Top 3PL Companies for Ecommerce Shipping

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.

• What to look for in a 3PL company
• Top 11 3PL companies compared
• Why choose ShipBob

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Top 11 3PL companies compared

Here’s how several 3PL companies stack up against one another at a glance.

Learn more about what makes ShipBob the top fulfillment provider for growing DTC brands here.  

Read more about ShipBob and other fulfillment companies below. 

1. ShipBob

ShipBob is a direct-to-consumer (DTC) fulfillment 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 fulfillment centers across the United States. Our proprietary software integrates with leading ecommerce stores and is extremely intuitive and easy to use.

Warehouses

ShipBob has coast-to-coast warehouses throughout the US and multiple fulfillment centers worldwide (UK, Europe, Canada, and Australia), so your packages can get to customers faster than ever. With more locations opening every year, ShipBob’s global network of over 50 fulfillment centers 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.

“Because ShipBob has multiple fulfillment centers across the US, we’re able to store and ship our products close to our customers, which helps us bring down shipping costs regardless of where we’re shipping throughout the country.”

Kayleigh Christina, Co-Founder and CMO of CLEARSTEM   

Software and analytics

ShipBob’s software is easy and intuitive, which makes it simple to see logistics and business performance and necessary data. More advanced reporting allows you to dig deeper into your supply chain management and fulfillment 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.

“The ShipBob dashboard is great for real-time information with their built-in reporting. It’s one of the things that really separates ShipBob from the rest of the solutions on the market. I’ve oftentimes leveraged the data and analytics ShipBob provides when I’m preparing for sales meetings. I can see what our top selling states are, what our average fulfillment time and cost is, how much inventory we have on hand at each fulfillment center – a lot of different metrics that are very helpful when you’re selling B2B. ShipBob has all of that information ready for us at any time.”

Tyler McCann, Co-Founder of Taste Salud 

Partners

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. See a full list of our partners here.

Discounts

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.

“We’re saving hundreds of thousands of dollars per year, just in postage. When we first got started, we estimated over $400,000 in savings. ShipBob has helped us save 40% on total fulfillment costs.”
Adam LaGesse, Global Warehousing Director at Spikeball

Integrations

ShipBob integrates with all top ecommerce platforms including Shopify, BigCommerce, WooCommerce, Squarespace, and many more. Custom integrations are available via our Developer API.

Customer support

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.

“ShipBob has always worked to support our business – not to just keep it. Despite any challenges we’ve faced, we have always felt like ShipBob prioritized our business, rather than theirs. They look to actually solve our problems, and as we continue to grow and scale, it’s been helpful to know we have a partner that’s on our side.”

Tyler Stelter, COO at Storelli Sports

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 Fulfillment is a US-based ecommerce order fulfillment services provider. They specialize in shipping heavy items that require special handling.

Warehouses

Red Stag has two warehouse locations in the central United States.

Software

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. 

Partners

Red Stag works with several leading ecommerce platforms. They also have a deal with FedEx to slightly reduce the cost of shipping heavier items.  

Discounts

Red Stag has shipping discounts available for different carriers, especially specializing in oversized shipping. 

Integrations

Red Stag integrates with leading ecommerce platforms including Shopify, Amazon, eBay and more. Custom integrations are available via an API. 

Customer service

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. 

3. FedEx

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. 

Warehouses

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.  

Software

FedEx’s software is fairly easy to use and is more of a large enterprise platform. 

Partners

FedEx has a large network of partners to choose from in addition to their in-house transportation services. 

Discounts

FedEx offers discounts on shipping done through FedEx’s network. There are no discounts available for other shipping carriers. 

Integration

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. 

Customer service

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. 

4. Fulfyld

Fulfyld was started in 2016 and focuses on ecommerce fulfillment to help brands fulfill orders in a cost-effective manner. 

Warehouses

Fulfyld has 8 locations in the US, all concentrated in the Southeastern region of the US.

Software

Like most third-party logistics companies, Fulfyld’s software is fairly easy to use and integrates with your ecommerce platform.

Partners

Fulfyld is still relatively new, so its partner network is limited but growing. They currently have 12 partners, including UPS, USPS, SPS Commerce, and Quickbooks Commerce.

Discounts

Discounts are available for different carriers like FedEx, UPS, USPS, and a few other carriers. 

Integrations

Fulfyld integrates with most top ecommerce platforms including Shopify, Magento, BigCommerce, eBay, and others. 

Customer service

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 fulfillment manageable. But as you grow, partner with a larger 3PL who specializes in growing and established businesses. 

5. Fulfillment by Amazon (FBA)

Amazon also offers a fulfillment service for their marketplace sellers to help ship products as they’re sold. 

Warehouses

With over 70 fulfillment locations, Amazon has the largest warehouse network through the US and it’s growing every year.

Software

Amazon’s fulfillment software is fairly easy to use. 

Partners

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

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. 

Integrations

Because of Amazon’s large partner network, some companies have built out integrations for the FBA platform to make it even easier to manage.  

Customer service

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 prioritize them. If you want to make your own website the main source of sales for your business, Amazon is not the best fit. 

6. Walmart Fulfillment Services (WFS)

Brands that are selling on Walmart Marketplace can use Walmart Fulfillment Services (WFS) to ship orders to customers. WFS will also fulfill orders for items that are not sold through Walmart.

