Top 3PL Companies
Partnering with a 3PL offers a range of benefits for ecommerce brands looking to scale. The problem is knowing which 3PL company is best for your specific needs.
This page will look at some of the top 3PL companies and the services they offer, along with tips for selecting the right 3PL.
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What is a 3PL company?
Third-party logistics (or 3PLs) are companies you can outsource order fulfilment and other supply chain services to instead of having to pick, pack, and ship orders yourself.
By storing inventory in a 3PL’s warehouse(s), ecommerce businesses don’t need to invest in the equipment, land, facilities, supplies, labour, and technology needed to self-fulfil orders, allowing them to instead focus on growing their business.
What do 3PL companies do?
3PLs handle a variety of fulfilment services on behalf of sellers, spanning from DTC and B2B order fulfilment, utilising technology, automation, and expert pickers and packers in their fulfilment centres.
Some 3PLs specialize in certain types of products (e.g., apparel or refrigerated items), have merchant-facing technology that can integrate with a variety of sales channels, and even provide value-added services to further streamline the supply chain.
Here are the most common services performed by 3PLs:
- Onboarding ecommerce merchants to their technology
- Receiving and stowing inventory
- Picking and packing DTC and B2B orders
- Negotiating rates with carriers and scheduling pickups to facilitate expedited and standard shipping
- Kitting and preparing items
- Customisation such as branded boxes, inserts, and gift notes
- Processing returns
- Inventory transfers and cross-docking
- Distributed inventory (allowing brands to split their inventory across the country or globe)
- Arranging the warehouse, hiring fulfilment associates, and training staff
What to look for in a 3PL company
Picture this: Your ecommerce business recently made more sales beyond your expectations, and you’re now unsure of how to fulfil the orders coming in. You need to negotiate for more warehouse space (or find a new one), move your inventory, hire workers and train them to properly fulfil orders.
This will take a significant time, while you try to fulfil orders with your current team and customers are wondering where their products are. Not to mention other business needs, such as marketing, accounting, products, and customer service.
This is where a 3PL comes in.
With their focus on retail fulfilment and logistics, they improve operations as your business scales and grows. Instead of having to spend time planning and staffing up for logistics, 3PLs provide the resources needed for you. With their easy to use technology, you can get real-time insights into your performance.
A great 3PL should be able to check off all of these boxes:
Global network of fulfilment centres
One of the biggest benefits of using a 3PL is being able to strategically place your inventory in their warehouses. They take on the costs of warehouse management, while you only pay a fee to use their services.
When researching 3PLs, you will want to consider the size, scale, and locations of their fulfilment centres. One might be good enough for you now, but what about where you hope to be in a year from now — or three years from now?
To better serve customers across the world, you will want your ecommerce inventory stored closest to where your customers reside. With a global warehouse network, you can ensure coverage across the world to provide faster, cheaper shipping options. However, they need to be fulfilment experts. Unlike on-demand warehousing solutions, a 3PL should actually have experience managing fulfilment centres.
A 3PL not only needs multiple warehouses, but they should help you identify the locations that make the most sense for your customer base. If a customer in California places an order, the order should be fulfiled at a warehouse in or closest to California — not the East Coast. This reduces shipping costs and allows orders to reach customers quicker.
Ease of use for 3PL software is key. Since you’re outsourcing fulfilment to another company, you should be able to get real-time updates on your orders processing, inventory, shipping costs, and more.
We’re not just talking about a basic integration and screen with a few details — find a 3PL that provides in-depth order management and inventory management, data and analytics, and easy-to-understand software that powers their network of fulfilment centres.
A vast partner network
Ecommerce fulfilment is a complex beast that affects other areas of your business. Your 3PL should have partners in a handful of industries that can help you with custom packaging, inventory, finance, marketing, branding, and more.
Pre-vetted recommendations can go a long way especially when the 3PL has thousands of customers that have already faced similar challenges and used these solutions.
A 3PL shipping millions of packages a year will negotiate shipping discounts on your behalf. Since you will likely ship through major carriers like FedEx, UPS, USPS, and DHL, a well-prepared 3PL will have better shipping rates than if you were to ship by yourself. These bulk discounts help merchants reduce shipping costs (from expedited or 2-day to international shipping).
