9 Best Order Fulfillment Companies for Small Businesses for 2023
This article is part of a larger series on Retail Management.
The best order fulfillment companies offer functional processes and special services at a good value with no order minimums. Some fulfillment warehouses cater to small sellers and startups, and most offer specialty services like batch fulfillment, secure storage, oversize shipping, or international sales.
The best fulfillment services for small businesses are:
- ShipBob: Best overall warehouse and order fulfillment services
- Saltbox: Best on-demand services, labor, and space for scaling in-house fulfillment
- ShipHero: Best for transitioning to third-party fulfillment
- Red Stag Fulfillment: Best for oversized, heavy, high-value, or fragile items
- Whitebox: Best combined fulfillment and marketplace management service
- FBA (Fulfillment by Amazon): Best for Amazon sellers
- ShipMonk: Best for subscription box management
- Deliverr: Best for selling on competitive marketplaces
- ShipNetwork (Rakuten Super Logistics): Best for scalability
The best solution for your business depends on your volume of orders, sales channels, and whether your products require any special handling. Outsourcing fulfillment to a warehouse or order fulfillment company is typically best for growing ecommerce businesses consistently processing more than 10 orders per day.
In other words, when you can no longer fulfill orders in-house without adding more people or space, outsourcing fulfillment saves time and money and offers a lot of flexibility.
Order Fulfillment Companies for Small Businesses Compared
Monthly Minimum | Pricing | US Warehouse Locations | Climate Control | Shipping Partner Options | Error Rate | Amazon Seller-Fulfilled Prime (SFP) Eligibility | |
---|---|---|---|---|---|---|---|
None | $ | 23 | ✓ | FedEx, UPS, USPS, DHL, OSM, CDL Last Mile, UDS, LSO, OnTrac | 0.05% | ✕ | |
None | $$ | 6 | ✓ | FedEx, UPS, USPS, regional couriers | 1% | ✓ | |
500 orders | Custom-quoted | 8 | ✕ | FedEx, UPS, USPS, DHL, GLS, Veho, Blue Streak, regional couriers | 0.1% | ✓ | |
~200 orders | $$ | 2 | ✕ | FedEx, UPS, USPS, Amazon, OnTrac | 0.02% with $50 payment guarantee for every error | ✓ | |
1,000 orders | Custom-quoted | 3 | ✕ | FedEx, UPS, USPS, DHL | 0.1% | ✓ | |
None | $$ | 110 | ✓ | Amazon Logistics, UPS | Undisclosed | ✓ | |
$250 min. pick and pack fee | $ | 9 | ✕ | FedEx, UPS, USPS, DHL, DHL Express, Passport | 0.01% | ✓ | |
None | $$ | 50+ | ✕ | FedEx, UPS, USPS, and DHL, and others (unspecified) | Undisclosed | ✕ | |
250 orders | Custom-quoted | 12 | ✓ | UPS, USPS, FirstMile, DHL | 0% | ✕ | |
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ShipBob: Best Overall Order Fulfillment Company
ShipBob
What We Like
- No order minimums or pick and pack fees
- Two-day discounted ground shipping anywhere within the continental US and options for same-day delivery
- Wide fulfillment network
What's Missing
- High storage fees
- Cannot fulfill Amazon SFP (Seller-Fulfilled Prime) orders
- Users complain about kitting errors
Key Features
- No monthly minimum or maximum
- Affordable pricing
- B2B fulfillment with EDI compliance
- 23 US warehouse locations
- Seven international warehouse locations
- Itemized billing format for transparency
- FDA-certified climate control and handling
- 99.95% accuracy rate
- Works with UPS, USPS, FedEx, DHL and smaller regional carriers
- Fulfillment by Amazon (FBA) prep services
- Retail dropshipping program
- Managed freight program for importers
ShipBob delivers flexible, highly functional ecommerce fulfillment services with no order minimums. In fact, it offers a special Growth Plan for businesses shipping under 400 orders a month, ideal for startups and young operations. Its pricing structure makes it best for faster-moving goods, as the storage fees are among the highest on our list.
Its wide network of 23 domestic and seven international fulfillment centers is one of the largest on our list, allowing ShipBob to provide high-level distribution capabilities with fast and affordable shipping. ShipBob’s FDA-certified climate control and handling make it ideal for retailers who sell beauty, health, or consumable goods. (ShipMonk and ShipHero also offer FDA-approved warehouses.)
