
Small businesses can struggle with order fulfillment, but it's a crucial step to achieving ecommerce success. According to a study, 80% of businesses that outsource order fulfillment see an increase in sales.
Having a reliable order fulfillment system can make a huge difference in customer satisfaction. In fact, 75% of customers say they're more likely to shop with a business that offers fast and reliable shipping.
To streamline order fulfillment, small businesses can consider using drop shipping services. This allows them to sell products without holding any inventory, which can save time and money.
Benefits of 3PL
As a small business owner, managing order fulfillment can be a daunting task. You need to ensure that your products are stored, packed, and shipped to customers efficiently. This is where a 3PL (Third-Party Logistics) company comes in.
A 3PL company can handle warehousing your products in one location or multiple warehouses around the country or globe, also known as fulfillment centers.
Broaden your view: 3pl Order Fulfillment
Think of a 3PL as the middle-person between your online store and the customer, making it easier to manage your inventory and prepare, pack, and dispatch orders.
By outsourcing these tasks to a 3PL, you can focus on growing your business and providing excellent customer service.
A 3PL company can transport orders from the warehouse to its final destination, ensuring timely and efficient delivery.
Here are some key benefits of using a 3PL:
- Warehousing and inventory management
- Preparing, packing, and dispatching orders
- Transporting orders to their final destination
Top 3PL Providers
Top 3PLs for Small Businesses have made it onto our top ten list, focusing on providers with small or no minimum order limits, and are well-reviewed by other small businesses and entrepreneurs.
At the time of writing, the provider's accuracy rate for picking, packing, and dispatching was 99.5%.
We've identified several key features to look for in a 3PL provider, including small business-friendliness and competitive pricing.
Here are a few top 3PL providers to consider:
These providers have been recognized for their ability to meet the unique needs of small businesses, including flexible pricing and high accuracy rates.
Top 10 3PLs
We've got a great selection of 3PLs that are perfect for small businesses.
Our top 10 list focuses on providers with small or no minimum order limits, which is a huge plus for small businesses that don't have a lot of inventory to start with.
These 3PLs are also small business-friendly and have great reviews from other small businesses and entrepreneurs.
At the time of writing, the provider's accuracy rate for picking, packing, and dispatching was 99.5%.
Here's a quick rundown of the top 10 3PLs:
These providers are all well-reviewed and offer great services for small businesses.
7. ShipBob Center
ShipBob is a fast-growing e-commerce fulfillment center that's making waves in the industry with its nationwide warehouse network and low minimum order limit of 100 monthly orders.
Their e-commerce fulfillment model is driven by delivery speed and low shipping costs, with five strategically placed warehouses across the U.S. and intelligent data to pinpoint the best storage locations.
ShipBob operates five warehouses nationwide with the goal of delivering orders to all U.S. addresses within one to two business days.
They offer same-day delivery within their warehouses' locales, allowing you to offer customers in major cities like New York City, Chicago, Dallas, Los Angeles, and San Francisco a same-day delivery option.
Inbound receiving costs $35 per shipment, regardless of the number of boxes or pallets, and monthly storage costs $5 per bin, $10 per shelf, and $40 per pallet with up to two SKUs allowed per pallet.
Here's a breakdown of ShipBob's average fees for standard fulfillment tasks:
- Inbound receiving: $35 per shipment
- Monthly storage: $5 per bin, $10 per shelf, $40 per pallet
- Order pick-and-pack: Per quote, with shipping costs included
- Shipping boxes and packing materials: Basic shipping boxes and packing materials are free, custom packaging services are an added fee
Onboarding is free for most new accounts, and ShipBob seamlessly connects to virtually all e-commerce platforms and online marketplaces.
Ecommerce Warehousing and Shipping
As a small business owner, you want to ensure that your products are stored and shipped efficiently. Our ecommerce warehousing and inventory monitoring services can help you achieve this goal. With our web-based WMS (Warehouse Management System), you can monitor every phase of the process, from receiving and storing inventory to fulfilling and shipping orders.
Our order cutoff time is as late as 5:00 pm, allowing you to impress and retain more customers. This is especially important for small businesses, where timely shipping can make all the difference.
