Discover the best ecommerce fulfillment services and key strategies to streamline logistics, reduce costs, and boost customer satisfaction.
The Ultimate Small Business Guide to Ecommerce Fulfillment
This article is part of a larger series on Retail Management.
If you’re a growing independent online seller looking to outsource fulfillment or an entrepreneur starting a new small online shop and wanting to outsource from the get-go, this guide about ecommerce and fulfillment is for you.
What Is Ecommerce Fulfillment?
Ecommerce order fulfillment is the process of processing, managing, and delivering online orders to customers. It involves several steps, from receiving and storing inventory to packing, shipping, and managing returns. Effective ecommerce fulfillment ensures customers receive their orders quickly, accurately, and with ease.
The ecommerce fulfillment process includes the following:
- Receiving: Accepting shipments and checking incoming inventory from suppliers to ensure accurate quantities and quality before adding it to stock.
- Warehousing: Storing products in an organized, accessible way to make order processing efficient.
- Picking and packing: Selecting the correct items for each order (picking) and securely preparing them for shipment (packing).
- Shipping: Sending orders to customers through a chosen carrier, often with tracking information for delivery updates.
- Returns: Handling customer returns, including inspecting items, restocking if possible, and processing refunds or exchanges.
Efficient fulfillment is a competitive advantage. Fast, reliable shipping improves customer satisfaction, leading to repeat business and better reviews. It also reduces operational costs, giving you more resources to reinvest in growth.
Read more:
Ecommerce Fulfillment Options
There are a few different options when it comes to ecommerce fulfillment. While you can handle the logistics in-house, outsourcing is often the more beneficial route to take. Outsourcing fulfillment gets you access to a partner that specializes specifically in these logistics, so you can focus on other areas of your business.
Here’s a quick breakdown of each option:
- In-house: You manage all fulfillment tasks internally, including inventory storage, picking, packing, and shipping and handling. This option provides more control but can be resource-intensive as order volumes increase.
- Dropshipping: With dropshipping, you don’t even keep inventory. Instead, customer orders are sent directly to a supplier, who then ships the items directly to the customer on your behalf. This model is low-cost but offers less control over product quality and shipping speed.
- Outsourced: Fulfillment is handled by a third-party logistics (3PL) provider that manages warehousing, order processing, and shipping on behalf of the business. This option saves time and resources, enabling you to scale more easily while focusing on core areas like marketing and growth.
Best Ecommerce Fulfillment Services for Small Businesses
Pricing | Global Fulfillment (Y/N) | |
|---|---|---|
 | $14.25/pallet receiving | No |
 | $35-$45/hour receiving | Yes |
 | $325 per 20-foot container; $650 per 40-foot container; $13-$16 per pallet | No |
 | $325 per 20-foot container; $650 per 40-foot container; $13-$16 per pallet | No |
 | Variable | Yes |
Expand the sections below to learn more about each provider.
Red Stag Fulfillment is a 3PL that provides warehousing, order fulfillment, and shipping solutions to small and midsize businesses. It has excellent special handling capabilities, customer support, and industry-leading accuracy guarantees.
Pricing
Fulfillment Service | Price |
|---|---|
Receiving | $14.25/pallet |
Storage | 75 cents/cubic foot |
Picking and packing | $1.80–$2.25 for the first item, 32 cents per additional item |
Shipping | Discounted rates available |
Features & Benefits
- Only two warehouses in the US, none international
- Same-day order fulfillment with 5 p.m. cutoff
- Accuracy, inventory, and speed guarantees
- Receive all shipments in less than two days
- Shipping rate discounts available
- Lots of ecommerce integrations
Read our in-depth Red Stag review.
ShipBob is global 3PL that offers order fulfillment, warehousing, and shipping solutions for SMBs in the retail and ecommerce sectors. It has comprehensive software, a large global warehouse network, and useful special features for businesses of all sizes and order volume levels.
Pricing
Service | Cost | What It Covers |
|---|---|---|
Onboarding | $975 for full implementation or $0 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 | Included in fulfillment fee | Standard boxes, polymailers, bubble mailers, bookfolds, 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 |
Returns | $3 per order (plus shipping cost) | Return processing, quality check, and restocking |
Special Projects | $45 per hour | Versatile labor to handle open-ended additional needs, such as product labeling and supplier management |
Features & Benefits
- More than 50 warehouses in the US, Canada, Europe, and Australia
- DTC and B2B fulfillment
- Fast shipping and unboxing customization features
- International shipping
- Reliable customer support
- Two-day shipping
Read our full ShipBob review.
