For any business in the online marketplace, efficient and prompt order fulfillment becomes a critically important factor for retaining customers. More than half of online shoppers prioritize fast delivery when making purchasing decisions. In the face of heightened consumer demands, startups and small businesses encounter numerous challenges related to logistics and order management. Unlike large companies, they are often constrained by financial resources, necessitating careful planning and utilization of available means.
To successfully maintain competitiveness in the rapidly evolving ecommerce market, many companies turn to fulfillment service providers. These providers take on the responsibility of warehousing, packaging, and shipping goods. This approach allows small businesses not only to save costs but also to focus on promoting their products and attracting new customers, which is crucial for their growth.
In our article, we will analyze 10 leading fulfillment companies to help you make an informed choice that will contribute to the growth of your business. The information will be useful both for budding entrepreneurs and for those who already have business experience but strive for further improvement in their logistics operations.
What Is a Fulfillment Center?
A fulfillment center is a warehouse facility providing a range of logistics and operational services aimed at ensuring a complete order processing cycle. The process includes receiving and storing goods, order processing, packaging, and shipping to end consumers. The main task of fulfillment centers is to optimize these processes, allowing companies to focus on the strategic development of their business.
The standard set of services provided by fulfillment companies usually includes:
1. Storage of goods: Fulfillment centers provide warehouse spaces for storing various types of goods, both standard and those requiring specific storage conditions (such as products needing special temperature controls).
2. Order processing: When a customer order is received, the fulfillment company handles its processing. This includes picking items from warehouse shelves, packing the order according to established safety and quality standards, and preparing the necessary shipping documentation.
3. Shipping and delivery: Once the order is fully prepared, fulfillment companies ensure it is shipped to the end customers. This process involves selecting the best logistical solutions, choosing the courier service, and ensuring timely delivery of orders.
In addition to the standard set of services, many fulfillment centers offer additional services that can be beneficial for various types of businesses:
✔ Integration with ecommerce platforms
✔ Customization of orders
✔ International shipping
✔ Handling of returns
✔ Preparation of goods for Amazon FBA
✔ Inventory management and analytics
How Fulfillment Companies Can Help Small Businesses?
Fulfillment companies offer a wide range of services that significantly simplify order management and logistics processes. They handle all tasks related to receiving, storing, and shipping products. For small businesses with limited resources, this is an opportunity to save time and money.
Partnering with 3PL provides small business with several competitive advantages:
Reducing operational costs
Delegating logistics to third-party specialists helps avoid expenses related to maintaining an in-house warehouse and staff, which is particularly relevant for small and medium-sized business.
Increasing customer satisfaction
Fulfillment companies have established relationships with various carriers and can offer more favorable shipping terms. This not only speeds up the delivery process to the end consumer but also enhances customer service quality, which is crucial for small business.
Expanding sales geography
Thanks to a well-developed infrastructure and partnerships with various shipping companies, fulfillment providers can ensure delivery of goods to any region, including abroad. This is especially important in the context of market globalization and increasing competition.
Flexibility in responding to changes in market demand
During peak times or seasonal fluctuations, fulfillment companies can quickly scale up order processing without the need to expand their own workforce or warehouse space. This allows small businesses to avoid additional costs and risks associated with infrastructure expansion.
What Should Small Businesses Pay Attention to When Choosing a Fulfillment Center?
Outsourcing is becoming an increasingly popular practice among small business. According to statistics, 60% of companies outsource order fulfillment services at least partially. The 3PL market is actively developing, and with it, the number of fulfillment companies is rising, making it more challenging to find a reliable partner. When choosing a 3PLfor your small business, it’s important to consider several key factors that can significantly impact the effectiveness and success of your operations.
Reputation and experience of the company in the market
A reliable fulfillment company should have positive reviews from other clients and have been successfully operating in this field for several years. This helps minimize risks related to service quality and the timely execution of orders.v
Service areas
Ensure that the provider can deliver to your target markets, both locally and at the national or international level.
Cost structure
Look for transparent pricing with no hidden fees. Understand the costs associated with storage, picking, packing, and shipping. The cheapest offers are not always the best. It’s important to find a balance between cost and service quality.
Volume requirements
Not all fulfillment operators handle small order volumes. Ensure that your order volume meets the minimum set by the company.
Technology
Modern inventory management and tracking software will help you optimize operations and improve fulfillment accuracy.
Flexibility and scalability
It’s important for your partner to quickly adapt to changing business needs and maintain an adequate level of service as order volumes increase. This is especially relevant for small business planning to expand their services.
Support
Reliable customer service and technical support are essential for quickly and effectively resolving issues.