Here are some key facts about our ecommerce warehousing and shipping services:
Inbound shipping fees vary depending on the carrier, but we offer discounted rates. Our outbound shipping fees are marked up over cost, with a range of 14.60%-16.20% markup, or 30-55% discount off rates.
Consider reading: Temu Minimum Order for Free Shipping
Choosing the Right 3PL Service
Choosing the Right 3PL Service can be a daunting task for small business owners. Think of a 3PL as the middle-person between your online store and the customer, fulfilling tasks such as warehousing, managing inventory, and preparing orders.
To find the right 3PL service, consider getting connected with a curated list of warehouse service providers. Our network is built on honest reviews and feedback collected since 2005, making us the only unbiased source for fulfillment matchmaking.
When you talk to us, you'll talk to people who get it, and who have a direct line to the warehouse floor when issues arise.
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Red Stag Difference
The Red Stag Difference is all about ensuring your brand's value isn't destroyed by poor fulfillment.
They guarantee timely order fulfillment, with orders shipped out by 5pm for same-day shipping.
Red Stag receives all shipments in under two days, making "Out of Stock" a non-issue.
Their strategically-located warehouses minimize shipping costs while maintaining fast delivery times.
You can choose from two warehouse locations to see how quickly they can reach most U.S. addresses via ground shipping.
Orders can be fulfilled from their Salt Lake City warehouse in 2 days by truck or 9-11 days by rail.
Their Knoxville warehouse is even faster, with orders fulfilled in 1 day by truck or 4-6 days by rail.
Lower shipping zones mean lower shipping costs for your business.
Red Stag's network of order fulfillment centers across the U.S. reduces shipping costs and increases customer satisfaction.
Check this out: How to Start a Transportation Business with One Truck
Red Stag Distinguishes Itself from Typical 3PL
Red Stag Fulfillment's network of order fulfillment centers across the U.S. means that the cost to ship orders to your customers is drastically reduced. Combined with shipping rate discounts & same-day fulfillment service guarantees, their national fulfillment network will save your business money while increasing your customers’ satisfaction.
They have strategically-located warehouses that minimize your shipping costs while maintaining fast delivery times. Red Stag Fulfillment's two locations are positioned to reach most U.S. addresses in just 1-2 days via ground shipping.
Red Stag Fulfillment receives all shipments in less than two days, which means "Out of Stock" is never okay. They get orders out the door on time, every time—with 5pm cutoff available for same day shipping.
Here are some key statistics about Red Stag Fulfillment's warehouse locations:
Red Stag Fulfillment's technology and never-ending push toward perfection mean you can spend less time worrying about your inventory, warehousing needs, and orders.
A Team That Gets It Deeply
A team that gets it deeply is crucial when it comes to order fulfillment. Members of the sales team and client success team started on the warehouse floor, giving them a unique understanding of the process.
This hands-on experience allows them to empathize with customers who have issues with their orders. They can provide personalized solutions that address the root of the problem.
Their direct line to the warehouse floor ensures that problems are resolved quickly. They're not just talking to customers, they're also talking to the people who can fix the issue.
This level of understanding and expertise is what sets a great 3PL service apart from the rest. It's not just about getting the right stuff to the right customer, it's about building trust and delivering exceptional results.
If you're looking for a 3PL service that gets it deeply, look for one that has a team with a similar background. They'll be able to provide you with personalized solutions and exceptional customer service.
Worth a look: 3pl Transportation Management System
Struggling to Find the Right Service?
Struggling to find the right service? You're not alone. Our curated list of warehouse service providers can help.
We've been collecting honest reviews and feedback since 2005, making us the only unbiased source for fulfillment matchmaking. Fill out our form or call us to find your best matches.
Consider reading: How to Order Us Postage Stamps Online
If you're looking for a specific type of fulfillment, our network has got you covered. For example, Fulfillment by Amazon (FBA) is the best solution for Amazon sellers and multichannel sellers with a major focus on the Amazon marketplace.
Here are some key things to consider when evaluating a 3PL service:
Fees & Rates
When choosing a 3PL service, it's essential to understand the fees and rates associated with their services.
The cost of setting up an account can vary greatly, ranging from $0 to thousands, with an average cost of $425 per account.
You'll also need to consider receiving fees, which can range from $425 to $500 per container, with an hourly rate of $45.67 per hour.
