Outsourcing order fulfillment to a third-party fulfillment company can help growing retail and ecommerce businesses save time and money. It’s typically best for growing businesses that can no longer fulfill orders in-house without adding more people or space.
I compared dozens of order fulfillment services, evaluating them against a 23-point scale to find the best fulfillment companies for small ecommerce and retail businesses. The right choice for your business depends on factors like order volume, sales channels, and special product handling needs.
Based on my evaluation and personal experience with order fulfillment services, the best fulfillment companies for small businesses are:
- ShipBob: Best overall warehouse and order fulfillment services
- Saltbox: Best on-demand services, labor, and space for facilitating in-house fulfillment
- ShipHero: Best for transitioning to third-party fulfillment
- Red Stag Fulfillment: Best for oversized, heavy, high-value, or fragile items
- ShipMonk: Best for subscription box management and crowdfunding projects
- Flexport (formerly Deliverr): Best for selling on competitive marketplaces
- FBA (Fulfillment by Amazon): Best for Amazon sellers
- ShipNetwork (Rakuten Super Logistics): Best for scalability
Best Fulfillment Companies for Small Businesses Compared
Monthly Minimum Requirement | US Warehouse Locations | Error Rate | Amazon Seller-fulfilled Prime (SFP) Eligibility | Climate Control | Shipping Partner Options | Average User Rating* | |
---|---|---|---|---|---|---|---|
$275 min. spend | 35 | 0.05% | ✕ | ✕ | FedEx, UPS, USPS, DHL, OSM, CDL Last Mile, UDS, LSO, OnTrac | 3.68 / 5 | |
$500 spend | 9 | <1% | ✓ | ✓ | FedEx, UPS, USPS, regional couriers | 4.77 / 5 | |
500 orders | 6 | 0.1% | ✓ | ✕ | FedEx, UPS, USPS, DHL, GLS, Veho, Blue Streak, more (38 total) | 4.27 / 5 | |
~200 orders | 2 | 0.02% with $50 payment guarantee for every error | ✓ | ✕ | FedEx, UPS, USPS, Amazon, OnTrac | Very few user ratings available | |
$250 min. pick and pack fee | 8 | 0.1% | ✓ | ✕ | FedEx, UPS, USPS, DHL, DHL Express, Passport | 4.08 / 5 | |
None | 40+ | Undisclosed | ✕ | ✕ | FedEx, UPS, USPS, and DHL, and others (unspecified) | 4.63 / 5 | |
None | 110 | Undisclosed | ✓ | ✓ | Amazon Logistics, UPS | 4.5 / 5 | |
250 orders | 12 | 0% | ✓ | UPS, USPS, FirstMile, DHL | Very few user ratings available | ||
*Average user ratings are derived from a weighted average of user reviews on trusted third-party feedback sites such as Capterra, G2, and Trustpilot, and the Shopify App Store.
Not sure which order fulfillment company is right for your business? Take this five-question quiz for our personalized recommendation (you won’t be redirected to another screen):
Which Fulfillment Service is Right for You?
ShipBob: Best Overall Order Fulfillment Services
Pros
- Growth Plan program designed for startups
- Wide network of 35 US and eight non-US fulfillment centers
- Advanced reporting and analytics software
Cons
- High storage fees
- Cannot fulfill Amazon SFP (Seller-Fulfilled Prime) orders
- Does not integrate with Etsy or Groupon
Key Features
- Low monthly minimum spend ($275)
- Affordable pricing
- B2B fulfillment with EDI compliance
- 35 US warehouse locations
- Eight international warehouse locations
- Easy-to-use fulfillment software with powerful tools
- Works with UPS, USPS, FedEx, DHL and smaller regional carriers
- Fulfillment by Amazon (FBA) prep services
- Retail dropshipping program
- Managed freight program for importers
- WMS (warehouse management software) for self-managed fulfillment warehouses
ShipBob delivers flexible ecommerce order fulfillment and shipping services that bring Amazon-level infrastructure to businesses of all sizes. Its wide network of 35 domestic and eight international fulfillment centers is one of the largest on our list, allowing ShipBob to provide advanced distribution capabilities with fast and affordable shipping.
This provider’s robust customization options and unique services for importers help it stand out from the competition. However, ShipBob’s storage fees are among the highest on our list, making its pricing structure best for faster-moving goods.
ShipBob scored 4.47 out of 5 in our evaluation. The company performed well in all categories but lost points because it’s not Amazon SFP-eligible, although it does have Amazon fulfillment prep services (FBA). It was also docked for negative online reviews, monthly minimum spending requirement, and customer service hours.
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.
ShipBob charges a single fulfillment fee for each order, which includes pick and pack (up to four items), basic packaging materials, and shipping costs.
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/hour first two hours, $50/hour following | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $40 per pallet/month, $10 per shelf/month, or $5 per bin/month | Secure storage 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, polymailers, bubble mailers, bookfolds, and dunnage |
Shipping | Discounted rates available with several carrier partners (Included in fulfillment fee) | Shipping costs vary depending on the size, weight, and destination of your goods |
Special Projects | $45 per hour | Versatile labor to handle open-ended additional needs, such as product labeling and supplier management |
Returns | $3 per order (plus shipping costs) | Return processing, quality check, and restocking |
- Large fulfillment network: 35 US warehouses and eight non-US locations for efficient, cost-effective distribution around the world—200+ countries. All orders placed before noon ship the same day. Only Amazon and Deliverr have more warehouses.
