What is Dropshipping and 3PL?
Understanding Dropshipping
Dropshipping is an order fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.
Introduction to 3PL
Third-party logistics (3PL) refers to the outsourcing of e-commerce logistics and fulfillment services to a third-party provider. These providers specialize in integrating and coordinating all logistics functions, including transportation, warehousing, and inventory management.
Dropshipping vs 3PL: Key Differences
The key difference between dropshipping and 3PL lies in the inventory management aspect. In dropshipping, the retailer doesn’t stock the products, while in 3PL, companies do stock their products and utilize a third-party provider for logistics operations.
How to Choose the Right 3PL Partner for Your Dropshipping Business?
Factors to Consider when Selecting a 3PL Partner
When choosing a 3PL partner for your dropshipping business, it’s essential to consider factors such as the provider’s experience in the industry, their technology capabilities, their range of services, and their ability to scale with your business’s growth.
Benefits of Partnering with a 3PL for Dropshipping
Dropshipping businesses can benefit by using the 3PL service for streamlined logistics, reduced shipping costs, improved inventory management, and accessing advanced fulfillment technology and expertise.
Importance of Customer Satisfaction in Dropshipping
Customer satisfaction is crucial in dropshipping, and a reliable 3PL partner can help in achieving this by ensuring timely and accurate order fulfillment, which leads to increased customer satisfaction and retention.
Optimizing Order Fulfillment with 3PL for Dropshipping
Streamlining Fulfillment Processes with 3PL
Utilizing a 3PL service can help in optimizing order fulfillment processes by leveraging their expertise in efficient and timely order processing, packing, and shipping, ultimately enhancing the overall customer experience.
Outsourcing Order Fulfillment for Ecommerce Businesses
Outsourcing order fulfillment to a 3PL provider allows e-commerce businesses to focus on core activities such as marketing and sales, while leaving the logistics and fulfillment tasks in the hands of specialists.
Inventory Management with 3PL for Dropshipping
A 3PL provider handles inventory storage, management, and tracking, ensuring that the right products are available when needed, thus preventing stockouts and optimizing the supply chain.
Challenges and Solutions in Using 3PL for Dropshipping
Overcoming Supply Chain Challenges with 3PL
Challenges such as inventory inaccuracies, shipping delays, and order errors can be addressed by working with a 3PL provider possessing the expertise to overcome these supply chain challenges, thus ensuring a smoother fulfillment process.
Choosing the Right 3PL Fulfillment Center
Selecting the right 3PL fulfillment center involves evaluating factors such as location, facility capabilities, capacity, and their ability to handle peak seasons to ensure seamless order fulfillment and customer satisfaction.
Cost-Effective Order Fulfillment Solutions
3PL for dropshipping offers cost-effective fulfillment solutions by leveraging their economies of scale, enabling businesses to benefit from reduced shipping costs and overall operational expenses.
The Future of 3PL in Dropshipping
3PL’s Role in the Evolving Ecommerce Business Model
The landscape of e-commerce is evolving, and 3PL providers play a pivotal role in facilitating this transformation by continuously enhancing their capabilities and technology to meet the evolving fulfillment needs of e-commerce businesses.
Enhancing Retailer and Customer Experience with 3PL
As customer expectations continue to rise, 3PL providers are gearing up to enhance retailer and customer experiences by offering faster shipping, order tracking, and improved logistics visibility, ultimately contributing to higher customer satisfaction.
Adapting to Changing Fulfillment Needs in the Ecommerce Landscape
With the ever-changing e-commerce landscape, 3PL providers are adapting by offering flexible and scalable fulfillment solutions to cater to the dynamic and demanding needs of e-commerce businesses, ensuring their relevance in the future of dropshipping.
The Best 3PL Companies For Handling Your Dropshipping Logistics
First, here are the amazing third-party logistics companies that can help scale your dropshipping business.
Also, Note: These 3PL companies are not listed in any particular order. What’s more, the ones above are not more valuable than the ones listed below.
1. SHIPHYPE Fulfillment
Warehouse location: USA and Canada
Number of warehouses: 5
eCommerce platform integration: 100+
SHIPHYPE is a 3PL fulfillment supplier that assists you in completing orders through various channels.
Furthermore, this dropshipping supplier has 1-Click integrations with most online Shopping Carts, like Shopify, Amazon, WooCommerce, Etsy, eBay, and many more.
Moreover, SHIPHYPE wins by having a high-volume carrier in its warehouses. So, you have the benefit to scale up and compete in the dropshipping business quickly. Additionally, they provide affordable shipping rates throughout the US and Canada.
Also, SHIPHYPE software’s straightforward and enables you to keep track of your orders and inventory in real-time.
Besides, are you interested in their pricing?
Now, take a look at SHIPHYPE 3PL services:
- Marketplace Integration
- Product storage
- Picking and packing (dunnage included)
- Same day shipping
- Crowdfunding
- FBA prep service
- Subscription Box Fulfillment
- Returns Handling
2. ShipBob
Warehouse locations: Global
Number of warehouses: 30+
eCommerce platform integrations: 100+
ShipBob is a 3PL company that is extremely easy to work with. Thus, all of their operations are streamlined and they feature locations across the US, Canada, the UK, Australia, and Europe.
Also, the platform also offers seamless integration with all the major eCommerce platforms out there, including Shopify, BigCommerce, SquareSpace, and more.