ShipBob scored 4.73 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 slightly for its negative online reviews and customer service hours.
A map of ShipBob’s fulfillment locations
ShipBob Pricing
Since Our Last Update
ShipBob has increased its fees for 2023. Receiving fees have increased from $25 to $35 per hour and pick and pack fees have also increased by 5 cents. According to ShipBob, the increases are to compensate for inflation and higher raw material 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.
ShipBob charges a single fulfillment fee for each order, which includes pick and pack (up to four items), basic packaging materials, and shipping costs. Returns are processed to your specifications for $3 per order, and order management software comes free for every account.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $975 for standard service or $0 on the Growth Plan | Onboarding, account setup, stock migration, and platform integration done by a dedicated 'Implementation Engineer' who stays with you for 30 days |
Receiving | $35/hour first two hours, $45/hour following | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $40 per pallet/month, $10 per shelf/month, or $5 per bin/month | Climate-controlled storage, security, 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 item | Picking items from inventory and packing them for shipment |
Kitting | $25 per order fee, plus per-action frees (undisclosed) | Training and Work Station Setup |
Special Projects | $45 per hour | Labor fees |
Packaging Materials | $0 (Included in fulfillment fee) | Free 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 |
Address Correction Surcharge | $19.50-$21.00 | ShipBob passes on what carriers charge it for address corrections |
Shipping Correction Surcharges | Varies | ShipBob passes through what carriers charge it for shipping corrections; collected and charged monthly |
Carrier Surcharges
Fee | Zones 1-2 | Zones 3-4 | Zones 5-6 | Zones 7-8 |
---|---|---|---|---|
Additional Handling Surcharge | $29 | $31.50 | $33.50 | $36 |
Large Package Surcharge | $135 | $145 | $160 | $170 |
ShipBob Features
- Large fulfillment network: 23 US warehouses and seven international locations make 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.
- FDA certification: Seven of ShipBob’s warehouses are climate-controlled and certified by the Food and Drug Administration (FDA) for the safe handling of food, beverages, cosmetics, medical equipment, and dietary supplements. Only ShipMonk and ShipHero also note that their warehouses are FDA-approved.
- Integrations: ShipBob has the greatest number and variety of integrations for everything from shopping carts to crowdfunding platforms.
- Highly flexible: ShipBob is one of the most flexible services on our list. It can handle very small orders and wholesale order processing for B2B sales. (ShipBob is EDI certified.) Per-project services are great for crowdfunding campaigns and product launches.
- FBA prep: For eligible multichannel clients, ShipBob will send a portion of your inventory to Amazon and ensure it meets precise 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: ShipBob offers an end-to-end managed freight and inventory distribution program (called FreightBob) to help SMBs reduce transit times and increase visibility for freight coming from China.
Want to learn more about dropshipping?
ShipBob’s Drawbacks
ShipBob doesn’t offer refrigeration, making warehousing of certain foods and beverages impossible. Though it can accommodate oversized goods, it isn’t as nearly cost-effective for special handling and large-item shipping as Red Stag Fulfillment.
The provider’s storage costs are also higher than competing fulfillment companies, and its customer service issue resolution needs improvement.
Read our full ShipBob review.
Saltbox: Best On-demand Services, Labor & Space for Scaling In-house Fulfillment
Saltbox
Pros
- Customized solution 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
- No refrigeration or frozen warehousing for cold chain compliance
Key Features
- 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 is a unique logistics solution designed to enable growing ecommerce businesses in a variety of ways. The company offers warehouse and/or office suite rentals, functional coworking spaces, secure storage areas, shipping supplies, fulfillment resources, and on-hand labor—all with no long-term contracts. Users can choose whatever combination of services makes the most sense for their business.
Many clients use Saltbox’s workspace rentals to facilitate their own in-house fulfillment operations. This approach provides them with on-demand labor and space to scale effortlessly when needed—like during holiday spikes or product launches—and scale back down without being left with excess resources. Plus, Saltbox members get access to valuable benefits like conference rooms, logistics consultants, loading docks, high-quality amenities, and a product photography studio.
Alternatively, fully outsourced fulfillment is available at an affordable price, with the goal of giving sellers as much control as possible. Unlike most fulfillment providers, Saltbox’s warehouses are located in major metropolitan areas, and clients are welcome to come and go as they please. This gives sellers easy access to their own inventory—enabling hands-on order customizations, shipment inspections, and more.
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.