- Integrations: Extensive native integrations for everything from shopping carts to CRM tools.
- Customization options: Options to incorporate your branding throughout the customer experience.
- Highly flexible: Supports direct-to-consumer orders, subscription boxes, and B2B sales with EDI compliance.
- FBA prep: ShipBob prepares and sends a portion of inventory to Amazon for multichannel clients, adhering to Amazon’s packaging standards.
- Retailer dropshipping service: Items listed on Bed Bath & Beyond, Best Buy, Chewy, Nordstrom, Target, and more ship directly from ShipBob to your customers.
- Managed freight program: ‘FreightBob’ offers a comprehensive freight and inventory management service, improving transit times and visibility for shipments from China.
- WMS (Warehouse Management Software): Proprietary WMS available for use in self-managed warehouses, compatible with ShipBob’s fulfillment services.
Want to learn more about dropshipping?
ShipBob doesn’t offer refrigeration or climate control, making warehousing of certain items impossible. And, though it can accommodate oversized goods, it isn’t as nearly cost-effective for special handling and large-item shipping as Red Stag Fulfillment. Plus, the provider’s storage costs are also higher than competing fulfillment companies.
Another concern is the company’s overall user rating, which has been declining over the past year. ShipBob has a significant number of negative reviews that report delayed orders, overcharging, excessive errors, and use of improper packaging (leading to exorbitant shipping costs).
Saltbox: Best On-demand Services, Labor & Space for Facilitating In-house Fulfillment
Pros
- Customized packages include any combination of in-house and/or third-party services
- Easy access to inventory and facilities keeps sellers in full control
- Membership includes valuable resources and amenities for your business
Cons
- Limited volume capacities may not work for large or enterprise-level businesses
- Business-only customer support hours
- Not ideal for businesses seeking a hands-off approach to fulfillment
Key Features
- Specialized plans for lower-volume businesses
- Multiple facilities located in nine major metropolitan areas throughout the US
- Office and warehouse suite rentals
- No long-term contracts or exit penalties
- On-demand labor, space, and resources for easy scaling
- Works with FedEx, UPS, USPS, and open-ended regional carriers
- Transparent, predictable pricing
- B2B and DTC fulfillment capabilities
- Crowdfunding/batch fulfillment programs
- Subscription box fulfillment
Saltbox provides a flexible logistics solution for growing ecommerce businesses, offering customizable services such as warehouse and office rentals, co-working spaces, secure storage, shipping supplies, and fulfillment resources, with no long-term contracts.
Clients can use these services for in-house (or self-managed) fulfillment, with the added convenience of on-demand labor and scalable space for peak times like holidays or product launches. Additional benefits include access to conference rooms, logistics consultants, loading docks, amenities, and a product photography studio.
For those preferring more of a hands-off approach, Saltbox also offers affordable, outsourced fulfillment services. Its strategically located warehouses in major metropolitan areas allow clients easy access to their inventory for direct management, offering a level of control and convenience not typically found with other fulfillment providers.
Saltbox scored 4.43 out of 5 in our evaluation, performing well in all categories. The company lost points for lacking an international warehouse network and extended customer service hours.
Since Our Last Update
Saltbox now offers a flat-rate Growth plan tailored for businesses with a monthly spend under $500, ideal for small order volumes. This comprehensive package includes:
- Monthly subscription: $500
- Pick & pack: Included
- Standard packaging: Included
- Storage: Up to 128 cubic ft.
- SKU Limit: Up to 200 SKUs
For businesses spending over $500/month on fulfillment services, standard pricing applies.
The following costs reflect Saltbox’s standard plan for third-party fulfillment. For the price of warehouse suites, office suites, and other customized options, contact Saltbox to receive a quote.
Service | Cost | What It Covers |
---|---|---|
Membership Fee | $500/month | Access to Saltbox’s services and amenities |
Onboarding | $0 | Onboarding and account setup |
Receiving | Included in membership fee | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $0.033 cubic ft/day | Secure storage and inventory management |
Fulfillment Fee | $3.25 per order | Pick and pack, packaging materials, and shipping |
Pick and Pack | Included in fulfillment fee (for up to 5 picks) | Picking items from inventory and packing them for shipment |
Packaging Materials | Included in fulfillment fee | Standard boxes, polymailers, bubble mailers, bookfolds, and dunnage |
Shipping | Calculated per-package based on weight and shipping distance | Discounted rates available with several carrier partners |
Special Projects | $45 per hour | Versatile labor to handle open-ended additional needs, such as product labeling and supplier management |
- Suite rentals: Rent an office or warehouse suite on a month-to-month basis (no-long term contract or lease). Choose from 100 to 10,000 sq. ft. suites with Wi-Fi, HVAC, cleaning services, utilities, and even coffee and snacks. No other fulfillment service on our list does this.
- Resources and amenities: Access to crucial business resources and amenities—including access to a photo studio, loading docks, conference rooms, coworking areas, and logistics expertise.
- Flexible services: Customizable service packages to create your own hybrid of in-house and outsourced fulfillment. Saltbox is the only order fulfillment service with this kind of flexibility.
- Small-business focus: Services tailored to small- to mid-sized businesses by intentionally limiting volume capacities, ensuring dedicated and effective support for its clients.
