proprietary digital logistics platform and transportation management system app
- Easy-to-use online payment portal
- Educational online resources
NTG Overview
Nolan Transportation Group (or 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.
If you prefer a more hands-off approach, NTG experts can schedule, book, and track shipments on your behalf.
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.
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.
How Freight Rates Work
Freight prices are commodity-based and change daily due to factors like the carrier’s open truck capacity, fuel prices, shipping lanes, and even the weather. Because of this, it’s impossible to say which freight 3PL delivers the lowest rates on any given day.
To learn more about how freight 3PL and broker fees work, visit our freight brokers buyers guide.
- Wide range of services: LTL, partial, and full-truck freight for standard or specialty loads, plus hard-to-find services like time-critical delivery or temperature-controlled transit and storage.
- Scalable and small business-friendly: Works for infrequent shippers as well as steady deliveries.
- Industry expertise: Available assistance from reps who know how to spot savings opportunities through flat-rate freight classification and negotiated dimensional rates to reduce your freight spend. They also know how freight insurance works and ensure your loads are properly covered.
- Simple onboarding: Access to an account rep to walk you through your dashboard features, cover classification, and other key designations, along with scheduling, booking, and bill-of-lading (BOL) creation tools.
- Logistics App: NTG’s digital logistics platform (called Beon) provides mobile, on-demand access to its services, equipped with machine learning capabilities and ecommerce integrations.
- Management systems: Options for self-managed or outsourced freight rate shopping, booking, and tracking, plus a streamlined dashboard to manage activity.
- Not a fulfillment service: 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.
- Poorly reviewed by users: NTG has a number of concerning 1-star reviews and BBB complaints, with users citing honesty issues, poor communication, and inaccuracies.
NTG Users Like | NTG Users Don’t Like |
---|---|
Responsive and effective client support | Hidden fees and overcharges |
Ease of use | Shipment classification errors |
Fast and consistent shipping | Difficult dispute process |
Competitive prices | Shipment cancellations |
Redhawk: 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
- Highly rated in user reviews
Cons
- No parcel order fulfillment
- Support platform designed for enterprise-level clientele
- Limited network of carriers
Redhawk Deciding Factors
- Freight services: LTL, FTL, specialized heavy haul, intermodal, drayage, break-bulk, dry van, flatbed, and refrigerated shipping
- Warehousing: Short- and long-term storage in four warehouses strategically located in Ohio—with distribution and sort-store-repack services
Standout Features:
- Competitive pricing, discounted rates
- Easy and fast quotes
- Efficient customer services from personal account managers
- Network of 3,200+ recommended carriers
- Projects and heavy haul services
- Proprietary web-based Transportation Management System (TMS)
- Custom inbound routing and optimization software
- Educational online resources
- No minimum shipment frequency
Redhawk Logistics Overview
Redhawk Logistics is a 3PL company catering to small businesses, offering freight shipping, warehousing, and distribution in the US, Canada, and Mexico. It specializes in bulk freight storage and distribution for manufacturers, wholesalers, and importers, focusing on large, oversized items for heavy industry and construction. Comparable to NTG, Redhawk suits businesses shipping a few LTL pallets monthly and scales to meet growing freight needs. Unique to Redhawk is its asset-based distribution warehousing, with four facilities in Columbus, Ohio.
Redhawk Logistics also offers expanded 3PL freight project oversight, ongoing account logistics management, and warehousing and distribution services. For advanced management services—often called 4PL services—Redhawk Logistics provides quotes based on your specific needs.
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.
- Heavy-haul: If you sell large cargo, from steel coils to prefabricated houses, Redhawk can handle your loads. It understands DOT guidelines and the travel challenges a heavy load presents. NTG may have truckers in its network, but Redhawk specializes.
- Bulk order management: Redhawk can work with bulk order fulfillment for manufacturers, wholesalers, and importers who don’t want to manage their own distribution.
- Redhawk Transportation Management System (TMS): While Redhawk works with thousands of carriers, it integrates with 70+ LTL carriers through its TMS. Use it to compare LTL vs parcel rates, tender shipments, create shipping labels, and get reports and analytics. It’s the only 3PL we found with a TMS system.
- Integrations: Like NTG, Redhawk Logistics offers API integrations to show real-time freight rates in your checkout for online order shipping via freight.
- Spot savings opportunities: Redhawk can 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.
- Not an ecommerce fulfillment service: Like NTG, Redhawk Logistics focuses on freight. While it can help with bulk order fulfillment, consider ShipBob, Red Stag, or WhiteBox for regular ecommerce.
Users Like | Don’t Like |
---|---|
Efficient loading and unloading | Communication delays |
Flexibility | Billing issues |
Fast and consistent shipping | Classification errors |
Friendly and helpful support staff | Poor layover compensation |
Flexport: Best All-in-one 3PL Solution
Pros
- All-in-one solution offering extensive and diverse logistics services
- Large warehouse network with robust shipping capabilities
- Feature-rich digital logistics software
- Highly rated in user reviews
Cons
- Cannot fulfill FBA or Amazon SFP (Seller-Fulfilled Prime) orders
- Fluctuating and expensive storage costs
- Freight quotes sometimes higher than other 3PLs
Flexport Deciding Factors
- Order fulfillment (previously Deliverr): Online marketplace and ecommerce fulfillment from 40+ US warehouses
- Freight services: Brokerage and forwarding across a diverse range of ocean, air, and trucking freight methods and providers, plus customs brokerage and shipment insurance
Standout Features:
- Advanced online platform for booking, tracking, and analytics
- Warehouse communication tools
- Freight and shipping discounts
- Network for 80,000+ carriers
- No minimum volume or frequency
- Expert customer service and consulting
- 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
Flexport Overview
Flexport is the most extensive 3PL company on our list, offering solutions for order fulfillment, distribution, freight, warehousing, consulting, insurance, and more. 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.
