ShipBob has better pricing while Red Stag offers better accuracy guarantees and special handling.
ShipBob vs Red Stag Fulfillment 2023: Pricing & Features
This article is part of a larger series on Retail Management.
ShipBob and Red Stag are both small business-friendly third-party order fulfillment solutions primarily used by ecommerce sellers. Both companies work by handling product storage, inventory management, order processing, shipping, and returns on your behalf.
We compared Red Stag vs ShipBob based on price, functionality, ease of use, and special services to identify the differences between the two and help you choose the best option for your business. In particular, we recommend:
- ShipBob: Best overall order fulfillment solution for small businesses
- Red Stag Fulfillment: Best order fulfillment solution for special-handling needs, including oversized, heavy, high-value, or fragile items
Red Stag vs ShipBob Quick Comparison
 |  | |
|---|---|---|
4.09 | 4.47 | |
Monthly Minimum Requirement | Around 200 orders (flexible) | $250 minimum spend |
Competitive Pricing ($–$$$$) | $$ | $ |
United States Warehouse Locations | 2 | 35 |
International Warehouse Locations | None | 8 |
Shipping Partner Options | FedEx, UPS, US Postal Service (USPS), Amazon, and OnTrac | FedEx, UPS, USPS, DHL, OSM, CDL Last Mile, UDS, LSO, and OnTrac |
Business-to-Business (B2B) Fulfillment | ✓ | ✓ |
Reported Error Rate | 0.02% with $50 payment guarantee for every error | .05% |
Amazon Seller Fulfilled Prime (SFP) Eligibility | ✓ | ✕ |
Client Support | Very Good | Very Good |
When to Use ShipBob
Overall Score:
4.47 / 5
Pros
- Growth Plan program designed for startups
- Wide network of 35 US and eight non-US fulfillment centers
- Advanced reporting and analytics software
Cons
- High storage fees
- Cannot fulfill Amazon SFP orders
- Reported billing discrepancies and hidden fees
Where ShipBob Beats Red Stag:
- Enterprise-level infrastructure: Wide warehouse network for inventory distribution
- Sophisticated software: Easy-to-use online platform with powerful tools
- Connectivity: Prebuilt integrations with all the leading platforms and tools
- Startup-friendly: Growth Plan offers no order minimums plus resources to support growth
- Dropshipping program: Partnerships with big-box retail websites help businesses sell more
- Services for importers: Managed freight program and section 321 advantages
ShipBob is the better choice for most growing small businesses, ecommerce startups, and retail stores expanding into the ecommerce space. Its pricing structure and handling capabilities work best for small to midsize products.
With no minimum order requirements and a wide, global warehouse network, ShipBob offers enterprise-level infrastructure and services to businesses of all sizes.
When to Use Red Stag Fulfillment
Overall Score:
4.09 / 5
Pros
- 100% guaranteed accuracy and zero-shrink
- Two-day shipping to 97% of US residents, three-day shipping to 99.9%
- Fast turnaround times with affordable shipping and handling for oversized items
Cons
- Only two warehouse locations—not ideal for inventory distribution
- Dashboard and user interface are not user-friendly
- Lack of billing transparency
Where Red Stag Beats ShipBob:
- Special handling: Accepts hazardous goods that other companies don’t work with
- Advanced protection: Fully covered liability insurance and best-in-class security for your inventory
- Heavy and oversized options: Economical packaging and shipping
- Same-day fulfillment: 5 p.m. cutoff times
- Service guarantees: $50 payout for any errors
- Amazon sales: SFP-eligible
- Highly rated: 5-star user reviews
- Flexible services: Will work with you to create and customize new solutions
Red Stag Fulfillment is the better fulfillment service for several specific use cases. Its special-handling capabilities make it an excellent fit for sellers dealing in oversized, heavy, high-value, or fragile items. Plus, Red Stag is an industry-leading fulfillment provider for hazardous goods that many other companies won’t work with, such as ammunition.