Storage and warehouse fees are another crucial cost to consider, with a per-pallet rate of $20.17, or alternative methods of $0.4625 per cubic foot or $3.08 per bin.
Amazon fees are also a consideration, with a per-unit rate of $0.37 per label.
Suggestion: Order Fulfillment Rate
Fulfillment fees for pick and pack services can range from $2.50 to $4.79 per order, with an average cost of $3.25 per single item order.
Inbound shipping fees vary by carrier, but are often discounted off carrier rates. Outbound shipping fees can have a markup of 14.60% to 16.20%, or a discount of 30-55% off rates.
Box fees are a small but necessary cost, ranging from $0.50 to $1.50 per box, with an average cost of $1.19 per box.
Return fees can range from $3.50 plus $0.56 per item to $4.06 per return.
Kitting fees for assembling multiple products into a single package can range from $0.25 to $0.65 per unit, with an average hourly rate of $43.30 per hour.
Account management fees can range from $30 to $500 per month, with an average cost of $102.88 per month.
Call center services fees can range from a per-minute rate of $1.29 per minute to an unknown rate.
Here's a breakdown of the estimated average costs for each service:
Streamlining Ecommerce Processes
Streamlining ecommerce processes is crucial for small businesses to stay competitive and provide a great customer experience. You can automate your workflow using cloud-based order fulfillment software, which can help you control different aspects of your business quickly and seamlessly.
Automating inventory management can save you time, money, and headaches. An order management system can automatically deduct from inventory when you complete sales, send invoices and receive payment online, and communicate with customers in real-time to keep them updated on their orders.
Having a flexible system is also essential for small businesses. By offering different shipping options, allowing customers to edit their orders, and accepting returns and refunds, you can build trust and loyalty with your customers.
To remain flexible, you can process priority items separately from others, offer split shipping if asked, and expand or contract your work or warehouse space based on your business demands.
Categorizing your inventory can also help you optimize your order fulfillment process. You can use inventory classification and filters to identify which products are moving off the shelves quickly and which ones aren’t.
Take a look at this: Order Fulfillment Cycle Time
Some common services offered by fulfillment centers include inbound receiving, monthly storage, order pick-and-pack, and shipping fees. For example, RedStag Fulfillation offers deeply discounted FedEx rates, especially for items weighing over five pounds.
To present your small business professionally, you should have the basics in place, such as a business name, email, phone number, and a simple website or “coming soon” page. Be prepared to discuss your inventory needs, including expected volumes and anticipated date of delivery of first inventory.
Here are some average costs for common services offered by fulfillment centers:
Ecommerce Shipping and Fulfillment Options
Some fulfillment companies offer same-day shipping and fulfillment services, allowing you to monitor every order as it's being fulfilled. This can be a game-changer for impressing and retaining customers.
Fulfillify is a top-notch e-commerce fulfillment center for small businesses, offering a nationwide warehouse network and ultra-low order minimums. They specialize in subscription box fulfillment and highly customized "unboxing" experiences.
Ships-a-Lot delivers great value for high-volume sellers, with a 24/7 operation that guarantees orders are packed and shipped within 24 hours. If they fail to meet this guarantee, they pay you $20.
Same-Day Ecommerce Shipping
Same-Day Ecommerce Shipping is a game-changer for businesses that want to impress and retain customers.
Same-day shipping is expected by today's ecommerce customer, with an order cutoff time of as late as 5:00 pm. This allows businesses to monitor every order as it's being fulfilled and deliver timely and accurate transparency during the fulfillment and shipping process.
Ships-a-Lot delivers great value for high-volume sellers, with a 24/7 operation that guarantees orders are packed and shipped within 24 hours, seven days a week. If they fail to meet their 24-hour turnaround guarantee, they pay you $20.
Shipwire offers same-day order processing, with over 145 fulfillment centers across 45+ countries. However, their pricing structure can be tricky to navigate, with a sliding scale that charges $2.85 for the first item picked and then $0.95 for each additional pick for the first 50 orders.
To achieve same-day shipping, businesses need to optimize their order fulfillment process, which involves proper planning, effective inventory management, and streamlined order fulfillment. This requires attention to detail, efficient systems, and a commitment to customer satisfaction.
