Choosing the Right 3PL Provider for Your eCommerce Business: A Comparison of ShipBob and ShipMonk

Order fulfillment is crucial to the success of eCommerce businesses today. While fulfilling orders in-house can be a cost-effective solution for small businesses, partnering with a reliable third-party logistics (3PL) provider is often the best option for most brands. This article compares two popular 3PL providers, ShipBob and ShipMonk, to help you decide which one is the best fit for your business needs.

Section 1: Do You Need a 3PL Partner?

Before you start using a 3PL provider, it's important to consider whether you actually need one. Depending on your fulfillment needs, it may make sense to start fulfilling orders from home to keep costs low, especially if you're a small business. However, for most brands, partnering with a reliable 3PL provider can help you manage your packing and shipping more efficiently, freeing up your time to focus on growing your business. We've created a guide that provides useful tips on optimizing your in-house fulfillment process like a pro.

Section 2: Comparing ShipBob and ShipMonk

ShipBob and ShipMonk are two of the most well-funded 3PL providers, having received a combined $700 million in funding over the past eight years. While both providers offer similar services and have a strong reputation in the industry, there are some differences in their offerings that may make one more suitable for your eCommerce business than the other. Here are the key points to consider when comparing the two providers:

• Location: When choosing a fulfillment center, location and proximity to customers are essential for faster and cheaper shipping. ShipBob uses a mix of their own warehouses and partner warehouses in the ShipBob Fulfillment Network (SFN), while ShipMonk has built or acquired all their current locations.
• Fulfillment services: Both ShipBob and ShipMonk offer similar fulfillment services, but ShipBob's energetic sales team, user-friendly interface, and competitive rates, including free pick and pack, make them popular for many young brands. However, ShipBob has its share of drawbacks, including hidden fees, high storage and implementation fees, and lack of support for orders under 400 per month. ShipMonk, on the other hand, has international warehouses and a user-friendly interface that can be helpful to new users. However, their support structure assigns you a "Happiness Engineer", but you have no direct connection to the warehouse, which could result in longer resolution times for non-account related issues. Additionally, ShipMonk does not guarantee how long it will take to fulfill orders, which could impact your fulfillment reliability.
• Pricing and service level agreements: It's important to understand all fees you could be subject to when selecting a 3PL provider. While ShipBob's pricing structure can make them a good option for companies with a high number of picks per order, ShipMonk's pricing is based on order volume and storage space. ShipBob lacks accountability for their SLAs and the warehouses in their SFN, which could impact your fulfillment reliability. ShipMonk's service level agreements are more flexible, but they do not provide a guarantee for fulfillment timeframes.

Section 3: ShipBob Review

ShipBob is popular for many young brands due to its energetic sales team, user-friendly interface, and competitive rates, including free pick and pack. However, it's important to read their fee structure carefully to avoid any caveats. ShipBob's pricing structure can make them a good option for companies with a high number of picks per order. They also have an expansive global network that can help with international shipping. However, it's important to note that splitting inventory between multiple warehouses can actually be more expensive and complicated for smaller businesses. While ShipBob's software is user-friendly, it's important to be aware of the hidden fees, high storage and implementation fees, and lack of support for orders under 400 per month. Additionally, they do not own warehouses within the SFN, which may impact their ability to provide consistent service levels.

Pros of ShipBob:

• ShipBob has many warehouse locations, including international ones, which means your inventory can be stored closer to your customers for faster and cheaper shipping.
• The platform has a user-friendly interface that makes it easy to manage orders, track shipments, and communicate with customers.
• ShipBob offers a solid list of integrations with other eCommerce tools, such as Shopify, WooCommerce, and Amazon, making it easier to streamline your order fulfillment process.
• There's no order minimum, so you can start small and scale up as your business grows.
• ShipBob's charges one fee per order based on the weight of the shipment which includes limited packaging, postage, and 3 picks.

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Cons of ShipBob:

• ShipBob does not guarantee same-day shipping, which could result in delays in processing orders.
• They don't take liability for incorrectly picked items, which means you'll need to double-check your orders to avoid mistakes.
• There may be hidden fees that you're not aware of until after signing up, so it's important to review the terms and conditions carefully.
• You can't view your fulfillment pricing until you sign up for an account, which could be a deal-breaker for some businesses.
• ShipBob may not provide enough support for businesses with fewer than 400 orders per month.
• Storage and implementation fees may be higher than expected, which could impact your bottom line.
• B2B fulfillment may get expensive with add-ons, so it's important to evaluate your business needs carefully.
• Finally, it's worth noting that ShipBob does not own warehouses within the SFN, which could impact their ability to provide consistent service levels.

