Are you searching for the best 3PL (third-party logistics) provider to use for your online retail business? Read on because this post is for you.
If you are an e-commerce business owner looking to scale your business, handling your logistics by yourself is impractical. As your business grows, it becomes difficult to keep up without disappointing your customers.
What to do: outsource logistics and order fulfillment to experts.
That is where 3PL companies come into play. These companies cover more than just shipping. They handle other logistics processes like inventory management, warehousing, picking, packing, order tracking, and more.
We put together a list of the best 3PL companies out there. You’d also understand why your business needs 3PL companies to scale. Get into the post here.
What is 3PL
3PL is an acronym for third-party logistics. In simple terms, 3PL companies are B2B service providers that help e-commerce businesses handle their supply chain from start to finish.
Most 3PL companies offer services such as warehousing, inventory management, order fulfillment, packing, shipping, returns, exchanges, and order tracking.
In general, partnering with 3PL allows you to focus on other vital aspects of your business. So you don’t have to worry about the processes that come next after customers place orders for your products.
You can store your products in their warehouses and have them send out orders directly from the warehouse closest to your customers, making delivery a much faster process. And you can sync and track all activities right from your Shopify dashboard.
Many e-commerce businesses rely on 3PLs as the backbone to sustaining customer satisfaction through fast and effective shipping.
How does a 3PL Work
3PL companies may fulfill orders in different ways depending on the services they offer. However, here is what the typical process looks like:
- The 3PL company receives and stores your inventory in their warehouse and takes a record of each product, arranging them by SKU. This process must come first to indicate that you have handed over the logistics aspect of your business.
- The next step begins when customers place orders on your Shopify store. If the 3PL provider is synced with Shopify, then the warehouse will receive an automatic notification about the order. The warehouse will pick out the order and print the packing slip.
- After picking out the order, the warehouse agent will then package it with the appropriate materials such as envelopes, boxes, packing bags and labels accordingly so your customers can easily identify their package at collection.
- Next comes the shipping process. After getting the order ready for shipping, it is sent to the shipping carriers. Many 3PLs offer multiple carrier options for your customers.
- The shipping carrier receives the orders and processes them before sending them out to the location of the label.
- The carrier generates a tracking code and sends it to the 3PL server which syncs with your Shopify store.
- In case of a return or exchange, your 3PL partners also handle the processes involved.
Benefits of Partnering with 3PL Companies
If you are wondering why your business needs a 3PL partner. Here are some benefits you stand to gain when you outsource your logistics.
1. 3PLs Save Money
You may be wondering how this is possible, considering the services are not free. Well, when you look at the bigger picture, using third-party logistics companies can save you some serious money.
The reason is that when you outsource the logistics aspect of your business, in most cases, you no longer have to pay for a separate warehouse, packing material, and other logistic-related expenses. That is because these companies already have all the necessary resources to manage the process from start to finish and more efficiently.
If you were to handle them alone, the entire process would likely cost you a fortune. So, when you compare the costs of partnering with a 3PL company against working alone, the former is arguably a better option for you.
2. Gives You More Time to Grow Your Business
Outsourcing some responsibilities comes with a breath of relief. Imagine all the things you don’t have to worry about anymore and the freedom it brings. That is what partnering with 3PL companies does for you.
It takes away the burden of handling these time and money-consuming tasks so you can focus on what is important.
Now that you have ample time on your sleeves, you can focus on devising better ways to scale your Shopify business.
3. You can Get Into A new International Market With Ease
Getting into a new market takes a lot of commitment, from documentation to finding customers, warehousing, and more. Not to mention that you need to understand the policy guiding the region and take into consideration language barriers.
So, If you want to expand your business into an international market but are not ready to get fully involved with the legality and processes involved, working with a 3PL company is the way to go.
Your 3PL partner provides you with a soft landing into a new market, so you can decide whether or not you want to do business in that region.
4. Protects Your Business Against Global Supply Chain Disruptions
It is common knowledge that nothing stays the same forever. As the world progress, a lot of changes are bound to occur, which may disrupt global fulfillment. And inadvertently affect businesses in one way or another.