- Integrations: 30+ integrations available, including Shopify, WooCommerce, Amazon, Etsy, Magento, and Walmart—plus CSV upload and API options.
- Crowdfunding/batch fulfillment: Support for crowdfunding ventures and limited product launches at the same capacity as standard DTC businesses.
Saltbox’s unique platform isn’t right for everyone—especially business owners looking to take a more hands-off approach to fulfillment. If you don’t need high levels of control, customization, and/or proximity to your products’ fulfillment, a more traditional fulfillment company is likely a better fit.
Furthermore, the company’s focus on small and midsize businesses may inhibit scaling at a certain level—although Saltbox can take on clients shipping 20,000 orders or more per month. For larger businesses or enterprise-level growth, we recommend ShipNetwork.
ShipHero: Best for Transitioning to Third-party Fulfillment
Pros
- Affordable two-day shipping to lower 48 states
- Zone-free shipping costs for ultra-predictable pricing
- Amazon SFP-eligible
Cons
- Restrictive minimum order volume requirements
- Zone-free shipping fee structure can make value inconsistent
- Negative online reviews
Key Features
- 500 order monthly minimum
- Six US fulfillment center locations
- Two locations in Canada
- Shipping, inventory, and warehouse management software (WMS) solutions for in-house fulfillment
- Flat-rate shipping fees
- See real-time order status with photos
- Tax benefits and cost reductions for volume importers
- Works with UPS, USPS, FedEx, DHL, GLS, and open-ended regional carriers
- Amazon Seller-Fulfilled Prime (SFP) eligibility
ShipHero offers solutions for both in-house and third-party order fulfillment services. It provides inventory management, shipping software, and Warehouse Management Software (WMS) to streamline in-house operations. These products can facilitate a smooth transition to third-party fulfillment, with options for a hybrid approach by splitting inventory between ShipHero’s warehouses and the client’s own facilities.
ShipHero has a national warehouse network in the US and additional services in Canada, including parcel lockers and Section 321 benefits. ShipHero’s unique “no shipping zone” pricing structure offers flat-rate shipping fees based on parcel size and weight, with exceptions for Zone 9 and international shipments. This pricing model is beneficial for small businesses and startups, providing predictability in fulfillment costs during their transition to outsourced fulfillment.
However, ShipHero’s limited warehouse network, minimum order requirements, and business-hours-only customer support are potential drawbacks. Overall, ShipHero scored 4.21 out of 5 in our evaluation.
ShipHero uses an ‘all-in-one’ fulfillment fee structure that includes flat-rate postage, pick and pack (for one item), and packaging materials. These rates are custom-quoted; the company states that because fulfillment needs vary, it can better meet expectations by offering personalized quotes.
However, Shiphero universally charges $0.70/cubic ft. per day for storage and $0.33 per additional pick.
Warehouse Management Software (WMS)
ShipHero’s WMS is a separate offering from its order fulfillment services. This software is used to manage and optimize day-to-day fulfillment operations and logistics in a self-managed warehouse.
- WMS for Brands (starts at $1,995 per month): 5 seats, 10 store connections, handles returns, automations, rate shopper, lot and expiration tracking, warehouse tracking, setup and training, 24/7 support.
- WMS for 3PLs (starts at $2,145 per month): 5 seats, no store connections (add for $30 per month), includes everything in WMS for Brands plus a sandbox account, contract options, 3PL billing, marketplace listings, and customer portals.
- Enterprise for Brands (call for quote): 5 seats, 10 stores, all WMP for Brands tools plus increased API rate, a sandbox account, and contract options.
- Fulfillment network: Six US and two Canadian warehouse locations for efficient inventory distribution. Orders placed before noon ship the same day, and the service claims to be 30% faster than competitors.
- Warehouse management software: ShipHero WMS is used by large-scale warehouses globally. Although pricey, its comprehensive inventory and shipping management capabilities can offset costs in time and expenses.
- Fulfillment software: Free fulfillment software for managing orders, inventory, customers, returns, billing, and analytics, independent of their WMS.
- Integrations: Over 50 turnkey integrations including ecommerce platforms, delivery tools, returns software, and inventory management options, plus API options.
- Batch fulfillment: Offers per-project services for crowdfunding campaigns and product launches.
- FBA prep and Seller-fulfilled Prime Eligibility: Power your Amazon sales with ShipHero’s programs and qualify for an Amazon Prime badge.
- Operational visibility: Use the platform’s software to see each order’s status in real time, including photos of every packed box.
- Accessible customer support: Receive a dedicated support contact assigned to your account for personalized customer service.
ShipHero’s only international warehouses are located in Canada, so it can’t provide local fulfillment in most global markets. For retailers focused on expanding globally, we recommend a global warehouse network like ShipBob or FBA. Additionally, the company’s flat-rate shipping prices may provide an inconsistent value, depending on where your customers order from and the location of your inventory.
Like ShipBob, ShipHero has received an influx of negative user reviews in recent months, with reviewers frequently noting that its quality of service has seen a steep decline. Though its overall user rating remains high, this negative feedback could indicate growing pains that need to be addressed.