Flexport is Shopify’s official shipping partner, making it a great option for Shopify merchants. It promises savings of up to 15% on order fulfillment. You can also use it with channels like Amazon and Walmart.
Pricing
Fulfillment Service | Cost |
|---|---|
Receiving | $325 per 20-foot container; $650 per 40-foot container; $13-$16 per pallet |
Storage | $14 per pallet for first month; $25 per pallet per month for months two through 12; $60 per pallet per month starting month 13 |
Outbound | $2.30 per carton; $14 per pallet; $0.50 per label |
Features & Benefits
- End-to-end logistics, including freight, distribution, ecommerce fulfillment, and DTC fulfillment
- Two- and three-day shipping
- Warehouses in Newark, Atlanta, Chicago, Dallas, and Los Angeles
- 99% on-time shipping and 97%+ on-time delivery
The Shopify Fulfillment Network is available to all Shopify merchants. It’s free to install and integrate your store with Flexport. Flexport then offers end-to-end logistics services to connect every point of your supply chain. Fees are only applied when the service is used.
Pricing
Shopify Fulfillment Network is tightly integrated with Flexport. Merchants that use Shopify Fulfillment Network also use Flexport’s platform and pricing.
Features & Benefits
- End-to-end logistics, including freight, distribution, ecommerce fulfillment, and DTC fulfillment
- Two- and three-day shipping
- Warehouses in Newark, Atlanta, Chicago, Dallas, and Los Angeles
- 99% on-time shipping and 97%+ on-time delivery
FBA is a 3PL services provider specifically for Amazon merchants. It ensures all orders are eligible for Prime, helps improve search engine visibility, and raises the likelihood of winning the ‘Buy Box’ when multiple sellers list the same products.
Pricing
Service | Nonpeak 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-$12.61 per unit for standard-size products $18.13-$200+ for oversize products (Oct 15-Jan 14) | $3.42-$13.11 per unit for standard-size products $19.13-$200+ for oversize products (Jan 15-Oct 14) | Picking items from inventory, packing, packaging materials, shipping, and customer service |
FBA pricing changes periodically and fluctuates throughout the year, and additional fees may also apply in certain circumstances. It’s important to carefully read Amazon’s policies and fee guides and use its calculator tools to see just how profitable it will be for you.
Features & Benefits
- Free two-day shipping
- Pick, pack, and ship orders
- Handle customer service and returns
Read our full FBA review.
See our guide to the best fulfillment companies for small businesses to find more options.
How to Choose the Right Fulfillment Partner
Here’s a step-by-step guide to vetting potential fulfillment companies. You can also use our free template below to compare prospective partners.
Step 1: Consider Fulfillment Center Locations
Location plays an important role in fulfillment speed and shipping costs. Choose a partner with fulfillment centers strategically located near your business and main customer bases.
If you serve a national or international customer base, look for a provider with multiple warehouses in key regions to reduce shipping times and offer competitive shipping rates. Proximity to major carriers can also impact the speed and reliability of deliveries.
You’ll also want to make sure the partners can manage peak order volumes during holidays or sales events.
Step 2: Look at Pricing Structure
Fulfillment pricing varies widely, so a transparent, easy-to-understand fee structure is ideal. Typical costs include order handling, storage, and shipping, but be mindful of additional fees for long-term storage, oversized items, or surges in order volume. Some providers also charge for receiving inventory, returns handling, or kitting services.
Ask for a detailed breakdown of costs and compare them across providers. See if there are flexible pricing models that can scale with your order volume—like discounts for ordering in bulk or flat-rate options for certain products.
Step 3: List Technology Integrations
Look for providers that seamlessly integrate with your ecommerce platform. This will help sync inventory tracking and order management. Also consider any other software you use, like your point-of-sale (POS) or accounting platform.
Many fulfillment centers offer software that provides real-time visibility into inventory levels, order status, and shipment tracking. Check if their technology allows for customized reports, automated notifications, and integration with third-party marketplaces (e.g., Amazon, eBay) if you plan to expand your sales channels.
Step 4: Check for Project Scalability
Your fulfillment partner should be able to accommodate business growth—increased order volume, new product categories, and expanded geographic reach. Ask about their maximum order handling capacity, lead times for scaling up, and any requirements or fees associated with expanding services.
If you’re planning to introduce new SKUs or seasonal products, make sure they can manage fluctuating inventory. Some providers offer flexibility in storage space, enabling you to avoid paying for unused space in low-demand periods while still having the ability to scale up quickly when demand spikes.