It’s also recommended to do research to understand your total fulfilment cost. Some 3PLs will nickel and dime every little fee, where others only charge for basic line items like receiving inventory, warehousing, shipping, and then any other additional services like kitting.
Integrations and APIs
Integrations are important because they automatically send order information to the 3PL and its ecommerce warehouses. Between ecommerce platforms (Shopify, BigCommerce, WooCommerce, etc.) and marketplace (Ebay, Amazon, Facebook Shops and more), a tech-savvy 3PL will be building up its third-party integrations and host open APIs to allow you to build something custom.
Everyone is unique when it comes to your choice of customer service. With your options including email, live chat, and phone support, look for a 3PL that provides support in a way that makes sense for you and your team. Customer service should be available to help and if you’re shipping a large volume of orders, see what options you have for a dedicated point person, like an account manager.
The best way to stay ahead of the competition while reducing cart abandonment is by providing 2-day shipping on orders. Some 3PLs offer 2-day ground shipping for orders being shipped close to where inventory is stored. With this solution, ecommerce businesses can add a 2-day shipping option to their store’s shopping cart. This option can be made dynamic by only displaying once a customer enters their postcode.
A 3PL can make ecommerce returns easier. By automating inventory management, you’re able to speed up the returns process. You can provide customers with prepaid return labels and share return tracking information.
Some 3PL’s technology even support integrations that automatically text returns updates to customers. Find the option that works best for you — whether the 3PL provides advanced services such as ironing or refurbishing or simply lets returns be mailed back to you so you can inspect them yourself.
Top 11 3PL companies compared
Here’s how several 3PL companies stack up against one another at a glance.
|Best for Type of Business
|Email, Chat, and Phone Support
|Small and Medium Businesses
|Phone Support Only
|Phone Support Only
|Phone Support Only
|Phone Support Only
|Phone Support Only
|Handled by Walmart
|Email, chat, and phone
|Large CPG businesses
|Apparel and high SKU counts
|Email and chat
Now let’s dive deeper into the top 6 companies listed above:
ShipBob is a direct-to-consumer (DTC) fulfilment company that partners with ecommerce brands of all sizes. ShipBob helps merchants manage inventory, forecast demand, pack orders, reduce transit times, and deliver on customer expectations.
We own and operate a network of fulfilment centres across the United States. Our proprietary software integrates with leading ecommerce stores and is extremely intuitive and easy to use.
ShipBob has coast-to-coast warehouses throughout the US and abroad, so your packages can get to customers faster than ever. With more locations opening every year, ShipBob’s global network of fulfilment centres allows you to distribute your inventory intelligently, reducing your overall shipping costs. You can start in one warehouse and expand into additional ones as your order volume increases, or as you expand into new markets.
Software and analytics
ShipBob’s software has been praised as easy and intuitive so you can easily see logistics and business performance. More advanced reporting helps you dig deep into your supply chain management and fulfilment operations to see how quickly products are selling, inventory days on hand, a breakdown of transit times and average cart value by shipping method selected, and more.
ShipBob has partners in marketing services, taxes, freight, financing, returns, customer support, packaging, and much more to help your ecommerce business grow, expand, generate more revenue, and improve everything from your website to your customer experience. For a full list of our partners, check out this page here.
ShipBob has negotiated shipping discounts with USPS, FedEx, UPS and DHL to cover all your domestic and international shipping needs. If you work with ShipBob, your overall shipping costs will be lower than if you tried to ship through these carriers by yourself.
ShipBob offers comprehensive implementation, and then phone and email support to help resolve anything and answer questions. ShipBob also gives mid to large-sized merchants a dedicated account manager for more strategic guidance.
Who does ShipBob works best for?
ipBob works best for direct-to-consumer ecommerce businesses selling products on their own website. Whether you’re shipping 300 orders per month or 30,000, ShipBob can help you grow like never before!
2. Red Stag
Red Stag Fulfilment is a US-based ecommerce order fulfilment services provider. They specialize in shipping heavy items that require special handling.
Red Stag has two warehouse locations in the central United States.
Like most leading 3PL services, Red Stag has software that’s a cloud-based system, allowing you to access your data and reports from any device at any time.
Red Stag works with several leading ecommerce platforms. They also have a deal with FedEx to slightly reduce the cost of shipping heavier items.
