A Comparison of the Best 3PLs for Ecommerce Businesses in the United States

When you’re in ecommerce, you’re not just competing to have the best products in the market. You will also have to compete for faster shipping to appease impatient buyers. The 3PL industry in the United States is already at $196 billion in 2021 because as more transactions are done online, third-party logistics companies are becoming better and more competitive.

But which 3PL company is right for your ecommerce business?

Related Reading: What is 3PL and How to Find a Great One in 2021 [Ultimate Guide]

What Is a 3PL and How Does It Compare With In-House Fulfillment?

3PL is short for third-party logistics. These are companies that help store inventory, fulfill orders, and manage shipments for other businesses.

Not all ecommerce businesses use 3PLs because they opt for in-house fulfillment instead. So before deciding which 3PL you should choose, you first need to determine whether you need a 3PL for your ecommerce business at all.

There are a couple of factors to consider:

• Are your products fit for in-house fulfillment?
  • If your products require special packaging that needs to be made manually, e.g., intricate packaging for gift items, then you’re better off with in-house fulfillment as long as you can handle the number of orders.
• Do you have enough resources to meet distribution demands?
  • Remember that you’re competing with businesses that use 3PL companies that have high-tech robots and systems in place with hundreds of workers. Can you be sure that you can keep up with your orders?
• Are your employees ready for in-house fulfillment tasks?
  • You should at least have a few people in your team who knows how to handle fulfillment to get your products packed and shipped to your customers in time.
• Are you ready to expand your fulfillment centers when your business needs it?
  • If you run your business well enough, you will eventually need to expand your in-house fulfillment. How will you handle international orders? Are you prepared to invest more for fulfillment when needed?

Related Podcast: E330: Focusing on Logistics to Increase Profitability

Whether you stick with in-house fulfillment or opt for a 3PL company depends on the nature of your business. Here are the advantages of each, and you can decide which factors are more important.

Some sellers will find it easy to make a decision. Others will have no choice, just like some Amazon sellers when they found their restock limits reduced. But when you’re torn, remember you can always go for a hybrid model. Best of both worlds, eh?

A Comparison of the Largest 3PL Companies in the United States

Here, we look at six of the largest 3PLs that are trusted by ecommerce business owners. We tried to focus on tech-forward companies, generally backed by significant funding. We looked at the size of these companies as well as their features, costs, and locations.

*Note on the next table: These 3PLs have different pricing schemes. Some include the pick and pack fee with shipping and other costs, while others have it separated.

Related Reading: How to Make Money as a Seller From Free Shipping

Which 3PL Company Should You Choose?

A lot of factors come into play when it comes to choosing a 3PL. Here’s a video to help you decide.

You should determine which factors are more important to you. Is custom packaging a must? If so, you can’t use Deliverr or Amazon MCF.

Note: Before, Amazon MCF sends only Amazon-branded boxes, but there’s a new program called Blank Box Fulfillment, where Amazon uses unbranded boxes to ship orders. However, it’s still in beta testing as of this writing.

Other things you should consider are the reviews as well as customer support. FedEx, for example, receives a lot of bad reviews, ranging from late deliveries to bad customer support. ShipMonk, on the other hand, has an overall good rating.

Conclusion

While you’re not always responsible for any delays or mistakes made by your 3PL, your buyers will associate their service with yours. Thus, finding the right 3PL is crucial for your ecommerce business. The wrong one can lead to more unsatisfied customers and bad reviews, while a good one can help you gain customer loyalty.

Which 3PL company do you use and how likely are you to recommend it? Leave your answer below.