Best 3PL Fulfillment Companies to Manage Logistics of eCommerce Sellers in 2024

eCommerce in India is booming and correspondingly, so is the 3PL fulfillment industry. Different agencies have shown that the demand for third-party logistics companies is bound to grow steadily. Technavio, a UK-based research firm, has predicted the industry to grow at a CAGR of 8% and by $10.74 Billion between 2021 – 2025. Similarly, Mordor Intelligence has predicted a CAGR of 11% for a similar period. This growth is fuelled by sectors such as eCommerce, FMCG, manufacturing, and retail. 

Yet, not many sellers are aware of the advantages, features, and services of 3PL fulfillment companies. So here are a few points to help sellers get a better understanding of this industry and how a symbiotic relationship can be established between eCommerce and 3PL fulfillment companies. 

Different types of Logistics Solutions

1PL	2PL	3PL	4PL
A 1PL first-party logistics provider is a business or individual who requires cargo, freight, goods, or products to be moved from one location to another.	A 2PL is an asset-based carrier that is in charge of the mode of transportation.	Third-party logistics refers to the outsourcing of supply chain operations and logistics in order to deliver a company’s products to its customers.	A 4PL provider is a supply chain integrator who handles all areas of the supply chain.
There are just two parties involved in first-party logistics.	Shipping lines that run ships, airlines that operate flights, and haulage businesses that operate trucks are examples of 2PLs.	3PLs provide logistical solutions such as receiving, storing, packaging, and shipping.	A 4PL may contain components of IT, procurement, and finance in addition to physical logistics.
There are two parties: the producer or distributor who ships the products (you) and the retailer or client who receives the goods (your customer).	A 2PL is typically referred to as a forwarder because its primary business is transportation.	Other logistical services, known as value-added services, are provided by some 3PL businesses.	The distinctions between a 3PL and a 4PL may appear little, but for a firm looking for the proper match of services and support for their expanding organisation, the difference might be significant.
There are no additional intermediaries throughout the entire process.	For example, it may be an airline that also provides freight services to carry items from you to your consumer.	Inventory management, kitting and assembly, postponed packing, and other services fall into this category.	4PL may offer a higher-level data analysis to assist you in making long-term business decisions.

1. When you utilise 3PL, you save money since the 3PL business achieves favourable prices when it pools orders together due to the enormous volume of freight.
2. Furthermore, you must figure out how to convey your items to their destination via various modes of transportation. 
3. When you take on this task, it might be difficult to get all of the moving pieces to cooperate. 
4. A 3PL provider handles all of this for you, consolidating shipments and passing the savings on to you.
5. Examine where you are spending money on labour to see if your present arrangement is the most effective. This can account for a significant portion of the logistical cost. 
6. A 3PL partner has firsthand knowledge of the most cost-effective ways to distribute items. They make it their business as specialist logistics providers to manage expenses in ways that you may not be aware of or capable of doing yourself. 
7. There is a continuing commitment to improving procedures that will make shipping more efficient.

What are Third Party Logistics or 3PL Fulfillment Companies?

3PL Fulfillment Companies are the companies to whom the entire order fulfillment cycle can be outsourced when the online seller wants to move away from self-fulfillment or doesn’t want to manage the operations in-house. These third-party logistics fulfillment companies provide eCommerce logistics, inventory management, warehouse management, packaging services, and other aspects of the fulfillment cycle for either a specific portion or the entire supply chain operation.

This helps sellers maintain an asset-light and non-capital-intensive business model, thus increasing their liquid capital and allowing the seller to focus on improving their business while the 3PL fulfillment companies improve the supply chain efficiency.

Which are the Top Third-Party Fulfillment Companies?

India is booming with all the third party fulfillment companies on offer, all competing to be the most prized and trusted by sellers and end customers alike. With a booming eCommerce sector and, subsequently, the 3PL fulfillment sector, there are many competitors. But here are 7 of the top 3PL fulfillment companies for small/medium businesses or large businesses.