Red Stag is a smaller company than ShipBob. Although it lacks a widespread global infrastructure, Red Stag’s small size enables it to provide more personalized service with impressive accuracy guarantees.
When to Use an Alternative
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ShipBob vs Red Stag: Pricing
| | |
|---|---|---|
4.88 out of 5 | 3.75 out of 5 | |
Onboarding and Implementation | $975 for entire implementation package or $0 on the Growth Plan for self-onboarding | $0 |
Inbound Shipping | Discounted rates available | Discounted rates available |
Receiving | $35 first two hours, $40 per person-hour after that | $14.25 per pallet (or $6 per nonpallet package) |
Storage | $40 per pallet, per month; $10 per shelf, per month; or $5 per bin, per month | 75 cents per cubic foot |
Fulfillment Fee | Calculated per package based on weight and shipping distance | Charged as separate cost centers |
Pick and Pack | $0 for the first four items, 25 cents per additional pick | $1.80 to $2.25 for the first item; 32 cents per additional pick |
Packaging Materials | Free | 80 cents |
Shipping | Discounted rates available with major carriers | Discounted rates available with major carriers |
Returns | $3 per order (plus label fee) | $6 per order |
Special Projects | $45 per person-hour | $40 per person-hour |
Each company’s fulfillment pricing is based on usage, so you primarily pay for the services you use. Additionally, they both offer deeply discounted shipping rates. But ShipBob and Red Stag each structure their fees differently.
Ultimately, ShipBob charges higher storage fees, but Red Stag is more expensive for pick and pack, returns, and receiving. This makes each solution more economical for different sellers.
- If you deal in standard, small and midsize goods, ShipBob is the more affordable option. Although its storage fees are steep, they’re typically balanced by the company’s low-cost receiving, virtually free pick and pack, and impressive shipping discounts.
- For large, oversized goods, Red Stag’s affordable storage costs can help you save significantly. Plus, the company automatically provides specialty services for fragile and high-value items that would cost you extra elsewhere, such as liability insurance and custom-fitted boxes. These benefits make Red Stag the more affordable choice for products with many kinds of special-handling needs.
Take a look at our Red Stag vs ShipBob comparison of each major cost center below.
There’s no onboarding fee required to start using Red Stag, and your account representative will assist you with stock migration, platform integration, and account setup.
ShipBob’s Growth Plan, which aims to be a cheaper option geared toward startups, also offers free onboarding but many of the tasks involved in the process must be handled by the seller independently.
ShipBob’s full implementation package costs $975 and employs a dedicated implementation specialist who even stays with you for 30 days after going live. This option is less affordable but can create a more hands-off experience and help avoid bumps in the road.
Both ShipBob and Red Stag charge for receiving, whereas some of their biggest competitors, such as ShipMonk and FBA, perform receiving for free.
Free receiving services typically have strict guidelines for packaging and organization of the shipment, and don’t include quantity and quality checks or sorting goods. It’s a helpful way to save if you have consistent, reliable suppliers and/or low-cost goods, but the model leaves you vulnerable to the risk of being short-shipped without realizing the error until months down the road.
ShipBob and Red Stag both offer full-service receiving, but the two companies charge for it differently as ShipBob charges per hour of labor while Red Stag charges per pallet.
ShipBob provides a storage-optimization service that’s included in the primary cost. The staff uses Warehouse Management System (WMS) software to evaluate the space your goods are occupying constantly and how they could be most efficiently arranged.
For example, if you have a pallet of merchandise at the beginning of the month and 50% of it sells, your fulfillment partner will reorganize the remaining products into bins or shelves. This reduces your storage bill and creates more usable space for the warehouse.
Red Stag’s storage costs are much lower than ShipBob’s, which help make the service affordable for large products. However, products that sit in Red Stag’s warehouses for longer than 180 days incur an additional long-term storage fee.
