3PL -- Deliverr or ShipBob (or other)?

October 02, 2021

by a searcher from National Defense University in Santa Rosa Beach, FL 32459, USA

Not sure how many in the Searchfunder community will have insight and thoughts on this, but I thought I'd ask anyway.

I need to pick a 3PL for a new acquisition (but not yet acquired) that sells an average of 5,000 units per month and most packages are less than a pound. The business currently handles its own warehousing and fulfillment but I won't acquire the warehouse part of the business and will switch to using a 3PL. I also plan to expand the current sales channels and reduce the shipping times so I'm looking for a 3PL with strong multi-channel performance. I've talked to several 3PLs but ShipBob and Deliverr have risen to the top of my list but I have no experience with a 3PL so there's a decent chance that I'm missing something.

If anyone has experience with either of these companies (Deliverr or ShipBob), or has a different recommendation, please share. Thank you.

Reply by a searcher
from National University of Ireland, Galway in Seattle, WA, USA

I don't have experience with the two mentioned, however here is some general advice. 3PLs have mushroomed in the age of Amazon and D2C (Direct to Consumer). Agreed you want a 3PL with it's own operations vs a front end service. I recommend multiple warehouses so you can get 2 day ship anywhere. It adds complexity as you have to forecast and manage stock in multiple locations, but it might be a competitive advantage, You may also need Amazon warehouse inbound ship capability (can't assume that) and EDI integration. SPS Commerce is the most common intermediary vendor or for and if you connect with them first they might recommend some 3PLs. Talk to existing customers that match your business profile. And if a 3PL won't give you a list, walk away. Other tip is to ask to speak with whomever will be managing your account day to day. These are usually not the folks who interface with you during the selling process. Ask for their quote template and make sure you understand it and populate it to get an idea of activity cost. Shipping is more generic as that is a pass through and probably won't be a lot different between vendors, other than warehouse location. Plan on a 3 year relationship and then do re-quote the business. It will help your existing player to keep on their toes if nothing else. If you will be importing check experience and possible ability to do your inbound freight forwarding. Helps simplify your supply chain model. Check compatibility with your current ERP or customer order processing software and watch out for expensive integration fees. This is where they charge you to write code so your system can talk to theirs.

Reply by a searcher
from University of New South Wales in Melbourne VIC, Australia

Can't give you a name, I'd say make sure you consider:
1. Warehouses in the right location
2. Quality warehouse (temp control, staffing, security, regular drop offs / pickups with UPS, Fedex, USPS, etc)
3. Can receive cartons, pallet, parcels, etc
4. Integrate with your tech (API/app)
5. Can handle returns
6. They match your size
7. Feel free to ask for customer reference calls or ratio of on time VS delayed delivery

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