However, most 3PL companies are less vulnerable to these changes because they operate based on pre-negotiated contracts that do not change abruptly. Although extra charges may arise, they are usually minimal.
Working with a third-party logistics company reduces the impact of fulfillment disruption as they have a connection with multiple carriers. Therefore, your business will stay up and running without incurring much loss in the case of a global shift.
On top of that, many 3PLs have their own delivery vehicles for fulfilling orders nearby, making them even more efficient.
5. They Are Scalable and Flexible
In most cases, third-party fulfillment companies do not have a minimum order requirement. So, you can work with them whether your business records multiple orders or a few per day.
If you are a small business owner with fewer sales, 3PLs can also help manage your fulfillment at a fair cost. As your business grows and begins to record more orders, they help scale and fulfill orders as quickly as possible without costing you a fortune.
The scalability and flexibility of 3PLs make them a worthy investment for businesses of varying sizes.
Top 10 3PL Companies
Here are our top 10 picks of 3PL inventory management software and providers you can try on Shopify. In no particular order, let’s dive right in.
1. DHL
DHL is one of the leading logistics companies, with 1400 warehouses across 22 countries and 380,000 employees. They have everything it takes to handle all your logistics needs.
DHL provides multiple services like order fulfillment, picking and packing, inventory planning, omnichannel management, warehousing, kitting and assembly, and more. It integrates with Shopify and a few other e-commerce platforms.
For 3PL needs, here is what is obtainable when you choose to use DHL
- Fulfillment
- Delivery
- Warehousing
- Shipment tracking
- Security and insurance
- Green logistics
- Risk management.
Also, DHL offers a wide range of shipping options air freight (international and same-day), ocean freight, road freight, and rail freight.
2. FedEx
FedEx is a global e-commerce logistics company with multiple warehouses spread across different continents. It offers a variety of 3PL services that makes managing e-commerce businesses a breeze. These services include delivery, warehousing, order fulfillment, reverse logistics, value-added services, procurement, and transport management.
FedEx also provides other features like the FedEx calculator that gives users a preview of their shipping costs. Plus, it offers multiple shipping options, which gives you a lot of flexibility.
3. ShipBob
Third on our list of reliable 3PL companies to use on Shopify is ShipBob. ShipBob services are available to businesses in Australia, the UK, Canada, The US, and Europe, with over 30 warehouses spread across these locations.
The platform offers a wide range of 3PL services like order fulfillment, warehousing, express shipping, reporting and analytics, picking and packing, end-to-end services, express shipping, and inventory management.
Also, ShipBob integrates with Shopify, WooCormmerce, Bigcommerce, and several other e-commerce platforms.
4. Omni Logistics
Omni Logistics is another leading 3PL company suitable for Shopify. It has over 100 warehouses spread across the US, Asia, Mexico, and Europe, making it capable of handling massive orders efficiently.
Omni Logistics provides special warehousing, freight forwarding, and several third-party services to retail, high-tech, and medical devices industries.
The company offers these 3PL services; order fulfillment, expedited logistics, customer brokerage, warehousing, kitting, and reverse logistics. Some of these services may vary from region to region.
Furthermore, Omni Logistics has a customer support system available 24/7, all year long to attend to customer needs. Unlike other 3PL companies that offer a price calculator, you can only get pricing quotes by contacting the company.
5. Shipwire
ShipWire is a global fulfillment company that helps you streamline logistics processes. With over 40 years of experience in the industry, Shipwire is the perfect fit for retailers, dropshippers, and businesses looking to outsource the logistics aspect of their business.
The company operates in 164 countries and has 30 global fulfillment centers. Plus it integrates with over 200 marketplaces and ERP connectors such as Shopify, Celigo, Happy Returns, Amazon, Walmart, Magento, and many others.
