Top 9 eCommerce Fulfillment Companies to Watch Out For in 2024

In the fast-paced world of eCommerce, the ability to consistently “deliver on promise” has become a make-or-break factor for businesses.

As customer expectations for lightning-fast, transparent, and seamless order fulfillment continue to soar, brands are grappling with the challenge of streamlining their logistics operations to stay ahead of the competition.

The right eCommerce fulfillment partner can be the key to unlocking operational efficiency, cost savings, and an enhanced customer experience. However, with a wide variety of fulfillment providers in the market, it can be extremely difficult for businesses to identify the best fit for their needs.

For this blog article, we have researched and curated a comprehensive list of the top 9 eCommerce fulfillment companies to watch out for in 2024.

From their unique capabilities and competitive advantages to the tangible benefits they offer, this concise read should equip you with the insights needed to make an informed decision on the optimal fulfillment partner best suited for your business needs.

What is eCommerce Fulfillment?

eCommerce fulfillment is the critical component that powers the seamless delivery of online orders to customers. It encompasses the entire process of receiving, processing, packaging, and shipping orders to the end customer.

Just as a high-performance sports car relies on a finely-tuned engine, top eCommerce fulfillment service providers have streamlined their operations to deliver orders with unparalleled speed and precision.

In essence, eCommerce fulfillment encompasses all the critical logistics involved from the moment a customer clicks the “Add to Cart” button to the moment the product arrives in their hands. The four must-haves of a successful eCommerce fulfillment process include:

1. Seamless inventory management

Inventory management is not just about organizing the warehouse; it’s also about maintaining the delicate balance between supply and demand. The dedicated team keeps a vigilant eye on stock levels, anticipating customer needs and ensuring popular items are always available.

2. Streamlined order processing

No order is too small or complex – the fulfillment team handles each one with the utmost care and diligence. Orders are meticulously reviewed, validated, and expertly fulfilled. Automation further streamlines the process for lightning-fast turnaround times.

3. Hassle-free returns and exchanges

Instead of leaving customers to navigate a convoluted returns process, the brand using reliable eCommerce fulfillment services can proactively provide a seamless returns experience, such as offering a prepaid return label or a 24/7 return portal for submitting return/exchanges requests.

4. Transparent order visibility and communication

Customers receive friendly tracking updates throughout the fulfillment progress, which helps foster trust and excitement as they await their purchase.

By weaving these elements together, businesses create a fulfillment experience that is truly dedicated to customer needs, ensuring their orders are delivered with speed, transparency, and care.

Delighting Customers, Boosting Retailer Profitability

To truly understand the profound impact of eCommerce fulfillment, we need to examine its significance from both the customer and retailer perspectives.

The Customer Perspective

eCommerce fulfillment is a critical component of the online shopping experience. Customers have come to expect seamless, efficient, and transparent order delivery. The statistics paint a compelling picture:

• 63% of consumers have canceled an online purchase due to excessive shipping fees. Customers are highly price-sensitive and demand reasonable and transparent shipping costs.
• 38% of shoppers will abandon their order if the delivery is estimated to take longer than a week. Fast and reliable order fulfillment is a non-negotiable aspect of the online shopping experience.

Overall, customers seek a frictionless post-purchase journey. They want to be informed every step of the way, with friendly updates on the status of their order. A positive fulfillment experience breeds trust, loyalty, and a sense of excitement throughout their purchase, while a negative experience, as seen, scares them away from further purchase.

The Retailer Perspective

For online retailers, eCommerce fulfillment is a critical driver of profitability. The average cost to fulfill an order is a staggering 70% of the average order value. This high fulfillment cost can significantly impact profit margins if not managed effectively.

Partnering with an efficient and cost-effective fulfillment service provider can help online retailers reduce these high expenses and improve overall profitability. By optimizing logistics, inventory management, and shipping processes, leading fulfillment providers can offer competitive and transparent shipping rates, minimize order abandonment, and meet customer expectations for fast delivery.

In-House vs. Third-Party Fulfillment

Businesses have two main eCommerce fulfillment options: Manage it in-house or outsource to a third-party eCommerce fulfillment service provider. Each approach has its unique advantages and implications.

Managing fulfillment internally

Handling fulfillment internally requires significant upfront investments in logistics infrastructure and expertise, such as warehousing, packaging, shipping equipment, and a dedicated fulfillment team. This path offers greater control but demands substantial upfront investment and proper operational management.

Partnering with fulfillment experts

Alternatively, businesses can leverage specialized third-party fulfillment providers. These companies leverage their scale, technology, and industry knowledge to seamlessly manage the entire order fulfillment lifecycle. Outsourcing fulfillment allows businesses to focus on their core competencies while delivering a smooth customer experience.