Each company has been mentioned along with some of its services or features which act as a differentiating factor against the other players.

WareIQ

Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce 3PL fulfillment tech solutions for some of the most reputed brands in India. WareIQ offers a full-stack platform for 3PL logistics companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. 

WareIQ as a 3PL company has empowered brands to sell more, sell faster & sell everywhere due to:

• Access to WareIQ’s strong nationwide network of fulfillment centers & urban dark stores near their customers
• Access to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possible
• Easy integration across multiple online platforms & marketplaces
  • Horizontal marketplaces: Flipkart, Amazon, etc.
  • Vertical marketplaces: Nykaa, Myntra, etc.
  • D2C platforms: Shopify, Magento, WooCommerce, etc.
  • Social commerce platforms: Bikayi
• Access to a superior centralised tech platform for eCommerce operations
  • ML-based prediction engine for efficient warehouse network design & smart inventory placement
  • Centralised platform for core fulfillment & shipping operations
  • Post-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform)

WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”.

With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing, and data-driven decision making.

WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI.

300+ brands, such as The Man Company, Future Group, Kama Ayurveda, and Wingreens Farms, have trusted WareIQ as reliable partners in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as next day delivery and same day delivery. The onboarding process is simple, convenient, and less time-consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers.

Suggested Read: Check out the list of best Warehousing Companies.

Delhivery Third Party Fulfillment

Company Name	Delhivery
Founded	May, 2011
Founder/s	Sahil Barua, Kapil Bharati, Suraj Saharan, Mohit Tandon, Bhavesh Manglani
Headquarters	India
Services	Delivery, Express mail, third-party logistics

Delhivery, since its inception, has successfully fulfilled over 1 billion orders across India. Their aim is to build an efficient operations model for business, through a combination of world-class infrastructure, cutting-edge engineering, and technology capabilities, and logistics operations of the highest quality.

• It is one of India’s largest and most popular 3PL logistics and fulfillment companies that is also homegrown. 
• It offers end-to-end fulfillment solutions.
• It serves over 17,000 pin codes and 175 cities.
• It offers features such as sending tracking details to customers through SMS.
• It provides same-day/next-day delivery options.
• It provides multiple payment options at the time of delivery.

Blue Dart Logistics

Company Name	Blue Dart
Founded	November 1983
Founder/s	Tushar JaniClyde CooperKhushroo Dubash
Headquarters	Mumbai, Maharashtra, India
Services	DeliveryExpress mailFreight forwardingThird-party logistics

Blue Dart is a prominent transportation and distribution company that utilises air as its primary source of transport, in South Asia. It offers delivery and logistics services to 35,000 plus locations in India. A part of the DPDHL Group (DHL Express, DHL Global Forwarding & DHL Supply Chain), Blue Dart has access to the largest global logistics network that includes more than 220 countries and offers a wide range of facilities, such as air express, freight forwarding, supply chain solutions, and customs clearance.

• It has an unparalleled logistical network spanning over 220 countries and is one of the largest third-party fulfillment companies in the world.
• It caters to 35000 locations within India with a forward and returns logistical network.
• It has experience and expertise in regulatory and customs operations.
• It has a net service level of 99.96%.

Ekart Logistics & Third Party Fulfillment Company

Company Name	ekart
Founded	2009
Founder/s	Flipkart
Headquarters	Bengaluru
Services	Delivery, express mail, third-party logistics

Ekart Logistics is one of India’s premier 3PL logistics companies. Commencing operations in 2009 as Flipkart’s in-house supply chain subsidiary, Ekart became a household name when it came to metrics such as customer experience, punctual delivery, and management processes. They offer complete end-to-end fulfillment services.