Red Stag has shipping discounts available for different carriers, especially specializing in oversized shipping.
Red Stag integrates with leading ecommerce platforms including Shopify, Amazon, eBay and more. Custom integrations are available via an API.
Red Stag offers phone support with some limited email support.
Who does Red Stag works best for?
Small businesses that ship heavy packages. Due to the care and costs involved with managing heavier products, Red Stag is good for businesses selling products that are outside of a small or lightweight scope.
FedEx is the largest company on this list. As one of the major shipping carriers in the US, they own and operate a network of warehouses to help you get orders to customers quickly. They mainly work with large enterprises due to the size of their network. Small and medium-sized businesses likely won’t work with FedEx.
FedEx’s warehouse network is the most diverse in the US. With a large array of warehouses spread throughout the country, FedEx uses both their warehouses and carrier sorting facilities to their advantage.
FedEx’s software is fairly easy to use and is more of a large enterprise platform.
FedEx has a large network of partners to choose from in addition to their in-house transportation services.
FedEx offers discounts on shipping done through FedEx’s network. There are no discounts available for other shipping carriers.
FedEx has only limited integrations available for ecommerce merchants. You will need to have a developer involved who can help you work with FedEx’s API to integrate with your ecommerce platform.
FedEx provides phone support only through specific working hours. Email support is available, but limited in how they can help you out. Overall, if you want customer service from FedEx, phone support is really your only option.
Who does FedEx work best for?
Very large businesses, including Fortune 500 companies. Unless you’re making billions of dollars of revenue a year, FedEx is not the most cost-effective logistics solution for small to mid-sized merchants.
Rakuten Super Logistics service offers a cloud-based inventory management system with one to two-day delivery to almost any location in the US through ground shipping.
Rakuten has five warehouses throughout the US spread coast to coast.
Rakuten’s software is fairly easy to use like most 3PLs in this list. It’s cloud-based, so you can access your data from any device.
Rakuten has a large network of partners for your business. The Rakuten Marketplace also offers additional partner opportunities for ecommerce businesses who want to sell through a new channel.
Discounts are available for different carriers. Rakuten has negotiated shipping discounts with USPS, FedEx, UPS, and DHL.
Rakuten integrates with most ecommerce platforms including Shopify, eBay, Amazon, BigCommerce, and more.
Rakuten has phone support with limited email support.
Who does Rakuten work best for?
Rakuten is a good choice for large businesses that want an alternative to FedEx. They offer a slightly more personal touch because they aren’t as large as FedEx.
Fulfyld is a newer 3PL with a focus on ecommerce fulfilment to help you fulfil orders in a cost-effective manner.
Fulfyld has just one location in the US in Alabama.
Like most third-party logistics companies, the software is fairly easy to use and integrates with your ecommerce platform.
Fulfyld is still relatively new, so their partner network is limited. With their focus on small businesses, they still need time to work with potential partners.
Discounts are available for different carriers like FedEx, UPS, USPS, and a few other carriers.
Fulfyld integrates with most top ecommerce platforms including Shopify, Magento, BigCommerce, eBay, and others.
Phone support is the main support option. Limited email support is also available.
Who does Fulfyld work best for?
If your ecommerce business is just starting out, Fulfyld could be a good option for you. With affordable pricing, you can work out a deal to help make fulfilment manageable. But as you grow, partner with a larger 3PL who specializes in growing and established businesses.
6. Fulfilment by Amazon (FBA)
Amazon also offers a fulfilment service for their marketplace sellers to help ship products as they’re sold.
With over 70 fulfilment locations, Amazon has the largest warehouse network through the US and it’s growing every year.
Amazon’s fulfilment software is fairly easy to use.
Amazon has a large partner network to work with. They recently cut ties with FedEx for their shipping network, and are now building their own shipping service which relies on contract drivers. Expect some growing pains with this service as the drivers may not be kept to high standards like the other carriers.
Discounts are available for different carriers including FedEx, USPS, UPS, DHL, and other carriers. In addition, Amazon’s focus on creating their own carrier network should lead to more manageable shipping costs in the future.
Because of Amazon’s large partner network, some companies have built out integrations for the FBA platform to make it even easier to manage.
Amazon offers phone, email, and live chat support.
Who does FBA work best for?
