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With the rise of eCommerce businesses, third-party logistics (3PL) providers have become increasingly in demand. 3PLs alleviate the burden of fulfillment and shipping strategies on retailers. They also provide you with savings that help to maximize your profits.
But not all 3PLs are created equal — there are many factors to consider before signing a contract with any one company.
This comparison of the eleven most popular 3PL providers out there so that you can find the best fit for your business needs.
A 3PL (third-party logistics) company is an external organization that handles the logistics and supply chain management of a business.
This includes shipping products to customers, managing inventory, and providing returns services.
Using a 3PL company can help businesses save time, money, and resources while still ensuring service levels are met.
Read more about 3PLs in this comprehensive 3PL guide!
1. They can reduce your shipping costs. They do this by providing great discounts on shipping rates and offering value-added services like order fulfillment, packaging, labeling, and tracking.
2. They can help you save time by taking over the tedious tasks of packing and shipping so that you can focus on other business operations.
3. They provide an experienced workforce that can manage your orders quickly, accurately, and efficiently.
4. They have access to a wide range of warehouses across multiple geographies, which means you’ll get your products to customers faster than ever before.
5. They offer services like reverse logistics and returns management, allowing you to maximize customer satisfaction and minimize costs associated with returns.
6. They have the latest technology to track, manage and optimize your supply chain.
Running a business is no easy task, and there are many moving parts that must all be managed. One of the most important aspects of running a successful business is having reliable order fulfillment.
This is where working with a 3PL company comes in. 3PL stands for third-party logistics, and it’s an integral part of any successful e-commerce business.
Let’s take a look at some of the benefits that come with working with a 3PL provider.
A 3PL company has access to a vast global network of fulfillment centers located in strategic locations around the world.
This means that you can easily reach out to customers no matter where they are located, as well as dramatically reduce delivery times by shipping from nearby warehouses.
You also have access to real-time inventory data, so you know exactly how much stock you have on hand at any given time and never run out.
Having access to intuitive software is essential for any business owner looking to streamline their operations and maximize efficiency.
Good 3PL companies offer powerful software tools that make managing orders, tracking shipments, and processing payments easier than ever before. Plus, they offer ongoing customer support so you can get help whenever you need it.
Working with a 3PL means that you have access to the resources of an entire network of partners, such as carriers, logistics providers, payment processors, and more.
This allows you to leverage their vast experience and expertise to ensure that all aspects of your supply chain are running smoothly. You can track shipping discounts for bulk orders and returns management for faulty products or customer dissatisfaction.
Good 3PL companies provide integrations with other platforms so that your data is always up-to-date across multiple channels. These channels can include eCommerce stores, marketplaces, ERP systems like NetSuite or Microsoft Dynamics 365, etc.
They also offer APIs so that developers can create powerful custom solutions tailored specifically to your needs quickly and easily. Finally, they offer automated processes such as order processing which saves time and money!
Another benefit offered by most 3PL providers is discounts on shipping costs when shipping bulk orders. Discounts can also be on international shipping to save money on freight expenses without sacrificing service levels.
Returns management is another area where working with a 3PL provider can be beneficial. This is because they offer efficient handling of returned goods while minimizing losses caused by damaged items.
Additionally, they give businesses detailed reports on goods returned. This helps businesses evaluate where improvements could be made to reduce the costs of returns in the future.
Another great benefit offered by many third-party logistics companies is fast shipping for domestic orders. This helps businesses meet customer demands for fast delivery times without breaking the bank on costly express shipping fees.
There are many advantages for businesses that work with a third-party logistics provider. This can help businesses run more smoothly and reduce the costs of order fulfillment. Additionally, this provides great customer service both in the country and internationally.
Partnering with a reliable 3PL provider ensures your business stays competitive in today's rapidly changing marketplace without sacrificing quality or service levels.
If you've made up your mind about hiring a 3pl company, you'll be even more amazed at what international 3PLs offer!