Saltbox’s warehouse suites are a purpose-built alternative to working out of a spare bedroom or rented storage unit. They can be used in combination with the company’s third-party fulfillment services. (Source: Saltbox)
Saltbox Pricing
Since Our Last Update
Saltbox has added a special membership plan for those with varying small order amounts. The plan is unique among those we’ve reviewed, although some may offer flat monthly rates at a custom price. For a flat rate of $500 per month, you get:
- Pick and Pack for up to 100 orders
- Storage for up to two palettes
- Coverage for up to 120 SKUs
The following costs reflect Saltbox’s third-party fulfillment service. For the price of warehouse suites, office suites, and other customized options, contact Saltbox to receive a quote.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup is free |
Receiving | $0 (Included in fulfillment fee) | Full-service inbound stock receipt, unpack, and check-in |
Inventory Storage | $0.33 per cubic foot | Secure storage and inventory management |
Fulfillment Fee | $3.25 per order | Receiving, pick and pack, and packaging materials |
Pick and Pack | $0 (Included in fulfillment fee) | Picking unlimited items from inventory and packing them for shipment |
Packaging Materials | $0 (Included in fulfillment fee) | Free standard boxes, mailers, and dunnage |
Shipping | Calculated per-package based on weight and shipping distance | Shipping costs vary depending on the size, weight, and destination of your goods |
Saltbox Features
- Suite rentals: Rent an office or warehouse suite with 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: Saltbox members receive access to the resources needed to power their business—including access to a photo studio, loading docks, conference rooms, coworking areas, and logistics expertise.
- Flexible services: Sellers can customize their service package to create their own hybrid of in-house and outsourced fulfillment. Saltbox is the only order fulfillment service with this kind of flexibility.
- Small-business focus: Saltbox ensures the staff’s ability to serve its clientele by intentionally limiting its volume capacities and focusing on small- to mid-sized businesses.
- Integrations: 30+ integrations available, including Shopify, WooCommerce, Amazon, Etsy, Magento, and Walmart—plus CSV upload and API options.
- Crowdfunding/batch fulfillment: Saltbox offers its services to crowdfunding ventures and limited product launches at the same capacity as standard DTC businesses.
Saltbox’s Drawbacks
Saltbox’s unique platform isn’t right for everyone—especially business owners looking to take a 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 mid-sized 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.
Read our Saltbox review
ShipHero: Best for Transitioning to Third-party Fulfillment
ShipHero
Pros
- Affordable two-day shipping to lower 48 states
- FDA-approved warehouses
- Amazon SFP-eligible
Cons
- Restrictive minimum order volume requirements
- Zone-free shipping fee structure can make value inconsistent
- Some basic features require qualification and approval
Key Features
- 500 order monthly minimum
- Eight US fulfillment center locations
- Two locations in Canada
- Shipping, inventory, and warehouse management software 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 provides an array of solutions for both in-house and outsourced fulfillment. In addition to standard third-party services, businesses can use the company’s inventory management software, shipping software, and/or warehouse management software (WMS) to run their in-house operation efficiently.
For many small businesses, these products can be used to make the transition into third-party ecommerce fulfillment as smooth as possible. Clients can also take a hybrid approach to fulfillment by splitting inventory between ShipHero’s warehouses and their own operation.
ShipHero has a nationwide network of warehouses to distribute inventory for qualifying customers. It also boasts a range of services from locations in Canada—including parcel lockers for customer pickup and Section 321 advantages.
The company uses a “no shipping zone” structure for shipping costs. It offers three different service levels for shipping (standard, two-day, and overnight) that incur flat-rate fees determined by the parcel’s size and weight. The only exceptions to this fee schedule are Zone 9 and international shipments.
This structure can be incredibly helpful for small businesses and startups to accurately calculate and anticipate their fulfillment spend—especially as they transition from in-house to outsourced fulfillment. This won ShipHero points for pricing predictability, but it was docked for its limited warehouse network, minimum order requirements, and business-only customer support hours. Ultimately, the company received 4.2 out of 5 points in our evaluation.
ShipHero’s multiple locations make it able to provide two-day or better shipping. (Source: ShipHero)
ShipHero Pricing
Since Our Last Update
ShipHero no longer posts its pricing online for fulfillment services. It says that because fulfillment needs are so varied, it can better meet expectations with a personalized quote. The prices for its warehouse management system have increased.