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Pros of ShopMonk:

• ShipMonk has multiple warehouse locations, including international ones, which means your inventory can be stored closer to your customers for faster and cheaper shipping.
• They offer easy-to-understand pick and pack rates, making it easier to understand your fulfillment costs.
• The platform has a user-friendly interface that makes it easy to manage orders, track shipments, and communicate with customers.
• ShipMonk offers many integrations with other eCommerce tools, such as Shopify, WooCommerce, and Magento, making it easier to streamline your order fulfillment process.
• They offer reasonable storage fees and free receiving, which can help you save money on storage costs.
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Cons of ShipMonk:

• ShipMonk does not guarantee same-day shipping, which could result in delays in processing orders.
• There may be hidden fees that you're not aware of until after signing up, so it's important to review the terms and conditions carefully.
• They have a $250 pick and pack minimum, which could be a barrier for some smaller businesses.
• Relatively expensive pick and pack rates may impact your bottom line.
• ShipMonk may not be able to handle large spikes in volume, which could impact your fulfillment speed and accuracy.

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Fulfillment Services:

ShipBob:

1. Implementation fees up to $1,000: ShipBob offers a Startup Growth Plan for companies shipping less than 400 orders/mo, but you don't have access to an account rep, and your support hours are limited to specific office hours.
2. Hourly receiving fees: ShipBob charges $25 for the first two hours, and $45/man/hr after that, which could be difficult to audit.
3. High storage fees: If you have a large product, be prepared to pay high storage fees, as ShipBob has some of the highest storage rates in the industry for 3PLs.

ShipMonk:

1. $250 pick & pack minimum: While this should not be an issue for most brands, slow-moving startups may find it a small obstacle to overcome.
2. Free receiving: Using ShipMonk's free receiving program can be advantageous, as long as you trust your suppliers.
3. Inexpensive returns: ShipMonk has inexpensive returns processing regardless of volume, which can save you money if you have a high number of returns.

By evaluating the pros and cons of each 3PL provider's services, you can determine which one is the best fit for your business needs.

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In summary, partnering with a 3PL provider is a wise choice for most eCommerce businesses. In this article, we've provided an in-depth comparison of two popular 3PL providers - ShipBob and ShipMonk. While both providers have their advantages and disadvantages, it's essential to evaluate your business needs carefully before making a decision.

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Section 4: ShipMonk Review

Like ShipBob, ShipMonk has international warehouses and a user-friendly interface that can be helpful to new users. However, their support structure assigns you a "Happiness Engineer", but you have no direct connection to the warehouse, which could result in longer resolution times for non-account related issues. Service-wise, ShipMonk does not guarantee how long it will take to fulfill orders, which could impact your fulfillment reliability. ShipMonk's pricing is based on order volume and storage space, which may be more suitable for businesses with different fulfillment needs than ShipBob's pricing structure.

Conclusion

In summary, ShipBob and ShipMonk are two popular 3PL providers that offer similar fulfillment services but have different strengths and weaknesses. When comparing the two providers, businesses should consider factors such as location, fulfillment services, pricing, and service level agreements to determine which one is the best fit for their needs.

For businesses with a high number of picks per order, ShipBob's energetic sales team, user-friendly interface, and competitive rates, including free pick and pack, make them a good option. However, businesses should be aware of potential hidden fees, high storage and implementation fees, and lack of support for smaller order volumes. ShipBob also does not own all of the warehouses in their network, which could impact service levels.

On the other hand, ShipMonk has multiple international warehouses, easy-to-understand pick and pack rates, and reasonable storage fees. However, businesses should be aware of a $250 pick and pack minimum and the fact that ShipMonk does not guarantee same-day shipping or provide a guarantee for fulfillment timeframes. Additionally, ShipMonk's support structure assigns a "Happiness Engineer," but businesses may not have a direct connection to the warehouse.

In general, businesses that need to ship internationally may prefer ShipMonk, while those with a high number of picks per order may prefer ShipBob. Ultimately, businesses should evaluate their own needs carefully before choosing a provider. By understanding the pros and cons of each 3PL provider, businesses can make an informed decision that can help them manage their packing and shipping more efficiently and focus on growing their business.

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