10 Best Order Fulfillment Companies for Small Businesses
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 & order fulfillment services
- ShipMonk: Best client support from a dedicated representative
- ShipHero: Best for transitioning to third-party fulfillment
- Saltbox: Best on-demand services, labor, and space for scaling in-house 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
- Rakuten Super Logistics: Best for scalability
- Deliverr: Best for selling on competitive marketplaces
- FedEx: Best combined freight, fulfillment, and logistics services
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.
Top Order Fulfillment Services 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% | ✕ | |
$250 min. pick and pack fee | $ | 7 | ✕ | FedEx, UPS, USPS, DHL, DHL Express, Passport | 0.01% | ✓ | |
500 orders | $ | 5 | ✕ | FedEx, UPS, USPS, DHL, GLS, Veho, Blue Streak, regional couriers | 0.10% | ✓ | |
None | Custom-quoted | 6 | ✓ | FedEx, UPS, USPS, regional couriers | Undisclosed | ✓ | |
~200 orders | $$ | 2 | ✕ | FedEx, UPS, USPS, Amazon, OnTrac | 0.02% with $50 payment guarantee for every error | ✓ | |
1,000 orders | Custom-quoted | 3 | ✕ | FedEx, UPS, USPS, DHL | 0.10% | ✓ | |
None | $$ | 110 | ✓ | Amazon Logistics, UPS | Undisclosed | ✓ | |
250 orders | Custom-quoted | 15 | ✕ | UPS, USPS, FirstMile, DHL | 0% | ✓ | |
None | $$ | 50+ | ✕ | 12 carriers (unspecified) | Undisclosed | ✕ | |
400 orders | Custom-quoted | 13 | ✓ | FedEx | Undisclosed | ✕ | |
Not sure which order fulfillment company is right for your business? Take this four-question quiz for our personalized recommendation (you won’t be redirected to another screen):
Which Fulfillment Service is Right for You?
Answer a few questions about your business, and we'll give you a personalized product match.
ShipBob: Best Overall Warehouse & Fulfillment Services
ShipBob
What We Like
- Excellent value: Free order management software, low-cost shipping, and no order minimums or pick & pack fees
- Two-day discounted ground shipping anywhere within the continental US and options for same-day delivery
- Wide fulfillment network: 23 US and seven international warehouse locations
What's Missing
- High storage fees: Not ideal for slow-moving products or businesses with low sale-to-SKU ratios
- Cannot fulfill Amazon SFP (Seller-Fulfilled Prime) orders
- No refrigeration or frozen warehousing for cold chain compliance
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 highly functional ecommerce fulfillment services with the levels of flexibility that many small businesses need to thrive. It has no prohibitive order minimums and even offers a Growth Plan ideal for startups and young operations.
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. Plus, it’s the only fulfillment company on our list that boasts FDA-certified climate control and handling—making it ideal for retailers who sell beauty, health, or consumable goods.
It charges significantly higher storage fees than most of the competitors. If you sell fast-moving goods or maintain a high sale-to-SKU ratio, this expense will be balanced by its virtually free pick and pack service. But if your store deals in a high SKU volume of slow-moving goods, ShipBob’s pricing model isn’t for you.
ShipBob scored 4.75 out of 5 in our evaluation. The company performed well in all categories but lost points for Seller-Fulfilled Prime incompatibility. It was also docked for its negative online reviews and customer service hours.
A map of ShipBob’s fulfillment locations
ShipBob Pricing
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 | $25/hour first two hours, $40/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, 20 cents per additional item | Picking items from inventory and packing them for shipment |
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 |
ShipBob Features
- Fulfillment network: 23 US warehouses and seven international locations make for efficient, cost-effective distribution around the world. All orders placed before noon ship the same day.
- Shipping carriers: UPS, USPS, DHL, and FedEx—all with discounted rates. Plus smaller regional carriers.
- B2B fulfillment: Wholesale order processing and EDI compliance make ShipBob a good choice for retail fulfillment.
- Integrations: Shopify, BigCommerce, WooCommerce, Squarespace, Amazon, eBay, Walmart, and API options.
- FBA prep: For eligible multi-channel clients, ShipBob will send a portion of your inventory to Amazon and ensure it meets precise packaging standards.
- Batch fulfillment: Service can be enrolled on a per-project basis for crowdfunding campaigns and product launches.
- FDA certification: Seven of ShipBob’s warehouses are climate-controlled and certified by the Food and Drug Administration for the safe handling of food, beverages, cosmetics, medical equipment, and dietary supplements.