Step 5: Interact With Customer Service & Support
Responsive customer service is key to resolving issues quickly. Just because they say they have great support doesn’t mean it’s true. Rather than taking a potential partner at their word, see for yourself. Check for multiple support channels (phone, email, chat) and dedicated account managers for streamlined communication.
You’ll also want to make sure there are guarantees in place for delivery times, accuracy, and quality.
Step 6: Inquire About Special Handling Requirements
If your products need special care—such as fragile handling, temperature control, or specific kitting and assembly—verify the provider can handle these requirements.
Some products, like electronics, perishables, or cosmetics, require specialized handling or regulatory compliance, so ask about their experience and facilities for handling such items.
If your business needs customized packaging, ask about custom branding options and the fees for these fulfillment services. A clear understanding of kitting and bundling services is also important if you offer bundles, seasonal gift sets, or subscription boxes.
The Future of Ecommerce Fulfillment
Ecommerce is always changing, and fulfillment isn’t immune to these changes. Anticipating future trends is a great way for SMBs to stay ahead of the curve. Here are some to watch:
Automation & AI
Across the board, businesses are automating more tasks than ever before. Although many warehouses still handle tasks manually, automation with AI-driven logistics systems that optimize inventory management and streamline operations is becoming more common. In a survey by Modern Materials Handling, 43% of fulfillment operations respondents said their processes were mostly or fully manual, 42% had a mix of manual and automated processes, and 10% claimed their operations were highly automated.
We’ll also continue to see more retailers use technology like automated robots for picking, packing, and sorting to speed up the fulfillment process and reduce human error.
Real-time problem-solving and quicker resolutions are possible through AI-driven customer service tools. More businesses will integrate AI-powered chatbots and virtual assistants to handle customer queries related to shipping, tracking, and returns.
Same-day & Hyperlocal Delivery
The rise of same-day or even two-hour delivery services has been driven by customer expectations for fast shipping. Across categories, nearly two-thirds of global shoppers expect to receive their items within 24 hours, while four in 10 shoppers anticipate delivery within two hours, according to data from Statista. Expect to see hyperlocal fulfillment centers placed closer to major population centers to ensure faster, more efficient deliveries.
Smaller, highly automated microfulfillment hubs located in urban areas serve dense populations and offer rapid deliveries. There will also be more hybrid models where microfulfillment is combined with larger distribution centers for efficient inventory management.
Advanced Data & Analytics
More businesses are using predictive analytics to optimize inventory levels, forecast demand, and reduce shipping delays. According to MHI’s Annual Industry Report, 82% of supply chain and manufacturing executives plan to adopt predictive analytics by 2025. These data-driven insights help businesses anticipate customer needs and improve fulfillment efficiency.
It’s also allowing for more personalization. Custom packaging, kitting, and personalized touches in the fulfillment process enhance the unboxing experience and build brand loyalty. Increased focus on providing fulfillment services tailored to specific customer needs, such as gift wrapping or product assembly.
Frequently Asked Questions (FAQs)
These are some of the most common questions we encounter about ecommerce fulfillment and ecommerce fulfillment services.
Ecommerce fulfillment services handle the logistics of storing, packing, and shipping your products to customers.
Ecommerce fulfillment is the process of storing, packing, and shipping products to customers. It ensures that when an order is placed online, the product is delivered quickly, accurately, and with excellent customer service. The key stages include receiving, warehousing, picking and packing, shipping, and returns.
An ecommerce fulfillment specialist is responsible for managing the end-to-end process of fulfilling customer orders for an online store. They play a crucial role in ensuring orders are processed accurately, shipped on time, and that customers receive their products in good condition.
Ecommerce involves the entire online sales process, while e-fulfillment focuses specifically on the post-purchase steps like shipping and delivery. e-Fulfillment is essentially a small component of ecommerce as a whole.
To start an ecommerce fulfillment business, first, secure warehouse space and set up systems for receiving, picking and packing, and inventory management. Then, partner with carriers for shipping. Lastly, find clients and efficiently fulfill their orders to gain trust and credibility in the industry. Referrals and word-of-mouth will be the best way to get more clients.
Bottom Line
Ecommerce fulfillment is a key component of your business. It’s important to get it right. There are many options for managing fulfillment in-house or tapping into third-party partners for help. When choosing an ecommerce fulfillment company, refer back to this post to help you vet and find the best option for your business.
We also recommend starting with the logistics matchmaker FulfillmentCompanies.net. This free service matches your business’s distribution needs to hundreds of 3PL companies.