Red Stag: Best for Oversized, Heavy, High-value, or Fragile items
Pros
- Excellent operational transparency and 100% accuracy guarantees
- Fast turnaround times with affordable shipping and handling for oversized items
- Low order minimums and no long-term contracts
Cons
- Only two warehouse locations
- Dashboard and user interface are not user-friendly
- Costly pick and pack fees
Key Features
- 200 order monthly minimum
- 30-day risk-free trial
- Specializes in heavy, oversized, high-value, and/or fragile goods
- 2 US warehouse locations
- Storage with advanced security and liability insurance
- Industry-leading service guarantee with $50 payouts for each error
- 48-hour guaranteed receiving and unloading turnaround time
- 0.02% error rate
- Works with UPS, USPS, FedEx, Amazon, OnTrac
Red Stag Fulfillment caters to ecommerce businesses selling high-ticket items, oversized goods, heavy products, and goods that require light assembly or customization before shipping. It’s also one of the only 3PLs that accepts hazardous merchandise (like ammunition).
Red Stag offers excellent customer service with dedicated customer support and payouts for errors, including lost or damaged items. Plus, users benefit from Red Stag’s incredible order accuracy (99.98%) and zero-shrink guarantees. Its biggest drawback is that it cannot guarantee two-day shipping everywhere in the US.
We awarded points to Red Stag for its robust special services and functionality in our evaluation, but the company was docked for order minimum requirements, lack of billing transparency, customer service hours, and limited warehouse network. It received an overall score of 4.09 out of 5.
See how Red Stag compares to the top-ranking provider in ShipBob vs Red Stag.
Red Stag Fulfillment allows you to partner with it risk-free for 30 days to see if it’s a good match for your needs. If you’re unsatisfied with its people, processes, and services at the end of the guarantee period, it won’t bill you for any of your fulfillment service fees.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free |
Receiving | $14.25/pallet or $6 per non-pallet package | Inbound stock receipt, unpack, and check-in |
Inventory Storage | 75 cents per cubic foot (custom rates for long-term storage) | Storage, advanced security, and inventory management |
Pick and Pack | $1.80–$2.25 for the first item, 32 cents per additional item | Picking items from inventory and packing them for shipment |
Packaging Materials | 80 cents + | Custom-fitted boxes and cushioning |
Shipping | Discounted rates available with four carrier partners | Shipping costs vary depending on the size, weight, and destination of your goods |
- Service guarantees: Red Stag is so confident in its storage, packing, and tracking systems that it will remedy issues for free and pay you $50 for any errors on its part. It also has guarantees for receiving and unloading inventory within 48 hours of the shipment arriving at Red Stag warehouses.
- Turnaround times: Same-day fulfillment is offered for orders placed before 5 p.m.; compare this to ShipBob, which has same-day with a cutoff of noon.
- Integrations: 30+ turnkey integrations, including Shopify, BigCommerce, WooCommerce, Magento, eBay, and Amazon—plus custom solutions.
- Mobile-friendly fulfillment software: Red Stag’s RSF OPS software is specifically designed for use on mobile. Although we didn’t find it as user-friendly as others, it would be helpful if you frequently work on the go.
- Management and quality control: Video tracking throughout Red Stag warehouses to prevent losses through damages, mistakes, or theft.
It only has warehouses in Salt Lake City, UT, and Knoxville, TN, which means only 96% of its shipments are two-day. ShipBob, Deliverr, and FBA offer more locations and two-day delivery or better in at least the continental US and often elsewhere.
While prices are listed, actual bills lack full transparency—detailed fulfillment and shipping cost breakdowns aren’t provided by default but rather prepared on a case-by-case basis upon request and charged at a “Special Projects” rate.
ShipMonk: Best for Subscription Services
Pros
- Support from a dedicated customer service rep with client-specific training
- Ample pre-built marketplace integrations, including Etsy and Groupon
- Amazon Seller Fulfilled Prime (SFP)-eligible
Cons
- Limited international fulfillment network
- Concerning negative user reviews
- Difficult to terminate services
ShipMonk Key Features
- $250 minimum pick and pack fee
- Eight US warehouse locations
- Three non-US locations
- Amazon Seller-Fulfilled Prime eligibility
- Online billing portal
- 0.1% error rate (claimed; many complaints of errors in 2022-2023)
- State-of-the-art warehouse automation
- Robust customization and branding options
- Tax benefits and cost reductions for volume importers
- Takes a photo of packed orders before they’re shipped
- Works with FedEx, UPS, USPS, DHL, DHL Express, Passport
ShipMonk’s features and capabilities rival the top direct-to-consumer order fulfillment services in the industry. Its platform is built to cater to small businesses, equipped with the scalability needed to foster growth. Like several on our list, it handles ecommerce and retail, FBA, and crowdfunding, but it also offers special pricing for subscription box fulfillment.
It scored 3.79 out of 5 in our evaluation, losing points for billing predictability and transparency due to a large number of complaints in user reviews. ShipMonk was also docked points in the expert score due to the strong complaints about customer support and overcharging. However, it earned some of the highest scores for overall functionality and ease of use.
There’s a minimum requirement of $250 in pick and pack costs to use ShipMonk’s services—which is a low threshold, but still cost the company points in our evaluation.
The billing portal on ShipMonk’s software features a detailed breakdown of your monthly fulfillment costs, offering transparency in each invoice. However, users report running into unexpected costs from fuel surcharges and contract complications.