Here’s how the top 11 3PL companies and their features compare:
| Warehouses & Storage | User-Friendly Software | Partners | Shipping Discount | Integrations | Customer Service | Suitable for Business | |
| 3PL Fulfillment & Prep | 20+ | Yes | Many | Yes | Many | Email, Chat Support, Phone Support | Small and Medium Businesses |
| FedX | 17 | Yes | Many | Yes | Many | Phone Support Only | Large Businesses |
| Red Stag | 2 | Yes | Limited | Yes | Limited | Phone Support Only | Small Businesses |
| Rakuten | 5 | Yes | Many | No | Many | Phone Support Only | Large Businesses |
| Fulfyld | 1 | Yes | Limited | Yes | Many | Phone Support Only | Small Businesses |
| FBA | 73 | Yes | Limited | Yes | yes | Phone Support Only | Amazon Merchants |
| Walmart Fulfillment | 20 | Yes | Limited | Yes | Limited | Handled by Walmart | Walmart.com sellers |
| Radial | 12 | Yes | Limited | Yes | Limited | Large Businesses | |
| OceanX | 3 | Yes | Limited | Yes | Limited | Email, chat, and phone | Large CPG businesses |
| Quite Logistics | 5 | Yes | Yes | Yes | Limited | Apparel and high SKU counts | |
| Printful | 3 | Yes | Yes | Yes | Many | Email and chat | Print-on-demand needs |
Here's a detailed overview of the top 5 3PL companies:
3PL Fulfillment & Prep is a DTC fulfillment company that collaborates with eCommerce brands of all sizes. Our exclusive software offers exceptional, user-friendly solutions that make inventory management and demand forecasting, as well as packing orders.
Our technology is seamlessly compatible with the most respected e-commerce stores available.
3PL Fulfillment & Prep is the leading provider of coast-to-coast warehouses throughout the US and abroad. So you can get your packages to customers more rapidly than ever!
Our distribution service not only helps manage inventory efficiently but also minimizes the overall cost of shipping service. Whether it's increasing order volume or entering new markets, 3PL Fulfillment & Prep has the perfect solution for businesses with a variety of goals.
3PL Fulfillment & Prep offers eCommerce businesses an array of marketing, tax, freight, and financing services. It additionally provides assistance with returns, customer service, and packaging.
This comprehensive package helps your business grow so you can generate more revenue. 3PL Fulfillment & Prep has everything needed to ensure success!
3PL Fulfillment & Prep has negotiated shipping discounts with USPS, FedEx, UPS, and DHL to cover all your domestic and international shipping needs. If you work with 3PL Fulfillment & Prep, your overall shipping costs will be lower than if you tried to ship through these carriers by yourself.
Our 3PL services are designed to provide seamless integration with all major e-commerce platforms, such as Shopify, BigCommerce, WooCommerce, and Squarespace. For more complex integrations, our Developer API can be used to customize the experience.
3PL Fulfillment & Prep's software is known for its convenience and user-friendliness. It allows you to swiftly keep an eye on logistics, business performance, and more.
Its sophisticated reporting enables you to dive deep into your supply chain administration and fulfillment operations. It also includes a glimpse at how quickly products are selling, inventory days on hand, transit times, average cart value analysis...and much more!
3PL Fulfillment & Prep offers comprehensive customer service through phone and email. 3PL Fulfillment & Prep also gives mid to large-sized merchants a dedicated account manager for guidance.
3PL Fulfillment & Prep works best for direct-to-consumer e-commerce businesses selling products on their own website. Whether you’re shipping 300 orders per month or 30,000, 3PL Fulfillment & Prep can help you grow like never before!
FedEx is without a doubt, the biggest company on this list. As one of the primary transport carriers in North America, they own and operate multiple warehouses to ensure orders reach customers swiftly.
Unfortunately, their expansive network caters mainly to large enterprises. This means that small-to-medium-sized businesses probably won't benefit from using FedEx's services.
With the broadest warehouse network in all of America, FedEx takes full advantage of its expansive collection of warehouses. This grants them a strategic edge over their competitors.
FedEx's software is one of the most user-friendly platforms available in a large enterprise setting.
FedEx provides access to a vast network of partners in addition to its own internal logistics capabilities.
The discounts at FedX can only be availed through their own service. There are no discounts if you use another carrier service.
With FedEx, you have access to a select few integrations for e-commerce merchants. To ensure successful integration between your platform and the API of FedEx, it is essential that you work with an experienced developer.
When you need timely customer service from FedEx, your only solution is their customer support. They do offer email assistance; however, it's restricted in the services they provide. With phone support being available for particular hours, this is really the only way to get quality aid from FedEx.
Big corporations, including Fortune 500 companies, can benefit greatly from FedEx services. However, if you have a small business, then FedEx may not be the most cost-effective logistics solution for you.
Red Stag Fulfillment is your go-to source for e-commerce order fulfillment services in the US. Heavy items require special handling, you'll be sure to get your orders delivered on time and with complete satisfaction!
Red Stag has two strategic warehouse locations in the Central US, ensuring efficient transportation services.
Like most leading 3PL services, Red Stag has software that’s a cloud-based system. This allows you to access your data and reports from any device at any time.
Red Stag collaborates with some of the world's foremost e-commerce platforms. It also has a special association with FedEx, which can substantially bring down shipping costs for bulky items.
