If your small business is thriving, you may be looking for a third-party logistics (3PL) company to help you fulfill and distribute your customers’ orders. Searching for the one that is right for you can be a daunting task, but three great ones to consider are Deliverr, ShipBob, and Red Stag. Each one provides different offerings but they each ultimately aim to get products to your customers as soon as possible. Let’s take a look at how these three 3PL companies might be best for your small business.
In business since September 2017, Deliverr is one of the most rapidly growing 3PL companies in the industry. In the beginning, the company mainly shipped razors (yes, the shaving tools) but the company quickly took off and is now fulfilling deliveries for some of the biggest retailers such as Amazon and Walmart; in fact, Deliverr was Walmart’s first two-day shipping partner back in early 2019.
First and foremost, small business owners are concerned about costs. You can create an account with Deliverr for free and then connect all of your sales channels such as Google, Shopify, Walmart, Amazon, and many more. Deliverr promises to be transparent about pricing, which any small business owner can appreciate. The service charges only for storage and fulfillment – nothing else. Fulfillment includes the picking, packing, and shipping costs all in one price.
Deliverr’s monthly storage starts at $0.72 per cubic foot. Unlike the set pricing that its fulfillment service offers, storage prices will vary based on capacity and time of year; however, you are given up front quotes with no hidden fees when requested.
Pricing for fulfillment starts at $3.99 per unit and different speed options are available. Let’s face it: We all long for two day shipping on all of our purchases, so luckily for small business owners, Deliverr’s warehouses are strategically placed throughout the U.S. so that 95% of shoppers have the two-day delivery option. Deliverr also offers standard (5-7 day) and three day shipping.
All of Deliverr’s warehouses can fulfill at least 2,000 orders per day. Some 3PL companies ask users to determine the warehouses products should be sent to, but Deliverr’s software seamlessly determines this for its users. The software can determine where demand is the highest and automatically have you route products to the proper places.
Deliverr strives to provide “fast, reliable, predictable, and affordable” order fulfillment, which is exactly what you might need for your small business.
ShipBob Is another 3PL service that you will want to look into during your hunt for a new fulfillment partner. The company was started in 2014 and initially was operating out of one of the founder’s apartments. Since then, it has boomed into one of the most utilized services out there.
Perhaps most intriguing about ShipBob is that the service boasts a 99.95% accuracy rate. ShipBob has warehouses in California, Illinois, Pennsylvania, and Dallas, which is extremely useful and can save you money on the shopping process as well as provide speedier delivery to customers throughout the United States.
ShipBob’s process has three steps including connect, store, and ship. As with most 3PL services, you can connect all of your various stores with the platform. This includes Amazon, Walmart, Shopify, and many of the smaller sales channels, too. ShipBob will receive your products at their warehouse(s) and charges $25 per hour for the first two hours of receiving and $35 per hour over that. ShipBob charges monthly storage fees which are $40 per pallet, $10 per shelf, and $5 per bin.
Picking and packing is free for the first five items and subsequently cost $0.20 each. ShipBob offers free standard packaging or you can choose special branding at an additional cost. As with most 3PL services, shipping costs vary by size and weight. Returns all cost a $3 fee.
One of ShipBob’s most attractive features is its portal, which comes at no extra charge and allows users to see a slew of information and analytics regarding finances, stock, costs, and more. This gives small business owners the opportunity to see where they can improve and make even more sales.
ShipBob’s mission is to “provide best in class fulfillment for small to midsize businesses,” so it may be the best choice for you.
Last, but certainly not least, Red Stag Fulfillment is another 3PL company that might be perfect for your small business. Two business owners got fed up with the typical fulfillment processes and decided to start Red Stag, which has rapidly grown and now claims to have a stellar 99.98% accuracy rate.
If you sell larger, heavier items such as furniture or electronics, Red Stag might be the best option for you, as the service places a much higher emphasis on bigger items compared to other services. Red Stag is also great for small business owners who sell items in bulk, but both single order and bulk order options are available on the platform.
Red Stag is pickier about who it agrees to partner with, but clients who are accepted have access to a great platform that allows them to track orders and returns while also receiving feedback and insights into data useful for making business decisions. Red Stag also has video recording all throughout its warehouses to make sure employees are honest and mistakes are minimal.
The platform is free, and receiving is $13.25/pallet. Storage is billed monthly and costs $15 per pallet and $2/bin. Picking and packing prices can vary greatly, but typically cost between $2.25 and $2.65 for the first item and $0.30 each after that. Special packaging costs an extra fee and return costs differ based on the chosen plan. While Red Stag only has two warehouses (Salt Lake City and Knoxville), they still promise that 97% of customers in the domestic U.S. can get their products within two days.
Potential clients are offered a 30-day free trial, which is a nice option for those who are skeptical. Red Stag also provides compensation for mistakes, including $50 if they fail to unload a client’s items in their warehouse(s) within 48 hours. This is one way Red Stag tries to show that they’re dedicated to clients.
Small Business 3PL – Companies You Can Count On
Ultimately, the 3PL service you choose will be dependent on your small business’s specific needs, but Deliverr, ShipBob, and Red Stag are three top notch companies that won’t let you down.