ShipMonk’s pricing model is highly scalable, with volume discounts that apply on a sliding scale(starting at 500 orders/month). That being said, fragile items and items heavier than 5 pounds will incur additional charges—so Red Stag Fulfillment is the more cost-effective choice for these goods.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup |
Receiving | $0 when shipment guidelines are met | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $25 per pallet/month, or $1–$4 per bin/month | Storage, security, and inventory management |
Pick and Pack | $3 for the first pick per order, 75 cents per additional item (volume discounts start at 500 orders/month) | Picking items from inventory and packing them for shipment |
Packing materials | 15 cents to $2 | 50 different shipping boxes, bubble mailers, clear poly bags, white poly mailers, and pallets. Can order specialty packaging. |
Shipping | Discounted rates available with 5 carrier partners | Shipping costs vary depending on the size, weight, and destination of your goods |
Returns | $2.00 (plus shipping costs and 50 cents per each additional item) | Return processing, quality check, and restocking |
Special Projects | $45 per man-hour | Includes tasks like counting inventory, repackaging products, quality control, bagging products, or any other generic task not a part of your plan |
- Subscription Services: ShipMonk specializes in handling subscription box orders, with special pricing, inventory forecasting, kitting, custom packing procedures from wrapping to inserts, and more.
- Shipmonk has acquired Ruby Has Fulfillment: The combined companies will have a greater workforce and complete North American reach to support DTC brands and ecommerce retailers.
- Integrations: 75+ turnkey integrations including Groupon, Etsy, Shopify, WooCommerce, Amazon Marketplace, Magento, eBay, PayPal, and more.
- Advanced automation: State-of-the-art warehouse automation technologies increase ShipMonk’s efficiency and effectiveness, which provides clients with quicker fulfillment times, higher picking accuracy, cheaper fulfillment costs, and more secure storage.
- Quality control: Improved order accuracy with features like “Snap n’ Pack,” which takes a photo of packed orders before they’re shipped, and automatic reshipment of orders whose tracking number hasn’t been updated.
- Duty-free import with Section 321: Sellers can ship merchandise to ShipMonk’s Mexico location and then incrementally import it into the US, divided into multiple $800 portions. This eliminates duties for volume importers.
ShipMonk’s pricing makes it a poor fit for high-value, heavy, fragile, or oversized products. Red Stag Fulfillment is a better choice. It also has very limited infrastructure for local international fulfillment, whereas providers like ShipBob and FBA have extensive global networks.
Recent reviews have been extremely negative, with headers like “Stay away” and accusations of overcharging. Positive reviews praise onboarding and specific Happiness Engineers.
Flexport (previously Deliverr): Best for Selling on Competitive Marketplaces
Pros
- Large warehouse network with robust shipping capabilities
- Prime-like badges to advertise fast shipping
- Intelligent inventory allocation
Cons
- No custom packaging options
- Cannot fulfill FBA or Amazon SFP (Seller-Fulfilled Prime) orders
- Fluctuating and expensive storage costs
Deliverr Key Features
- No minimum order requirements
- 40+ US warehouses
- Robust global logistics services
- Algorithm-powered inventory allocation optimizes distribution
- Comes with fast-shipping listing badges to increase sales and SEO
- Works with 12 shipping carriers
- Undisclosed error rate
- Robust reporting and analytics
- Transparent online billing portal
- Fluctuating storage costs
- Items with batteries incur additional charges
In the News: Flexport Acquires Shopify Logistics and Deliverr
Deliverr’s order fulfillment services and fulfillment infrastructure are now part of Flexport, a multinational corporation dealing in supply chain management and logistics.
Flexport’s order fulfillment service is very similar to Fulfillment by Amazon: It leverages a massive warehouse network to offer two-day and expedited delivery geared toward online marketplaces. But unlike FBA, the company specializes in non-Amazon marketplaces—Walmart, Wish, eBay, Facebook, Instagram, and Google Express.
It equips your marketplace listings with Prime-like badges that advertise fast delivery. According to the company, these lead to up to a 25% increase in sales and benefit your rankings through SEO. It also uses intelligent algorithms to allocate clients’ inventory across its network of fulfillment warehouses, which keeps products in close range to hungry customer bases and ensuring fast shipping at decent price points.
Flexport scored 3.57 out of 5 in our evaluation. It was rewarded for its impressive US footprint, badging features, and shipping capabilities—but lost points due to poor customer service hours, lack of branding options, and problematic reviews.
Flexport’s fulfillment pricing structure is nearly identical to that of FBA—but total costs come out to be more affordable in most cases. This especially applies to multichannel sellers. Like FBA, its storage costs fluctuate greatly during peak season. This can easily lead to surprise charges, so users must examine their budget carefully.
Unlike FBA, Flexport fulfillment charges for shipping based on three service levels: Standard (five to seven days), 3 Day, and 2 Day delivery.
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 |
Note that items containing batteries or anything deemed hazardous will incur extra charges. Visit Flexport for more information.
- Social selling: In addition to Shopify, Etsy, Walmart, and the other venues most on our list offer, Flexport also works with Facebook, Instagram, and Google.
- Prime-like badges: Offers badges on marketplace listings to promote fast shipping, automatically displayed for eligible customers on qualifying venues, signaling next-day or two-day delivery.
- Fulfillment network: Over 40 warehouses across the US, second only to Amazon in network size.
- Shipping carriers: Support for 12 shipping carriers, including FedEx, UPS, USPS, and DHL. There have been complaints about some of the carriers it uses not ensuring the quick delivery it promises, however.