- Software: Free user-friendly, web-based software for managing orders, inventory, customers, returns, billing, and analytics.
- 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.
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.
For a deeper look into ShipBob’s services, pricing, features, user reviews, and a full list of integrations, read our full ShipBob review.
ShipMonk: Best Customer Support From a Dedicated Representative
ShipMonk
What We Like
- Best-in-class support from a dedicated customer service rep with client-specific training
- Advanced accuracy measures and warehouse automation
- Ample pre-built marketplace integrations
What's Missing
- Minimum usage fee requirements
- Hidden costs in fine-print pricing details
- No climate control for temperature-sensitive goods like health products or grocery items
Key Features
- $250 minimum pick and pack fee
- Seven US warehouse locations
- Three international locations
- Amazon Seller-Fulfilled Prime eligibility
- Online billing portal
- 0.01% error rate
- 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 fulfillment companies in the industry. Its platform is built to cater to small businesses, equipped with the scalability needed to foster growth.
The company’s humble beginnings without the means for sophisticated systems led to a focus on best-in-class customer service. Now, ShipMonk delivers high-tech tools, automated warehouse services, and a developed fulfillment network—while maintaining an unparalleled dedication to client support.
ShipMonk scored 4.59 out of 5 in our evaluation. 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. 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.
In The News:
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.
ShipMonk Pricing
Service | Cost* | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free |
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, 50 cents per additional item 15 cents–$2 per order for standard packaging and dunnage | Picking items from inventory and packing them for shipment |
Shipping | Discounted rates available with 5 carrier partners | Shipping costs vary depending on the size, weight, and destination of your goods |
*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.
The billing portal on ShipMonk’s software features a detailed breakdown of your monthly fulfillment costs, offering transparency into each invoice.
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.
Users occasionally 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.
ShipMonk Features
- Customer service: High-level accessibility from a dedicated representative and a support facility open during extended business hours in multiple time zones.
- Shipping carriers: USPS, FedEx, DHL, DHL Express, Passport, UPS1—with discounted rates.
- Integrations: 60+ turnkey integrations including Shopify, WooCommerce, Amazon marketplace, Magento, eBay, PayPal, and more.
- Customization and branding: Shipmonk offers a suite of branded post-purchase tools, including tracking pages and advanced packaging customization.
- 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.
- Software: Free user-friendly, web-based software for managing orders, inventory, customers, returns, billing, and analytics.
- 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.
Its restrictive fulfillment network may result in greater shipping costs and longer delivery times than competitors such as ShipBob, FBA, and Deliverr. Additionally, ShipMonk’s limited presence outside of North America (with only one warehouse in the Eastern hemisphere) makes it difficult for users to expand into foreign markets.
Check out our ShipMonk review to learn more about the company’s services, pricing, and user reviews.
ShipHero: Best for Transitioning to Third-party Fulfillment
ShipHero
What We Like
- Affordable two-day shipping to lower 48 states
- Options for standalone software to support in-house fulfillment
- Flat-rate shipping costs: Closely control margins with ultra-predictable pricing
What's Missing
- 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
- Five US fulfillment center locations
- Two locations in Canada
- Shipping, inventory, and warehouse management software solutions for in-house fulfillment
- Flat-rate shipping prices at three service levels
- 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 4.58 out of 5 points in our evaluation.
ShipHero Pricing
Service | Cost | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free |
Receiving | $0 | Inbound stock receipt, unpack, and check-in |
Inventory Storage | 65 cents per cubic foot | Climate-controlled storage, security, and inventory management |
Fulfillment Fee | Calculated per-package based on weight, size, and service level | Pick and pack, packaging materials, and shipping |
Pick and Pack | $0 for the first 3 picks, 25 cents per additional item | Picking items from inventory and packing them for shipment |
Packaging Materials | $0 (Included in fulfillment fee) | Free standard boxes, polymailers, bubble mailers, bookfolds, and dunnage |
Shipping | $0 (Included in fulfillment fee) | Flat-rate charge based on package weight, size, and service level |
ShipHero Features
- Fulfillment network: Five US warehouses and two Canada locations allow businesses to distribute their inventory and import efficiently. All orders placed before noon ship the same day business day.
- Shipping carriers: ShipHero uses UPS, USPS, FedEx, DHL, GLS, Veho, and Blue Streak—plus additional regional couriers.
- Warehouse management software: The company’s robust WMS is used by large-scale warehouses worldwide—including some of the other providers on this list.