ShipWire focuses on industries such as Apparel and fashion, consumer electronics, consumer goods, food and beverage, and health and beauty. While offering the following services; warehousing, marketplace fulfillment, e-commerce fulfillment, B2B fulfillment, transportation, cross-border, reverse logistics, and picking and packing.
6. ShipNetwork (Rakuten Super Logistics)
ShipNetwork, formerly known as Rakuten, is a logistics company that provides 3PL services to e-commerce businesses based in the US. It has over 10 fulfillment centers in different regions across the country, easily making it the best 3PL option for Shopify merchants.
The company makes bold claims of providing 1-2 days of ground delivery and 100% order accuracy. ShipNetwork provides a wide range of 3PL services, which include order fulfillment, Xparcel, return management, kitting, subscription services, freight, and additional services. And it integrates with Shopify, Amazon, ShipStation, Walmart, and other e-commerce marketplaces.
If you are interested in partnering with them, you can request a quote via the website.
7. ShipHype Fulfillment
ShipHype is a third-party fulfillment company that helps you manage your supply chain. They have five warehouses spread across the US and Canada with multiple carriers for easy international shipping.
Furthermore, the platform integrates with over 100 shopping carts and marketplaces like Shopify, WooCommerce, Etsy, Amazon, BigCommerce, Magento 2, Walmart, and many others.
ShipHype offers a wide range of 3PL services which include the following;
- Marketplace integration
- Product storage
- Picking and packing with dunnage included
- Same day shipping
- FBA prep services
- Retail fulfillment
- Inventory management
- Subscription box fulfillment
- Crowdfunding fulfillment
Even better, the website allows you to pick a convenient shipping rate based on how fast you want your order delivered. They offer standard same-day, next-day, or 2-day delivery. Plus, you can track orders in real time.
8. ShipMonk
ShipMonk is a great 3PL fulfillment company that makes it easy for e-commerce businesses to manage their logistics. The company has fulfilment centers in the UK, the US, Canada, and Mexico. This makes it a great option for businesses in these locations.
ShipMonk also has a Shopify app that integrates with your Shopify store. The platforms provide the following 3PL services; picking and packing, flexible shipping, automated API integration, warehousing, return management, custom packing, and order tracking.
In addition to 3PL fulfillment, ShipMonk provides other services which include retail, e-commerce, subscription box, crowdfunding, 321 services, and more.
ShipMonk integrates with over 100 shopping carts, marketplaces, retailers, and solution providers.
9. Total Quality Logistics
TQL is an outstanding company that can help you scale your Shopify e-commerce business. It is a good option if you want to Ship from the US and Canada. TQL is fully equipped to handle the various processes of order fulfillment from start to finish.
Moreover, the company has over 1400 warehouses with advanced technologies in 455 cities across the U.S. and Canada. In addition, TQL integrates with more than 50 e-commerce platforms.
What’s more? The company provides 24/7/365 live customer support and multiple contact phone lines for diverse purposes.
Let’s find out the 3PL services they provide.
- Drop Trailer
- Oversize-overweight
- Warehousing
- Partials
- Custom Brokerage
- Picking and packing
- Kitting
- Labeling
- Order fulfillment
And more.
10. Red Stag Fulfillment
Red Stag is an excellent 3PL service provider that offers 90 days of free storage to first-time customers, making it a good choice for businesses new to 3PL and using a delivery route planner.
Note that Red Stag focuses on brands within the US. and it has two warehouses that cater to the needs of its users. The website boost of providing same-day delivery with 100% order and inventory accuracy.
They provide the following third-party logistics services; 2 Day dock-to-stock, zero shrinkage allowance, inventory management, kitting and inserts, automated API integration, same-day pick and pack, returns processing, shipping, and order tracking.
The platform integrates with Shopify, WooCommerce, BigCommerce, OpenCart, Shift4Shop, and others.
Wrapping Up
Partnering with 3PL companies to fulfill customers’ orders on Shopify is a worthy investment if you are looking to increase efficiency and reduce overhead costs. The initial commitment fee may be high, but in the long run, you get more value for your money. Plus, as your business grows, your 3PL partner scales with you.
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