- Marketplace optimization: Tailored to enhance your presence on competitive platforms like Walmart, Wish, and eBay, Flexport’s fulfillment services boost marketplace SEO with their badging features and shipping guarantees.
- Advanced logistics: Flexport’s order fulfillment services are backed by an extensive logistics ecosystem, specializing in a broad range of services including freight and customs, with comprehensive logistics tools.
Like ShipHero, Flexport’s simplified shipping costs can make overall expenses more predictable, but may also detract from the service’s overall value.
Its features are strongly geared toward competitive marketplaces and strip the seller of control—so sellers running their own online store would likely benefit from a cheaper and more straightforward service. Plus, Flexport’s order fulfillment fulfillment services don’t allow for custom packaging elements, so branding and unboxing experiences are compromised.
Prior to being acquired, Deliverr received a mix of highly positive and highly negative reviews. The one-star reviews cite severe shipping issues: “pay for 2-day delivery; expect 2-week delivery.” Others said they lost inventory and were denied reimbursement.
However, Flexport’s well-established logistics services (including freight brokerage and forwarding) have a solid reputation and large number of positive user reviews.
Want to learn more about selling on marketplaces?
FBA (Fulfillment by Amazon): Best Warehouse & Order Fulfillment Services for Amazon Sellers
Pros
- Prime shipping designation provides access to over 200 million Prime subscribers
- Fast turnaround and shipping times
- Hands-off return and refund management
Cons
- Expensive storage fees that fluctuate seasonally
- Low visibility into stock levels and pooling products between sellers may put you at risk
- No common specialty services like kitting, assembly, or branded packaging
FBA Key Features
- No order minimums
- 110 US warehouse locations
- 75+ non-US warehouse locations
- Comes with automatic Prime designation on Amazon listings
- Amazon handles all customer inquiries, refunds, and returns
- Can be used to fulfill non-Amazon orders
- Undisclosed error rate
- Uses inventory pooling that groups identical products from different sellers
Fulfillment by Amazon (FBA) is a very popular choice for Amazon sellers, offering automatic Prime status and access to over 200 million Prime subscribers. FBA also manages customer inquiries, processes returns and refunds, and automates order fulfillment, saving significant time for sellers. However, FBA’s pricing and procedures can be complex, especially for products that aren’t small and lightweight—so understanding its system is key to avoiding extra fees.
In our evaluation, FBA scored 3.54 out of 5. Its prices vary by season but are transparent via Seller Central, aiding in budget predictability. That said, the service is less flexible in terms of integrations and shipping partners, focusing mainly on Amazon.
FBA’s strict packaging requirements and a less user-friendly management software were also drawbacks, reflected in lower user reviews compared to other services. Nevertheless, the benefits of Amazon’s ecosystem, combined with FBA’s scalability, international shipping capabilities, and no minimum requirements, make it a considerable option for many Amazon sellers.
In the News:
Amazon launched monthly FBA inventory capacity limits for sellers starting March 1, 2023. This replaced the previous weekly restock limits. In theory, this will allow for easier planning for sellers.
As of 2023 Amazon has changed its pricing. Below are the most up-to-date FBA rates.
Service | Non-peak Season Cost | Peak Season Cost | What It Covers |
---|---|---|---|
Onboarding | $0 | $0 | Onboarding and account setup are free, but monthly seller fees will incur |
Receiving | $0 when guidelines are met | $0 when guidelines are met | Inbound stock receipt, unpack, and check-in |
Inventory Storage* | 56 cents–87 cents per cubic foot/month (Jan–Sept) | $1.40–$2.40 per cubic foot/month during (Oct–Dec) | Short-term storage with climate control and security options |
Fulfillment** | $3.22 to $12.61 per unit for standard-size products $18.13 to $200+ for oversize products (Oct 15–Jan 14) | $3.42 to $13.11 per unit for standard-size products $19.13 to $200+ for oversize products (Jan 15–Oct 14) | Picking items from inventory, packing, packaging materials, shipping, and customer service |
*Different rates are applied to ‘dangerous’ products. Inventory stored for more than 365 days incurs an additional monthly fee.
**FBA calculates fulfillment costs based on dimensions, weight, and product category. See the FBA pricing page for specifics.
Note: This season, FBA will apply holiday peak fulfillment rates to non-apparel, apparel, and dangerous goods from Oct. 15, 2023 to Jan. 14, 2024. Holiday peak fulfillment rates do not apply to FBA products priced under $10.
FBA’s pricing structure is complicated, especially if you’re using FBA to fulfill orders from channels other than Amazon. Plus, its fees are slightly higher if your products are apparel or what it considers to be dangerous goods (which is anything that includes lithium batteries or magnetized material).
To address this, Amazon offers a host of useful fee tools to provide transparency and predictability for existing clients and potential customers estimating their profitability.
See how FBA’s pricing and features compare to the top-ranking company in FBA vs ShipBob.
- Huge international fulfillment network: FBA has over 110 warehouse locations in the US and 75 international fulfillment centers. This blows away the competition.
- Quick delivery: Shipping times are driven by the Amazon Prime shipping guarantees, which have set the industry standard. Shoppers can select their delivery speed too, and Amazon orders largely arrive as expected.
- Scalability: Sellers that move from 10 products to millions of products monthly can use Amazon FBA. It’s important to monitor stock levels closely to optimize costs as you grow, but you won’t outgrow FBA’s fulfillment capacity.
