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With the rise of eCommerce businesses, the demand for 3PL providers has skyrocketed in recent years. 3PLs alleviate the burden of fulfillment and shipping strategies on retailers. They also provide you with savings that help to maximize your profits.
3PL providers help businesses scale and enable companies to meet the demands of their increasing customer base.
Having said that, not every 3PL provider operates in the same way. There may be some advantages of working with one 3PL provider and some other benefits of working with the other.
Not all 3PLs are created equal — you should consider many factors before signing a contract with a particular company. But we’ll help you out in this regard.
In this guide, we will inform you of the 10 best 3PL providers out there; we’ll discuss their features, offerings, and how broad their services are. We’ll help you find the best fit for your business needs.
3PL stands for Third-Party Logistics. A 3PL company is an external organization that handles the logistics operations and supply chain management of a business.
Their services include:
By outsourcing these logistics functions to a 3PL, businesses can focus on their core competencies. They can benefit highly from the expertise and resources of a specialized logistics partner.
This can lead to cost savings, improved customer service, and increased flexibility in adapting to changes in the supply chain.
Here’s how third-party logistics providers help businesses expand by leveraging their fulfillment services:
In modern times, the list of industries that use 3PL services is huge. We can say that without the use of 3PL, today’s industry would not be able to meet the ever-increasing demands of customers.
Here’s how the top 10 3PL companies and their features compare:
3PL Provider | Warehouse Locations | Partnerships | Discounted Rates | Integrations | Customer Service |
3PL Fulfillment and Prep | 20+ | Many | Yes | Many | Email, Chat Support, Phone Support |
Red Stag | 2 | Limited | Yes | Limited | Phone Support Only |
Rakuten | 5 | Many | Yes | Many | Phone Support Only |
FedX | 17 | Many | Yes | Many | Phone Support Only |
Ship Bob | 25+ | Many | Yes | Many | Phone and Email |
Ship Monk | 12 | Many | No | Many | Email & Phone Support |
Fulfillment by Amazon | 73 | Limited | Yes | Yes | Phone Support Only |
Walmart Fulfillment | 20 | Limited | Yes | Limited | Handled by Walmart |
C.H. Robinson | Many | Numerous | Yes | Limited | Phone and Online Chat |
Expeditors | Many | Many | Yes | Limited | Email, chat, & Phone |
Here's a detailed overview of the top 6 e-commerce-focused 3PL companies:
3PL Fulfillment and Prep is a fulfillment company that provides everything an e-commerce business owner needs to scale their commercial enterprise. We offer robust services from warehousing, inventory management, shipping, and value-added services to refunds.
With our services, e-commerce businesses can tap into any market inside the US. Our 3PL management software helps manage your inventory effortlessly by tracking the availability of your products, helping you avoid stock-outs, and ensuring timely replacement.
Our technology seamlessly integrates with the most respected e-commerce stores available. We have been ranked among the top 3PL companies in 2023, and they continue to aim to provide top 3PL services in the years to come.
3PL Fulfillment and Prep is the leading provider of coast-to-coast warehouses throughout the US. So you can get your packages to customers more rapidly than ever!
Our 3PL 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 and Prep has the perfect solution for businesses with a variety of goals.
3PL Fulfillment and Prep offers eCommerce businesses an array of marketing, tax, freight, and financing services. We additionally assist with returns, customer service, and custom packaging.
Some of our notable partners include Amazon, Wayfairm, Nugogo, Nurtured Sport, and many more.
Our comprehensive package helps your business grow so you can generate more revenue. 3PL Fulfillment and Prep has everything needed to ensure success!
3PL Fulfillment and 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 and Prep, your overall shipping costs will be lower than if you tried to ship through these carriers by yourself.
3PL Fulfillment and Prep’s services are designed to provide seamless integration with all major e-commerce platforms, such as:
For more complex integrations, our Developer API can be used to customize the experience.
3PL Fulfillment and 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.
The sophisticated reporting lets you dive deep into your supply chain administration and fulfillment process. 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 and Prep offers comprehensive customer service through phone and email. We also provide mid to large-sized merchants with a dedicated account manager for guidance.
3PL Fulfillment and Prep works best for direct-to-consumer DTC e-commerce businesses selling products on their website. If you’re someone who needs a 3PL to take care of their custom packaging requirements, 3PL Fulfillment and Prep is the optimal choice for your business.