- Shipping software: Compare rates, manage orders, and print labels for your in-house fulfillment operation.
- Fulfillment software: Free user-friendly software for fulfillment clients to manage orders, inventory, customers, returns, billing, and analytics.
- Integrations: 50+ turnkey integrations available, including Shopify, BigCommerce, WooCommerce, Amazon, eBay, Walmart, and API options.
- Batch fulfillment: Service can be enrolled on a per-project basis for crowdfunding campaigns and product launches.
- FBA prep and Seller-fulfilled Prime Eligibility: Power your Amazon sales with ShipHero’s programs.
- Operational accuracy: ShipHero’s mobile pick-and-pack systems and automation technology eliminate 99.9% of errors.
- 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
As mentioned above, ShipHero’s zone-free pricing structure can be helpful for some businesses—but for others, it may make the service’s value inconsistent. If the majority of your orders come from nearby zones, a provider like ShipBob would likely provide better value.
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.
Saltbox: Best On-demand Services, Labor & Space for Scaling In-house Fulfillment
Saltbox
What We Like
- Flexible services: 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
What's Missing
- Restricted scalability: 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
- Six facilities located in major metropolitan areas throughout the US
- Seven additional facilities in progress
- 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 4.32 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
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
- Fulfillment network: Saltbox has fulfillment facilities in six locations throughout the country—with seven additional locations slated to open in 2022.
- Shipping carriers: In addition to shipping with UPS and USPS, Saltbox regularly forms partnerships with new regional carriers at clients’ requests.
- Software: Saltbox uses ShipHero’s powerful WMS (warehouse management software).
- Suite rentals: Rent an office or warehouse suite with no-long term contract or lease.
- Resources and amenities: Saltbox members receive access to the resources needed to power their business—including Wi-Fi, HVAC, 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.
- Transparent pricing: The company’s single, simplified pricing structure for third-party fulfillment is designed for maximized predictability with no hidden costs or surprise fees.
- 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.
- Customer support: Support is available by phone, email, and in-person from 8 a.m. to 5 p.m. local time Monday to Friday.
- Integrations: 30+ integrations available, including Shopify, WooCommerce, Amazon, Etsy, Magento, 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 Rakuten Super Logistics.
Red Stag Fulfillment: Best for Oversized, Heavy, High-value, or Fragile items
Red Stag Fulfillment
What We Like
- 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
What's Missing
- Only two warehouse locations—not ideal for inventory distribution
- 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.
It has just three warehouses in two locations, so its distribution capabilities are limited. That being said, the company can still achieve two-day ground shipping to 96% of US addresses.
Overall, low order requirements, affordable options for hard-to-ship items, and impressive service make Red Stag an excellent choice for small businesses with special shipping needs.
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 received an overall score of 4.12 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 | 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
- Fulfillment network: Three existing warehouse locations—one in Utah, and two in Tennessee—plus two coastal locations scheduled to launch in the future.
- Shipping carriers: UPS, USPS, FedEx, Amazon, and OnTrac.
- Integrations: 30+ turnkey integrations, including Shopify, BigCommerce, WooCommerce, Magento, eBay, and Amazon—plus custom solutions.
- 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 and delivery times: Same-day fulfillment is offered with aggressive cutoff times (orders must be placed before 5 p.m.); 97% of orders reach customers within two days and 99% within three days.
- 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
Red Stag’s limited network of fulfillment centers can impact distribution efficiency compared to companies that boast 10 to 100+ warehouse locations, like ShipBob, Deliverr, or FBA. It also lacks transparency in billing—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.
Looking for more info? Read our in-depth Red Stag Fulfillment review for more information.
Whitebox: Best Combined Fulfillment & Marketplace Management Services
Whitebox
What We Like
- Two-day shipping for 99% of the continental US
- Full-service marketplace management platform handles your listings for you
- Advanced reporting, forecasting, and analytics
What's Missing
- rohibitive order minimums
- Monthly platform fee charged for software
- Lack of pricing transparency
Key Features
- 1,000 order monthly minimum
- Three US warehouse locations
- Turnkey service manages entire Amazon listing including photos and copy
- FBA prep
- 0.10% 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’s pricing structure is different from most other fulfillment companies. Rather than charging for each service individually, clients pay a monthly “all-in fulfillment fee” that covers all related charges except storage, which is billed additionally.
Whitebox advertises free receiving for single-SKU, pelletized shipments, and fulfillment fees as low as 99 cents per order.
