Best 3PL Companies: Top Third-Party Logistics Services in 2024

In today’s ecommerce world your supply chain is make or break for your business. Even the most innovative products need seamless logistics to build customer loyalty and drive growth. But navigating the 3PL landscape can be a minefield.

This guide cuts through the noise to give you the top 3PL companies for 2024. We’ll look at their strengths, specialisms and limitations so you can make an informed decision that matches your business goals. Whether you’re a startup looking to scale fast or an established brand looking to optimise operations you’ll find insights to turn your logistics into a competitive advantage.

Ready to revolutionize your ecommerce fulfillment? Let’s dive in and discover the perfect 3PL partner for your unique needs.

Here’s a quick summary of each of the top 3PL recommendations:

• Red Stag Fulfillment: Specializing in large, heavy, and high-value items with industry-leading accuracy guarantees (backed by money)
• ShipBob: Ideal for small to mid-sized ecommerce businesses with robust integrations
• ShipMonk: Excellent for international sellers and subscription box management
• LVK Logistics (formerly ShipHero): Best for enterprise ecommerce companies with high order volumes
• Saddle Creek Logistics: Great for large, omnichannel enterprises with extensive inventory distribution needs
• Speed Commerce: Flexible D2C logistics provider with high warehouse capacity and U.S.-based customer service
• 3PL Guys: Tailored for Amazon sellers needing FBA preparation and alternatives
• ZonPrep: Offers high shipment accuracy and quick packing timelines with customizable plans
• Cold Chain 3PL: Specialized in temperature-controlled logistics for perishable goods
• Trinity Logistics: Focuses on flexibility across a broad network with multiple U.S. locations
• Ottawa Logistics: Ideal for businesses needing USA-Canada cross-border logistics expertise

Ready to get your search for 3PL fulfillment companies headed in the right direction? Check out this list of the best 3PL companies and specific criteria to look for based on specialization. 

This list may be a little subjective (we’re only human, after all), so refer back to the questions below this list to solidify your own thoughts and opinions. 

Top 3PL companies for 2024

1) Red Stag Fulfillment

Maybe we’re biased, but we feel good about putting our name at the top of this list because we work hard to become a trusted partner in your business. 

Red Stag was founded by former ecommerce business owners, so you get a partner that understands your pain points firsthand (think high shrinkage rates and costly shipping errors).

That’s why we offer 100% order accuracy and 0% inventory shrinkage guarantees. If we make a mistake, we’ll cover the cost and pay you an additional fee. No other ecommerce 3PL companies guarantee anything like that. 

Red Stag’s strategically placed warehouses make it easy for you to meet customer expectations for fast shipping services, too. 

With warehouses located inland, where it’s cheaper and less congested, you can reach 96% of the U.S. within two days, including East Coast and West Coast addresses. Most companies move inventory inland at some point in the order-to-cash cycle anyway. Doing it earlier limits risks like high coastal inflation and congestion bottlenecks.

You have customer service and success teams ready to help you at every stage. Most people on our customer teams start in a Red Stag warehouse, so they know supply chain operations inside and out. They’re well-equipped to provide the support you need and proactive about keeping in touch with you.

Red Stag works with a wide range of products across many industries, but you might have heard about our reputation for handling the large and oversized items that can be a challenge for other 3PL companies. You can also work with Red Stag to prepare for the approval process for Amazon’s Seller-Fulfilled Prime (SFP) or for Fulfillment by Amazon (FBA).

You don’t have to worry about monthly minimums or an order-to-SKU ratio, but you’ll get the best value if your company has hundreds to thousands of orders per month. A typical package at Red Stag weighs 20 pounds or more, but there’s no upper limit—at least not that we’ve found yet.

You can also take advantage of a 30-day trial period with no obligations to continue. If you’re interested in learning more about how Red Stag can help you serve your customers, reach out to get started.

2) ShipBob

ShipBob, a leader in DTC ecommerce business, guarantees 100% coverage for two-day shipping across the U.S. With low monthly minimums depending on services, it works with companies with low SKU counts and offers a variety of standard and custom packaging sizes for up to mid-sized items.