Flexport’s primary focus is digital freight brokerage through its highly-rated online platform and partnerships with hundreds of carriers. It can accommodate small businesses and infrequent shippers as well as enterprise-level customers. It’s also well-suited for international importing, logistics, and expansion, with extensive customs services and a global partner network.
In the News: Flexport Adds Fulfillment, B2B Distribution and Last Mile Delivery
With the acquisition of ecommerce fulfillment company Deliverr (part of Shopify Logistics), Flexport now provides comprehensive ecommerce and wholesale order fulfillment.
Deliverr, known for its specialty in serving online marketplace sellers (like Walmart, Wish, and eBay), has been one of our top-ranking recommendations for the best order fulfillment companies for small businesses.
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.
Order Fulfillment
Flexport’s fulfillment service structures its pricing similarly to Fulfillment by Amazon, but it’s more cost-effective for multichannel sellers. However, like FBA, its storage costs fluctuate greatly during peak season, which can greatly increase overall costs.
Onboarding | $0 | Onboarding and account setup are free |
Receiving | $0 when guidelines are met | Inbound stock receipt, unpack, and check-in |
Inventory Storage | 81 cents per cubic foot/month during January–September; $2.40 per cubic foot/month during October–December | Short-term storage with climate control and security options Inventory stored for more than 365 days incurs an additional monthly fee |
Fulfillment | Starts at $5.67 per unit Calculated based on weight, dimensions, and service level | Pick and pack, packaging materials, and shipping |
Shipping | Included in fulfillment fee | Three service levels are supported: Standard (5-7 days), 3 Day, and 2 Day delivery |
- D2C Order Fulfillment: Flexport’s fulfillment solution provides warehousing, picking, packing, and shipping that specializes in serving online marketplace sellers.
- Wholesale Fulfillment: Multi-retailer support (including Walmart, Target, Costco and more) with routing guides compliance and EDI Integration.
- Freight brokerage and forwarding: Six ocean freight options, including guaranteed services; high-frequency commercial air freight plus dedicated Flexport charters; trucking methods including FTL, LTL, drayage, cartage, cross-border, dangerous goods, dry vans, straight trucks, refrigerated trucks, and domestic intermodal moves.
- Customs brokerage: Expert brokers available to help clear goods quickly, minimize import duties, leverage customs data, and calculate landed costs.
- Order Management: The Flexport Platform lets you coordinate with suppliers and gain complete order visibility and control from purchase orders to final delivery.
- Prep services: Flexible options for kitting, bagging, variety packs, floor containers, wipedown, or other customizations.
- Insurance: Cargo insurance options for a wide range of supply chain needs, including global “all risk” coverage, plus expedited claims
- Digital platform: Order, book, track, clear, and get high-level visibility from Flexport’s online app driven by AI. The platform gives you milestone updates, exception alerts, landed costs, inventory and order info, plus a warehouse messaging tool.
- Reporting & analytics: User-friendly visibility into metrics such as transit time, landed costs, and container utilization.
- Sustainability tools: Access your carbon emissions data per shipment on the digital platform. Flexport will offset on your behalf for all consolidation services.
- Amazon Prime fulfillment incompatibility: Flexport’s fulfillment program does not qualify for Amazon Seller-Fulfilled Prime (SFP), requiring alternative approaches for Amazon Prime orders. Options include non-Prime FBM (fulfillment by merchant) or using both FBA and Flexport simultaneously.That said, Flexport’s freight services can be used to transport your inventory to FBA fulfillment centers.
- Marketplace-focused fulfillment: 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.
Users Like | Don’t Like |
---|---|
Robust digital platform | Need to relearn platform interface due to frequent UX updates |
Excellent visibility | Unresponsive customer support |
High-level guidance and consulting | Better experience working directly with carriers and forwarders |
Superiority over competing 3PLs | Expensive for low-volume shippers |
Alternatives: 7 More Third-party Logistics Companies
We’ve already told you all about the five best 3PL companies, but there are plenty more options on the market. Here are additional solutions for more specific needs.
3PL Company | Recommended For |
---|---|
Ecommerce businesses transitioning from in-house to outsourced fulfillment | |
SMBs looking to support their in-house fulfillment operation with scalable, purpose-built resources | |
Amazon-focused sellers | |
Ecommerce businesses selling on competitive marketplaces | |
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 3rd party logistics companies:
1. Your logistics costs are steadily increasing: The best 3pl companies can help you scale more smoothly.
2. Your logistics team is overwhelmed: 3pl companies bring expertise and the staff level needed for your tasks.
3. Customer service complaints are rising: A 3PL can make deliveries more efficient to improve customer satisfaction.
4. Your inventory is outdated and inaccurate: The best 3pl companies can provide improved visibility, analytics, and operational efficiencies to optimize stored inventory.
5. You’re moving to a new facility or sales region: A 3PL 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 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 third-party logistics companies 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 companies 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 best 3PL 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)
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 specialize 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. Click here to get started.