Accommodating and fulfilling the dynamic needs of customers is one of the biggest challenges for eCommerce businesses. The success of online shopping relies largely on how fast and efficiently orders are fulfilled and delivered.
This is where the concept of Third-Party Logistics (3PL) providers enter the picture. 3PLs are specialized companies that handle inbound logistics, warehousing, and order fulfillment for online businesses.
Third-party logistics or 3PL sits at the center of eCommerce shipping for online businesses to thrive with their packing and moving operations swiftly.
Online retailers outsource their logistical duties including warehousing, picking, packaging, and delivery to 3PL providers. Third-party logistics suppliers take over the shipping machinery of an online company and streamline the entire order fulfillment process.
The Statista report from 2023 indicates that 88% of 3PL companies offered services to businesses worldwide. It shows their dependency on 3PLs will grow exponentially and speed up outbound operations.
Simultaneously, it will also make sure businesses are saving big bucks by easing returns and handling customer complaints.
3PLs allow customers to track orders, and place return/exchange requests. Businesses can engage in timely replenishment and recording of inventory at warehouses. In this article, we will talk about the best 3PL (3rd party logistics) providers companies that every e-commerce businessman should know about.
Top 3PL (3rd Party Logistics) Companies in 2024
Here is a list of the most reliable and budget-friendly third-party companies for eCommerce businesses.
1) WhiteBox
WhiteBox is headquartered in the United States’ Baltimore City in Maryland and founded in 2013. Its expertise is encapsulated in its tagline: “Factory floor to Front door”.
Features:
- Professional handling of advertising and top-notch product descriptions
- Provision of pre-paid shipping labels for simpler returns
- Expert Quality assurance and quality control at every step of the supply chain.
- Superior shipping solutions with in-house ground and air transportation.
2) ShipBob
ShipBob was founded in 2014, and is headquartered in Chicago. Over the last 7-odd years, it has grown exponentially not only in the United States but across the globe. ShipBob’s services are mostly suited for SMBs, although several high-profile E-commerce companies use their third-party logistics services.
Features:
- Guaranteed shipping to 50 US states plus 220 countries.
- Direct-to-Consumer business solutions with cutting-edge order management technologies.
- Wide storage networks even in remote locations with fast picking and packing capabilities.
- Best in class shipping solutions.
3) FedEx Fulfillment
FedEx is a behemoth in the shipping and e-fulfillment arena. It ranks among the top 4 largest shipping companies in the world. FedEx Fulfillment is their 3PL service arm, and it makes global shipments amazingly simple.
Features:
- Legendary warehouse management system with storage facilities that can be leased worldwide.
- On-time shipping facilities alongside expedited, affordable, and critical shipping options for cargo, documents, pallets, and parcels.
- Efficient handling of customs for cross-border logistics.
- Industry-leading reverse logistics and quality assurance amenities.
4) Red Stag Fulfillment
Easily one of the most modern and technologically advanced 3PL providers, Red Stag Fulfillment should be numero uno on your shortlist when moving into the USA.
Unlike most other 3PL partners, Red Stag specializes in guaranteed shipping and delivery of heavy cargo. In this instance, Red Stag categorizes any item between 20 and 250 pounds as heavy parcels.
Features:
- Same-day order fulfillment in major cities, and 2-day assured deliveries for smaller towns and suburbs.
- A team of experts for packaging and shipping heavy cargo.
- Monthly charges only without any long-term commitments or payments.
- Proprietary cloud-based shipment tracking software.
5) DCL Logistics
Planning to test the waters in the underserved regions of the United States? Or perhaps the hard-to-reach areas in Canada? Try DCL Logistics. It may not be as large in scope or size as some of the names on this list, but it has several unique advantages.
Features:
- A network of fulfillment centers and warehouses dotting North America.
- Company-owned transportation solutions, including small aircraft, to reach out to untapped markets.
- Outstanding customer support.
- Discounts on bulk shipments and other offers.
6) J. Cain & Co.
J.Cain & Co. is based out of Panama and has a far-reaching network covering most of Latin America. They offer easy cross-border shipments, customs clearance services, and packaging solutions. If you’re a recurring customer, you can also get hold of their attractive discounts.
Features:
- Last-mile deliveries to remote locations and cities alike.
- Dedicated and professional customer care support
- Order processing in a single day.
- Last-mile reach across most of Latin America.
7) Pro FS
An abbreviation of ‘Professional Fulfillment Services’, Pro PF is a UK-based logistics solutions provider. It is recognised and approved by Her Majesty’s Revenue and Customs or HMRC to provide fulfillment services across Mainland Europe and the UK. Pro FS has its own chain of warehouses criss-crossing both its country of origin and Continental Europe.
Features:
- Highly sophisticated & punctual freight forwarding services.
- End-to-end supply chain solutions tailormade for your business.
- The widest logistics footprint in the UK, especially after Brexit.
- Inventory management and quick order processing.
8) Deutsche Post (DHL) Group
Deutsche Post DHL is the logistics arm of the enormous Deutsche Post AG, the world’s largest courier company in terms of parcels delivered each year.
With this 3PL partner by your side, you will not go astray should you plan to expand your business in Europe.
Features
- Hard to believe shipping rates for all sizes of eCommerce shippers
- Efficient storage and parcel packaging facility
- Complete reverse logistics solutions
- Shipping to 35 countries in Europe.
9) BoxMe
BoxMe is the leading 3PL partner for most companies looking to make it big across Asia, and especially Southeast Asia. BoxMe offers value-for-money services with over 50 courier partners and dedicated fulfillment centers across the huge & outlandishly complicated market.