Third-party eCommerce fulfillment services offer comprehensive solutions, including order sorting, packing, shipping, and live tracking. By partnering with the right provider, eCommerce businesses can enhance operational efficiency and customer satisfaction.

9 Best eCommerce Fulfillment Companies to Look Out For

1. Shopify Fulfillment Network

Powered by Flexport, all-in-one integrated fulfillment for Shopify merchants

The Shopify Fulfillment Network is an integrated fulfillment solution designed specifically for Shopify’s vast merchant ecosystem. With approximately 2.1 million daily active users, Shopify provides a substantial user base that makes the Fulfillment Network a valuable service for many of its existing merchants.

Powered by Flexport, a trusted logistics partner, the Shopify Fulfillment Network offers a highly streamlined experience. With just a few clicks, you can connect your Shopify store and transfer inventory to Flexport’s strategically located fulfillment centers. Moreover, you can monitor the entire fulfillment process, from order tracking and delivery status to inventory levels and business performance, all directly within your Shopify admin dashboard. This tight integration empowers you to focus on growing your eCommerce business while leaving the complexities of logistics to the experts.

In July 2022, Shopify acquired Deliverr, a fast-growing fulfillment provider, as part of its efforts to enhance the Shopify Fulfillment Network.

Highlights

• Fast and reliable nationwide delivery, with 2-3 day shipping options and international delivery
• Strategic inventory placement to position stock closer to customers
• Seamless integration with Shopify for centralized order and inventory management
• Flexible onboarding with no minimum requirements to get started

Pricing

The Shopify Fulfillment Network offers four main plans, ranging from $29/month to $299/month (billed annually with a 25% discount). The Plus plan starts at $2,300/month with additional features such as shipping discounts, staff accounts, and global selling capabilities. A free trial is available with no credit card required.

Pros and Cons

Pros	Cons
– Fulfillment solutions for businesses of all sizes – Provides fast and reliable shipping for customers – with a 2-day shipping guarantee – Integrated management system with Flexport’s capabilities – Customized branding options	– Premium pricing – Limited to Shopify’s service offerings – Primarily focused on the U.S. market

2. Fulfillment by Amazon (FBA)

Leverage Amazon’s fast-growing and extensive acquisition channel

Fulfillment by Amazon (FBA) is Amazon’s in-house fulfillment solution for its merchants. By leveraging its position as the fastest-growing and preferred acquisition channel, FBA offers a diverse cost model that has attracted a large user base. Roughly 7,400 products are bought from U.S. sellers on Amazon per minute, and the FBA service is dedicated to driving the profitability of these merchants.

With FBA, sellers can outsource their entire logistics operation, especially for high-volume and high-margin products. New sellers can also take advantage of incentives, including credits for shipments into the FBA network and a New Seller Guide with recommendations on branding, logistics, pricing, and promotional services. These benefits can help new sellers on Amazon get their businesses up and running quickly.

Highlights

• Massive customer base and search traffic provide a powerful sales channel
• Fast, reliable 2-day shipping powered by Amazon’s logistics network
• Attractive incentives for new sellers, including 90-day free warehousing and 10% back on first $50,000 in branded sales

Pricing

Amazon charges fulfillment fees ranging from $2.50 to over $15 per unit based on product characteristics, as well as monthly storage fees that are higher during peak season. Optional services like labeling and returns processing also come with associated fees.

To encourage transparency, Amazon also has an Estimated Fees Calculator to help sellers understand the potential FBA costs for their products.

Pros and Cons

Pros	Cons
– Ideal for high-end and high-volume inventory – Increased visibility and sales through Amazon’s algorithms – Handles diverse inventory types – Eligibility for Amazon Prime and free shipping programs – Access to rich educational resources and seller guides	– Fluctuating and relatively complex fee structures – Dependency on Amazon’s policies and system changes

3. Flowspace

Market-leading omni-channel service for on-demand warehousing and fulfillment

If you are thinking about an omni-channel fulfillment company with great dedication to shipment visibility, Flowspace is the way to go. Founded in 2017 by CEO Ben Eachus and CTO Jason Haber, Flowspace has established itself as a trusted partner for seamless integration with major eCommerce platforms, marketplaces, and retail stores. Its fulfillment network currently spans over 150 centers with presence in every region in the United States.

One of the key highlights is regarding its strong fulfillment capabilities. Fun fact: Do you know that Flowspace’s current tracking services are powered by TrackingMore? In fact, via a close collaboration, our API tracking service has helped them boost fulfillment efficiency by 15%. You can read more about the case study here.