ShipHero provides flat-rate pricing that’s customized to your individual needs. Previous prices have been competitive, and we’ve seen no indication that that has changed.
However, the warehouse management system (WMS), which comes at an extra cost and can be used independently of its fulfillment services, has gotten more expensive.
- 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.
ShipHero Features
- Fulfillment network: Eight US warehouses and two Canada locations allow businesses to distribute their inventory and import efficiently. All orders placed before noon ship the same business day. ShipHero claims to be 30% faster than its competition.
- Warehouse management software: The company’s robust WMS is used by large-scale warehouses worldwide—including some of the other providers on this list. While the monthly fees are high, if you need in-depth inventory and shipping management, you could find it pays for itself in time and expenses saved.
- Fulfillment software: You don’t need the WMS to use ShipHero. It provides free user-friendly software for fulfillment clients to manage orders, inventory, customers, returns, billing, and analytics.
- Integrations: 50+ turnkey integrations available, including major ecommerce and online stores, 38 delivery tools, returns software, inventory tools, and more. The variety is wider than ShipBob. It also has API options.
- Batch fulfillment: Service can be enrolled on a per-project basis for crowdfunding campaigns and product launches. ShipBob has crowdfunding integrations whereas ShipHero does not.
- 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.
ShipHero’s Drawbacks
ShipHero’s only international warehouses are located in Canada, so it isn’t able to provide local fulfillment in most global markets. For retailers focused on expanding globally, we recommend a global warehouse network like ShipBob or FBA.
Read our full ShipHero review.
Red Stag: Best for Oversized, Heavy, High-value, or Fragile items
Red Stag Fulfillment
Pros
- Excellent operational transparency and service 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
- 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 products that require light assembly or customization before shipping. It also 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 one 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 network. It has climate-controlled warehouses, but they are not FDA-certified like ShipBob’s or ShipHero’s. It received an overall score of 4.2 out of 5. See how Red Stag compares to the top-ranking provider in ShipBob vs Red Stag.
A map of Red Stag’s warehouse locations and delivery speeds (Source: Red Stag Fulfillment)
Red Stag Fulfillment Pricing
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 | 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 |
Red Stag Fulfillment Features
- 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 did not find it as user-friendly as others, if you work on the go, it’s worth considering.
- Management and quality control: Red Stag has video tracking throughout its warehouses to prevent losses through damages, mistakes, or theft.
Red Stag Fulfillment’s Drawbacks
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.
Read our in-depth Red Stag Fulfillment review.
Whitebox: Best for Combined Fulfillment & Marketplace Management Services
Whitebox
Pros
- Two-day shipping for 99% of the continental US
- Full-service marketplace management platform handles your listings for you
- 4.9 out of 5 stars on Amazon
Cons
- Prohibitive order minimums
- Monthly platform fee charged for software
- Lack of pricing transparency
Whitebox Key Features
- 1,000 order monthly minimum
- Three US warehouse locations
- Turnkey service manages entire Amazon listing including photos and copy
- FBA prep
- Advanced reporting, forecasting, and analytics
- 0.1% error rate
- Works with FedEx, UPS, USPS, and DHL
Whitebox is a unique combination of two ecommerce services—an order fulfillment company and a marketplace growth agency specializing in Amazon sales.
This turnkey platform makes it the easiest, most hassle-free way to sell Prime-eligible items on Amazon. It manages your entire online sales process, covering everything from professional product photography and SEO-informed copywriting to quality assurance and profitability studies.
The company is geared toward sellers who are enrolled in FBA and other channels—which means marketplace, FBA, and Whitebox fees all take a bite out of your bottom line. Because of this, we recommend Whitebox for product manufacturers with sizable markups. For these sellers, Whitebox can be the ideal full-service partner due to its extensive and well-developed turnkey services.
In addition to drawbacks due to lack of pricing transparency, Whitebox lost points for its high order minimum requirements, lack of climate control, and customer service hours. The company was awarded points for its robust services, operational transparency, and scalability—ultimately scoring 3.82 out of 5.
A look inside one of Whitebox’s warehouse centers (Source: Baltimore Sun)
Whitebox Pricing
Whitebox requires you to call for a quote. It charges 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.
Its growth agency option is charged on a commission basis, assessed as 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.
Whitebox Features
- Growth agency services: Its full-service marketplace management platform goes beyond fulfillment to include SEO-targeted listing creation and optimization, stock maintenance, marketing, and sales servicing. No others on our list provide these extra services.
