Ecommerce Fulfillment:A Guide to Boost Your Online Business

Sharline Shaw

Ecommerce has become a modern way of doing business these days. Hence, these eCommerce businesses need a reliable eCommerce fulfillment partner. They help manage the operation of processing that is fit with excellent services.

Based on our experts in research for over a decade, we have dealt with issues about order fulfillment services. As many businesses want to do business with China, we can help them in the communication process. Hence, you can learn about professional sourcing and order fulfillment services from us.

In this post, we’ll share everything about eCommerce fulfillment. Let’s dive deep.

Ecommerce Fulfillment

What is Ecommerce Fulfillment?

E-commerce fulfillment is the processing operations for the customer to receive their order. The entire process includes storing, packing, and shipping goods to the customers.

E-Commerce order fulfillment service is suitable for retailers or eCommerce business owners. If you produce your products and can invest a large inventory capital, you can consider it. 

They offer these services that can process your orders from top to bottom for you. In this case, your customer can receive their product with professional management. Note that an e-Commerce fulfillment company is not a product manufacturer or supplier.

First, online store owners produce and deliver in bulk to order fulfillment centers. Once a customer places an order, the order fulfillment company will handle the rest. They will pick, pack, and ship the product to your customers.

Difference between Ecommerce Fulfillment Services and Dropshipping

There are several differences between eCommerce fulfillment services and dropshipping:

1.Stock

An eCommerce fulfillment company handles stock for the online store owners. It handles the entire packing and shipping process for you.

The dropshipping online store owner does not have their stock. They sell the products and pass the order to a manufacturer who ships to the customers.

2.Shipments

E-commerce fulfillment service companies ship their product using their resources and fulfillment network. 

In contrast, dropshippers relied on the manufacturers to ship orders to their customers. 

3.Capital

Ecommerce fulfillment service differs from dropshipping in the capital. It requires huge capital for operations. 

In comparison, dropshipping does not need massive capital to start a business. Their operations are online, needing much lesser costs.

4.Profit

eCommerce fulfillment service has a larger profit than dropshipping. It is because they are the ones to set their prices, hence able to control the profitability. 

Dropshipper cannot control the pricing that manufacturers offer. Hence, they cannot set a higher price to get a huge profit margin.

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Why Ecommerce Fulfillment Boosts Your Business?

Ecommerce fulfillment is crucial for eCommerce companies who run eCommerce businesses. Based on research, shoppers’ satisfaction depends on several factors. They prefer low shipping fees, fast shipping, and good delivery services.

A good e-commerce fulfillment service helps ensure timely delivery and quality delivery services. You can also cut shipping fees and taxes as they are the shipping experts. 

It will leave a good impression on your customers, and they will revisit your eCommerce store. Otherwise, you will lose customers due to a lousy eCommerce fulfillment service.

How Does Ecommerce Fulfillment Services Work?

The process of order fulfillment service is simple. There are a few stages in the process.

Ecommerce Fulfillment Services Process

1.Receiving the Order 

When you set up an online store, you will list all the items you offer on your eCommerce platforms. Interested customers will place an order. Then, you can pass your order to the eCommerce fulfillment center.

2.Finding the Items

The fulfillment center will then pick up the item that the customer ordered. It is crucial to find the exact item and avoid picking the wrong item. The exact item includes the correct product sizing, color, function, etc.

3.Packing the Products

The customer has to receive the product they ordered in good condition. In general, the fulfillment center will pack the time with additional protection. For instance, with bubble wrap. 

Then, they will make an outer layer wrapping and label the goods. It includes the sender’s and receiver’s information, like name, address, and contact. 

4.Shipping the Order

The fulfillment center will ship the product based on your preferred shipping method. For instance, by air, sea, rail, or express shipping. It is where they need to be careful to deliver the accurate address timely.

5.Notifying Customers of Order Status

In your online store system, you can update the order status. For instance, whether you are still packing the order or have already shipped the product. This way, your customer can keep track of their order easily. 

In case of undesirable delivery delays, you should inform your customers immediately. It is even better if you could state the reasons and communicate sincerely. If you handle it well, most customers will still revisit your store.