Features:
- E-commerce fulfillment solutions, made-to-order.
- Extensive warehousing network for handling perishable products.
- Unparalleled last-mile deliveries.
- COD solutions for most destinations.
- Dropshipping across the world.
10) Fulfilio
Fulfilio owns and operates several warehouses across the arterial routes of Australia. It offers extensive storage facilities across Brisbane, Perth, Melbourne and other metropolitan areas. It is backed by Australia Post and has gained multiple rounds of investments.
Features:
- Same-day pick-up and deliveries.
- Custom packaging options for a wide variety of products.
- Seamless integration with their APIs for your business.
- Flexible delivery options to manage both lean and peak sales seasons.
11) DHL
DHL is a famous German parcel delivery and supply chain third-party logistics (3PL) company. It has global offices in 33 regions with a worldwide presence. DHL has extensive warehouse spaces across the globe and offers total order fulfillment, delivery management, and end-to-end logistics for e-commerce companies. DHL integrates easily with all major selling channels, virtual storefronts, and online marketplaces.
12) ShipMonk
ShipMonk is a 3PL company that provides warehousing, inventory management, custom packaging, and delivery services for online retailers. It operates out of the United States. ShipMonk is mainly suitable for small and medium-sized businesses.
It integrates with several storefronts and selling channels so that e-commerce companies can pull orders from every brand.com, eCommerce site, or other selling channel onto a single dashboard.
13) ShipWire
ShipWire is a US-based third-party logistics company offering services like warehousing, freight forwarding, cross-border shipping, etc., for e-commerce companies.
It also provides a bunch of extra-shipping or value-added services like international shipping documentation management, import guidance, customs, etc. It helps customers by providing manyon-site services like assembling, stage assembly, etc. ShipWire operates globally from 140+ warehouses. It has a major presence in Europe, Oceania, and North America.
14) Omni Logistics
Omni Logistics is a global third-party logistics company that provides time-sensitive delivery services to customers. It provides shipping services like kitting, bundling, co-packing, white glove packing, etc.
It makes 24-hour deliveries within select regions. It operates mainly in North and Central Asia and Europe. It offers extensive services to the D2C sector and can mold shipping plans to suit your particular business needs.
15) Worldwide Express
The express delivery provider assists medium and small entrepreneurs in urgent delivery operations. Worldwide Express is a top-of-the-line shipper that processes more than 120,000 orders on average in a single day.
With thousands of vehicles and partnerships with 75 LTLs (Less than truckload) companies, they cater to every business need associated with order and warehouse management. They have aced data analysis and offer the most productive insights to level up brand performance and revenue.
16) Coyote Logistics
Coyote Logistics has been powered by UPS since 2015. It is the ultimate respondent to all logistics needs businesses have. The 3PL company is set to make a change with its multimodal freight handling features.
The list contains assistance with intermodal freight, full truckload, less than truckload, and a few more. Users of Coyote’s brilliant solutions have mentioned their AI abilities in procurement and last-mile offerings.
However, they are much more than that. Their dominance in the field of logistics has proved exceptionally well with a rich client history. For example, Coyote offers alternative routes when the order is unable to go beyond a roadblock.
17) Lineage Logistics
Lineage is an ardent supporter of planetary resources that narrows down to food. Their logistics solutions are focused on temperature-controlled storage facilities for cold chain businesses. Plus, their warehouses are situated across worldwide locations to maintain connections with ports and marketplaces.
In the long drop-down menu of services, it offers various kinds of warehousing that are ideal for processing edible products, keeping them fresh on arrival.
In other words, a business can save money and deliver across 220 locations near ports. Their logistics service uses tested formulas to preserve food items that can be used for a longer period.
How to choose a 3PL (3rd Party Logistics) company?
A thoroughly professional and experienced company offering eCommerce logistics services and solutions should possess most, if not all, of the following attributes.
1)A formidable distribution network
Managing a successful E-commerce enterprise is easier said than done. When you choose a 3PL company, ensure it has tie-ups with major shipping companies as 3PLs are known to help with rate negotiation. Also, partner with one that has multiple warehouses and distribution hubs for faster order fulfillment.
2)Demonstrated warehousing efficiency
3PLs with state-of-the-art storage infrastructure like cold storage is the ideal partner. They should have expertise in storing perishable and non-perishable goods especially for FMCG products.
3)Effective shipping services
It is well-known that customers prefer quick deliveries. When selecting a partner 3PL company, verify whether they offer expedited shipping options like next-day or 2-day deliveries. Moreover, there is no alternative to a 3PL service provider which also excels in returns management.
4)Superior technological capabilities
Your chosen 3PL company should have robust technology infrastructure like API integrations. Their APIs should integrate easily with your existing tech stack. They should also provide essential services like order management, live tracking, inventory management, and data analytics.
5)24×7 and on-demand customer support
Quality customer support can make or break your business. You should opt for a company that provides multiple independent communication channels helmed by a dedicated team of experts.
Final Words
Third-party logistics providers uphold the rubric of e-commerce shipping from within. They provide so many valuable shipping services without which e-commerce companies would not be able to scale up so quickly. Not only do they take off the load of shipping management, but also make logistics much cheaper.
3PLs help streamline shipping operations, maintaining profits and improving customer satisfaction. All of these reasons make 3PLs essential for e-commerce companies.
We hope this article points you to the top 3PL (third-party logistics) services provider companies in the world for your online e-commerce business.