Rating of the Best 3PL Companies for Small Businesses
Choosing a reliable partner for order fulfillment can significantly impact delivery speed, customer service quality, and overall business efficiency. We analyzed 10 fulfillment companies that offer optimal solutions for small businesses. Understanding which 3PL providers are leaders in their industry will help you make an informed decision and select the ideal partner.
1. Fulfillment-Box
Topping our ranking is Fulfillment-Box. With its comprehensive and flexible services, it provides solutions for businesses of all sizes, from startups to large enterprises. The company has 24 branches in 10 countries: Germany, the USA, the UK, Poland, Austria, Spain, France, Canada, Turkey, and China.
Fulfillment-Box’s constantly growing global network offers excellent prospects for the future growth of small business. This enables you to easily enter new markets without the need to establish your own logistics infrastructure.
Warehouse locations: Europe, USA, Canada, Turkey, and China.
Pricing policy: No additional fees or subscription charges. Clients only pay for the services they receive.
Volume requirements: There are no minimum or maximum limits on the amount of inventory or orders.
What Fulfillment-Box can offer small business:
✔ Powerful software: Fulfillment-Box uses our Ysell.pro software for centralized control of all warehouses. The software provides real-time inventory level updates, analytics, integration with popular sales channels, and functionality for working with Amazon FBA.
✔ Quality support: The company offers individual chat support for each client and responds promptly to inquiries. Personalized support ensures quick issue resolution, minimizing disruptions to your small business operations.
✔ Comprehensive services: Fulfillment-Box offers comprehensive services including fulfillment, freight forwarding, FBA preparation, and returns processing. Clients receive a complete supply chain solution from one partner, allowing them to focus on growing their business.
✔ Dropshipping Fulfillment: Offers full dropshipping fulfillment services. This is an ideal solution for startups and small business looking to minimize inventory risks and reduce initial expenses.
✔ Discounts: Discounts on services at their fulfillment centers are frequently offered. This can significantly reduce costs, which is especially important for small business with limited budgets.
2. ShipBob
ShipBob is another global fulfillment company with 50 fulfillment centers worldwide. It offers a wide range of services to its clients, including storage, order fulfillment, inventory management, and fast shipping. The company stands out for its technological approach, making it a favorite among startups and small business. However, it does not offer climate control, which may be important for products requiring specific storage conditions.
Warehouse locations: Europe, USA, Canada, Australia.
Pricing policy: Charges apply for receiving goods ($35 per hour for the first two hours and $45 per hour thereafter), order fulfillment, storage ($40 per pallet per month, $10 per shelf per month, or $5 per container per month), and delivery.
Volume requirements: $275 monthly expenditure
What ShipBob can offer small business:
✔ “Growth plan” for small business: For clients with fewer than 400 orders per month, the company offers a growth plan service. It includes flexible rates, no strict minimum order volume requirements, and the ability to quickly scale logistical operations.
✔ Extensive warehouse network across the US and beyond: ShipBob operates 35 warehouses in strategically important regions of the United States and 8 warehouses outside of America. With its international presence, small business can easily expand their markets and serve customers worldwide.
✔ Proprietary software solution: The company offers its own fulfillment management software, completely free for clients. The software integrates with popular ecommerce platforms and provides businesses with full control over inventory, orders, and real-time shipping management.
✔ 7-day support: ShipBob’s customer support is available via chat 7 days a week from 6:00 AM to 10:00 PM. This ensures continuous support and quick issue resolution, which is particularly important for small business aiming to provide high levels of customer service.
3. Red Stag Fulfillment
Red Stag Fulfillment specializes in handling large, fragile, and high-value items, making it unique in the industry. The company is also one of the few that deals with hazardous products. However, it operates only two warehouses on the East and West coasts of the USA and exclusively serves the domestic market.
Warehouse location: USA
Pricing policy: Charges apply for receiving goods ($14.25 per pallet or $6 per non-palletized item), storage ($0.75 per cubic foot), shipping ($1.80–$2.25 for the first item, $0.32 for each additional item), and delivery.
Volume requirements: 200 orders per month
What Red Stag Fulfillment can offer small business:
✔ Service guarantees: Red Stag Fulfillment is known for its attention to quality and reliability of services provided. The company is willing to pay $50 for any order fulfillment error and provide the client with its free resolution. These guarantees demonstrate Red Stag Fulfillment’s confidence in the high level of its services and provide small business with additional peace of mind and confidence in the reliability of their logistics partner.
✔ Specialization in large and valuable Items: The company’s fulfillment centers have capabilities for safe and efficient management of large and valuable items, making it an ideal choice for small businesses selling such items.
✔ Free 30-day trial period: Red Stag Fulfillment offers a free 30-day trial period, which is particularly advantageous for startups and small business. You can assess the quality and effectiveness of their services without any initial costs.