Whether you’re shipping 200 orders per month or 20,000, 3PL Fulfillment and Prep can help you grow like never before!
Red Stag Fulfillment is another great source for e-commerce order fulfillment services in the US. Heavy items require special handling, and Red Stag does the job well. 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 for all merchants and retailers.
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 online shopping 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 phone and email support, ensuring you get the best customer service possible.
If your small business deals with heavy packages, Red Stag is a compelling 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 provides 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.
FedEx is, without a doubt, one of the largest 3PL companies in the world. 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 and medium-sized businesses will benefit from using something other than 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 FedEx can only be availed through their 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, you must 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 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.
ShipBob is another 3PL fulfillment provider that partners with small and large-scale e-commerce brands. They help retailers manage inventory, predict demands, prepare packages, and deliver great levels of customer satisfaction.
ShipBob operates a network of fulfillment centers across North America.
With warehouse locations opening every year throughout the US, ShipBob aims to deliver packages to their customers as fast as possible. You can start your fulfillment journey with them from one warehouse and expand into additional ones as your customers continue to soar.
With easy-to-use and intuitive software, ShipBob lets users see logistics and analyze business performance for a deeper insight into your business.
This 3PL provider has several partnerships across multiple e-commerce platforms. Some of them are Wix, NetSuite, Magneto, etc.
ShipBob collaborates with services like DHL and FedEx and provides discounted rates if you let ShipBob handle your shipping.
This fulfillment provider integrates with trusted e-commerce platforms such as Shopify, BigCommerce, and many more.
ShipBob is most suitable for e-commerce businesses, as discussed before. They also let small businesses scale if the customer base is expanding at a fast rate.
Fulfyld is a 3PL service providing cost-efficient eCommerce fulfillment solutions to meet all your needs.
Located in Alabama, United States, Fulfyld is among other small 3PL companies and 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 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.
The remaining 3PL fulfillment providers, such as Amazon FBA prep, Walmart Fulfillment, Expediters, etc., operate on a global level. Although they cover a wide range of industries, they might not be best suited for e-commerce organizations that are in the process of scaling their businesses.
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 warehousing and fulfillment facilities.
If a 3PL provider covers all the factors below, it is considered a reliable partner to scale your business. The services and features mentioned in the following section verify the credibility of a good 3PL fulfillment provider.
A 3PL company should have several fulfillment center locations in different strategic areas. Good geographical coverage optimizes shipping costs, reduces transit times, and expands the market for better scaling of the business.
This means that you can easily reach out to customers no matter where they are located. 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.
One thing to note here is that not all providers are international 3PLs. Some work on the country level, while others operate internationally. Choosing the right partner solely depends on the scale and needs of your business.
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.
You should opt for a 3PL that has 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. Other than that, they offer automated processes such as order processing, which saves time and money!
Some 3PL services offer custom-packaging, custom sender notes, and kitting. These services could be beneficial to you if you’re willing to provide customized packages to your customers. Or if you sell items like furniture or products that come in bundles or sets.
So, search for 3PLs that offer value-added services in their packages.
Returns management is another area to consider when looking for a 3PL provider. Some offer efficient handling of returned goods while minimizing losses caused by damaged items.
Additionally, they also give businesses detailed reports on goods returned. This helps companies evaluate where improvements could be made to reduce the costs of returns in the future.
If your company currently doesn’t have the manpower to handle returns, look for a 3PL that offers returns management as well.
You should look for 3rd-party logistics companies offering 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.
Some 3PL companies also offer last-minute fulfillment services. If you often encounter unexpected surges in demand or urgent customer requests, consider a last-minute fulfillment provider.
Paying attention to sales channels in 3PL matters because it impacts how your products reach customers. It's like choosing the best routes for your goods to travel efficiently. Selecting the right sales channels in 3PL depends on your business goals.
Just like having different sales channels broadens your reach, having various shipping options with your 3PL provider can attract more customers. So, it is always important to consider your sales channels when you’re looking for a 3PL provider.
A trusted and reliable 3PL company will have a number of old customers who have been using their services for years. Apart from that, referrals from other businesses further increase the credibility of the 3PL company.
Always verify the customer of a company before you decide to sign a contract for your order fulfillment. If you want to know some tips for choosing a 3PL, check out this video.
Now that you know what the best 3PL logistics providers are in the United States, you can choose the partner that works best for you. With this guide, you can skim down the 3PL experts that align with the demands of your business.
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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