Highlights

• Seamless omni-channel integration with Shopify, Amazon, TikTok Shop, and other major platforms and marketplaces
• Strong fulfillment capabilities with enhanced shipment tracking powered by TrackingMore
• Data-driven solutions and Flowspace AI for better decision-making
• Speciality solutions for categories and verticals (F&B, beauty and hygiene, furniture and home goods, smart network, etc.)

Pricing

Despite its extensive functionality, Flowspace offers flexible pricing based on the specific needs of each business, typically including a combination of storage fees, pick and pack fees, and transparent shipping costs.

Pros and Cons

Pros	Cons
– Strong fulfillment capabilities – Comprehensive 30-day onboarding and timely support – Omni-channel connectivity – Flowspace AI for data-driven decision making	– No international shipping – Reports of slow customer support

4. ShipBob

Comprehensive, cost-effective fulfillment service for DTC and B2B brands

Established in 2014, ShipBob has emerged as a leading contender for eCommerce fulfillment provider in the USA, known for its exceptional services, cost-effectiveness, and consistent growth. This trusted ecommerce fulfillment company caters to businesses of all sizes, delivering a comprehensive suite of features to streamline your online operations.  

Highlights

• Global reach with fulfillment centers across the US, Canada, Europe, and Australia
• Multi-channel order fulfillment for selling on leading eCommerce marketplaces
• 2-day shipping coverage across the continental US from even a single fulfillment center
• Powerful and user-friendly fulfillment platform with real-time inventory visibility

Pricing

ShipBob offers clear, all-inclusive pricing for end-to-end D2C order fulfillment. Standard fees cover receiving your inventory, warehousing your products, and shipping each order. Pricing is customized based on your unique business requirements – you will need to request a quote to obtain the exact costs.

Pros and Cons

Pros	Cons
– Enable international shipping – User-friendly dashboard and useful tools – Multi-channel distribution – Custom branding and packaging – Low MOQ	– No refrigeration or specialized storage for certain product types – May not be optimal for complex B2B workflows

5. Red Stag Fulfillment

Adapt to diverse needs, with expertise lies in efficiently shipping of bulkier items

For online merchants focused on large, hefty products, Red Stag Fulfillment emerges as a top-tier partner. While they accommodate a diverse array of goods, their forte lies in the efficient packing and shipping of bulkier, heavier items.

Red Stag’s comprehensive suite of eCommerce fulfillment services offers compelling features that cater to the unique needs of eCommerce store owners.

Highlights

• Proven expertise in oversized and heavy merchandise handling
• Advanced video monitoring for transparency
• Exceptional customer service and support
• Robust palletized infrastructure for safe handling
• Guaranteed same-day order processing and shipping, with 5pm cut-off time
• Expansive nationwide network of fulfillment warehouses

Pricing

Red Stag Fulfillment does not disclose pricing information, but all sign-ups are eligible for a 30-day risk-free trial period. You’ll need direct contact to get access to detailed information for its pricing plans.

Pros and Cons

Pros	Cons
– Expertise at handling heavy, bulky products – Offer video monitoring and excellent customer support – Short-term contracts available	– High minimums – Primarily focused on the U.S. market

6. ShipNetwork

Expanded network and capabilities with the recent acquisition

The next in our list is ShipNetwork, a prominent player in the realm of eCommerce fulfillment. ShipNetwork has carved out a unique niche for itself, catering primarily to mid-sized and enterprise-level eCommerce stores that ship a minimum of 1,000 orders per month. Their specialized expertise in cross-border fulfillment and distribution sets them apart, empowering businesses to expand their reach beyond domestic markets.

In August 2023, ShipNetwork acquired Rakuten Super Logistics, a prominent logistics provider in the Asia-Pacific region. This strategic move allows ShipNetwork to expand its reach and capabilities by combining “eastern and western logistics” expertise. You can read the press release here.

Highlights

• Cross-border expertise with features like customs clearance, localized packaging, and multilingual customer support
• Diverse Xparcel shipping options catered to one’s fulfillment needs
• Seamless integrations via partner API, EDI, and custom API integrations
• Comprehensive 3PL services including kitting and subscription box fulfillment

Pricing

Currently, ShipNetwork provides customized pricing for enterprise users. Interested businesses can request a quote to get a tailored pricing plan.

Pros and Cons

Pros	Cons
– Enterprise-ready solutions – Cross-border expertise – Integrated marketing tools alongside shipping – Dedicated onboarding support and customer service	– Still domestic-driven – Limited custom packaging options

7. FedEx fulfillment

Streamlining global eCommerce operations with decades of experience

Boasting decades of experience, an expansive global network, and deep industry expertise, FedEx Fulfillment stands out from the crowd as a widely-recognized international brand and a distinguished provider of fulfillment services like no other.