The company’s order management software also incurs a monthly fee. 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.
Whitebox Features
- Fulfillment network: Three warehouse locations strategically located in Las Vegas, Memphis, and Baltimore.
- Shipping carriers: FedEx, UPS, USPS, and DHL.
- Integrations: Shopify, WooCommerce, BigCommerce, Amazon, Walmart, Wayfair, Home Depot, and more, including API.
- Growth agency services: Full-service marketplace management platform goes beyond fulfillment to include listing creation and optimization, stock maintenance, marketing, and sales servicing.
- FBA prep: Whitebox receives, counts, and examines your stock before correctly packaging and distributing it into Amazon’s warehouse system per FBA requirements.
- 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 5-star rating with 97% positivity on 6,500+ reviews.
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.
The company does offer an order fulfillment partnership separately from its growth agency and marketplace management services. For multichannel sellers who want to outsource fulfillment and logistics while handling the rest of the operation on their own, Whitebox’s value falls short compared to other fulfillment-focused options, such as ShipBob.
Read our in-depth Whitebox review to learn more about the service—including available integrations, user reviews, and alternatives.
FBA: Best Warehouse & Fulfillment Services for Amazon Sellers
FBA
What We Like
- Prime shipping designation provides access to over 150 million Prime subscribers
- Fast turnaround and shipping times
- Hands-off return and refund management
What's Missing
- Expensive storage fees that fluctuate seasonally
- Low visibility into stock levels, plus pooling products between sellers, puts you at risk
- No common specialty services like kitting, assembly, or branded packaging
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 automatic Prime designation, which gives you greater access to Amazon’s over 150 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 ensure a full understanding of how FBA works to avoid unnecessary fees.
FBA scored 3.51 out of 5 in our evaluation. The company’s score was docked in all categories; it’s not the most functional or economical operation, but the advantages it provides to Amazon sellers make up for its drawbacks in many cases. FBA lost points in the pricing category for its fluctuating charges that make predictability difficult, and lack of common value-add services and shipping carrier options. Order accuracy also impacted its total score.
A map of Amazon’s US warehouse locations
FBA Pricing
Since Our Last Update:
On April 28, 2022, FBA added a 5% fuel and inflation surcharge to its fulfillment fees. It was the second price increase the company applied this year. The costs listed below reflect the most recent fee schedule.
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 | 53–83 cents per cubic foot/month during January–September; $1.20–$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 | $3.07–$11.88 per unit for standard-size non-dangerous products (up to 20 pounds.) $17.39–$200+ 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
- Fulfillment network: FBA has over 110 warehouse locations in the US and 75 international fulfillment centers.
- 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: In addition to fulfilling Amazon orders, FBA has a multichannel fulfillment portal to ship orders received on other channels like eBay, Etsy, or your own online store website.
- Specialty services: FBA is not a full-service fulfillment warehouse, so there are no specialty packing add-ons. Your items ship exactly as they’re received by FBA. However, 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.
Another issue comes from inventory commingling or pooling, which is a storage system used by FBA to streamline distribution by grouping identical products from different sellers. This means the goods another retailer bought and shipped to FBA could be sent to the customer who made a purchase on your listing.
This practice has led to counterfeit and faulty products making their way into the supply chain—harming the reputation and eligibility of sellers at no fault of their own. It’s a risk that should be assessed by anyone selling goods that aren’t unique to their store.
To learn everything you need to know about Fulfillment By Amazon pricing, features, integrations, and user reviews, check out our detailed FBA review.
Rakuten Super Logistics: Best Warehouse & Fulfillment Service for Scalability
Rakuten Super Logistics
What We Like
- One- to two-day US ground delivery network
- Well-established logistics network supports high volumes, efficient distribution, and unlimited growth
- Robust specialty fulfillment services
What's Missing
- Restrictive minimum order volume requirements
- Clients can’t use custom packaging elements
- Large number of negative reviews
Key Features
- 250 order monthly minimum
- 15 US warehouses
- Prevalent parent company
- 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
Rakuten Super Logistics is part of a vast commerce and retailing group that consists of 70+ businesses around the world. The Rakuten Group holds a strong presence in technology, communications, and logistics—helping to bolster its ecommerce fulfillment company with enterprise-level tools and networks.
With 15 US warehouses and discounted access to its proprietary FirstMile shipping service, Rakuten Super Logistics achieves lightning-fast delivery to 98% of the US. With its 100% accuracy guarantee and virtually unlimited resources, RSL is a top choice for high-level growth.