- Integrations for multichannel sales: Although not as wide-reaching as others, FBA nonetheless has a multichannel fulfillment portal to ship orders received on other channels like eBay, Etsy, or your own online store website.
- Specialty services: FBA items are eligible for Amazon’s gift services, and offering this doesn’t add to your fulfillment costs. Amazon does manage customer service and refunds for orders it fulfills, which is not typical.
- Search rankings: Amazon’s product-search algorithm favors products that are fulfilled by FBA, which can boost visibility and sales of your goods.
FBA is not cost-effective unless 80% to 90% of your sales are from Amazon, making Flexport (previously Deliverr) a more suitable option for those active on various marketplaces. FBA’s limitations in customization and branding, particularly in outer packaging, are also notable drawbacks.
A significant risk with FBA is its use of commingling in inventory storage, picking, and packing. This means your products are mixed with identical items from other sellers, and when an order is placed, any item from the lot may be shipped regardless of the original owner. While commingling increases order processing speed, it poses risks such as customers potentially receiving lower quality or counterfeit products from other sellers, which can impact brand reputation and inventory control.
ShipNetwork (Formerly Rakuten Super Logistics): Best for Scalability
Pros
- One- to two-day US ground delivery network
- Well-established logistics network supports high volumes, efficient distribution, and unlimited growth
- Robust specialty fulfillment services, including refrigeration
Cons
- Restrictive minimum order volume requirements
- Clients can’t use custom packaging elements
- No international warehouses
ShipNetwork Key Features
- 250 order monthly minimum
- 11 US warehouse locations
- Climate control and refrigeration
- Advanced reporting and analytics
- Custom-quoted pricing
- Subscription box programs
- Works with First Mile, DHL, USPS, and UPS
- Amazon Seller-fulfilled Prime (SFP) eligibility
- Cloud-based fulfillment and inventory management software
- Freight forwarding services
- Suite of ecommerce smart tools
- 100% accuracy guarantee
ShipNetwork (formerly, Rakuten Super Logistics) provides domestic fulfillment services and international freight delivery with a 100% accuracy guarantee. With 12 US warehouses and discounted access to its proprietary FirstMile shipping service, ShipNetwork achieves one- to two-day ground delivery to 98% of the US. It also comparison-shops for less-than-truckload (LTL) and full truckload (FTL) shipments to help you choose the most cost-effective and efficient transportation solution for your freight needs.
The company is known for supporting enterprise-level clients but requires only 250 orders per month, making it accessible—and scalable—for many small businesses. That being said, ShipNetwork’s pricing is custom-quoted, so it’s difficult to tell whether or not it’s a cost-effective option for low-volume sellers.
This lack of pricing transparency cost ShipNetwork several points in our evaluation. It was also docked for its packaging restrictions, popularity, integrations, and customer service hours. The service performed well in the functionality category, ultimately earning a score of 3.47 out of 5.
ShipNetwork does not disclose its pricing online—all onboarding, receiving, storage, pick and pack, and account management costs are custom-quoted.
Contact ShipNetwork for a quote.
- Xparcel: This program lets you compare quotes to choose the fastest and least expensive carrier. Others, like Deliverr, choose the shipping service for you.
- Freight forwarding: ShipNetwork’s in-house team of freight experts can handle your domestic and international freight service needs.
- Customer support: US-based client service: Unlike many large-scale 3PLs, ShipNetwork does not outsource its customer service outside the US. Clients can receive support via live chat, phone, and email during standard business hours.
- Ecommerce smart tools: ShipNetwork provides online tools, including a shipping optimizer and customs guide with clearing support.
- Lot tracking: Manufacturers and retailers can work with ShipNetwork to track, fulfill by expiration/freshness dates, and properly recall product lots along the supply chain.
- Temperature control: The company offers climate control and refrigeration in some of its facilities. While others like ShipBob, Saltbox, FBA, and Red Stag claim climate control, ShipNetwork is the only one with refrigeration capabilities.
- Guaranteed accuracy: ShipNetwork promises 100% order accuracy and 100% of orders shipping within a day.
ShipNetwork doesn’t support custom packaging at this time, so it’s a poor fit for businesses with strong branding or those that promote a custom unboxing experience. It also has business-only customer support hours and lacks international warehouse locations.
Both ShipNetwork and Rakuten Super Logistics have very few user reviews online, making it difficult to get an impression of the actual user experience. That said, a number of forum posts describe a highly negative experience using the company.
How We Evaluated Order Fulfillment Companies
The best fulfillment companies enable ecommerce business owners to focus on more growth-minded tasks—like marketing and product development—rather than fulfillment. They’re also a helpful and cost-effective option for companies that have outgrown their in-house fulfillment operation and don’t want to invest in their own staffed warehouse.
To address those needs, we compared the eight best fulfillment companies based on pricing, functionality, specialty services, and ease of use. Our retail and ecommerce experts also weighed in and evaluated each service.
Click through to see the scoring criteria:
20% of Overall Score
Many fulfillment companies offer pricing on a custom-quoted basis. We assert that it’s better to openly publish pricing. This eliminates the need for potential clients to contact each company for a quote—potentially wasting both parties’ time—and promotes general transparency.
Since we can’t fairly compare the specific costs of each provider, this category examines the providers’ pricing transparency, billing transparency, and billing predictability. ShipBob led the pack with 4.88 out of 5, with Saltbox a close second at 4.75 out of 5.