Furthermore, check out the ShipBob 3PL Services. 👇
- Warehousing
- Order Fulfillment
- Pick and Pack
- Inventory Management
- Express Shipping
- Reporting and Analytics
- End-to-End Services
3. ShipMonk
Warehouse locations: Global
Number of warehouses: 13
eCommerce platform integrations: 100+
ShipMonk picks, packs, and ships your products globally. Hence, this company integrates with hundreds of shopping carts, management tools, retailers, and other platforms to make the entire process of selling online super easy.
According to Capterra.com reviews, here’s the opinion about this 3PL dropshipping company: “I have been working with Shipmonk for a few years and have received the BEST service I could possibly expect.”
“The commitment to understanding a client’s situation and the support offered is outstanding and unusual in the industry and makes working with Shipmonk truly a partnership experience.”
Also, take a look at ShipMonk 3PL Services. 👇
- Order Fulfillment
- FBS Prep
- Enterprise-Grade Security
- Customized Packaging
- Warehousing
- Freight Management
- Returns Management
- Actionable Reports
4. FedEx
Warehouse locations: Global
Number of warehouses: 17
eCommerce platform integrations: 5
FedEx provides a ton of extra solutions that can help your dropshipping business grow and scale.
Also, it’s one of the most reliable 3PL companies you can work with, offering tons of services to help you manage everything without worries.
However, use the FedEx calculator to get a preview of your costs.
Next, let’s see which are the FedEx 3PL Services. 👇
- Warehousing
- Delivery
- Reverse Logistics
- Order Fulfillment
- Procurement
- Transport Management
- Value-Added Services
5. WhiteBox
Warehouse locations: Global
Number of warehouses: Unknown
eCommerce platform integrations: 11
WhiteBox offers guaranteed 2-day shipping across all of the US. 😲
So, if you’re a small or even medium-sized business, you can leverage WhiteBox and its entire arsenal of extra services to grow your dropshipping business.
Also, WhiteBox provides excellent analytics to manage how you’re doing. Nonetheless, they can help you with marketing, listing optimization, and much more. Likewise, with a 99.9% order accuracy and a 99.8% on-time delivery rate. Therefore, WhiteBox is an amazing 3PL company to consider in cases like this.
Plus, with WhiteBox, you pay $3000 upfront, and then 10% of all sales after that go to them.
However, take a look at WhiteBox 3PL Services. 👇
- Fulfillment
- Warehousing
- Advertising Services
- Data and Insights Reporting
- Listing Optimization
- Returns Management
6. Omni Logistics
Warehouse locations: Global
Number of warehouses: 100+
eCommerce platform integrations: A dozen
Omni Logistics features massive warehouses with advanced technology that’s capable of handling a large volume of orders in short amounts of time. Hence, this makes it a 3PL company that’s perfect for businesses of all sizes.
Moreover, this 3PL has dozens of warehouses across Europe, the US, and Asia. Also, they have thousands of employees and easy integration with your business.
Following, check Omni Logistics 3PL Services. 👇
- Expedited Logistics
- Customs Brokerage
- Order Fulfillment
- Warehousing
- Reverse Logistics
- Kitting Services
7. Shipwire
Warehouse locations: Global
Number of warehouses: 100+
eCommerce platform integrations: 200+
First, Shipwire offers incredibly fast shipping in some areas where their warehouses are closest to your customers. It’s a third-party logistics company equipped with advanced technology that streamlines all major processes.
Also, this is a 40+-year-old company that has accumulated over 10 million sq. ft. of fulfillment space. Thus, reliability or progress can be expected in high volume with Shipwire.
Additionally, take a look at Shipwire 3PL Services. 👇
- Order Fulfillment
- Warehousing
- Automation
- Multi-Channel Management
- Reporting & Analytics
- Pick & Pack
- B2B Wholesale
- Transportation Management
- Cross-Border Solutions
- Returns Management
8. Fulfilio
Warehouse locations: Australia
Number of warehouses: 4
eCommerce platform integrations: 35+
Extra services: Yes
Fulfilio is among the most well-known 3PL companies in Australia. Thus, the Oodie founder, David Fogarty, uses this third-party logistics company to quickly deliver countless Oodies to his loyal customers.
Also, the company offers reliable storage, fast shipping and processing, and an array of extra services that definitely help your business in the long run. Furthermore, they also feature an app that makes managing everything much easier.
Furthermore, check out the Fulfilio 3PL Services.👇
- Warehousing
- Pick and Pack
- Order Fulfillment
- Same Day Delivery
- Custom Packaging
- Returns Processing
- Inventory Management
- Automation
- Scheduled Delivery
9. Pro FS Fulfillment
Warehouse locations: Europe
Number of warehouses: Unknown
eCommerce platform integrations: 5
Pro Fulfillment is a fast eCommerce fulfillment service that offers warehousing solutions and multiple facilities across Europe.
Therefore, if you have a store that works only with dropshipping suppliers in Europe and you sell in Europe only as well, then Pro Fulfillment is an amazing choice definitely worth considering.
Plus, check out the Pro FS 3PL Services. 👇
- Reverse Logistics
- Returns Management
- Warehousing
- Fulfillment
- Freight Services
- Inventory Management
- Consulting Services
- Dropshipping Customer Service & Support
Conclusion
This is just about everything you’ll ever need on choosing 3PL companies for your dropshipping business.
Therefore, I suggest learning first which are the best countries for dropshipping to target and then choosing 3PL companies near those regions.