Best Third-party Logistics (3PL) Companies for 2023
This article is part of a larger series on Retail Management.
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 merchants 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
- Whitebox: Best full-service marketplace management and fulfillment company for Amazon sellers
Tip:
If you’re searching for the perfect 3PL company for your operation, we recommend starting with the logistics matchmaker WarehousingAndFulfillment.com. This free service matches your needs to more than 500 prescreened 3PL fulfillment companies to find the perfect fit for your business. Get free 3PL quotes by visiting their site today.
Visit WarehousingAndFulfillment.com
3PL Companies Compared
Provider | Ecommerce order fulfillment | Freight services 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) | Over 80,000 carriers, 14,000 shippers in network | |
✕ | ✓ | ✓ 1 warehouse location (4 facilities) | ✓ (North American regions only) | 3,200+ carriers (US, Canada) | |
✓ (Amazon Prime eligible) | ✕ | ✓ 3 warehouse locations | ✕ | FedEx, UPS, USPS, and DHL | |
*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 fulfillment network
- Order fulfillment and/or end-to-end import freight management services
- 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
Standout Features:
- Startup-friendly
- Affordable fulfillment pricing
- Discounted freight and shipping rates
- B2B fulfillment with EDI compliance
- 23 US warehouse locations
- Eight non-US locations
- 99.95% accuracy rate
- Works with UPS, USPS, FedEx, DHL and smaller regional shipping carriers
- FBA prep services
- Retail dropshipping program
What We Like
ShipBob provides efficient 3PL and order fulfillment services from its wide network of 42 facilities. The company delivers powerful order management software, affordable services, and 75+ integrations with online marketplace, 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.
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 companies work.
ShipBob also offers FreightBob—an end-to-end managed freight and inventory distribution program for importers, powered by Flexport. 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 package or $0 on the Growth Plan for self-onboarding | Onboarding, account setup, stock migration, and platform integration done by a dedicated implementation specialist who stays with you for 30 days |
Receiving | $35 per hour first two hours and $45 per hour following | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $40 per pallet, per month; $10 per shelf, per month; or $5 per bin, per month | 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 | $0 (Included in fulfillment fee) | Free standard boxes, poly mailers, bubble mailers, book folds, and dunnage |
Shipping | Discounted rates available with 5 carrier partners (included in fulfillment fee) | Shipping costs vary depending on the size, weight, and destination of your goods |
Address Correction Surcharge | $3 per order (plus shipping cost) | Return processing, quality check, and restocking |
Shipping Correction Surcharges | $45 per person-hour | Versatile labor to handle open-ended additional needs, such as product labeling and supplier management |
- Advanced warehouse network: ShipBob has a large network of 35 warehouses in the US for optimized inventory distribution.
- Global reach: To reach your international customers, ShipBob has DDP (Delivery Duty Paid) cross-border shipping as well as a network of eight non-US warehouses for local fulfillment.
- Startup-friendly and scalable: With a low minimum monthly spend of $250 and the resources to support unlimited growth, ShipBob works with businesses of all sizes.
- Simple onboarding: New ShipBob clients onboard with the help of a dedicated Implementation Specialist who stays with you for 30 days. This dedicated rep helps you move stock and order management into its system without downtime.
- Growth Plan: ShipBob offers a program for startups and microbusinesses that has no order volume requirements and provides tools to help scale. The Growth Plan users can self-onboard for free or purchase premium onboarding with the help of an Implementation Specialist for $499.
- Branded packaging: ShipBob can manage custom packaging for your products, including branded packaging, marketing inserts, and gift notes.
- Integrations: ShipBob integrates with top ecommerce shopping carts, seller marketplaces, and other tools that your business uses. However it doesn’t integrate with Etsy or Groupon.
- Import services: The FreightBob program uses faster ships and priority discharge at the ports of Los Angeles and Long Beach, California to shorten transit time to 15-30 days. The staff books your LCL freight on guaranteed weekly sailings at competitive rates, even for small shipments. These shipments can clear customs during transit, and skip the destination transload and container freight station (CFS) steps, which makes the journey faster and more predictable.