- Fulfillment network: While it only has three warehouse locations strategically located in Las Vegas, Memphis, and Baltimore, it nonetheless offers two-day shipping throughout the continental US, allowing it to qualify for Amazon Prime.
- FBA prep: Whitebox receives, counts, and examines your stock before correctly packaging and distributing it into Amazon’s warehouse system per FBA requirements.
- Stock forecasting and maintenance: During onboarding, Whitebox forecasts product demand to help determine the initial stock you need for your launch. It also reviews stock needs regularly to maintain proper inventory levels. None of the others on our list provide this service.
- Advanced reporting: Sales forecasting, profitability studies, inventory management, and unified data are visible from the company’s available software.
- Amazon advantage: Whitebox can list your items on its own well-established seller account, which boasts a 4.9-star rating with 98% positivity on 2,250+ reviews in the last 12 months.
Whitebox’s Drawbacks
Whitebox’s high minimum requirement of 1,000 orders per month makes it incompatible with many young businesses and startups. It also doesn’t offer batch fulfillment services for crowdfunding ventures. Because of its price and full-spectrum services, you might find ShipBob and others a better option if you just need fulfillment.
Read our in-depth Whitebox review.
FBA (Fulfillment by Amazon): Best for Warehouse & Fulfillment Services for Amazon Sellers
FBA (Fulfillment by Amazon)
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
- 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 the obvious fulfillment solution for Amazon sellers because it comes with an automatic Prime designation, which gives you greater access to Amazon’s over 200 million Prime subscribers. It is also a great option for Amazon sellers because it handles all customer inquiries, processes returns and refunds, and automates order fulfillment—all of which can save a lot of time.
However, FBA’s pricing and procedures are more complicated than many other fulfillment warehouses, particularly if you’re not selling small or low-weight products, so be sure you understand how FBA works to avoid unnecessary fees.
FBA scored 3.78 out of 5 in our evaluation. While its prices can fluctuate by season, they are accessible through Seller Central, so you can plan. It lost points for integrations and partner options, which is expected since it’s Amazon-focused.
You’ll need to handle custom packing (such as through ShipBob’s FBA service), and we didn’t find the management software as user-friendly as others on our list. User reviews were among the lowest of the products we reviewed. However, Amazon Prime makes up for a lot. It’s also scalable with no minimums and, of course, ships internationally.
In the News:
Amazon is set to launch monthly inventory capacity limits for sellers starting March 1, 2023. This will replace the current weekly restock limits. In theory, this should allow for easier planning for sellers.
A map of Amazon’s US warehouse locations
FBA (Fulfillment by Amazon) Pricing
Since Our Last Update:
As of January 19, 2023, Amazon has changed its pricing. Below are the most up-to-date rates.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free, but monthly seller fees will incur |
Receiving | $0 when guidelines are met | Inbound stock receipt, unpack, and check-in |
Inventory Storage | Standard goods: 53–83 cents per cubic foot/month during January–September; $1.20–$2.40 per cubic foot/month during October–December Dangerous goods: 78–99 cents per cubic foot/month during January–September; $2.43–$3.63 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 | $3.22–$7.17 + 16 cents/half-lb above first 3 lb per unit for standard-size non-dangerous products (up to 20 pounds) $9.73 + 42 cents/lb above first lb–$158.49 + 83 cents/lb above first 90 lb for oversize non-dangerous products (21–150+ pounds) | Picking items from inventory, packing, shipping, and customer service Fulfillment fees are based on size, weight, quantity, sales channel, shipping speed, and category of goods in each order |
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.
FBA Features
- 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’s Drawbacks
Due to its multichannel fulfillment fees, FBA is simply not cost-effective unless 80% to 90% of your sales come from Amazon. If you sell on other competitive marketplaces, Deliverr is a better service with many similarities.
Amazon also uses commingling for its inventory storage, picking, and packing.
What is Commingling?
Commingling means your products are stored with identical products from other sellers, and when an order is placed, the item is pulled off the shelf without regard to the original owner. Amazon uses commingling to increase shipping speed. It helps reduce your cost because you simply ship items directly from the manufacturer to the fulfillment center. It can also speed deliveries and prevent errors in FBA labeling, which helps customer satisfaction.
However, if another company’s product is of lower quality than yours—or even worse, a knock-off—your customer may receive substandard products. It can also affect how well you can control your inventory.
Read our detailed FBA review.
