eCommerce fulfillment is the part of an ecommerce business’s operation that plays a vital role in satisfying customers’ demands, and it is important to outsource a reliable third-party fulfillment expert. Therefore, if you are looking for a specialist to assist you in the industry, Kyanon Digital would like to recommend the best five eCommerce fulfillment companies for your business, as we understand that it might be difficult to choose the suitable logistics company among numerous warehousing and fulfillment services.
1. Why should companies outsource ecommerce order fulfillment?
1.1. Time efficiency
By reaching an order fulfillment company’s service, the entire process from product storage to delivering your customer’s orders will be handled. Furthermore, ecommerce fulfillment companies coordinate relevant technology and automation in processing orders, which can contribute to the entire process, and minimize the need for manual operations.
Therefore, in the long run, it will make an outstanding contribution to reduce potential human error, and provide time and cost efficiency.
1.2. Have more attention to your core business
As all the fulfillment tasks are taken off, better attention can be paid to your business’s growth. Additionally, more time can be invested in many other business activities such as product marketing, performing product research to extend your offerings, website optimization, and customer experience improvement, etc. Besides, with the assistance of a third-party fulfillment expert, staff who were responsible for non-core business operations such as inventory management or order shipping, can now be committed to high priority business objectives.
1.3. Widen shipping coverage
Most small retailers choose to lose business, and limit their operations to a single location because of the complication of shipping rates and predicted shipping times. Furthermore, due to different regulations and currencies, international shipping rates are even more confusing. Disadvantages equently, many retailers have a tendency to keep their shipping options fairly local or regional.
However, with the right order fulfillment provider, your business will be taken to the next level with wider coverage with warehouses across different locations. Fulfillment companies have their own networks to deliver orders to any part of the world, and it would be easier for you to incorporate with suppliers by asking them to send products to your fulfillment network’s location closest to them.
1.4. Access faster delivery times
PwC stated that quick delivery time is the key factor influencing online shopping experience to forty-one percent of buyers. Fulfillment centers have multiple warehouses in different places that can fulfill an order based on customer location. By outsourcing ecommerce fulfillment partners, you can reap the benefits of them to provide faster delivery, satisfy buyers’ high demands, and compete with other retail businesses.
1.5. Rates at more affordable prices
Third-party logistics companies have strong economies of scale, which can contribute to your savings in different areas, including shipping. As having their own network of warehouses, fulfillment providers can help you balance your inventory, and ensure your goods are closer to your buyers. According to Nosto, by applying this method, distributing inventory can reduce shipping costs by twenty-five percent. Besides, fulfillment companies can receive preferable rates from carriers because they have high-volume shippers. While it varies depending on the company, Shopify explained that typically you can save between fifteen and thirty-five percent on published shipping rates. Furthermore, these fulfillment partners have software allowing them to browse shipping rates from various carriers, and choose the most cost-effective rate for each order.
Also, instead of buying a small amount of packaging and dunnage, getting them in bulk to cover thousands of merchant goods brings more affordable prices. As a result, they can fulfill orders in bulk, and have negotiation for lower delivery rates.
2. Top 5 reliable ecommerce fulfillment companies to grow your business
2.1. ShipBob
One of the most popular and fastest-growing ecommerce fulfillment companies is ShipBob. Not only do they have warehouses located around the US and a D2C shipping process, but they also provide service integrated technology to stimulate the power of their network.
- Pros
– Express shipping program
– International shipping services
– Custom branding and packaging
– No minimum orders
- Cons
– Reports of slow customer service
– Reports of items being lost or sent late
Across America, Complemar has four warehouses that are strategically located in the Chicago, Philadelphia, Los Angeles, and Dallas/Fort Worth areas, and these facilities are all owned by ShipBob. In addition, there are dedicated customer service reps for each site to assist issues that may occur.
These facilities are wholly owned and operated by ShipBob, and each site has dedicated customer service reps to help troubleshoot any issues that may pop up.
The most significant service of ShipBob is its 2-Day Express Shipping Program, which will satisfy customers’ expectations set by Amazon.
- Pricing structure
ShipBob’s pricing is based on five services, which are clearly displayed on their website.
In order to have a personalized price, you need to request a quote.
2.2. Deliverr
Deliverr is a fulfillment service with express delivery badges that provides two-day delivery services.
- Advantages
– Network of strategically placed warehouses.
– 95% of shoppers in the US are eligible for 2-day delivery with their network.
– Integrates with many major platforms.
– Affordable, transparent pricing.
- Disadvantages
– Lack of custom branding or packaging.