- Not Amazon Seller Fulfilled-Prime (SFP)-eligible: ShipBob is not eligible for Amazon Seller-fulfilled prime (SFP), meaning you can’t use it to fulfill Amazon Prime orders. To sell on Amazon, you must either use non-Prime FBM (Fulfillment by Merchant) or ShipBob’s FBA prep services to split your inventory between ShipBob and FBA. For a similar SFP-eligible fulfillment partner, try ShipMonk.
- 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 has a generally positive rating on trusted review sites, with many 5-star reviews highlighting their account managers’ responsiveness and knowledge, as well as the usefulness of their software and express shipping option.
However, negative reviews have increased recently, resulting in a drop in their Trustpilot rating from “Excellent” to “Good.”
Some negative reviews mention operational errors such as late orders, incorrectly addressed shipments, and misplaced inventory. These issues are attributed to ShipBob’s use of subpar contracted warehouses and employees. Overcharging and hidden fees, as well as poor customer service, are also cited in negative reviews.
- Trustpilot: 4 / 5 stars, 550+ reviews
- Capterra: 3.8 / 5 stars, 90+ reviews
- G2: 3.5 / 5, 90+ reviews
- Shopify: 4.4 / 5, 150+ reviews
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 toward ecommerce businesses
- Specializes in heavy, oversized, high-value, and/or fragile goods
Standout Features:
- Flexible 200-order monthly minimum
- Special handling for dangerous or hazardous goods
- 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
What We Like
Red Stag Fulfillment is a small-business-friendly ecommerce 3PL company that specializes in 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 fulfillment 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 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: Unlike ShipBob (which receives complaints about using larger boxes than are needed) Red Stag packs your orders with the intention of protecting the merchandise and reducing dimensional weight. It can even create custom nonstandard boxes for your products, along with custom packing materials and inserts.
- Special handling: Red Stag is one of the only providers that offers liability insurance and advanced 24/7 security. Plus, it’s the most cost-effective option for shipping and storing oversized items, whereas ShipBob charges extra large-package fees.
- Customer service: Red Stag offers exceptional client services and specialized stock storage and tracking procedures for its sellers. Assistance is just a phone call away—seven days a week. It even offers a zero-shrink guarantee, plus a $50 payment to the client for any mistake made on Red Stag’s part (in addition to standard reimbursement).
- Fast service: Red Stag will have your inventory 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: Red Stag integrates with top ecommerce shopping carts, seller marketplaces, and order management for order processing and shipment tracking. Its connectivity is strong, although ShipBob has more variety.
- Not international: 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.
It’s hard to find Red Stag reviews online; most of the ratings you’ll find are from Red Stag employees, not customers.
But most of the existing user reviews praise the courtesy, promptness, and professionalism of Red Stag’s client support team, as well as the high accuracy of their services. Some European users express satisfaction with the company’s flexibility and attentiveness.
Most negative reviews are from previous employees or truckers rating their experience working for the company. A few positive reviews mention disappointment with the company’s previously limited shipping network, but Red Stag has now expanded to shipping with UPS, USPS, Amazon, and OnTrac.
- Google: 4.3 / 5 stars, around 65 reviews
- WebRetailer: 4.9 / 5 stars, around 10 reviews
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 nework
Cons
- No third-party order fulfillment or distribution services
- Reported overcharges
- Difficult dispute process
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
- Best-in-class customer support from 13 US office locations
- 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
What We Like
Since Our Last Update:
NTG and Transportation Insights has launched its Beon Digital Logistics Program, expanding its network drastically. It now boasts over 850,000 drivers in its network.
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. 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.
In the News:
In July 2022, NTG partnered with Flexport, a global logistics platform, to improve its global shopping. NTG says this furthers their commitment to a fully digitized shipment lifecycle and is already helping customers mitigate backlog issues at ports. However, the deal seems more focused on bringing the Beon software and NTG network to Flexport customers.
NTG fees are built into your freight rates. You select the freight carrier and shipping rate, and that’s what you pay—no added service fees or upcharges. 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.
Most rates for similar providers are also customized. However, estimated freight fees range from $6.55 to $21.98 per pound. NTG does not list rates online, but you can request a quote.
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. Therefore, 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: Schedule LTL, partial, and full-truck freight for standard or specialty loads. Unlike others on our list, you can get time-critical delivery or temperature-controlled transit and storage. NTG works for infrequent shippers as well as steady deliveries.
- Expertise: NTG’s reps 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. Employ them to manage as little or as much of the process as you wish.