Ecommerce Fulfillment Service Fees

In each stage of the eCommerce fulfillment service, there are specific fees that you need to know.

1.Setup Fees

Setup fees are one-time payments to set up the eCommerce fulfillment service. Some companies charge a flat rate. But, some companies charge depending on the size of the products you want to fulfill. 

2.Storage Fees

Storage is where you keep your inventory. Some companies charge storage fees for pallets. The more pallets you use, the higher the price. There are also extra charges for security, climate control, etc.

3.Packaging Fees

The packaging fee is what you need to pay for the packaging process. It covers the fees of the labor who will pack the ordered items. Usually, the fulfillment center charges it by the number of items that need handling.

4.Shipping Fees

You will also need to make shipping costs payments so your customer can receive their order. Different destinations will have different charges of shipping fees.

5.Return Fees

If your customer is not satisfied with the product, they will return them, and it will incur return fees. It also includes the after work of the returned items, such as inspection for problems.

6.Account Management Fees

The account management fees refer to the administration that handles your order invoices. It includes the communication process with your suppliers, system management, etc. Some companies will charge based on the contract set up.

7.Customer Service Fees

Some eCommerce fulfillment services companies also handle customer service for you. It depends on the setup fees you paid. If you have made a vast set-up fee, you will get a team of customer service professionals. They could help handle your customers’ inquiries.

Types of Ecommerce Fulfillment Services

dropshipping ecommerce fulfillment

There are three types of eCommerce fulfillment services. You need to determine the best type of service that benefits your online business. 

1.In-House 

In-house fulfillment is easy and suitable for small business operations. You’ll handle all the fulfillment processes using your resources. 

You don’t have to invest in a warehouse or equipment to store your inventory. Hence, it is popular among small retailers due to lower costs incurred. But, you might have limited storage and labor.

2.Dropshipping

Dropshipping is also a fulfillment method that you can use. Dropshippers do not involve themselves in the fulfillment process like packaging and shipping. Instead, their supplier handles it for them. 

It has the advantage that the eCommerce company does not have. You do not need to have large capital to start your dropshipping eCommerce business.

3.Third-Party Logistics (3PL)

Third-party logistics is a fulfillment service that takes over the entire fulfillment process. It is suitable for large businesses that need a huge team to handle the fulfillment process.

Hiring a third-party logistics company allows you to focus better on other aspects. For instance, on the sales and marketing strategy. 

Top 15 Ecommerce Fulfillment Services

Amazon FBA

Amazon FBA is considered the leader in eCommerce. It has over 170 fulfillment centers and 150 million square feet of warehouses. You can use Amazon FBA to handle your inventory and fulfill orders. With Amazon FBA, you can receive protection and move elements.

Amazon FBA: Features

  • Two-Way Inventory Management
  • Subscription Box
  • Advanced Reporting
  • Customer Support
  • Multichannel Integrations

Amazon FBA: Pros and Cons

ProsCons
Large Network of WarehousesOnly for Amazon Sales
Prime Delivery SpeedsFees Change Regularly
Handles Return and Customer SupportStrict Receiving Guidelines

Amazon FBA: Pricing 

Amazon FBA has straightforward fees that you can refer to:

ServicesPricing
Pick and PackSmall – 2.41 USD/ 10 ounces or less          – 2.48 USD/ 10 to 16 ounces
Large – 3.19 USD/ 10 ounces          – 3.28 USD/ 10 to 16 ounces          – 4.76 USD/ 1 to 2 pounds          – 5.26 USD/ over 2 pounds
Inventory StorageStandard Sizes – 0.69 USD/ cubic foot

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Whiplash

Whiplash has over 20 shipping facilities in the US, the UK, and Canada. This California-based fulfillment service provider is well equipped to help grow businesses. It offers real-time inventory management and smooth integrations in its multiple fulfillment centers. 