Merchants focused on selling through Amazon and wanting the Primed badge. While there is support for other platforms, Amazon’s FBA is focused on providing the best services to merchants that heavily prioritise them. If you want to make your own website the main source of sales for your business, Amazon is not the best fit.
Why ShipBob is the #1 3PL for growing DTC brands
ShipBob is the industry-leading 3PL with a global fulfilment network, specializing in DTC and B2B fulfilment. Read on for some of the ways ShipBob stands out from other 3PL companies.
Tech enabled, from start to finish
From the proprietary warehouse management system used in every ShipBob fulfilment centre, to the merchant dashboard all customers get at no cost, ShipBob’s built the best-in-class technology stack.
ShipBob’s built-in order, inventory, and shipment management tools help brands manage real-time stock levels, set reorder notification points to prevent stockouts, automatically send order tracking updates to customers, facilitate 2-day shipping, and much more.
ShipBob’s dashboard integrates with all leading ecommerce platforms, marketplaces, returns software, inventory and order management software, customer service tools, and many other ecommerce tools.
ShipBob provides data and analytics to shed light on shipping costs and transit times, sales at the SKU level, the ideal distribution model for which locations to stock to save the most money and speed up shipments, and more.
Distribute inventory to offer faster, cheaper shipping
ShipBob is a 3PL company that has many fulfilment centres in different regions of several countries. This lets you split inventory across fulfilment centres, so ShipBob’s powerful algorithms route each order to the optimal fulfilment centre that’s closest to your customer to optimise for time and money.
This model puts your inventory closer to more shipping destinations to offer 2-day ground shipping to customers in those surrounding areas (and even scale across the globe).
Simple pricing structure
ShipBob takes a simplified pricing structure compared to most 3PLs, bundling picking, packing, and shipping into one fee for each order (for orders with more than four picks, there is an additional $0.20/pick for the fifth pick and after). ShipBob does not charge for packaging materials.
Dimensional weight applies (taking a package’s dimensions into account to determine shipping rates, and not just weight). ShipBob also charges a monthly storage fee for each SKU in each location, as well as receiving inbound inventory as it arrives at the fulfilment centre.
There is also a one-time implementation fee for customers who don’t go through ShipBob’s startup fulfilment Growth Plan to self-onboard. Additional costs for value-added services such as kitting, returns, and B2B orders also apply and can be shared by requesting a quote.
ShipBob has a global fulfilment network with locations in the US, Canada, the EU, the UK, and Australia. This allows ecommerce brands to utilise a unified system to manage all inventory, orders, and customers in one platform while staying up-to-date on real-time data.
Shipping orders domestically from more countries can help drastically reduce transit times and shipping costs (as well as duties and taxes), while preventing orders from getting held up at customs. This also prevents surprise duties when customers receive orders from overseas.
App store full of integrations with your favourite tools
ShipBob’s ever-expanding app store features integrations with all leading tools, from a variety of sales channels and EDI partners, to robust order and inventory tools and returns management platforms. You can see a list of all ShipBob partners here.
ShipBob: a 3PL company that ecommerce businesses deserve
Now that you know about the top 3PL providers, which one is best for you? As a growing ecommerce business, you need a third-party logistics providers that can manage fulfilment for your growing business with years of experience and fulfilment solutions.Request a Quote From ShipBob
3PL Company FAQs
What are 3PL companies?
3PL companies provide services including inventory management, warehousing, and fulfilment. 3PL companies allow ecommerce merchants to accomplish more, with the tools and infrastructure to automate fulfilment.
What are the benefits of companies using a 3PL?
There are several benefits to using a 3PL. A 3PL partner can help you grow your business by giving you access to a robust fulfilment infrastructure, technology, and expertise. 3PLs take care of all your logistics needs, from inventory management to shipping, to save you time, energy, and money in the long run. With access to shipping discounts, data and analytics, and affordable warehousing, partnering with a 3PL is worth the investment.
How much do 3PL companies charge?
It all depends! But a 3PL company should provide transparent and upfront pricing. When sourcing a 3PL, be aware of hidden fees. ShipBob is a 3PL that offers transparent pricing so you know exactly what your fulfilment costs will be, including receiving, storage, pick and pack, standard packaging, and shipping. Check out ShipBob’s pricing model here.