3) ShipMonk

ShipMonk offers global logistics solutions to more than 200 countries, so it may be ideal for international sellers. The 3PL company is flexible with low minimums and scalable pricing.

4) LVK Logistics (formerly Shiphero)

ShipHero offers warehouse management and fully outsourced fulfillment. With nine warehouses, they may be best for enterprise ecommerce companies that can afford to distribute high stock levels across locations. It claims a 3.5 day average fulfillment time and a 35% decrease in warehousing costs compared to other services of their size. 

5) Saddle Creek Logistics

Saddle Creek excels in large, omnichannel enterprises that sell enough to scale inventory into more than 40 warehouses and may be able to connect ecommerce companies with manufacturers and factories for additional product development or cost-efficiencies.

6) Speed Commerce

Speed Commerce is a flexible D2C logistics provider with high warehouse capacity. They deliver to most of the U.S. within two days. They provide a U.S.-based contact center for customer service. 

7) 3PL Guys

3PL Guys offers real-time inventory management and freight quotes through an integrated system. They can also assist FBA sellers with air and ocean. Transparent pricing includes $15.00 per pallet for receiving, $40/pallet for storage, and a $29.99/month warehousing software fee.

8) ZonPrep

ZonPrep claims a high shipment accuracy rate of 99.9% and 48 to 72 hour packing timeline. Dedicated reps respond to inquiries quickly. Customizable plans cover receiving, inspection, labeling, emphasizing no hidden fees.

9) Cold Chain 3PL

Cold Chain 3PL offers two-day shipping for most of the country. Ideal for startups, it accommodates flexible SKU limits for various goods and FBA prep.

10) Trinity Logistics

Trinity Logistics has seven U.S. locations and over 100 independent agents. They focus on flexibility across a broad network. But they certainly aren’t the only player in the game. Be sure to explore other options to find the right fit for your business.

11) Ottawa Logistics

Ottawa Logistics has two Canadian locations and a Dallas location for shipping in Canada and the U.S. They focus on cost-reducing strategies like zone skipping and rate shopping. There are plenty of other options out there, so be sure to shop around to find the partner that fits best with your business needs.

Finding the right 3PL company fit

Discovering which third-party logistics provider serves your exact needs depends on factors such as your business evolution, product categories, specialized services, customer geographies, etc. 

Take a look at the categorized third-party shipping companies below and jump to any section that you think might fit with your business. 

Ecommerce 3PL companies

Ecommerce fulfillment services streamline your warehousing and shipping processes to make sure your customers get the right items delivered quickly. You may be able to optimize costs and get help with inventory management, too. 

FBA 3PL companies

FBA 3PLs can help you integrate with Fulfillment by Amazon (FBA), the marketplace’s extensive logistics network. They can also act as an alternative to FBA, providing fulfillment services while still capturing the massive potential of the platform. 

Cold chain 3PL shipping companies

Cold chains involve precise management of temperature-sensitive products, so a 3PL makes sure you maintain controlled environments across your supply chain. You can also partner with a 3PL to satisfy the high recordkeeping requirements these products typically involve.

Alcohol third-party fulfillment company

Alcohol fulfillment companies help you navigate complex regulatory landscapes, ensuring licensing compliance across states. You may also benefit from distribution services with specialized security since alcohol may be at high risk for cargo theft.

3PL companies USA to Canada

Some 3PLs are set up to help with cross-border logistics and distribution services, including customs clearance, tariffs, and international regulations. They may also provide bilingual support. 

When to look for new 3PL companies

There may be key moments in your business evolution when you need to consider hiring 3PL shipping companies. Typically, these moments center on growth. Either you’re starting up and need to scale rapidly, or you’re experiencing high demand and need a partner to help you keep up. 

In both cases, the best 3PL companies are ready to hit the ground running, making sure you maintain high levels of speed and accuracy while gaining cost efficiencies.

Startup ecommerce 3PL companies

This early stage is often marked by intense workloads, fixed resources, and limited expertise. It’s not that you don’t know what you’re doing. You just might not be generating sustained revenue or collecting substantial data yet. 