Whiplash: Features

  • Dropshipping Support
  • Single Dashboard Automation Tools
  • Returns Management
  • Bundling and Kitting Services
  • Live Order Editing

Whiplash: Pros and Cons

ProsCons
Easy Step UpNot Practical for Small Business
Offer Discounted ShippingLimited Customer Support
Huge ControlHas a Minimum Order

Whiplash: Pricing

The pricing for Whiplash is not open on their website. You can contact them and discuss their charges for their services.

ShipBob

Shipbob is an eCommerce fulfillment company started in 2013. It has fulfillment warehouse space in Chicago, Philadelphia, Los Angeles, and Dallas. 

They have collaborations with the leading eCommerce platforms and major eCommerce business sites. For instance, Shopify, Woocommerce, Magento, and so much more. Many reviewed this order fulfillment company provides one of the best fulfillment services.

ShipBob: Features

  • Multiple Fulfillment Center locations 
  • Technological Dashboard
  • Distributed Inventory Management
  • Order and Return Management 
  • Advanced Search Filters

ShipBob: Pros and Cons

ProsCons
User-friendlyPricey
Great Ecommerce IntegrationSlow Customer Service
No Minimum Order RequiredLagged Service Pages

ShipBob’s Pricing

ShipBob charges on the five services that they offer, such as

ServicesPricing
Receiving 25 USD/ first two hours40 USD/ hour afterward
Storage40 USD/ pallet per month10 USD/ shelf per month5 USD/ bin per month
Pick and PackFree/ first four picks0.20 USD/ pick afterward
Standard Packaging Free:-Plain Boxes-Mailers-Tape-Dunnage

Deliverr

Deliverr is a promising eCommerce fulfillment service that can manage your fulfillment requirements. It integrated with major eCommerce platforms like Wish, Shopify, Amazon, eBay, and Walmart. The Deliverr team can fulfill orders from various websites easily with Deliverr.

Deliverr: Features

  • Cost Calculator
  • Filter Inclusion
  • National Shipping Support
  • Inventory and Order Tracking
  • Stock Keeping Unit Testing

Deliverr: Pros and Cons

Pros Cons
Easy To UseDoes Not Integrate with Woocommerce
Great Customer ExperienceNot Suitable for Small Orders
2-day Shipping AvailableNo Returns Processing

Deliverr: Pricing

Deliverr offers simple fulfillment service pricing. It combines all the costs into a single fee.

ServicesPricing
Storage0.72 USD/ cubic feet
Fulfillment Standard -3.99 USD/ unit 

ShipMonk

Shipmonk is a leading fulfillment provider launched in 2014. It provides a fulfillment service with a transparent fulfillment and shipping process.

It has an all-around fulfillment service with access to a large integration list. You can feel free to choose whichever integration suits your business. 

Shipmonk: Features

  • Back-End Store Management
  • Freight Management
  • Wide Customization Options
  • In-Class Support
  • Users Permission

Shipmonk: Pros and Cons

ProsCons
Good Checkout ExperienceMinimum Monthly Pick and Pack Fee
International ShippingLimited Fulfillment Warehouse
Various Branding OptionsNo Climate Control


Shipmonk: Pricing

Shipmonk charges based on the number of orders per month.

Number of Orders Per MonthPricing
0-500 2.50 USD/first item0.50 USD/each additional item
501-1000 2.25 USD/first item0.50 USD/each additional item
1001-2500 2.00 USD/first item0.40 USD/each additional item
2501-5000 1.80 USD/first item0.35 USD/each additional item
5001-10000 1.50 USD/first item0.30 USD/each additional item
Over 10000 Customized Pricing

Shopify

Shopify ecommerce fufillment

Shopify also offers standard eCommerce fulfillment services that support inventory allocation. It has an excellent Shopify fulfillment network.

This Shopify fulfillment network helps its merchants to fulfill orders from customers. It also allows them to deliver orders to the customers as fast as possible.