Warehouses

Walmart has many warehouses across their international markets: US, Canada, Mexico, and Chile.

Software

Walmart Fulfillment Services has a cloud-based dashboard that brands can use to track inventory, orders, deliveries, and more.

Partners

Walmart has a network of partners.

Discounts

Discounts are available for different carriers. A major selling point for Walmart Fulfillment Services is that brands can take advantage of Walmart’s large scale and supply chain.

Integrations

Walmart has an API that brands can integrate with to build their necessary tech stack.

Customer service

WFS has a Seller Center that is designed to help brands get the support and answers they need. For more specialized support, brands can submit a case that is escalated to WFS.

Who does Walmart Fulfillment Services work best for?

Brands that want to tap into Walmart’s scale, supply chain, and ability to leverage “Fulfilled By Walmart” tags, may be interested in Walmart Fulfillment Services.

What to look for in a 3PL company

Choosing a fulfillment partner is a major undertaking. It’s important to carefully vet and select the provider that can fit your needs and help you scale.

A great 3PL should be able to check off all of these boxes: 

Global network of fulfillment centers

If you plan to scale, choosing a fulfillment partner with multiple warehouses (domestically and globally) is an important factor. One of the biggest benefits of using a 3PL is being able to strategically place your inventory in their warehouses so your brand can grow.

When researching 3PLs, you will want to consider the size, scale, and locations of their fulfillment centers. 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 fulfillment experts. Unlike on-demand warehousing solutions, a 3PL should actually have experience managing fulfillment centers. 

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 fulfilled at a warehouse in or closest to California — not the East Coast. This reduces shipping costs and allows orders to reach customers quicker. 

Intuitive software

Ease of use for 3PL software is key. Since you’re outsourcing fulfillment 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 fulfillment centers. 

A vast partner network

Ecommerce fulfillment is a complex beast that affects other areas of your business. Your fulfillment provider 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. 

Shipping discounts

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 fulfillment 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. 

Customer service

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. 

2-day shipping

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 zip code.

Returns

A 3PL can make ecommerce returns easier. By automating inventory management, you’re able to speed up the returns process and simplify it for your customers. 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. 

Why ShipBob is the #1 3PL for growing DTC brands

ShipBob is the industry-leading 3PL with a global fulfillment network, specializing in DTC and B2B fulfillment. 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 fulfillment center, 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 has 50+ fulfillment centers throughout the world. Our robust network lets you split inventory across fulfillment centers, so ShipBob’s powerful algorithms route each order to the optimal fulfillment center that’s closest to your customer to optimize for time and money. 

ShipBob’s Inventory Placement Program automatically distributes inventory throughout our US fulfillment network on your behalf, saving you time and money.

Simple pricing structure

ShipBob takes a simplified pricing structure compared to most 3PLs, bundling, packing, packaging materials, and shipping into one fee for each order. The total included free picks for each order vary by country of fulfillment and when you start fulfilling with ShipBob. You can find more information here. ShipBob does not charge for packaging materials.

“What we love about ShipBob is we have fulfillment pricing information so much ahead of time that we know exactly how much to build into our COGS. We couldn’t do this with our prior fulfillment providers. We’ve been able to build a proper pricing forecast and models, and do so much cost analysis because ShipBob makes it easy to calculate what our actual costs will be, which helps us continue to run profitably.”
Kayleigh Christina, Co-Founder and CMO at CLEARSTEM 

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 fulfillment center. 

There is also a one-time implementation fee for customers who don’t go through ShipBob’s startup fulfillment 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.

International fulfillment

ShipBob has locations in the US, Canada, the EU, the UK, and Australia. This allows ecommerce brands to utilize a unified system to manage all inventory, orders, and customers in one platform while staying up-to-date on real-time data. 

App store full of integrations with your favorite 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, you can decide which one is best for your brand. As a growing ecommerce business, you need a third-party logistics providers that can manage fulfillment for your growing business with years of experience and fulfillment solutions.

Connect with a ShipBob fulfillment expert to learn more about our scalable solution.

Request a Quote From ShipBob

3PL Company FAQs

What are 3PL companies?

3PL companies provide services including inventory management, warehousing, and fulfillment. 3PL companies allow ecommerce merchants to accomplish more, with the tools and infrastructure to automate fulfillment.

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 fulfillment 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 fulfillment costs will be, including receiving, storage, pick and pack, standard packaging, and shipping. Check out ShipBob’s pricing model here.

What are the differences between 3PL and 4PL providers?  

Third-party logistics companies, or 3PLs, are order fulfillment providers that pick, pack, and ship orders for brands. They have anywhere from one to several warehouses where inventory is stored, and orders are prepared for shipment. 3PLs also offer inventory and order management services for their customers.  

Fourth-party logistics providers, or 4PLs, manage more of the supply chain process for brands than 3PLs. 4PLs manage relationships with and oversee functions of fulfillment partners (3PLs), freight forwarders, and last-mile logistics on behalf of the brand.  

Can 3PL companies help with international shipping? 

Yes! Fulfillment providers can help brands scale globally with international shipping. Working with a 3PL like ShipBob simplifies the process, as they will assist with navigating taxes, duties, and other global shipping complexities. Offering international shipping allows brands to unlock additional revenue and reach millions of potential new customers.