ShipMonk: Best for Subscription Services
ShipMonk
Pros
- Ample pre-built marketplace integrations
- International warehousing
- Amazon SFP-eligible
Cons
- Minimum usage fee requirements
- Multiple complaints about fees and poor service since our last update
- No climate control for temperature-sensitive goods like health products or grocery items
ShipMonk Key Features
- $250 minimum pick and pack fee
- Nine US warehouse locations
- Three international locations
- Amazon Seller-Fulfilled Prime eligibility
- Online billing portal
- 0.01% error rate (claimed; many complaints of errors in 2022)
- 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
Since Our Last Update
ShipMonk dropped from our No. 2 slot in this update because the reviews in the past 12 months have been brutal. Users have blamed overcharging and shipping errors not just for the loss of customers, but in some cases, for their going out of business. Customer support, which we lauded in the past, was panned by real-world users in 2022. The tools and services it offers are still excellent otherwise, however.
ShipMonk’s features and capabilities rival the top direct-to-consumer fulfillment companies 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 3.65 out of 5 in our evaluation, losing points for billing predictability and transparency because of the overwhelming complaints of overcharges on Capterra and G2. 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.
ShipMonk has locations in four countries and intends to open fulfillment centers in Europe in 2023. (Source: ShipMonk)
ShipMonk Pricing
There’s a minimum requirement of $250 in pick and pack costs to use its services—which is a low threshold, but it still cost the company points in our evaluation. It also lacks a widespread global warehouse network. Because of this, nascent small businesses, startups, and crowdfunding ventures would be a better match for ShipBob’s partnership. 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. Pricing details hidden in fine print can impact your bottom line if you’re not careful, so be sure to understand your fulfillment agreement thoroughly.
Ecommerce Cost* | Subscription Box Cost* | What It Covers | |
---|---|---|---|
Onboarding | $0 | $0 | Onboarding and account setup are free |
Receiving | $0 when shipment guidelines are met | $0 when shipment guidelines are met | Inbound stock receipt, unpack, and check-in |
Container Unloading | $300 per 20-foot container; $500 per 40-foot container | $300 per 20-foot container; $500 per 40-foot container | Offloading and palletizing free-loaded containers |
Inventory Storage | $25 per pallet/month, or $1–$4 per bin/month | $25 per pallet/month, or $1–$4 per bin/month | Storage, security, and inventory management |
Minimum Pick and Pack Fee | $250/month | $250/month | Starts at $250/month or equals your storage fees. If you don’t reach the minimum with your pick and pack fees, you will be billed the difference. |
Pick and Pack | $3 for the first pick per order, 75 cents per additional item 20 cents for promotional inserts $2 + 50 cents per additional item for returns processing | $2.5 for box assembly and 5 items; 20 cents per additional item | Picking items from inventory and packing them for shipment |
Packing materials | 15 cents to $2 | 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 | Discounted rates available with 5 carrier partners | Shipping costs vary depending on the size, weight, and destination of your goods |
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. |
*Prices displayed are for clients processing 0–500 orders per month. Volume discounts are available for businesses shipping 500+ monthly orders. Visit ShipMonk for more information.
ShipMonk’s pricing model is highly scalable, with volume discounts that apply on a sliding scale. 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.
ShipMonk Features
- Subscription Services: While others on our list can handle subscriptions, ShipMonk offers this as a specialty, 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: 60+ turnkey integrations including 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: ShipMonk assures 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 Drawbacks
Without climate control, refrigerators, and special handling expertise, ShipMonk isn’t a good fit for retailers selling goods that require extra care or maintenance, such as food subscriptions. Consider ShipBob instead.
Recent reviews have been extremely negative, with headers like “Stay away” and accusations of overcharging. Positive reviews praise onboarding and specific Happiness Engineers.
Check out our ShipMonk review.
Deliverr: Best for Selling on Competitive Marketplaces
Deliverr
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
- Deliverr chooses your carrier
Deliverr Key Features
- No minimum order requirements
- 50+ US warehouses
- 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:
In July 2022, Shopify acquired Deliverr. The acquisition seems to be more to provide Shopify users with greater fulfillment and delivery options than to improve Deliverr’s services.
Deliverr 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. Last year, it was acquired by Shopify, but continues to serve all markets.
It equips your marketplace listings with Prime-like badges that advertise fast delivery. According to the company, these lead to a 10% to 80% 4 and benefit your rankings through SEO.