Shopify: Features

  • Machine Learning
  • Predictive Reports For Orders
  • Custom Packaging
  • Multiple Channels via Shopify fulfillment network
  • Global Partners

Shopify: Pros and Cons

ProsCons
Easy to Sync Inventory InfoAdvanced Features are Expensive
Reduce Shipping ExpensesLimited Control
Excellent for Shopify UsersNew to The Market

Shopify: Pricing

It is determined on a by-business basis. Hence, their team will have to understand your business fully for a suitable quote for you. The quote includes all the logistics services, packaging services, and others.

Red Stag Fulfillment

Red Stag Fulfillment specializes in large shipping with heavy items. Many leading eCommerce platforms like Shopify integrate with Red Stag Fulfillment. 

This company guarantees risk-free shipments and takes full responsibility for any damages. It is suitable for companies that offer heavyweight items with low sales volumes. 

Red Stag Fulfillment: Features

  • 30-day Trial
  • American Consumer Support
  • Ecommerce Integrations
  • Back-End Management 
  • Quality Control

Red Stag Fulfillment: Pros and Cons

ProsCons
No Set Up FeesComplicated Pricing Structure
Ideal for Bulky OrdersLack of Dedicated Account Manager
Range of Automated FeaturesDoes Not Integrate with Walmart

Red Stag Fulfillment: Pricing

Unfortunately, Red Stag Fulfillment does not disclose its pricing exclusively. You’ll need to contact Red Stag Fulfillment to know about their pricing. 

Rakuten Super Logistics

Rakuten Super Logistics is a well-known third-party logistics services provider. This order fulfillment company also offers shipping services and marketing services. 

Rakuten Super Logistics is also the most popular eCommerce site. It has 15 eCommerce fulfillment centers in the US.

Rakuten Super Logistics: Features

  • Smart Fill Order Fulfilment
  • Inventory Tracking 
  • Customer Support
  • Freight Support
  • Smartship Organizer


Rakuten Super Logistics: Pros and Cons

ProsCons
Advanced FeaturesHigh Pricing
Great for Complex DeliveriesOld-Fashioned Interface
Many Warehouses in the USNo Custom Packaging

Rakuten Super Logistics: Pricing

Rakuten Super Logistics also does not disclose its pricing information. It will quote their fulfillment services if you contact them on their website.

Simpl

Simpl is a dedicated logistic services team to handle the eCommerce fulfillment process. It can ship a wide range of items from kids’ products to electronic products. Besides, it connects to over 50 marketplaces like Shopify, eBay, Etsy, and Woocommerce.

Simpl: Features

  • Advanced Reporting
  • Address Validation
  • Web-Based 3PL Software
  • Crowdfunding Fulfillment
  • Subscription Box

Simpl: Pros and Cons

ProsCons
Climate-COntrolled WarehousesOnly One Warehouse
Almost 100% Pick Accuracy GuaranteeCan’t Cater to Amazon FBA Clients
Support Fragile & Hazmat

Simpl: Pricing 

Simpl charges the following rates for various services.

ServicesPricing
PackStarting at 1.35 USD
Storage10 USD/ pallet, per week,
Pick and Pack300 USD minimum
Miscellaneous35 USD/ person per hour

Fulfillment.com

Fulfilment.com is a cloud-based eCommerce fulfillment service company. It has been operating for almost 7 years now. 

With 7 of its warehouse locations, it ships to almost 150 countries worldwide. It has good eCommerce fulfillment services for the enterprise level with various features.

Fulfilment.com: Features

  • Worldwide Fulfillment Options
  • Intuitive Shipping Software
  • Product Manufacturing Options
  • Various Carrier Options
  • Inventory Tracking and Logistics Services

Fulfillment.com: Pros and Cons

ProsCons
Excellent Customer ServiceComplicated for Beginners
Fantastic Enterprise-Level Warehouse ManagementNot Suitable for Small Businesses
Advanced ToolsNon-Refundable Deposit Fee

Fulfillment.com: Pricing

Fufillment.com offers its service on a monthly basis. It will cost you 10 USD per month to unlock their basic features. You will need to pay more for their advanced features. 

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FedEx Fulfillment

FedEx Fulfillment is popular among eCommerce businesses as they ship worldwide. It has fulfillment centers globally. Besides, this excellent fulfillment provider has various eCommerce integrations.