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, RSL’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 RSL 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 3.33 out of 5.
Rakuten Super Logistics Pricing
Rakuten Super Logistics does not disclose its pricing online—all onboarding, receiving, storage, pick and pack, and account management costs are custom-quoted.
Contact Rakuten Super Logistics for a quote.
Rakuten Super Logistics Features
- Fulfillment network: 15 warehouses strategically located across the US reach 98% of the US within two days via ground shipping.
- Shipping carriers: RSL supports shipping with UPS, USPS, DHL, and FirstMile (A Rakuten Company).
- Integrations: 19 turnkey integrations available, including Shopify, BigCommerce, WooCommerce, Volusion, Amazon, and more.
- Customer support: Clients can receive support via live chat, phone, and email during standard business hours.
- US-based client service: Unlike many large-scale 3PLs, Rakuten Super Logistics does not outsource its customer service outside the US.
- Ecommerce smart tools: RSL provides online tools, including a shipping optimizer and customs guide with clearing support.
- Lot tracking: Manufacturers and retailers can work with RSL to track, fulfill by expiration/freshness dates, and properly recall product lots along the supply chain.
- Freight forwarding: RSL’s in-house team of freight experts can handle your domestic and international freight service needs.
- Temperature control: The company offers climate control and refrigeration in some of its facilities.
- Shipping savings: Discounted shipping rates and one- to two-day ground coverage can help cut down your shipping spend.
- Guaranteed accuracy: Rakuten Super Logistics promises 100% order accuracy and 100% of orders shipping within a day.
- Subscription box fulfillment: Programs available with specialized inventory management.
Rakuten Super Logistics Drawbacks
RSL doesn’t support custom packaging, so it’s a poor fit for businesses with strong branding or those who promote a custom unboxing experience. It also has business-only customer support hours and lacks international warehouse locations.
The biggest issue potential clients may have is with Rakuten Super Logistics’ user reviews. The company maintains a lackluster rating on sites like WebRetailer and Trustpilot, with many profound 1-star reviews. Some users report that the company may ship duplicate orders, overcharge for its services, and fail to resolve issues. Others cite glitchy software that lacks necessary functions.
Deliverr: Best for Selling on Competitive Marketplaces
Deliverr
What We Like
- Large warehouse network with robust shipping capabilities
- Prime-like badges to advertise fast shipping
- Intelligent inventory allocation
What's Missing
- No custom packaging options
- Poorly-reviewed customer service
- Cannot fulfill FBA or Amazon SFP (Seller-Fulfilled Prime) orders
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
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, and Instagram—and is also compatible with Shopify stores and Google Express.
It equips your marketplace listings with Prime-like badges that advertise fast delivery. According to the company, these lead to a 10% to 80% increase in sales and benefit your rankings through SEO.
The ecommerce fulfillment company charges for shipping based on three service levels: Standard (five to seven days), 3 Day, and 2 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 3.31 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
- Fulfillment network: Deliverr maintains 50+ warehouses across the US.
- Shipping carriers: The company works with 12 shipping carriers, although specific carriers are not provided.
- Integrations: 27 direct integrations available, including Shopify, Etsy, WooCommerce, Walmart, and Facebook Shops.
- Marketplace optimization: Deliverr is designed to boost your success in competitive marketplaces like Walmart, Wish, and eBay.
- Prime-like badges: Deliverr equips your marketplace listings with badges to advertise fast shipping offers.
- Customer service: Support is available via phone and live chat from 8 a.m.to 5 p.m. Central time. During off-hours, a help ticket is created.
- Search rankings: Improve your marketplace SEO through Deliverr’s badging features and shipping guarantees.
- Fulfillment software: The company’s easy-to-use online platform lets you manage orders, inventory, and more.
- Reporting and analytics: Create reports to analyze shipping costs, inventory stats, and sales metrics.
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.
Another problem with Deliverr is that its online reviews contain a lot of disappointment. Many users criticize the company’s customer service methods, citing slow response times and poor issue resolution.