The ecommerce fulfillment company charges for shipping based on three service levels: Standard (five to seven days), three-day, and two-day delivery. Deliverr uses intelligent algorithms to allocate clients’ inventory across its network of fulfillment warehouses, which keeps products in close range to hungry customer bases. This enables fast shipping at decent price points—allowing sellers to stay competitive on popular marketplaces.
Deliverr 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.
Depending on your chosen service level, Deliverr supplies Prime-like badges for your listings. (Source: Deliverr)
Deliverr Pricing
Deliverr’s 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, Deliverr’s storage costs fluctuate greatly during peak season. This can easily lead to surprise charges, so users must examine their budget carefully.
Note that items containing batteries or anything deemed hazardous will incur extra charges. Visit Deliverr for more information.
Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free |
Receiving | $0 when guidelines are met | Inbound stock receipt, unpack, and check-in |
Inventory Storage | 75 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 $4.15 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 |
Deliverr Features
- Social selling: In addition to Shopify, Etsy, Walmart, and the other venues most on our list offer, Deliverr also works with Facebook, Instagram, and Google.
- Prime-like badges: Deliverr equips your marketplace listings with badges to advertise fast shipping offers. Eligible customers on qualifying venues to see badges promoting next-day or two-day delivery automatically.
- Fulfillment network: Deliverr maintains 50+ warehouses across the US. Only Amazon boasts a larger network.
- Shipping carriers: The company works with 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: Deliverr is designed to boost your success in competitive marketplaces like Walmart, Wish, and eBay. Improve your marketplace SEO through Deliverr’s badging features and shipping guarantees.
Deliverr Drawbacks
Like ShipHero, Deliverr’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, Deliverr doesn’t allow for custom packaging elements, so branding and unboxing experiences are compromised.
Deliverr has either great reviews or terrible ones. On Trustpilot and even Shopify, the ratings are mostly 5 stars or only one star. 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.
Want to learn more about selling on marketplaces?
ShipNetwork (Formerly Rakuten Super Logistics): Best for Scalability
Rakuten Super Logistics
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
What's Missing
- Restrictive minimum order volume requirements
- Clients can’t use custom packaging elements
- No international warehouses
ShipNetwork Key Features
- 250 order monthly minimum
- 12 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
- Cloud-based fulfillment and inventory management software
- Freight forwarding services
- Suite of ecommerce smart tools
- 100% accuracy guaranteed
In the News:
In August 2020, Devin Johnson acquired Rakuten Super Logistics and its sister company, FirstMile, renaming RSL “ShipNetwork.” Johnson said they’ll be adding more facilities on the East and West coasts, with warehouses larger than the current locations. It also looks to expand internationally.
ShipNetwork (formerly, Rakuten Super Logistics) provides domestic fulfillment services and international freight delivery with a 100% accuracy guarantee. With 15 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 3.53 out of 5.
ShipNetwork currently has warehouses in 12 locations and plans to build more. (Source: ShipNetwork)
ShipNetwork Pricing
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.
ShipNetwork Features
- 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 Drawbacks
ShipNetwork doesn’t support custom packaging, 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.
How We Evaluated Order Fulfillment Companies
Fulfillment services 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 nine best order fulfillment companies based on pricing, functionality, specialty services, and ease of use. Our retail and ecommerce experts also weighed in and evaluated each service.
Based on the above criteria, ShipBob is the best order fulfillment service for small businesses, receiving the highest overall score according to our grading system. ShipBob’s pricing, features, and practicality are well-suited for growing small businesses that want a good value for high-quality fulfillment services. Plus, the popular company has excellent user reviews and offers reliable customer support.
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. Red Stag was the clear winner in this category with 4.65 out of 5.
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 4.8 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 Fulfillment Company 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.
Understand Your Goals
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.
Gather Your Company Data
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.
Collect Your Questions
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.
Start Your Research
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.
Order Fulfillment Companies for Small Businesses Frequently Asked Questions (FAQs)
How do third-party order fulfillment companies work?
A fulfillment company is a service provider that specializes in storing inventory, processing orders, and shipping goods for other businesses.
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.
Click here to read about how fulfillment centers work.
What’s the difference between 3PL and fulfillment?
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.
How much does third-party fulfillment cost?
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.
To learn more about fulfillment services pricing and see cost examples, read our guide to order fulfillment costs.
Does FedEx handle order fulfillment?
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. Do your due diligence, but consider ShipBob in your choices.
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.