FedEx Fulfillment: Features

  • Inventory Management
  • Reverse Logistics
  • Tracking and Visibility
  • Climate COntrol
  • Various Sales Channels  Possibilities

FedEx Fulfillment: Pros and Cons 

ProsCons
Fast International ShippingDifficult to Start
Good Shipment Tracking TechnologyNo Product-Based Batch Fulfillment
International Fulfillment CentersCustomer Service is Inconsistent

FedEx Fulfillment: Pricing

This is the list of FedEx’s Fulfillment’s Pricing according to their services.

ServicesPricing
Setup0 USD
Inbound Shipping CostsDepends on Destination, Discounted Rates
ReceivingStandard – 0 USDOthers – 35-40 USD/ hr
Inventory Storage8-15 USD/ pallet, per month
Pick and Pack0.40 USD/ unit
Returns2.50 USD/ order

XPert Fulfillment

Xpert Fulfillment started in 2008 and offered an order fulfillment service in the US. It provides for both startup companies and even Fortune 500 companies. Their web-based systems are accessible in the cloud and in real-time. 

Xpert Fulfillment: Features

  • Return Processing
  • Long-Term Storage
  • Customs and Document Preparation
  • Optional Shipping Services
  • Quality Control

Xpert Fulfillment: Pros and Cons

ProsCons
Transparency in PricingNot Suitable for Inconsistent Retailers
No Minimum Order
Real-Time Inventory Insights

Xpert Fulfillment: Pricing

Xpert charges their pricing to their service transparently. Here are some of the charges.

ServicesPricing
Receiving Fees35 USD/ labor hour
StorageStandard Packaging- FreeAdditional Pallets – 15 USD
Return Processing fees2.00 USD
Third-Party Billing10 USD

Whitebox

This order fulfillment company can handle your entire eCommerce sales process. It suits sellers that lack time to handle the eCommerce fulfillment. It is pretty popular among sellers that want to outsource fulfillment services.

Whitebox: Features

  • Sales Forecasting
  • FBA Stock Preparation
  • Manages Sales Channels Listings
  • Customer Service
  • Quality Control

Whitebox: Pros and Cons

ProsCons
Reliable Service Marketplace ManagementLack of Pricing Transparency
High-Level Customer SupportNo Climate Control
Quick Shipping in the USAProhibitive Minimum Order

Whitebox: Pricing

Rather than service-based pricing, Whitebox charges differently. Clients have to pay a monthly fee. This fee includes receiving, picking and packing, shipping, and account management.

Unfortunately, Whitebox does not disclose its exact pricing. You need to contact them for the exact quotation.

FreightPros

FreightPros is an eCommerce fulfillment provider that allows you to access its database. It offers discounted shipping rates on recommended carriers too. 

Freight Pros provides many technological features to make shipping smooth. It is suitable for all kinds of business sizes, from small to enterprise-level.

FeightPro: Features

  • Digital Logistic Platform
  • Transportation Management System App
  • Online Payment Portal
  • Educational Online Resources
  • Customer Support

FreightPros: Pros and Cons

ProsCons
A Range of Discounted QuotesReported Overcharging
Responsive Account ManagersDifficult Dispute Process
Large Multimodal Carrier NetworkNo Third-Party Order Fulfillment Service

FrieghPros’s Pricing

The rates of Freight Pros are customized. They can only quote you pricing after understanding your needs. In general, their estimated price range is from 6.66 – 21.98 USD per pound.

Fulfilled by Sears

Fulfilled by Sears offers fulfillment service for small retailers to enterprise-level operations. It has flexibility in in-house fulfillment with month-to-month order trends. 

Its services are open to both the Sears.com platform and another online marketplace. It is one of the most prominent online mass merchants in the US.

Fulfilled by Sears: Features

  • Enterprise Fulfillment and Logistic
  • Integrations Tools
  • Seasonal Management
  • Inventory Control
  • Global Distribution

Fulfilled by Sears: Pros and Cons

ProsCons
No Minimum OrdersLimited Innovation
Discounted Shipping Rates
24/7 Customer Support

Fulfilled by Sears: Pricing

Fulfilled by Sears has quite a good deal on their pricing. You can refer to them in the list below.