• It was originally created to handle Flipkart’s fulfillment but now caters to many other sellers.
• It is one of the more popular 3PL fulfillment companies in India because of its low rates and express delivery options.
• It has same-day delivery available in 13 cities and next-day delivery available in 50 cities across India.
• It provides end-to-end fulfillment solutions.
• It provides real-time data for sellers to ensure their service level promises are being adhered to.

Shadowfax We Deliver

Company Name	Shadowfax Technologies Ltd.
Founded	2015
Founder/s	Abhishek Bansal, Praharsh Chandra, Vaibhav Khandelwal, Gaurav Jaithliya
Headquarters	Bengaluru
Services	Courier

Shadowfax was founded in Bangalore in 2015 and offers delivery and fulfillment services that are centered around a technology-based platform and hyperlocal delivery. The company has emerged as India’s largest hyperlocal delivery service and offers on-demand hyperlocal delivery services with analytical platforms to track the entire process.

• It serves over 7000 pin codes and 500+ cities.
• It provides marketplace and warehouse pickups.
• It offers low-cost hyperlocal delivery.
• It provides express contactless delivery with multiple doorstep payment options.

Mahindra Logistics Ltd

Company Name	Mahindra Logistics
Founded	2000
Founder/s	J C MahindraK C Mahindra
Headquarters	Mumbai, Maharashtra, India
Services	Automotive, Engineering, Consumer Goods, Pharmaceuticals, Telecom, Commodities, and E-commerce.

Mahindra Logistics Limited is a branch of Mahindra, a name that most people will be familiar with as a major player in the automotive industry. A logistics and distribution company that has a significant presence across India, its primary offerings include technology-focused logistics solutions and distribution facilities, especially in rural areas.

• It is part of a reputed conglomerate company.
• It has India’s largest warehousing facility at a single location.
• It serves over 400 clients.
• It focuses on sustainability and, thus, has introduced Electronic Vehicles in its last-mile delivery.

XpressBees 3PL Fulfillment Company

Company Name	Xpressbees
Founded	September 2015
Founder/s	Amitava Saha, Supam Maheshwari
Headquarters	Pune, Maharashtra
Services	B2b, B2c, Cross-border logistics, 3PL

XpressBees 3PL Logistics Company was formed in 2015 in Pune, Maharashtra. They have emerged as one of India’s most rapidly growing companies in the logistics service sector. They offer end-to-end supply and distribution services.

• It caters to the end-to-end fulfillment needs of sellers.
• It covers 13000+ pin codes, 100+ hubs, and service centers.
• They are seasoned professionals, providing tech-based solutions.
• It has state-of-the-art logistics centers spread across the country.
• It provides 3PL fulfillment for products ranging from chemicals to heavy items like machinery.

3PL Logistics: Services, Benefits, and Reliable Partners in India

Warehousing, inventory management, shipping, receiving, FTL and LTL freight, picking and packing, kitting, and reverse logistics (returns) are all examples of 3PL logistics services. 

• Your third-party logistics provider is a business partner, and you must be able to rely on them to offer high-quality and dependable fulfilment. 
• It is critical to the success of your company. 
• Fulfilment warehouses are volume shippers with lower shipping rates with major carriers, thus your 3PL logistics partner may be able to save you money on shipping. 
• If you are looking for the top 3PL firms in India to outsource your services to, you must choose one that is trustworthy. 
• Many state and federal duties are known to 3PL firms in India, and they must conform to rules that might be tough to work with on a regular basis. 
• If you’re not sure where to start your search, this list of 3PL firms in India will help. 

What are the Typical Offerings of 3PL Fulfillment Companies?

Third-party fulfillment companies strive toward offering an end-to-end solution to eCommerce companies, and all 3PL companies provide the following services:

• Inventory management
• Logistics solutions (First mile to last-mile delivery)
• Warehouse management
• Freight forwarding
• Financial solutions for freight forwarding such as letters of credit

Four Types of 3PL

Standard 3PL Provider: A 3PL system that allows you to select and pack items while also providing warehousing and logistics services. 