Ships-a-Lot's 24-hour turnaround guarantee and 100% order accuracy rate make it a reliable option for businesses that want to ensure timely and accurate shipping. Their plug-and-play integrations with top e-commerce platforms also make it easy to get started.
A fresh viewpoint: Customer Order Fulfillment
Fulfillify
Fulfillify is a top-notch e-commerce fulfillment center for small businesses. It offers a nationwide warehouse network, transparent pricing, seamless online store builder integrations, and ultra-low order minimums.
Fulfillify's online pricing tool starts at zero orders per month, making it open to working with startups and small e-commerce sellers. This flexibility is a big plus for new businesses looking to get off the ground.
Fulfillify specializes in subscription box fulfillment and highly customized "unboxing" experiences. Their in-house design and printing department can help craft a branded packaging program that delivers plenty of bang on any budget.
Fulfillify's kitting services ensure that your boxes are perfectly packed, every time. This attention to detail can make a big difference in customer satisfaction and loyalty.
On a similar theme: Ikea Small Order Delivery
Ships-a-Lot
Ships-a-Lot is a top-notch e-commerce fulfillment center that delivers great value for high-volume sellers, batch shippers, and subscription box sellers. They guarantee orders are packed and shipped within 24 hours, seven days a week.
They have a 24/7 operation and offer plug-and-play integrations with top e-commerce platforms including Shopify, BigCommerce, Amazon, and eBay. They also connect to other platforms like WooCommerce and Magento via customized integrations.
Ships-a-Lot charges a flat fee of $35 per month for storage, which covers one item or 10,000 items. This fee is pleasantly predictable and doesn't have any hidden costs.
You can benefit from Ships-a-Lot's deep rate discounts on all major carriers, simplifying the shipping process and guaranteeing a 24-hour turnaround with 100% order accuracy.
Ships-a-Lot has an average of five-star ratings on review websites and consistently delivers plenty of value to e-commerce sellers. They live up to their performance guarantees and don't have any account onboarding costs or contracts.
Their order minimums aren't published, but they tend to work with sellers shipping a minimum of 250 orders per month. They also offer kitting and batch shipping services for subscription box sellers, which are figured on a quote basis.
Ships-a-Lot's order pick-and-pack fee is determined through a quote based on the items you sell, your order volumes, and how your items are packed and shipped. This cost is not as straightforward as their storage fee, but you'll get a clear quote upfront.
Evaluating 3PL Providers
When it comes to finding the right 3PL provider, you want to look for companies that are startup-friendly with low or no minimum order requirements. This can be a game-changer for small businesses with fluctuating inventory levels.
Targeting boutique single-location providers can also be cost-effective, often beating out multi-location firms. These smaller providers are often more agile and can offer customized solutions that meet your unique needs.
When evaluating 3PL providers, prioritize those that offer flexibility for unique packaging, custom branding, and special product handling needs. This will ensure a smooth and efficient fulfillment process for your customers.
Here are some key questions to ask 3PL providers:
- Pricing and Flexibility: Do they offer competitive pricing that fits your budget and flexibility in services offered?
- Dedicated Support: Do they have a dedicated service representative or single point of contact who understands your business?
- Entrepreneurial Alignment: Are they founded with an entrepreneurial spirit, offering valuable insights to help you grow your business?
- Strategic Location: Are they located in a strategic location to minimize inbound freight costs and transit times?
What to Ask Providers
When evaluating 3PL providers, it's essential to ask the right questions to ensure you find the perfect fit for your business.
Pricing and flexibility are key considerations, so look for providers that offer competitive pricing that fits your budget and flexibility in terms of services offered. This might include the option to use your own logos or packaging.
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Dedicated support is also crucial, so opt for providers that offer a dedicated service representative or single point of contact. This will help you quickly address any questions or concerns that arise.
Some providers may have an entrepreneurial spirit, which can be beneficial for businesses looking for adaptable and innovative solutions. Consider companies that were founded with an entrepreneurial mindset.
Strategic location is another important factor to consider, as it can impact your shipping costs and transit times. Look for providers located on the west coast if you want to reduce inbound freight from the Far East, or on the east coast if you're trying to minimize inbound freight from Europe.
By asking the right questions and considering these factors, you can find a 3PL provider that meets your business needs and helps you grow your company.