ShipBob charges $40 per pallet/month for storage, along with smaller bin and shelf options. If a pallet averages 31.1 cubic feet of space, this evens out to a cost of about $1.29 per cubic foot. Red Stag charges 75 cents per cubic foot.
ShipBob charges a single fulfillment fee for each order, which includes pick and pack (up to four items), basic packaging materials, and shipping costs. Meanwhile, Red Stag charges for each of these cost centers individually. Both companies offer volume discounts.
Overall, the total fulfillment fees from each company turn out to be somewhat comparable for standard orders. Red Stag’s pick-and-pack fees are pretty steep, which reflects the company’s focus on special handling. Plus, each item in an order incurs a pick-and-pack charge, whereas ShipBob’s pick-and-pack service is $0 for the first four items.
Red Stag charges a Small Package Fee of $1 for parcels that weigh less than 16 ounces. This cost would add up fast for sellers dealing in small, lightweight goods with low-to-moderate margins, making the provider a poor fit.
Both companies provide similar discounts for major shipping carriers, although ShipBob delivers consistently more aggressive two-day rates.
ShipBob vs Red Stag: Quality & Functionality
| | |
|---|---|---|
5 out of 5 | 4.1 out of 5 | |
Reported Error Rate | .05% | 0.02% with $50 payment guarantee for every error |
Order Turnaround Time | Very good | Excellent |
Shipping Partner Options | 9 | 5 |
B2B Fulfillment | ✓ | ✓ |
Number of US Warehouses | 35 | 3 |
Number of International Warehouses | 8 | None |
Volume Discounts | ✓ | ✓ |
Prebuilt Native Integrations | 75 | 48 |
International Cross-border Shipping | ✓ | ✓ |
Delivery Duty Paid (DDP) Shipping | ✓ | ✕ |
ShipBob wins in this category, largely thanks to its widespread global warehouse network. It also offers more integrations and shipping options than Red Stag. That said, Red Stag has 100% accuracy guarantees and superior efficiency measures that trump ShipBob.
ShipBob
Red Stag Fulfillment
ShipBob vs Red Stag Fulfillment: Special Services
| | |
|---|---|---|
3.25 out of 5 | 3.95 out of 5 | |
Retail Dropshipping | ✓ | ✕ |
Subscription Box Fulfillment | ✓ | ✓ |
Crowdfunding Reward Fulfillment | ✕ | ✕ |
Climate Control | ✕ | ✕ |
Freight Management | ✓ | ✕ |
FBA Prep Service | ✓ | ✓ |
Reporting and Analytics | Excellent | Very good |
Packaging Customization Options | ✓ | ✓ |
Custom Packaging Creation | ✕ | ✓ |
Custom Branded Gift Notes | ✓ | ✕ |
Amazon SFP Eligibility | ✕ | ✓ |
FBA Prep Service | ✓ | ✓ |
Red Stag’s business model is built around providing hard-to-find specialty services, making it the better choice in this category. Both companies have plenty of customization options, but neither provider offers climate control, frozen warehousing, or crowdfunding fulfillment.
ShipBob
ShipBob offers a number of robust services for importers, such as its end-to-end managed freight program and warehouses that can facilitate duty-free imports through Section 321. It also has a retail dropshipping program that can help merchants expand their customer base easily and cost-effectively.
Red Stag Fulfillment
Red Stag offers robust specialty services that cater to specialized product handling, including advanced security, liability insurance, custom-fitted boxes, and more.
The company also extends a great deal of flexibility to its customers, offering to work with your business to develop custom solutions.