3PL Service Developer: A 3PL service developer provides IT infrastructure and administration in addition to the services provided by a normal 3PL provider, allowing you to track and trace items throughout the system. You can also benefit from unique packaging selection for your goods, and cross-docking allows for more effective logistics management. 

3PL Customer Adapter: This 3PL offers the infrastructure, management, and technology required to handle all areas of warehousing and logistics. 3PL Customer Developer: This is the most comprehensive 3PL solution, and it integrates with your logistics management system directly. All warehousing and logistics activities will be

3PL Fulfillment Cost Components

1. Costs associated with establishing 3PL fulfilment services and technology. Receiving and storing inbound inventory. Different 3PLs charge differently for receiving, such as per unit, per-pallet, flat charges, or per hour.
2. You will be charged for storage space if you keep your merchandise in a 3PL’s fulfilment centre. Fees for third-party warehousing can range from per-SKU or per-unit storage to a flat price for each bin, shelf, or pallet utilised.
3. Some 3PLs charge per pick, which means you pay a cost for each item in an order. Other 3PLs, such as ShipBob, do not impose pick and pack costs for orders with fewer than a specific number of goods.
4. Packing materials such as boxes and air fill may be charged separately by certain 3PLs, while others include them as part of their fulfilment services.
5. Kitting and assembly are any special arrangements for how products are organised or packaged before transportation. Kitting rates might vary because this service is tailored to each customer.
6. The fee charged by a 3PL to ship an order from their fulfilment centre to your customer’s door. shipment expenses are determined by a number of elements, including shipment speed, shipping zones, and dimensional weight.

Why is Logistics a Headache for eCommerce Players in India?

India, a country with diverse geographical features, cultural practices, and infrastructural progress, is bound to present logistical challenges to eCommerce players.

Some of the predominant issues being faced are:

Reliance on roads for freight transport

With transportation by roads being the preferred means of freight movement for eCommerce players, two dominant issues, as highlighted by a report issued by the consulting firm McKinsey and the Indian Institute of Logistics, are: 

• India’s over-strained highways
• Acute shortage of drivers

Lack of internet connectivity and digitization

With low internet penetration, stages of the logistical segment remain constrained, due to the lack of technological infrastructure in certain areas. The sellers do not have access to adequate transportation facilities.

With some of the older players in the industry being slow to digitalise, stages of the logistical network undergo significant delays as there is an information delay between the transportation service and the reseller.

Safety concerns

Deteriorated law and order situations in some regions of the country lead to pilferage, theft, or even hijacking of the cargo, leading to additional expenses and loss of inventory and time. 

Pay-On-Delivery is the primary method of payment

With “Cash-on-Delivery” (COD) being the end customer’s most preferred means of payment, additional time is spent on cash collection and handling by the last-mile delivery personnel.

A high number of returns

Though this is a global trend, the eCommerce players in India consistently witness a higher number of returns. This causes the logistical players to ensure a reverse logistical flow at no additional cost to the end customer.

Inconsistency in postal codes and incorrect delivery locations

Despite being one of the largest postal systems in the world, there can be issues with the postal code of the end-user, leading to the last-mile delivery personnel having to call and confirm with the end customer.

Many infrequent or first-time eCommerce users tend to make errors in inputting their addresses, leading to subsequent issues.

How can 3PL Fulfillment Companies Help with Logistics Management for eCommerce Businesses?

A seller might have the product of the century and it might be the next big revolution in the tech sector. But the harsh reality is that it would all be worthless if the seller is unable to deliver the product to the customer’s doorstep without incurring significant costs.

This is where 3PL fulfillment companies step in to cater to the following essential needs of the seller, which are:

Being cost-effective

By simply using Economies of Scale, 3PL fulfillment companies handle multiple sellers and, thus, manage to distribute the costs of transportation among many parties. This allows the individual seller to incur significantly lower costs. The seller can also maintain an asset-light model without investing capital in infrastructures such as warehouses and trucks.