✔ Enhanced warehouse security measures: Security is a priority for Red Stag Fulfillment. Despite having only two warehouses, they are equipped with state-of-the-art security systems, including video surveillance, access control, and other measures aimed at preventing theft and damage.
✔ High order accuracy: Red Stag Fulfillment is known for its high order accuracy rate of 99.98%. The company minimizes errors and delays, ensuring a high level of customer satisfaction.
4. eFulfillment Service
eFulfillment Service has been in the ecommerce market since 2001. With 20 years of experience, it has achieved a 99.9% order accuracy rate. The company stands out for its flexibility and offers numerous opportunities for small business and startups to launch and grow their enterprises. Operating from a single warehouse in Traverse City, Michigan, eFulfillment Service provides shipping across the USA and internationally through established partnerships with leading US delivery services.
Warehouse location: USA
Pricing policy: eFulfillment Service does not provide pricing information on its website. To obtain accurate pricing, it is necessary to contact company representatives directly.
Volume requirements: There are no restrictions on the number of orders.
What eFulfillment Service can offer small business:
✔ No minimum order requirements: eFulfillment Service does not require its clients to meet a minimum order volume. This is particularly important for small business and startups whose order volumes may vary.
✔ No long-term contracts required: eFulfillment Service does not require clients to sign long-term contracts. This provides small business with freedom and flexibility in managing their operations. Clients can easily start working with eFulfillment Service and terminate the partnership if needed, without long-term commitments.
✔ No setup fees: eFulfillment Service does not charge any setup fees. This helps reduce initial costs and makes the company’s services more accessible for small business.
✔ High order accuracy: The company prides itself on achieving a high order accuracy rate of 99.9%. This means that nearly all orders are processed and delivered without errors, which is crucial for small business.
5. Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) offers sellers a wide range of services, including product packaging, storage, order processing, shipping, and customer service. The company also provides returns management and inventory management services. With 110 warehouses across the USA and 65 fulfillment centers outside of America, FBA enables sellers to expand their customer base, access international markets, and enhance customer service levels. FBA fulfillment centers are particularly suitable for startups and small businesses selling products on the Amazon platform.
Warehouse locations: global presence
Pricing policy: Fulfillment by Amazon charges for storage (from 56 cents to $2.40 per cubic foot per month) and order fulfillment (from $3.22 to $11.88 per item).
Volume requirements: There are no restrictions on the amount of inventory or orders.
What Fulfillment by Amazon can offer small business:
✔ Wide reach and global logistics: FBA provides access to Amazon’s global logistics network, enabling your small business to sell products worldwide. With strategically located warehouses, sellers can deliver orders quickly and efficiently.
✔ Prime delivery: FBA services include access to the Amazon Prime program, allowing sellers to offer customers free two-day (or even one-day) shipping. This significantly enhances the attractiveness of products and contributes to increased sales.
✔ Scalability: FBA easily handles large volumes of orders. It is suitable for businesses of any size, from small startups to large enterprises.
6. James & James Fulfillment
James & James was founded in 2010 and has since quickly gained a reputation for its innovative approach to logistics management and high-quality customer service. The company offers a full range of services related to processing, packaging, and shipping of goods. Equipped with modern technologies and innovative software, James & James efficiently manages all stages of the order fulfillment process.
Warehouse locations: United Kingdom, Netherlands, USA, Canada and Australia
Price policy: charges for storage (95 pence per cubic meter per day), order fulfillment (£1.40 for the first item and 30 pence for each subsequent item), and returns (£1.85 per return item, with an additional 55 pence per extra item added to the order).
Volume requirements: 300 orders per month.
What James & James Fulfillment can offer small business:
✔ Advanced inventory and order tracking software: James & James Fulfillment utilizes its own software, ControlPort, which gives businesses complete real-time control over their inventory and orders.
✔ Handling organic produce and valuable goods: The company’s warehouses are equipped to store organic produce under conditions that adhere to strict quality standards.
✔ International shipping: The company offers international shipping solutions, enabling small business to easily enter new markets and serve customers worldwide.
7. FedEx Fulfillment
FedEx Fulfillment was launched in 2017. As part of the international FedEx network, the company provides its services in various countries around the world. Thanks to its parent company, FedEx Fulfillment can also offer competitive shipping rates. However, this also limits customers in their choice of delivery service. Shipping is exclusively carried out through FedEx.
Warehouse location: USA
Price policy: charges for storage ($8–$15 per pallet per month), order fulfillment (40 cents per item), returns processing ($2.50 per order), and shipping.
Volume requirements: 6,000 orders per month.
What FedEx Fulfillment can offer small business:
✔ International delivery network: The company has a wide logistics infrastructure worldwide, ensuring fast and reliable delivery of goods to any part of the globe. Thanks to this network, businesses can easily and efficiently serve customers globally, expanding their markets and increasing revenues.