In this case, you need a 3rd party fulfillment company that can provide you with streamlined services. You want to focus on reducing the complexity of warehousing, order processing, and shipping. 

At this stage, low packing and shipping costs may be a deciding factor, too. You may want to find a 3rd party fulfillment company that lets you pay by unit or transaction, so you can scale costs against business activity. 

Growth-stage third-party logistics company

As ecommerce businesses tap into demand, working with a 3PL fulfillment company can streamline logistics and boost scalability. 

Outsourcing ensures effective handling of order surges and provides supply chain solutions, including inventory optimization and demand forecasting.

The transition from in-house operations to 3PL a partnership may be a pivotal step in your company’s growth. The agility and scalability provided by the best 3PL companies can help you seize market opportunities, expand your customer base, and increase revenue.

What services do top 3PL companies provide?

A third-party fulfillment company can play a critical role in supply chain logistics for many ecommerce businesses. Primarily, services include receipt and storage of inventory in multiple warehouses, order fulfillment, and shipping products to customers.

• Receiving: A third-party logistics company accepts and inspects incoming shipments to a warehouse. You can have your suppliers send inventory directly to your 3PL.
• Warehousing: A 3PL stores and manages inventory, ensuring organization and accessibility, so products remain in perfect condition and can be packed efficiently when customers place orders on your online store. 
• Order fulfillment 3PLs pick, pack, and ship items to fulfill customer orders accurately and efficiently. 
• Shipping: 3PLs coordinate transportation of packages to your customers. Shipping speed and accuracy are important drivers of customer satisfaction, so this key function is vital to your company’s success.
• Reverse logistics:  A third-party logistics company might also handle customer returns, refurbishing and restocking or disposing of products as needed. Returns can eat up profits, so an experienced returns partner may help protect margins.

In addition to these core capabilities, the best 3PL fulfillment companies may also offer a variety of value-added services. These services may help your business by reducing in-house effort so you can reallocate resources for growth. 

• Freight forwarding services: A third-party logistics company may coordinate or negotiate pricing on more extensive transportation services, including movement of inventory from coastal ports of entry to inland warehouses.
• Kitting and assembly: 3PLs may assemble parts into products or multiple products into subscription kits or promotional bundles. These services may also include returning single items to inventory. 
• SKU analysis: As part of your inventory optimization, this analysis helps your company understand the timing or demand curves of each item so that you can reduce carrying costs, fine-tune supplier orders, and discover product introduction opportunities. 
• Demand forecasting: This critical function aids in predicting product demand based on historical data and market trends, allowing for more informed inventory management decisions.

When looking for the best 3PL companies, assess which of these services may benefit your business to help narrow your options. 

Why do you need a 3PL company?

In addition to the services you need, consider why and how 3PL shipping companies can benefit your business to help refine your search further. 

You need to do more faster

This is a common scenario when your store is struggling to meet growing demand. The best 3PL for ecommerce growth already has infrastructure for high throughput. You can onboard quickly because you’re ready to go in some important ways, including:

• Solid processes and data to back up their efficacy.
• Staff are experienced with structures to ensure labor availability.
• Onboarding won’t slow you down or keep your customers waiting on orders.

With these structures in place, you can eliminate the need to tie up cash growing in-house fulfillment operations at your company. 

You need to spend less time on fulfillment

You know fulfillment is crucial, but you’re spending too much time managing it. In this case, the best third-party shipping company frees you up to allocate resources more appropriately. They might do this in a number of ways.

• A good 3PL provides high-quality data so you can discover growth opportunities.
• Warehouse teams take on high-labor tasks so you can focus on strategy and execution.
• Fulfillment experts may act as an extension of your team, helping to support efforts like inventory management, product launches and various go-to-market activities.
• Warehouse managers can help you understand turnover and support ongoing inventory optimization. This lets you align marketing with product flows. 

When your third-party logistics provider helps with advanced supply chain management, you can focus on ecommerce leadership. 