You May Like: Know About Types of Warehouses.

Offering greater coverage

Third-party fulfillment companies have established logistical networks to provide services to sellers. An individual seller may not be able to deliver a product to a customer in some location, but with established resources of 3rd party fulfillment companies, such as existing warehouses and supply chains, these companies can not only fulfill the seller’s needs but also a strategic location.

Offering faster delivery time

In this era of same day / next day delivery needs, 3PL fulfillment companies, with their warehouse network, trained staff, and advanced technology, meet the service levels promised by sellers and can help smaller sellers compete with their competitors who may be the bigger players in the industry.

Taking advantage of scalability

Demand undergoes a cyclic trend, and this trend varies weekly and monthly. Thus, to provide a cost-effective way for sellers to meet the varying need of customers during the entire year, third party fulfillment companies provide sellers with flexibility and scalability to handle the variation in demand. 

Thus, 3PL eCommerce fulfillment companies can help eCommerce sellers by offering a better consumer satisfaction level, overall. Customers receive their orders on time or faster, irrespective of their geographical location, and without additional shipping charges; all of these factors lead to a heightened level of customer satisfaction.

Small Business Scaling and the Role of 3rd Party Fulfillment

Small businesses have had the opportunity to grow throughout this period, but order fulfilment is an essential component of company success. It may be perplexing for individuals just starting out or when small business logistics services are required. In the logistics industry, automation is in great demand as a solution to complicated supply chains and labour restrictions. According to ARC Advisory Group’s latest survey, 79% of respondents claimed they were “likely” or “very likely” to invest in automation in the next 1-3 years. Now, small company logistics providers are attempting to implement a number of automation solutions, such as automated picking systems and robotic forklifts.

How to Select the Right 3PL Fulfillment Company for Your eCommerce Business?

Probably one of the most important decisions a seller will have to take is to decide which third party fulfillment company to choose for their products. To help such sellers out, here are some questions they must ask. This shall aid them in choosing the best 3PL fulfillment company for their requirements.

• How technologically sophisticated are 3rd party fulfillment companies?
  • The world is advancing rapidly and so is the logistics sector. In this era of live tracking and same day / next day delivery, a seller needs a third party fulfillment company that can keep a seller informed and ahead of their competition.
• Can the 3PL fulfillment company match your growth?
  • If an innovative product does not manage to reach its target customer sitting halfway across the country, or the reach is slower, and a competitor picks up on the idea and launches a similar product with a broader and faster reach, it will be game over for the seller.
• Is the third-party fulfillment company financially strong?
  • In an asset-heavy industry such as the logistics sector, it is vital for any seller to ensure their 3PL fulfillment company is financially strong, especially during unaccounted disruptions and emergencies.
• How deep is the third party fulfillment company’s talent & How well are they ready for adverse situations?
  • It is crucial to understand the depth of the third-party fulfillment company’s experience pool because it shows how well they understand the industry and how good their contingency measures are.

3rd Party Fulfillment and the Competitive Edge

To provide services to sellers, third-party logistics fulfilment businesses have created logistical networks. An individual seller may be unable to deliver a product to a consumer in some locations, but with established resources such as existing warehouses and supply chains, 3rd party logistics fulfilment firms may not only serve the seller’s demands but also a strategic location. 