ShipBob vs Red Stag: Ease of Use
| | |
|---|---|---|
4.23 out of 5 | 3.45 out of 5 | |
Liability Insurance on Inventory | ✕ | ✓ |
Flexible Special Services | ✓ | ✓ |
Software Functionality and Interface Usability | Excellent | Fair |
Billing Format | Monthly invoices; visibility by line item | 5 to 6 invoices per month; unitemized |
Hidden Fees Reported by Users | ✓ | ✕ |
Termination of Services | Easy | Easy |
Customer Support Channels | Phone, live chat, and email | Phone, live chat, and email |
Customer Service Hours of Availability | Phone: Monday to Friday, 9 a.m. to 5 p.m. Central time Live chat: 6 a.m. to 10 p.m. 7 days a week | Monday to Friday, 8 a.m. to 5 p.m. Eastern time |
Dedicated Account Service Rep | ✕ | ✓ |
Ease of use is a focus for ShipBob and Red Stag alike. Overall, ShipBob is easier to use, thanks to its robust software, custom service accessibility, and transparent billing.
ShipBob
Red Stag Fulfillment
ShipBob vs Red Stag: Expert Score
ShipBob and Red Stag are both high-quality, user-friendly third-party logistics (3PLs) that scored highly on our comprehensive evaluation. The best choice for you greatly depends on what type of business you have as well as the characteristics of your products. But, ultimately, Red Stag scored higher in our Expert Review, earning a perfect rating for its services, value, usability, and popularity.
ShipBob
Red Stag Fulfillment
ShipBob vs Red Stag Frequently Asked Questions (FAQs)
Red Stag charges more for pick-and-pack services because the company prioritizes special handling. Meanwhile, ShipBob charges higher storage fees.
Similarly, Red Stag is more cost-effective for large, oversized, and fragile items while ShipBob is better for smaller and more manageable goods.
The two providers structure their fulfillment pricing differently but charge similar overall rates. The more expensive options largely depend on your business’ needs.
ShipBob and Red Stag are third-party order fulfillment providers that handle storage, order processing, and shipping for retail businesses. Here are the steps involved in how they work:
- Inventory is delivered to the fulfillment center.
- Staff unloads and sorts merchandise.
- Inventory is moved into storage.
- Customer orders are routed to the fulfillment company.
- The fulfillment center picks, packs, and ships each order.
- The fulfillment center processes customer returns.
For a more detailed look into the third-party fulfillment process, read our guide to fulfillment companies and how they work.
ShipBob’s approach to third-party fulfillment focuses on bringing technology and enterprise-level infrastructure to businesses of all sizes. It has a large, global warehouse network and a host of programs for importers, dropshipping, and independent warehouses.
Conversely, Red Stag is a smaller company that aims to provide a more personalized experience for its customers and offers unprecedented 100% accuracy guarantees. It also focuses on goods that may require special handling, like high-value, hazardous, or oversized merchandise.
How We Evaluated ShipBob vs Red Stag Fulfillment
To help small businesses find the best fulfillment partner for their store, we compared Red Stag vs ShipBob in terms of pricing, functionality, specialty services, and ease of use. Our retail and ecommerce experts also weighed in and evaluated each service.
20%
Pricing
30%
Quality & Functionality
15%
Specialty Services
15%
Ease of Use
20%
Expert Score
20% of Overall Score
This category examines the providers’ pricing transparency, billing transparency, and billing predictability. ShipBob scored higher largely thanks to its itemized billing format, but Red Stag’s No Hidden Fees policy appears to create better user satisfaction.
30% of Overall Score
15% of Overall Score
15% of Overall Score
20% of Overall Score
*Percentages of overall score
Bottom Line
ShipBob and Red Stag both provide fulfillment services for small to midsize businesses (SMBs), and there are many similarities between the companies’ pricing, features, and services. But, ultimately, each platform is built to accommodate different business needs, which makes a direct comparison tricky.
Red Stag is the true industry leader when it comes to special-handling fulfillment, with robust and affordable services for oversized, heavy, fragile, or high-value goods. Meanwhile, ShipBob offers outstanding value for standard small to midsize merchandise as well as products that need US Food and Drug Administration (FDA)-certified handling.
To find more fulfillment options that fit your business, visit WarehousingAndFulfillment.com. It’s a brokerage service that matches you with compatible providers, and it’s completely free to use.
