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ShipBob Reviews: Pricing, Storage and Order Processing

Order fulfillment services are third-party vendors that fulfill orders for other companies such as online sellers. eCommerce stores that do not possess warehouse and distribution facilities as well as large brick-and-mortar companies that sell online can gain by hiring an order fulfillment vendor as it can minimize infrastructure costs and improve operational efficiency. In our Shipbob reviews we take a look at one of the leading order fulfillment services and provide an overview of the company, its unique aspects, pricing structure and schemes, main features, as well as plans for the future.

What is ShipBob?

If you operate a small online store or are a brick and mortar company that also sells online, you need to know all the details about ShipBob, one of the top order fulfillment services that offers same-day delivery for orders placed in Los Angeles, New York City, San Francisco, Denver and Chicago. On top of that, the vendor provides 2-day shipping within the continental US.

ShipBob offers two main services: a software solution that businesses can use for free to manage inventory, orders, and customer communication. Second, at the back end, it provides physical logistics to fill orders and for warehouse inventory.

ShipBob says it is not an old-fashioned logistics provider, but touts itself as a next generation fulfillment center. The company’s main advantage is it is located near merchants and end consumers in the three big cities of Los Angeles, New York, and Chicago. This proximity enables the vendor to offer same-day pickup and delivery services in Amazon style at an affordable cost for small businesses.

Problems Solved by ShipBob

Many ShipBob reviews rate it as a rising star in the fulfillment sector. This company’s goal is to provide small businesses top rate fulfillment services at competitive rates. Its main advantages are negligible startup costs, quick onboarding, and low fulfillment rates. The vendor offers standard fulfillment via nationwide warehouses. This means its clients can stock up the required amount of inventory and ship in batches as required.

ShipBob’s also provides a niche for crowdfunding fulfillment services as it gives these projects a low-cost   way to ship large numbers of pre-orders and backer rewards simultaneously.

Origin of ShipBob

ShipBob’s co-founders Divey Gulati and Dhruv Saxena were initially operating an online store and to ship the products ordered online they used to visit the post office every day. There, they saw a large number of people doing the same task. This gave them the idea to launch an order fulfillment service.

Both Gulati and Saxena are software engineers and they started by developing the logistics aspects of the business. They initially launched in Chicago and then expanded to several other major metro hubs.

How It Works

Merchants connect their online store and/or marketplace to ShipBob’s software and send their inventory to a ShipBob fulfillment center. Then ShipBob picks, packs, and ships the product.

To automate the shipping process, ShipBob’s software platform integrates seamlessly with Shopify, Big Commerce, Magento, Amazon, Walmart, eBay, Backerit, ShipStation, WooCommerce, and many more.

ShipBob’s Unique Value Proposition

ShipBob hopes to capitalize on the drawback that small merchants face when they opt to sell on Amazon. Consumers on Amazon look for the lowest price and they don’t know anything about the individual merchants that sell on the site.

ShipBob lets merchants use their own custom branded boxes to ensure their customers have a unique unboxing experience. Thus, ShipBob is democratizing order fulfillment services by giving sellers high-quality logistics capabilities on their own website. In this way, the vendor tries to help small eCommerce stores build their brand name.

ShipBob Pricing

ShipBob reviews reveal that the company tries to keep rates as low as possible. There are only three charges: receiving inventory, warehousing, and shipping. There are no “per unit” or “pick and pack” fees.

ShipBob also offers standard packaging material free of cost. Also, merchants do not need to worry about long-term contracts as all of ShipBob’s services are provided on-demand.

ShipBob offers affordable pricing as it compares rates among top carriers like USPS, UPS, FedEx, and DHL, and negotiates volume discounts with them to find customers the best and cheapest shipping options. On top of that, merchants can distribute their inventory among the provider’s fulfillment centers for additional cost savings and quicker delivery times. Simple storage costs are based on product size, volume, and SKU count.

Features of ShipBob

Now, let’s take a look at the unique features of ShipBob that make its services stand out in the order fulfillment industry:

  1. There are no pick and pack fees: Most fulfillment providers charge pick and pack fees that can amount up to $3 per order. However, ShipBob drops this charge altogether. All you need to pay is a $5/month storage charge per bin (typically 1 bin per SKU, or unique item), or $40/month per pallet if your inventory is large, plus package shipping fees.
  2. Flat rate receiving: Another unique pricing element is ShipBob charges a flat-rate rate of $35 per delivery instead of charging per pallet or other unit received. This empowers retailers to consolidate deliveries and lower fulfillment expenses significantly.
  3. Batch fulfillment: Batch projects are the best option for shipping bulk orders such as marketing promotions, product launches, and backer rewards for crowdfunding campaigns. ShipBob, receives, packages, and ships the products in a single batch. On top of that, it doesn’t charge any storage or onboarding fees – you simply pay for receiving and the cost of fulfillment (no warehousing).
  4. Integrations: As mentioned earlier, ShipBob’s platform integrates smoothly with your existing software systems to improve efficiency and productivity. Plus, you can connect the solution with popular eCommerce marketplaces and platforms.
  5. Same-day fulfillment: The vendor ships as soon as orders are received.
  6. Advanced analytics: Empowers you to make smart data-driven business decisions.
  7. In-house fulfillment: You can get products delivered faster to your customers from the provider’s strategically located warehouses. In addition, you can use your custom packaging to showcase your unique brand. ShipBob offers domestic and international ground, expedited, and overnight shipping.
  8. Order Management: You can check the status of orders and make updates to existing orders.
  9. Inventory Management: Easily view/add products, send/check inventory, and merge products.
  10. Returns Management: Quickly check the status of returns and create return shipping labels.
  11. In-depth reporting: You can review detailed reports of orders, shipping, split inventory, and sales performance.

Plans for the Future

ShipBob’s stated goal is to expand to bigger metro areas. In the long run, the provider plans to establish an Amazon-like distribution network across the US to bring products closer to both merchants and end consumers. This will enable the vendor to reach customers more quickly and save sellers the cost of expensive overnight shipping charges.

Currently, ShipBob boasts more than 1,600 small business clients, some of which utilize the software only for management purposes. This vendor has grown from serving mom and pop businesses to a stage where today its median-sized customer ships an average of 100 orders each month.

Conclusion

As this review shows, hiring a competent third-party order fulfillment services like ShipBob can help small business retailers and online stores to save the energy and time they spend stocking items, packing boxes, and shipping orders. They can redirect their resources to focus on marketing and other important areas to expand profitably.

In short, we recommend ShipBob as an ideal order fulfillment service for businesses that have fast product turnover as well as those that need to outsource batch fulfillment from a successful crowdfunding campaign.

Category: B2B News

One Comment »

  • Avatar Diana says:

    Hi,
    Are the returns free? or they charge the same cost as the shipping price?
    Thanks!

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