1. The world is changing quickly, and so is the logistics industry. 
2. In this day and age of real-time tracking and same-day / next-day delivery, a seller requires a third-party logistics fulfilment service that can keep them informed and ahead of their competitors.
3. With all of the third-party fulfilment providers available in India, they are trying to be the most valuable and trusted by sellers and end consumers equally. 
4. There are several rivals in the developing eCommerce market and, as a result, the 3PL fulfilment sector. 
5. However, here are 7 of the best 3PL fulfilment firms for small/medium/large organisations. Despite the fact that there are several participants in the market, many of which have been recognised by sellers and the general public for many decades, there are still a few myths. 
6. MNCs, on the other hand, have recognised the cost-effectiveness of third-party fulfilment firms. 
7. They do have small and medium-sized enterprises that previously thought third-party fulfilment providers were prohibitively expensive.
8. WareIQ offers full-stack eCommerce 3PL fulfilment services to some of India’s most well-known businesses. 
9. WareIQ provides a full-stack platform for 3PL logistics firms to enable same-day and next-day delivery to clients, similar to Amazon Prime but accessible to everyone.
10. Companies that provide 3pl fulfilment services leverage economies of scale to spread expenses over a large number of vendors, easing the financial load on the sellers. 
11. They lower the recurrent costs and capital expenditures that the seller would have to invest in otherwise.

Common Misconceptions Regarding 3PL Fulfillment Companies

Despite there being multiple players in the market and many of them known to sellers and the general public alike for many decades, there are still a few misconceptions that exist regarding third party fulfillment companies. Here, we shall address them so as to clear them out and leave no room for doubt in the minds of sellers.

• 3PL fulfillment companies are expensive to outsource to
  • Third-party fulfillment companies use economies of scale to even out the costs among the many sellers and, thus, help to reduce the financial burden from the sellers’ shoulders. They reduce the recurring costs and capital expenditures that the seller would otherwise have to invest in.
• 3PL fulfillment companies are not for SMEs but MNCs
  • On the contrary, MNCs have realised the cost-effectiveness of third party fulfillment companies. They do have small and medium-sized businesses that previously assumed third-party fulfillment companies to be too costly.
• 3PL companies only handle bulk volume orders
  • Many third fulfillment companies do not have a minimum order quantity because they club orders of different sellers who reside in a specific location and, thus, manage to reduce the logistics costs.
• 3PL fulfillment companies take away control from the seller
  • Third party fulfillment companies are extremely tech and data-driven, thus, providing numerous reports that provide sellers with better insights and knowledge. This gives the sellers more control over their products as they can understand where and how much their product is selling.

WareIQ’s Flagship 3PL Services in India

WareIQ is one of the leading 3PL logistics businesses in India, offering a wide range of eCommerce services. We have a bespoke warehouse management system (WMS) that gives real-time information and the flexibility to automate a variety of operations. The finest 3PL logistics businesses in India provide returns management and comprehensive reverse logistics implementation, as well as specific customs-clearing capabilities for overseas shipments.

The best 3pl ecommerce fulfilment services in India ensure that products reach their desired destination on time, thanks to their massive infrastructure, which includes not only warehouses and established logistics networks, but also the most up-to-date software platforms.

Conclusion

The product is the seller’s pride and joy and every seller wants that their hard work, investment, and ambitions, which take the shape of the product they are selling, reach the end customer as promised. So be it an FMCG, MNC, or someone who is working out of their flat, the requirement is the same and that is where 3PL fulfillment companies provide a common platform where every seller stands to gain by being part of a larger ecosystem.

With the above points that highlight the features and also the common misconceptions about 3PL fulfillment companies, sellers can now make a more informed decision about their choice of a third party fulfillment company that will help the seller climb the ladder of success. We hope you found this article interesting. We recommend using WareIQ for all your third party fulfillment requirements.

WareIQ is a category-defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & eCommerce shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next-day delivery.

We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs! 

WareIQ, a Leading 3PL fulfillment company in India offers centralised tech platform for your entire eCommerce operations

• ML-based prediction engine for efficient warehouse network design & smart inventory placement
• Centralized platform for core fulfillment & shipping operations
• Post-shipping apps for a delightful experience & zero to minimum supply chain leakages

Suggested Read: Top 10 Cold Storage Companies for Sellers in India That Deal in Warehousing of Perishable and Delicate Goods in 2024

3PL Fulfillment Companies FAQs (Frequently Asked Questions)

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