30% of Overall Score
We evaluated the quality of service and functionality of each company by weighing critical details like order turnaround time, shipping partner options, size of fulfillment center network, and accuracy rate.
We also considered how each service integrates with ecommerce shopping carts, marketplaces, operational tools, and solution providers that your online store may use. ShipBob was the only product to get a perfect score.
15% of Overall Score
We awarded points for the availability of special services like climate control, international shipping, custom packaging elements, and different types of assembly. Being crucial to ecommerce operations, return handling and reporting/analytics were prioritized.
Lastly, we assessed whether each company was eligible to fulfill Amazon Prime or SFP (Seller-Fulfilled Prime) orders. Saltbox and ShipHero scored the highest in this category.
15% of Overall Score
This score considered customer service accessibility—prioritizing companies that provide a dedicated service rep for each client and weighing their support center’s hours of availability.
Each service was also evaluated for software usability and operational transparency. Companies were awarded points for having highly functional software that allows users to see where each order is within the fulfillment process and warehouse space.
Lastly, order minimums and service scalability were weighted heavily to provide the best recommendation for small businesses that need a fulfillment partner that can grow with them. ShipBob earned top ratings with 4.23 out of 5.
20% of Overall Score
This score combined our retail and ecommerce experts’ final evaluation of value, ease of use, and standout features with scores from real-world users on trusted third-party review sites. Saltbox and Red Stag earned perfect scores.
How to Find the Best Order Fulfillment Services for You
Hiring a fulfillment company is a big commitment and should be carefully explored. We’ve seen more than one review where an ecommerce company said fulfillment issues caused them to lose money. Take your time, interview several companies, and make sure you understand contracts before signing up with one.
What do you want from a fulfillment service? Some ideas include:
- Expanding market reach
- Improving shipping efficiency and turnaround time
- Handling increased demand
- Cutting costs
- Qualifying as an Amazon Prime supplier
Be sure to prioritize your goals and only consider fulfillment partners that can meet your requirements.
Providing fulfillment services is a big commitment for the fulfillment company as well. As such, they will want to know a lot about you. Before making a request for information or securing a quote, have this information about yourself ready:
- Your ultimate goal for fulfillment services
- Your budget and financial information
- Average monthly, weekly, and daily order volume—note any major seasonal fluctuations
- Number of SKUs
- Sales channels
- Technical requirements
- Timeline expectations
- Weight of your products
- Where most of your customers are located or where most of your orders ship to
- Your current shipping carrier and rates
Having this data on hand will also help you understand if what a fulfillment company is offering will actually save you time or money compared to your current operations.
Make use of your sales and fulfillment teams to be sure you address their concerns, too. Some questions you might consider are:
- Cost and how pricing works
- How billing works
- Tasks accomplished
- Warehouse locations
- Inventory tracking and compatibility with any current systems
- How shrinkage is handled
- Custom packaging needs
- Alerts
- Returns and reverse logistics
- How inventory is divided across warehouse locations
- Shipping partners and rates
Tip: Red Stag offers a free Excel template with questions to consider and evaluation criteria to help you make a well-researched decision.
Once you know what you need and have your information ready, start your research with the nine providers listed above. Keep in mind that while we recommend certain providers as best for specific situations, this does not mean the others don’t tackle that same task well. You can also go to WarehousingAndFulfillment.com, which can match your needs with information from over 500 services.
Frequently Asked Questions (FAQs)
A fulfillment company is a service provider that specializes in storing inventory, processing orders, and shipping goods for other businesses—particularly retail and ecommerce sellers.
These companies have purpose-built infrastructure, including warehouses, loading docks, packing stations, and trained employees. This allows them to store and ship large volumes of products quickly, accurately, and cost-effectively.
A 3PL is a general term for any company that delivers an outsourced logistics service—such as order fulfillment, shipping, freight distribution, or import/export. It stands for third-party logistics.
Fulfillment companies are 3PLs, but not all 3PLs perform order fulfillment. Other examples of 3PLs include shipping carriers like FedEx, UPS, and USPS, and freight brokers.
As a typical ecommerce retailer, the total cost owed to your partner fulfillment company mostly breaks down into four fees: inventory receiving, storage, pick and pack, and outbound shipping. In many cases, packaging materials are also part of the fulfillment outlay.
The periodic cost of each of these processes depends on order volume and complexity, as well as product specifications. Additional services—like custom boxes, special handling, and item assembly—can also contribute to your fulfillment expenses.
FedEx has been on our lists for 3PL and order fulfillment in the past; however, it’s difficult to get information on its services. Check out our detailed review of Federal Express Fulfillment for more information on why we don’t currently recommend FedEx.
But, keep in mind that the information may be different for your situation. You will need to contact them for specifics and a quote.
Bottom Line
Choosing the right warehouse and fulfillment services can save time so you can focus on marketing, product development, and growing your ecommerce business. Outsourcing warehousing also allows businesses to expand and reduce product offerings on a whim without having to acquire new space or adjust internal processes.
Overall, we found ShipBob the best order fulfillment service for small businesses. It has reasonable pricing, no order minimums, and a wide range of services.
Not finding what you’re looking for?
WarehousingAndFulfillment.com can compare your specific needs to 500+ pre-screened fulfillment companies to find the best fit for your business. Plus, the service is completely free to use.