FedEx Fulfillment: Best Combined Freight, Fulfillment & Logistics Services
FedEx Fulfillment
What We Like
- Fast, low-cost nationwide delivery
- Well-established fulfillment network supports high volumes, efficient distribution, and unlimited growth
- Sophisticated product and order tracking technology
What's Missing
- Difficult to contact and initiate services
- No batch-only fulfillment services
- Cannot fulfill FBA or Amazon SFP (Seller-Fulfilled Prime) orders
Key Features
- 400 order monthly minimum
- 30+ US warehouses
- 1 international fulfillment location
- Robust reverse logistics network
- One temperature-controlled and monitored center with a compliant temperature recording system
- Undisclosed error rate
- Works only with FedEx
Since Our Last Update
We have been unable to source any reliable information about FedEx Fulfillment—including accurate pricing, minimum order requirements, and client support structure. From our efforts and interactions, it appears that FedEx is highly reluctant to disclose the details of its Fulfillment operation. As a result, the company is no longer one of our recommended 3PL solutions. However, FedEx’s combined logistics platform has kept it on our list of best order fulfillment services (for now).
We gathered the information in this review from previous FedEx Fulfillment sales personnel and clients and third-party online sources. While we’ve done our best to deliver the most comprehensive review, some of the details surrounding FedEx Fulfillment’s services may have changed.
FedEx Fulfillment leverages the company’s established transportation networks and delivery routes to offer fast and affordable order fulfillment. This makes it a great option for large businesses with a nationwide or global customer base. FedEx also offers the lowest FedEx shipping rates and provides access to its shipping and tracking systems.
However, FedEx previously required an order-to-SKU ratio (daily orders shipped vs number of unique SKUs in stock) of 4:1 and has only been able to accommodate products under 50 pounds with dimensions less than 18x14x8 inches. Although we weren’t able to confirm whether or not these restrictions currently apply, FedEx has been known to only be a good fit for high-volume businesses selling small, lightweight products.
In our evaluation, the company scored 3.29 out of 5. It was mainly docked for transparency, predictability, and order minimum requirements. Its features, functionality, and pricing scored highly, but points were lost for poor reviews, customer service issues, and Amazon incompatibility.
A snapshot of FedEx Fulfillment’s management software (Source: FedEx)
FedEx Fulfillment Pricing
Service | Cost* | What It Covers |
---|---|---|
Onboarding | $0 | Onboarding and account setup are free |
Receiving | $0 if shipments meet standard requirements; $35–$40/hr otherwise | Inbound stock receipt, unpack, and check-in |
Inventory Storage | $8–$15 per pallet/month | Storage with climate-controlled option, security, and inventory management |
Pick and Pack | 40 cents per unit including standard packing materials | Picking items from inventory and packing them for shipment |
Shipping | Discounted FedEx rates | Shipping costs vary depending on the size, weight, and destination of your goods |
*FedEx Fulfillment does not publish pricing. The above values are based on information from FedEx, trusted third-party review sites, and customer reviews. Contact FedEx for a direct quote.
FedEx Fulfillment Features
- Fulfillment network: 30+ warehouses in the US plus one international fulfillment center location, all providing access to FedEx’s well-established transportation network.
- Shipping carriers: FedEx fulfillment only supports FedEx shipping services.
- Integrations: Shopify, BigCommerce, WooCommerce, Magento, eBay, Walmart, Etsy, and more.
- Reverse logistics: Because FedEx Fulfillment is a small part of FedEx’s extensive logistics business, you also have access to all of FedEx’s other services, including industry-leading return management services.
- Tracking and visibility: Real-time order and shipment tracking for you and customers, plus live insights on inventory data.
- Climate control: The company’s main fulfillment and distribution center in Memphis is fully temperature-controlled and monitored with a compliant temperature recording system.
- Supply chain consulting: FedEx offers logistics expertise to help you identify opportunities to overcome challenges and improve processes.
FedEx Fulfillment’s Drawbacks
Though FedEx is a vast logistics organization, it’s hard to tell how much of its resources are being dedicated to fulfillment operations. Inconsistent customer service has been reported by FedEx Fulfillment clients, and in response to ecommerce fluctuations in 2020, the company temporarily halted its return services, reverse logistics, and international fulfillment. All fulfillment services are said to have resumed in 2021.
FedEx Fulfillment doesn’t perform FBA prep or ship Amazon orders, so if a majority of your sales come from Amazon, FBA or Whitebox may be a better choice.
For more detailed information on pricing, features, user reviews, and more, read our full FedEx Fulfillment review.
How We Evaluated Fulfillment Companies
Fulfillment services are designed to help ecommerce businesses scale by enabling 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 10 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.
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.
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.
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.
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.
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.
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.
Visit ShipBob to create a free account and receive a custom quote.
Frequently Asked Questions (FAQ)
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.
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.
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.
Visit WarehousingAndFulfillment.com