Making the case for fulfillment expertise

Nearly every startup, growing company, large business, and enterprise-level ecommerce business could benefit from fulfillment expertise. No matter what stage your business is in, there’s a good chance you could use the following support:

• High accuracy and efficiency metrics you can monitor in real time
• Long-term relationships with various carriers for reliable logistics services
• The right data to optimize landed cost across shipping zones
• Specialization for temperature-controlled or heavy products as needed.

Another great thing about expertise is that it can help deliver cost savings and operational efficiencies. You may not have the volume or staff members available to help assess cost effectiveness, but great 3PL logistics companies do.

Capabilities to consider when choosing a 3PL company

The impact a 3PL company has on your ecommerce business can be profound. Consider the following criteria in shaping your thoughts on each one’s ability to provide efficiency, reliability, and customer support.

Integrations with ecommerce platforms

Seamless integration with major ecommerce platforms such as Shopify, Amazon, Magento, and WooCommerce is fundamental. This serves as a backbone for operations, allowing your business to synchronize product listings, inventory management, and order processing. Integrated ecommerce platforms also ensure any changes or updates made in their systems are reflected in real-time within a 3PL company system.

This connectivity extends beyond visibility. It directly impacts the efficiency of order processing. Efficiency gains can translate to faster turnaround times, reducing the likelihood of delays and enhancing the overall customer experience.

Omnichannel fulfillment

A 3PL company with robust omnichannel fulfillment capabilities can help you maximize sales opportunities. A unified fulfillment service can help you increase revenue while enhancing brand consistency and customer satisfaction. 

Flexibility and scalability

As you expand your presence across different sales channels, the flexibility and scalability of your 3PL company may be instrumental. Scalability without compromising service quality is a key factor in sustained ecommerce growth.

Commitments to order accuracy and speed

Ecommerce customer expectations are high. Accurate orders, free from errors or discrepancies, contribute to positive customer experiences, fostering trust and loyalty. 

That means order accuracy and speed impact more than individual transactions. They can significantly influence brand reputation.

Review the questions suggested above and ask each 3PL company about accuracy rates and guarantees.

Strategic fulfillment center locations

Strategically located fulfillment centers play a crucial role in minimizing shipping times. 

Proximity to customers enables your 3PL company to fulfill orders quickly, reducing transit times and meeting customer expectations for timely deliveries. 

Optimal warehouse locations also contribute to cost efficiency. By strategically placing centers in regions with high customer concentrations, you may be able to minimize shipping costs. 

Moving fulfillment inland earlier in the order-to-cash cycle may also help you avoid the risks of congestion that can delay inventory on the coasts, where greater logistics activity can cause bottlenecks. 

Handling large, heavy, and bulky items

If you sell large, heavy, and bulky items, a specialized 3PL company offers a strategic advantage for your ecommerce business. Specialization in this area can help you reduce shipping costs, limit the risk of damages and returns, and expand your market reach. 

Kitting and assembly

If your ecommerce business offers customized product bundles or packaging configurations, you may require kitting and assembly services. 

A 3PL with kitting expertise ensures processes are executed seamlessly and knows how to return individual SKUs to inventory for sales optimization. 

Flexibility with minimums or ratios

The flexibility of operating without minimum order requirements or strict order-to-SKU ratios can help ecommerce businesses with varying sales volumes. This flexibility lets you scale up or down, ensuring your 3PL’s services can adapt to evolving business needs.

Customer service

Challenges like inventory management, order tracking, and reverse logistics may raise questions for you or your team. Exceptional customer service can be a defining factor.  

Finding the right fit with a 3PL company

Choosing the right 3PL company is often easier said than done. It will take some time and effort on your part, but a reputable 3PL will be able to make it clear whether or not you’ll have a satisfactory partnership experience before you even sign the agreement. 

As you’re considering certain companies, compile interview questions for each one based on the specific needs of your business. Below, you’ll find various lists of questions to ask top 3PL companies to help get you started.  

Work with the best 3PL for ecommerce

When you’re ready to scale your ecommerce business, Red Stag Fulfillment is here to help. As the only ecommerce 3PL to guarantee 100% order accuracy and 0% inventory shrinkage, we treat your products like our own. 

Want to learn more or ask questions? Reach out to get started.