First, let's go over the basics. Both Simpl Fulfillment and ShipBob provide full-service order fulfillment and two-day shipping. That means all the eCommerce business owners need to do is sending the items in bulk to one of the fulfillment centers, Simpl Fulfillment or ShipBob will take care of the rest, and the consumers will happily get the things they order in just two days.
At Simpl Fulfillment, we include:
eCommerce platform integration
Custom packaging and other value-added services
Pick and pack
Tools for managing returns and exchanges
Here are some of the main differences between the two:
To receive your inventory, ShipBob charges you per hour that their warehouse team takes to process. Regardless of the items' size and weight, ShipBob will charge by the working hour when handling them. The first 2 hours are billed at $25/hour, after the first two hours: $35/hour. And ShipBob also sets a minimum charge, 2 hours; they consider the receiving fees for less than 2 hours as 2 hours in total. This can get expensive for eCommerce brands with lots of SKU's or if you're sending in a lot of inventory.
At Simpl Fulfillment, we don't charge receiving fees. We offer good faith receiving to our clients free of charge as long as you create an inbound order in our software and have your SKU's separated, we do not charge any receiving fees. Our clients love this as it helps keep their expenses down.
Pick and Pack Fees (Per order fees)
ShipBob doesn't charge for pick fees for five items or under, and it includes the packing fee in the order fee, which also includes shipping. This can be confusing as you don't know how much you're actually being charged for postage vs. per order, and it's difficult to customize and build custom rates/packages. You're also paying for five picks, even if you only use one or two.
At Simpl Fulfillment, we charge a low, flat, per order fee + pick fee. We do this, so it's clear what you're paying per order, and assuming you're shipping single item orders or a few item orders, you'll pay less. We do this to make our solution even more flexible for our clients and help keep our cost transparent and straightforward.
ShipBob charges the storage fee by inventory volume and time. You don't want your inventory to sit in ShipBob's fulfillment center for long, or you might get stuck paying higher warehousing fees.
At Simple, we charge a flat-fee, per pallet, per month. We don't charge extra for how long we're storing it or for each shelf or bin you need. We only charge for the pallet space taken up.
Order-to-SKU Ratio Requirements
ShipBob works with clients that have an order-to-SKU ratio of 5:1 or more. This means, for every SKU on the shelf, you need to ship at least five orders. For example, if you have 200 SKUs, you'd need to ship 1000 orders a month to hit the SKU-to-order ratio of 5:1.
Simpl Fulfillment doesn't have a formal minimum SKU-to-order requirement.
We hope this information helps you in your decision to find the right 3PL partner. It's essential to establish early on if it's a good fit, who your contact at the 3PL will be, and if it's the right partner. The right fulfillment partner is vital for a successful DTC eCommerce brand.