✔ Reliable tracking and delivery systems: FedEx is known for its advanced tracking and delivery systems. Customers can track the location of their shipments in real-time, providing a high level of transparency and confidence in the reliability of the delivery.
✔ Custom packaging: The company offers a wide range of packaging solutions, from standard boxes to specialized packaging for fragile or valuable items. Custom packaging options help ensure the safety and integrity of goods during transportation, which is especially important for products with specific requirements.
✔ Climate control: The fulfillment center in Memphis offers climate control services. This is particularly important for small business dealing with temperature-sensitive products.
8. ShipMonk
One of the key advantages of ShipMonk is its technological solution for managing the entire fulfillment process. This significantly simplifies inventory management and order processing, helping to reduce delivery times and increase customer satisfaction. The company offers numerous benefits to small business and startups, including programs for crowdfunding projects.
Warehouse locations: USA, Czech Republic, United Kingdom, Mexico, and Canada.
Pricing policy: charges for storage ($25 per pallet per month or $1–$4 per container per month), order fulfillment ($3 per order, 75 cents for each additional item), returns processing ($2 per order), and shipping.
Volume requirements: 500 orders per month.
What ShipMonk can offer small business:
✔ Crowdfunding programs: The company provides scalability and flexibility necessary to manage crowdfunding projects. It offers customized solutions for storing, assembling, and delivering batches of orders.
✔ Participation in the Seller-Fulfilled Prime (SFP) program for Amazon sellers: Products stored and processed by ShipMonk can be offered to Amazon customers with fast and free Prime shipping. Participating in the SFP program significantly enhances the visibility of products on the Amazon platform, increases customer trust, and contributes to sales growth.
✔ Working with Groupon, Etsy: ShipMonk collaborates with various sales channels, including Groupon and Etsy. This provides businesses with unique opportunities to expand their sales through popular platforms that may not be accessible to many competitors.
9. Saltbox
Saltbox offers a unique combination of order fulfillment solutions tailored for small business. The company stands out with its flexible approach, providing customizable services such as warehouse rental and office equipment leasing, offering full control over order fulfillment. On-demand, additional workforce services are available, along with the ability to scale space for peak demands.
Warehouse location: USA
Pricing policy: charges for storage (3.3 cents per cubic foot per day) and order fulfillment ($3.25 per order). Warehouse and office space rental are provided under an all-inclusive monthly package (starting from $199).
Volume requirements: There are no minimum order volume requirements.
What Saltbox can offer small business:
✔ Warehouse and office space rental: Saltbox offers modern and well-equipped warehouse spaces available for flexible lease terms. This is particularly beneficial for small business and startups that require flexibility and adaptability.
✔ All-inclusive monthly packages: Saltbox provides a transparent and straightforward pricing structure with a set monthly cost. The company does not have hidden fees or unexpected charges, allowing small business to accurately plan their budget and avoid unforeseen expenses.
✔ Warehouses in major U.S. cities: Saltbox has warehouses and offices in major cities across the United States, providing convenient access to their services for businesses from various regions. This strategic placement allows you to easily serve customers nationwide, minimizing delivery time and costs.
10. Shopify Fulfillment Network
The Shopify Fulfillment Network (SFN) is a fulfillment service offered by the popular ecommerce platform Shopify. It provides entrepreneurs and small business with the ability to efficiently manage their logistics operations using integrated solutions for storage, picking, packing, and shipping products. By combining powerful Shopify technology tools and an extensive network of warehouses, SFN helps businesses optimize order fulfillment and enhance customer service. However, to use these services, you need to become a Shopify merchant.
Warehouse location: USA
Pricing policy: charges sellers based on the cost per unit of the product. It depends on factors such as size, weight of the product, quantity of units per order, and several other variables. The website provides a calculator to accurately estimate the cost of services.
Volume requirements: There are no minimum requirements for inventory or orders.
What Shopify Fulfillment can offer small business:
✔ Monthly payment without upfront costs: SFN offers a convenient payment structure with monthly fees and no upfront payments, which is particularly advantageous for startups and small business.
✔ Delivery within 1-3 days: The company delivers orders within one to three days. Fast delivery contributes to increasing customer loyalty and repeat sales, which is especially crucial for small businesses and startups.
✔ Returns processing: Returns can be a complex and time-consuming process for many businesses. SFN simplifies this by offering returns processing services through their fulfillment centers.
Conclusion
Fulfillment companies are an integral part of the modern logistics chain, ensuring efficiency and reliability at all stages of order processing. Choosing the right partner for fulfillment services will be crucial to the success of your startup or small business. Each of the aforementioned companies offers unique advantages that cater to various needs. Assess your logistics requirements, budget, and growth goals to select the partner that will best support your business on the path to success.