– Reportedly slow customer support.
– Do not provide support for buyer returns.
Across the United States, Deliverr has their fulfillment warehouses strategically placed.
The company incorporates major ecommerce platforms and tools, such as Shopify, BigCommerce, Wish, Walmart, etc. Furthermore, there is a straightforward pricing scheme for both storage and fulfillment services.
Nevertheless, Deliverr is not flexible regarding branding options. Besides, their customer support has been reported to take a few days to answer queries.
- Pricing structure
Deliverr’s pricing structure is straightforward and affordable.
For a start, their ecommerce fulfillment services charge at $3.99 per unit, and $0.75 per cubic foot each month for their storage services.
For over 365 days of stored products in their warehouse, long-term storage fees will start at $0.150 per unit per day.
If you want get the exact amount of cost of their services, take a look at the Deliverr’s cost calculator.
2.3. Rakuten Super Logistics
Rakuten Super Logistics is a spin-off service that can help companies derive the benefits of the ecommerce platform’s existing infrastructure. In terms of popularity, Rakuten is the best in Japan, and they have 15 fulfillment centers in the US.
- Pros
– 15 fulfillment centers in the US.
– Integrations with many ecommerce platforms.
– Supports a wide range of product, including nutraceuticals to hazmat materials.
- Cons
– High minimums.
– Reports of slow customer service.
Launched in 20001, not only does Rakuten Super Logistics have extensive experience in this industry, but they also have a large warehouse network that places importance on providing high-quality service. The company guarantees 100% order accuracy as well as 100% order turnaround by the next business day.
In addition, with its infrastructure, two-day ground shipping to 98% of the US is one of the services Rakuten Super Logistics can provide.
Many important ecommerce platforms such as Shopify, ShipStation, and Walmart, etc. cooperates with them. Furthermore, they accept a wider array of products than Amazon MCF, and they even have refrigeration facilities. However, they cannot store medical-grade pharmaceuticals.
Since Rakuten Super Logistics does not provide services for orders below 250 orders per month, it may not be a suitable choice for small businesses.
Nine hours is the amount of time for their customer service to resolve all problems, so it may not be a fast enough reaction to some sellers and customers.
- Pricing structure
Pricing information is not available on Rakuten Super Logistics website, so you need to request a quote from their team.
2.4. eFulfillment Service
eFulfillment Service (EFS) has gained popularity as providing fulfillment service for startups, since order minimums or long-term contracts are not required , and they offer competitive pricing for fulfillment and storage.
- Advantages
– Cross-docking capabilities for crowdfunders.
– 30 days service testing.
– No long-term storage fees.
- Disadvantages
– Only one warehouse is available.
What makes EFS stand out on this list is it provides cross-docking, which means when an order arrives at their warehouse, it will be shipped instantly. For crowdfunded ventures, this should be a valuable service as a newly developed product is necessary to be shipped to their backers within the shortest time.
A 30-day test drive service is offered for testing their platform. If your decision is not moving forward with EFS, there will be a refund up to $250.
Their purpose is to be the top fulfillment center for small businesses, without requiring monthly minimums on order volume, storage levels, or ongoing fees. Additionally, there are no long-term storage fees charged.
However, since EFS has only one warehouse which brings about limited space, it would be difficult for larger companies to use their service.
- Pricing structure
A direct contact to eFulfillment Service is necessary to have a custom quote.
2.5. FedEx Fulfillment
FedEx Fulfillment is a noticeable third-party logistics (3PL) services provider offering storage and order fulfillment services.
What sets FedEx apart from other entries on this list is their experience, network, and industry knowledge.
- Advantages
– International shipping services.
– More than 600 facilities across the US and Canada.
– Pre-ordered items can be shipped without being stored.
- Disadvantages
– Cannot handle items over 50lbs or 18x14x8 inches.
– Do not incorporate with Amazon.
FedEx provides worldwide shipping and fulfillment along with their nationwide delivery services. FedEx has over 600 facilities in the US and Canada. The company offers cross-docking abilities, so when there is an order received at the warehouse, it will be immediately shipped out without being stored.
Although they are no longer banned by Amazon, they still have not integrated with Amazon since they are competitors.
- Pricing structure
Costs vary based on services, so it is necessary to contact them and request pricing information.
Kyanon Digital hopes this article will provide useful information, so that when making a decision related to outsourcing ecommerce order fulfillment, you can consider various aspects and elements to make the best choices. If you want to gain more understanding related to this subject to grow your business, do not hesitate to contact us for specific consultation.