Red Stag offers special shipping discounts for carriers who specialize in large-scale shipments.
Red Stag offers seamless integrations with the leading e-commerce platforms including Shopify, Amazon, and eBay, among others. Moreover, they provide custom solutions through their comprehensive API for more ease.
Red Stag provides both phone and email support, ensuring that you get the best customer service possible.
If your small business deals with heavy packages, Red Stag is the perfect option for you. With Red Stag, businesses can easily manage their bulky shipments.
Rakuten Super Logistics service adds convenience to your business with its ground shipping option. It allows you to quickly and effectively deliver packages in one or two days anywhere within the U.S.
Plus, take advantage of a cloud-based inventory management system that enables hassle-free tracking throughout the entire process!
Rakuten boasts a stronghold of five warehouses located nationwide, stretching from one coast to the other.
Rakuten's software is just as user-friendly as any of the other 3PLs on this list. Plus, since it's cloud-based, you can gain access to your data right from any device!
Rakuten has a large network of partners for your business. The Rakuten Marketplace also offers additional partner opportunities for e-commerce businesses that 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 e-commerce platforms including Shopify, eBay, Amazon, BigCommerce, and more.
Rakuten has phone support with limited email support.
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.
If you want to know some tips for choosing a 3PL, check out this video.
Fulfyld is an exceptional 3PL providing cost-efficient eCommerce fulfillment solutions to meet all your needs.
Located in Alabama, United States, Fulfyld has only one location.
The software Fulfyld uses is efficient and seamless to use. It also easily integrates with your eCommerce platform for an even faster user experience.
Fulfyld has limited partners as of now because it is a relatively new 3PL company. However, it's building its network among small businesses.
Fulfyld provides discounts on multiple carriers such as FedEx, USPS, and UPS among others.
Fulfyld easily integrates with all the major eCommerce platforms out there, including Shopify, Magento, BigCommerce, eBay, and many more!
Fulfyld provides customer support through both email and phone calls.
For start-ups and small businesses, Fulfyld can be convenient for you with its affordable prices. However, for larger or growing eCommerce businesses, one should consider partnering with an established 3PL company to fulfill all needs.
3PL Fulfillment & Prep specializes in DTC and B2B services, making them the undisputed leader in the industry.
Find out what sets them apart from other providers below!
3PL Fulfillment & Prep offers custom-built technology designed to help brands easily manage their inventory, shipments, and orders. Our full suite of tools features real-time stock-level notifications so you never have to worry about stockouts again!
Additionally, our system automatically updates customers with order tracking information on 2-day shipping products.
Additionally, it integrates eCommerce platforms including marketplaces and customer service software into one universal dashboard.
3PL Fulfillment & Prep provides a straightforward pricing structure, bundling picking, packing, and shipping into one fee per order.
Plus don't worry about any additional charges for packaging materials either - all you need to pay is what's calculated by dimensional weight.
Your stock stored at our fulfillment center will be charged a monthly storage fee based on each SKU location. Plus, incoming inventory can also be processed as soon as it arrives!
eCommerce brands can now enjoy a frictionless logistics experience with 3PL Fulfillment & Prep's global fulfillment network.
With our reach across the US, Canada, EU, UK, and Australia you don't have to worry about order transit times. This means faster delivery at reduced costs!
3PL Fulfillment & Prep is revolutionizing the way businesses stock and ship inventory. With a network of fulfillment centers, companies can get orders out quickly and cheaply. The algorithms figure out the best route for each order to go.
Split shipping across these global locations means you can now offer speedy ground shipping in two days or less—and even scale up for international coverage.
Plus manage all your inventory and customers in one platform while having full access to real-time data.
The best way to choose the right 3PL company for your business is to compare them based on:
You should also consider talking with current or past customers of each 3PL you are considering for their input. With this information in hand, you can make an informed decision about which 3PL will provide the best value for your needs.
There are hundreds of 3PL companies operating in the US, offering a wide range of services and capabilities. It's important to do your research and find the right 3PL for your specific needs.
WRITTEN BY
William K. Turner (Supply Chain Management)
Willian K. Turner, our esteemed author with expertise in International Trade, Global Logistics, and Supply Chain Management, has a lot to offer when it comes to writing about these topics. He has a wealth of experience and knowledge to share with readers. Whether he's writing blog posts or articles his insights will be surely valuable to anyone interested in these industries.
Willian K. Turner, our esteemed author with expertise in International Trade, Global Logistics, and Supply Chain Management, has a lot to offer when it comes to writing about these topics. He has a wealth of experience and knowledge to share with readers. Whether he's writing blog posts or articles his insights will be surely valuable to anyone interested in these industries.
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