Highlights

• Modular and customizable solutions allowing companies to develop tailored fulfillment services
• Expertise in servicing competitive after-market and critical inventory segments
• Hub-based warehousing with global reach and delivery network for efficient inventory management and order fulfillment
• Flexible delivery options, international shipping assistance, package tracking, proof of delivery, and money-back guarantees.

FedEx Fulfillment is a compelling choice for companies looking to streamline their global eCommerce operations. Despite the lack of product-based batch fulfillment, the service leverages FedEx’s decades of industry experience to offer businesses a comprehensive solution. Users should also be aware of occasional inconsistencies in customer assistance and the possibility of account fees for those falling below minimum thresholds.

8. Fulfillment.com

The powerhouse of eCommerce fulfillment with worldwide reach

Fulfillment.com (FDC) is the go-to solution for high-volume eCommerce businesses seeking a reliable, efficient, and scalable fulfillment partner. As an international fulfillment company with strategically placed global fulfillment centers, FDC is uniquely positioned to cater to the needs of businesses with diverse product offerings and expansive customer bases.

Highlights

• A huge global network of 8 fulfillment centers across the US, Canada, UK, Europe, and Australia
• Cloud-based platform and advanced technology for automated order processing and inventory management
• Comprehensive features including same-day shipping, over 70 integrations, and a robust order management system (BestOMS)
• Dedicated account success manager for personalized support and a tailored fulfillment  experience

FDC’s pricing is not publicly disclosed but claims transparent billing with no hidden fees. A dedicated expert is assigned to each account upon raising an enquiry and using FDC’s services. Users should note a non-refundable deposit and limited customer support options. FDC has fewer fulfillment locations in the United States than some competitors. 

9. ShipMonk

Fulfillment solutions tailored for start-ups and growing companies

Founded in 2014, ShipMonk has emerged as a pioneering force in eCommerce fulfillment, revolutionizing the industry with its technology-driven solutions and commitment to exceptional customer experiences.

Highlights

• Discounted shipping rates via ShipMonk’s Virtual Carrier Network (VCN)
• Expansive fulfillment network across the United States, Europe and Canada
• Strong commitment to transparent billing
• 75+ integrations and different MonkProtect services for an unbeatable post-purchase experience
• Dedicated “Happiness Engineers” for ShipMonk’s customers

ShipMonk helps affordably scale your logistics and fulfillment needs, with pricing tiered based on your monthly order volume. For eCommerce fulfillment, order pick fees range from around $2 to $3 per order, with discounted rates for higher volume.

For subscription box fulfillment, kitting and box assembly starting from $2.50 per box, with lower rates for higher volumes.

Checklist for Defining the Right Fit

Navigating the evolving eCommerce fulfillment landscape is crucial, as the dynamics continue to change and become more competitive than ever. We are seeing increased consolidation, with mergers and partnerships between major players like Shopify Fulfillment Network, Flowspace, and ShipNetwork – each with their own motives and priorities.

In addition, the fulfillment capabilities, policies, and technologies of these providers are constantly evolving, offering more diverse and tailored pricing models to better meet the specific needs of businesses.

With that said, to evaluate potential fulfillment providers, one should consider the following key criteria:

Evaluation Criteria	Key Considerations
Inventory management and warehouse locations	– Assess the provider’s ability to efficiently manage your inventory across their nationwide or global warehouse network – Evaluate their capacity to optimize delivery speed and coverage to your customers
Shipping speed, delivery options, and customer experience	– Review the available shipping services, delivery timeframes, and overall post-purchase experience offered to your customers
Pricing structures, cost-effectiveness, and scalability	– Find out whether the provider has transparent and competitive pricing models – Identify cost-saving opportunities and their scalability to accommodate your business growth
Integration capabilities with eCommerce platforms and tools	– Ensure seamless connectivity and data synchronization between the fulfillment provider and your existing eCommerce technology stack
Customer service, support, and overall partnership	– Assess the level of dedicated support, responsiveness, and overall collaborative partnership approach – Review the provider’s track record of resolving issues and meeting SLAs

By methodically working through this comprehensive checklist, you can effectively identify the eCommerce fulfillment partner that best aligns with your specific business needs and priorities in this rapidly evolving landscape.

Final Words

As the eCommerce landscape continues to evolve, partnering with the right eCommerce fulfillment company has become increasingly vital for business success. By thoroughly evaluating potential partners against the comprehensive checklist outlined in this article, you can confidently identify the solution that best meets your current and future needs.

Remember, the right fulfillment partner is not just a service provider, but a strategic collaborator who can help drive your eCommerce growth and elevate your customer experience. Take the time to find that perfect fit, and you will be well on your way to streamlining your operations, reducing costs, and delighting your customers in the years to come.