- Simple onboarding: Your NTG account rep will walk you through your dashboard features, cover classification, and other key designations, along with scheduling, booking, and bill-of-lading (BOL) creation tools.
- Integrate Beon Insights to ecommerce: NTG uses a restful API for integrations, whereas others have partnerships with ecommerce platforms. However, once integrated, you get excellent analytics, including carrier cost and performance.
- Management systems: Manage freight rate shopping, booking, and tracking yourself in the NTG management dashboard or let account pros handle some or all of the booking and tracking for you—it’s up to you.
- Not a fulfillment service: Its freight-focused services include warehousing, but it doesn’t offer inventory management, parcel shipping, distribution, or order fulfillment services. Consider ShipBob, Red Stag Fulfillment, and Whitebox.
Similar to Red Stag, many of the NTG reviews you’ll find online are from employees and carriers. The company doesn’t have any ratings on trusted review sites like Trustpilot or Capterra.
On NTG’s Google listings, most customers have left positive ratings and praised NTG’s customer support and delivery services —although some spoke of additional charges after-the-fact and damaged items. There are a large number of negative reviews from truckers and carriers.
FreightPros, a company that was acquired by NTG in 2020, has received a handful of user reviews in the past few years. On Trustpilot, positive reviews cite their experience getting the best prices and excellent ease of use. Recent negative Freightpros reviews state that the carrier postponed the pick-up and eventually canceled the deal altogether.
- Google: 3.4 / 5 stars, 300+ reviews
- Trustpilot: 4.2 / 5 stars, 200+ reviews (for FreightPros)
Redhawk: Best for Freight Distribution
Pros
- Access to discounted quotes from 70+ LTL carriers
- 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
- Does not guarantee two-day shipping
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
What We Like
Redhawk Logistics is a small-business-friendly 3PL company that provides freight shipping, warehousing, and distribution services across the US, Canada, and Mexico. Its 3PL bulk freight storage and distribution services appeal to manufacturers, wholesalers, and importers. Redhawk is the only one on our list that specializes in large, oversized items for heavy industry and construction.
Similar to NTG, you can use Redhawk Logistics if you ship just a few LTL pallets each month, and it can meet all your freight needs as you grow. However, Redhawk also includes 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.
Like NTG, Redhawk doesn’t have any ratings on trusted user review platforms, such as Trustpilot or Capterra. The company’s Google listing has a moderate number of reviews, which include ratings from carriers, employees, and customers.
User reviews of Redhawk Logistics are almost entirely positive, with many glowing 5-star ratings that mention staff going above and beyond to provide excellent customer service. Reviewers also state that Redhawk understands small business’s needs and can accommodate irregular sales cycles.
Unlike NTG, most Redhawk reviews from carriers and employees are highly positive as well.
- Google: 4.1 / 5 stars, around 50 reviews
Whitebox: Best for Full-service Marketplace Management
Pros
- Full-service marketplace management platform
- Amazon specialists optimize your listings for maximum visibility and profit
- 4.9 out of 5 stars on Amazon
- Advanced reporting, forecasting, and analytics
Cons
- Costly onboarding fee
- Prohibitive order minimums
- Lack of pricing transparency
Whitebox Deciding Factors
- Order fulfillment: Scalable ecommerce fulfillment through FBA and three asset-based warehouses
- Growth agency services: Full-service marketplace management including listing creation/optimization, stock maintenance, marketing, and sales servicing
- 1,000 order monthly minimum
Standout Features:
- Turnkey service manages entire Amazon listing, including photos and copy
- Amazon Seller-fulfilled Prime (SFP)-eligible
- Amazon FBA prep services
- Works with Amazon, Walmart, Target, Costco, and more, plus multiple ecommerce sites
- 0.10% error rate
- Advanced reporting and analytics
- Works with FedEx, UPS, USPS, and DHL
What We Like
Whitebox is the easiest, most hassle-free way for small manufacturers and private-label brands to sell Prime-eligible items on Amazon, and even major stores like Walmart or Target. This turnkey 3PL company lists items on Amazon and other sales channels for you, manages order processing and fulfillment on your behalf, then pays you profits (minus fees) for products sold each month.
Its Amazon agency services manage your entire online sales process—covering everything from professional product photography and SEO-informed copywriting to quality assurance and profitability studies. It can also handle dropshipping fulfillment.