Use Filters
Using filters can help you quickly identify which products are selling well and which ones aren't. By categorizing your inventory, you can see which types of products are moving off the shelves quickly, like athletic shoes in an online shoe store.
You can store your most popular products in an easily accessible location to grab them quickly and process orders fast. This can make a big difference in customer satisfaction and your bottom line.
An order management system can automatically categorize and filter your orders, saving you time and reducing errors. This way, you can focus on what matters most – generating sales and profit.
By filtering out completed orders, you can focus on the ones you still need to ship, making the shipping process much simpler. This can help you avoid wasting time and losing track of order status.
Consider reading: Temu Order Delivery Time
Ecommerce Solutions and Services
For small business order fulfillment, having the right ecommerce solutions and services can make all the difference. Shopify Fulfillment Network is a great option for start-ups and smaller businesses, allowing you to ship as few as 10 orders a day.
This service is designed to meet the needs of businesses that are just starting out, with a low order minimum and the ability to scale up as you grow. You can connect the Shopify Fulfillment Network to your store manager dashboard in just four simple steps.
Intriguing read: Custom Order Fulfillment Shopify
To get started, you'll need to download and open the free Shopify Fulfillment Network app, select which products you want to ship via this service, and receive an instant quote for monthly storage and per-order fulfillment fees. Once you've done that, you can send your stock into the Shopify Fulfillment Network.
Here are the basic steps to follow:
- Download and open the free Shopify Fulfillment Network app on your dashboard.
- Select which products you want to ship via this service.
- Receive an instant quote for monthly storage and per-order fulfillment fees.
- Send your stock into the Shopify Fulfillment Network.
The Shopify Fulfillment Network is a relatively new ecommerce fulfillment option for Shopify users, and it's a great way to streamline your order fulfillment process. With this service, you can focus on generating more sales and profit, rather than worrying about your inventory, warehousing needs, and orders.
FedEx and Other Shipping Options
FedEx is a popular shipping option for small businesses, with a network of over 99,000 locations in more than 220 countries.
Their ground shipping service, FedEx Ground, offers a cost-effective solution for businesses with lower volume shipping needs.
FedEx Express, on the other hand, is ideal for businesses that require faster shipping, with delivery times as quick as 1-3 business days.
UPS is another reliable shipping option, with a wide range of services including UPS Ground, UPS 3-Day Select, and UPS Next Day Air.
USPS is also a viable option, offering competitive rates and a wide range of services, including Priority Mail and Parcel Select.
DHL is a global shipping leader, with a strong presence in over 220 countries and territories.
Their shipping services include DHL Express, DHL Freight, and DHL Parcel, making them a versatile option for small businesses with varying shipping needs.
Overall, each shipping option has its own strengths and weaknesses, and the right choice will depend on the specific needs of your business.
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Frequently Asked Questions
What are the 7 steps of order fulfillment?
The 7 steps of order fulfillment include receiving inventory, storing it, picking orders, packing them, shipping, delivering, and handling returns. This process ensures timely and accurate delivery of products to customers.
How much does order fulfillment cost?
Fulfillment fees typically range from $0.25 to $3 per item, depending on the method and service. Learn more about our fulfillment pricing and how it can work for your business.
What are the five order fulfillment processes?
The five order fulfillment processes are Receiving, Picking, Packing, Shipping, and Order Returns Processing. These steps work together to ensure efficient and accurate delivery of products to customers.
What are the three types of fulfillment models?
There are three primary fulfillment models: In-House Order Fulfillment, Third-Party Fulfillment, and Dropshipping, each offering unique benefits and considerations for businesses. Choosing the right model depends on your company's size, resources, and shipping needs.
What are the three types of fulfillment centers?
There are three main types of fulfillment centers: Traditional, E-commerce, and Specialty, each serving different retail operations and customer needs. Understanding the differences between these types can help businesses optimize their logistics and improve customer satisfaction.
Sources
- https://www.abetterlemonadestand.com/small-business-fulfillment/
- https://redstagfulfillment.com/order-fulfillment/
- https://www.nerdwallet.com/article/small-business/ecommerce-fulfillment-center
- https://www.warehousingandfulfillment.com/specialties/best-order-fulfillment-services-for-small-businesses-and-startups/
- https://www.inflowinventory.com/blog/how-to-improve-order-fulfillment-process-at-your-small-business/
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