ServicePricing
Storage Fees0.45-0.60 USD/ cubic square feet
Pick & Pack Fees1 USD/ item
Order Handling FeesFree
Weight Handling Fees0.35 USD/ pound
Additional FeesSell on Sears – 39.99 USD monthly

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When Do You Need to Choose Fulfillment Services?

We need fulfillment services when there are orders from our eCommerce online business. Basically speaking, it helps us through the processing of the eCommerce operations.  These services help from picking and packing to shipping when a customer orders an item. 

We could not do the operations ourselves as we may lack resources. These companies have resources and tools to help us execute the fulfillment process. They will have inventory spaces to store your products with security. You can also get shipping carriers and other additional services from them.

It is recommended to choose them right after setting up an eCommerce business. Ensure to choose the fulfillment services that suit the need of your business. It includes the scale of the business to the order handling procedures. 

Also, be careful in choosing a fulfillment service to help run your business smoothly. Good service providers would also be beneficial in keeping our customers satisfied.

Choose an Ecommerce Fulfillment Service

How to Choose an Ecommerce Fulfillment Service? 

There are several aspects to take into account when choosing eCommerce fulfillment companies. Let’s see what they are.

1.Pricing

Pricing is definitely important when choosing an eCommerce fulfillment service. It should be cost-effective to guarantee your profit while enjoying the services. 

Some companies might offer a monthly basis and others specifically for their services. The services need to be on par with the company’s pricing. You must also be careful of the hidden fees throughout the entire process.

2.Location

The eCommerce fulfillment center location is crucial. Preferable, order fulfillment companies with global fulfillment centers are the best. 

Ensure they have fulfillment centers in your wanted region to reach your customer. It also helps enhance the delivery speed. 

3.Services

Different order fulfillment companies offer distinct types of order fulfillment services. You need to review which one of the benefits your business the most. It is because different businesses have different needs in handling your products. 

For sensitive products, look out for providers that offer climate control inventory storages. They will be able to store your products carefully.

4.Technology

Ecommerce is undoubtfully a modern way of business. Hence, you need advanced technology to support your eCommerce business. Your order fulfillment companies should equip themselves with advanced technological systems. 

For instance, order and tracking systems, dashboards, customer data, and others. These features will help you to meet customer expectations.

5.Experience

You should look for an order fulfillment company with an excellent experience. They will know how to run these operations swiftly for you. They can also fulfill the orders well to gain you more satisfied customers. 

Be careful in choosing new fulfillment companies. They might not have the relevant experience that you need.

6.Customer Support

The after-work of the delivery is essential too. You should choose an order fulfillment services company that can communicate with you. 

A fulfillment company with good customer support helps you understand everything better. If they are not responsive to your issues, they might not be the best order fulfillment companies for you.

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Leeline Sourcing is to help Shopify & small businesses sourcing products from China and build your branded business.

FAQs about Ecommerce Fulfillment

1.Why do you need to choose eCommerce order fulfillment services?

An eCommerce order fulfillment service can help you grow your business. They can take care of the order processing shipping for you. Hence, you can use your time on other business strategies to expand your business. For instance, the sales and marketing strategies.

2.What should you know before you choose e-commerce fulfillment companies?

It is vital to know your needs while choosing e-commerce fulfillment service providers. For instance, the types of services you need, your budget, and others. Knowing your needs helps you choose the best eCommerce fulfillment company.

3.Is it difficult to choose an e-commerce fulfillment service?

It is actually not difficult. It is because each fulfillment service listed its services and pricing accordingly. You can compare to find the eCommerce order fulfillment service that suits you best.

 What’s Next

In summary, eCommerce fulfillment service is a wonder to online retailers. It helps you to ease your business operations perfectly with order fulfillment solutions.

I hope this article provides you with valuable information about eCommerce fulfillment services. Visit our services page if you have any further inquiries for outsourced fulfillment!

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sharline

Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.

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