Whitebox doesn’t publish pricing details online, so you have to contact the provider to request a quote. Users pay a monthly “all-in fulfillment fee” that covers all related charges except storage, which is billed additionally.
This fee includes Whitebox Dashboard for managing sales, promotions, and inventory and a suite of packaging supplies. Advanced cross-channel data-management software is also available at an additional cost or free to clients who meet a minimum billing requirement.
Whitebox also offers a growth agency option, which charges a commission based on a fixed percentage of the client’s sales. Third-party sources say Whitebox charges an onboarding fee of $3,000 and a 10% commission on product sales.
In addition to these costs, you’ll also be paying marketplace and FBA fees, so the total impact on your bottom line can be substantial. Because of this, we recommend Whitebox for product manufacturers and sellers with substantial markups. Whitebox can be the ideal full-service partner due to its extensive and well-developed turnkey services.
Here are things to consider when you look at Whitebox’s price tag:
- Whitebox markets your products: Whitebox markets your goods via listings on Amazon and other sales channels—like eBay and your own shopping site. This includes profitability studies, professional product photography, and SEO-targeted descriptions.
- Whitebox manages Amazon FBA: Whitebox sets up Amazon FBA logistics and oversees the day-to-day tasks like tracking sales, assessing restock needs, and tracking costs.
- Whitebox pays you: As your products sell, Whitebox tracks sales, receives payments, and deposits revenues into your account each month—less your fees.
- Lets you focus on your business: In a nutshell, Whitebox is a 3PL company that lets business owners focus on development, production, and other profitable areas instead of dealing with direct-sales headaches.
- Multi-sales: While others on our list may work with other retailers, Whitebox makes a concerted effort toward multi-channel management, handling advertising and fulfillment for Amazon, integrating with ecommerce sites like BigCommerce and online stores for major brands like Costco, Walmart, Best Buy and Chewy, and even managing your dropshipping for you. Only ShipBob offers such a range of integrations.
- Creates and manages sales channel listings: It professionally photographs your goods and creates SEO-targeted product listings on Amazon, eBay, your website, or other specified sales channels. Then, it monitors listing search results on sales channels and organic search to optimize rankings and brand exposure.
- Sales servicing: Deals with all customer service questions and returns across all channels.
- Amazon FBA stock preparation: Receives, counts, and examines your stock for any damage or quality issues before sending it to Amazon FBA, and correctly packages and distributes it into Amazon’s warehouse system per FBA requirements.
- Prohibitive order minimums: Whitebox’s high minimum requirement of 1,000 orders per month makes it incompatible with many small businesses and startups.
- Not for B2B: Whitebox isn’t geared for business-to-business (B2B) distribution. You’ll have to manage wholesale freight shipments to your resellers in-house or via a freight storage and distribution 3PL company like Redhawk Logistics.
Amazon seller ratings are the best place to judge the success of Whitebox. Its 4.9-out-of-5-star seller rating proves it delivers on its promises to buyers—and it can’t do that without handling Amazon orders efficiently. The company’s well-established seller account boasts 99% positivity on 1,600+ reviews in the last 12 months, which not only speaks to its functionality, but also increases listing visibility and buyer confidence.
Whitebox reviews outside of Amazon are scarce. The company’s Google listing has a number of reviews from employees and truckers, but few ratings left by clients themselves. The only few Whitebox user reviews are highly negative, citing overcharges, unmet SLAs, and frequent errors. These reviews were left about two years ago.
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 |
How We Evaluated the Best 3PL Companies for 2023
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 top 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 the best ecommerce fulfillment 3PL company. 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)
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 a 3PL company:
- Your logistics costs are steadily increasing: A 3PL can help you scale more smoothly.
- Your logistics team is overwhelmed: A 3PL brings expertise and the staff level needed for your tasks.
- Customer service complaints are rising: A 3PL can make deliveries more efficient to improve customer satisfaction.
- Your inventory is outdated and inaccurate: A 3PL can provide improved visibility, analytics, and operational efficiencies to optimize stored inventory.
- 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.
- You want to reduce risk costs: A 3PL takes on the burden of warehouse work and management, from workers’ compensation to environmental risks from mishandled products.
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 3PL 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 options as you make 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.