ShipBob is a popular choice for e-commerce businesses that are seeking to outsource fulfillment operations. It offers a range of services, including order fulfillment, inventory management, and scalability, freeing up resources for core business and meeting customer expectations for fast shipping.
With all these wonderful services offered by ShipBob, the question still remains, ShipBob fulfillment for online store: worth it or not?
LET’S CUT TO THE CHASE!
CHOOSE IT IF
- You have order fulfillment challenges: ShipBob helps simplifies order fulfillment, reduces costs, offers faster shipping times, and streamlines returns management, thereby addressing issues such as overwhelming order volumes, costly in-house fulfillment, and slow returns processes.
- You value business growth goals: ShipBob offers a scalable solution suitable for growing businesses seeking to focus on core activities, expand to new markets, and reach customers in various locations.
- You value quality customer service: ShipBob is known for providing exceptional customer service with a dedicated account manager, which is a significant advantage for businesses that prioritize customer satisfaction.
- You need customization: ShipBob offers a range of customization options, including custom packaging and branded shipping, which can enhance businesses’ ability to provide a personalized customer experience.
- You need immediate shipping: ShipBob offers a 2-day shipping service across the continental US, allowing for a comprehensive reach. Its strategic US fulfillment centres enable businesses to provide faster shipping times to their customers.
- You need a user-friendly interface: ShipBob’s user-friendly dashboard simplifies worldwide fulfillment management, making it accessible to both new and experienced users.
- You want seamless integrations: ShipBob’s app marketplace enables seamless integration of e-commerce software.
>>> MORE : Spocket Dropshipping Review
DON'T CHOOSE IF
- You have a small business profile: Small businesses with low order volume, specialized products, small profit margins, and the need for complete control over operations might not benefit from it.
- You are on a tight budget: ShipBob’s pricing can be higher than some other fulfillment providers. This could potentially pose a disadvantage for businesses that are cost-conscious and operating on a tight budget.
- You sell heavy or bulky goods: Shipbob’s pricing structure may negatively affect profit margins for businesses selling heavy or bulky goods because it is based on size and weight.
THE BOTTOM LINE
ShipBob is a valuable choice for optimizing your fulfillment process, enhancing customer satisfaction, and freeing up time for online store growth.
NOW, LET’S DETAIL THINGS FOR YOU
ShipBob’s exact pricing model is not displayed publicly, as it’s tailored to each individual business based on factors like order volume, product dimensions and weight, shipping carriers and services, inventory levels, and additional services like knitting and returns. To get a precise quote, businesses need to contact ShipBob directly and provide specific details.
WHAT’S THE CATCH WITH SHIPBOB FULFILLMENT?
ShipBob is a reputable fulfillment provider, and it provides the same features to all customers since there’s no tiered pricing structure.
As previously stated, the best way to get an accurate estimate of ShipBob’s pricing is to request a quote directly from them. This can be done via their website or by contacting their sales team.
However, you can expect to pay for the following offers:
- Storage fees: ShipBob charges storage fees, which are determined by the size of the space your inventory occupies in their fulfillment centres.
- Shipping costs: These are calculated by negotiating rates with carriers, which may include additional fees like fuel surcharges. However, they could be a discount on your fees based on the size, weight, and destination of your goods.
- Picking and packing fees: These are charges for retrieving each additional item from storage and preparing it for shipment.
- Inbound shipping fees: These are the costs associated with receiving and processing your inventory.
- Additional fees: ShipBob may charge additional fees for services like custom packaging, kitting, and return processing.
- Receiving fees: These are essential for a smooth operation, ensuring proper inventory counts, processing, and storage. Faulty receipts can result in miscounts, shrinkage, and damaged goods, necessitating a trusted 3PL with accurate hourly rates. The cost of receiving is calculated on a per-customer basis, an hourly rate paid to warehouse workers to receive your products.
The truth about ShipBob’s pricing is that it provides custom pricing with no hidden fees, depending on your exact warehouse, handling, and shipping requirements. Just keep in mind that the above-listed factors are used in calculating your pricing.
WHAT YOU NEED TO KNOW.
Know that ShipBob doesn’t typically offer public discounts or promo codes. Their pricing strategy is based on a customized approach, taking into account your specific business needs, order volume, and product characteristics.
However, there are a few ways to potentially cut your costs: negotiate rates, optimize operations, and explore additional services like bundle services.
Leveraging your business size, particularly if you have a large order volume, can increase your chances of negotiating a better rate.
WHAT ARE SHIPBOB FULFILLMENT’S COMPETITORS OFFERING?
ShipBob has a strong presence in the fulfillment market but has several competitors in the market.
Here are a few competitors that offer similar services with varying strengths and focuses:
ShipBob vs. ShipCalm
ShipCalm is an e-commerce fulfillment and logistics provider offering core services such as warehouse and fulfillment, multiple sales channels, marketplace logistics, and business services. It focusses on streamlining processes, optimizing costs, ensuring scalability, and delivering exceptional customer experiences, allowing entrepreneurs to focus on core business, such as product development and marketing.
ShipBob vs. ShipMonk
ShipMonk is a tech-driven e-commerce fulfillment company offering powerful 3PL software, scalable services, and customer-focused services. However, it has potential drawbacks, such as pricing transparency and a smaller warehouse network compared to ShipBob’s larger network, which includes partner warehouses.
ShipBob vs. ShipHero
ShipHero is a robust fulfillment solution that focusses on technology-driven fulfillment solutions. It is known for its warehouse management system (WMS), offering real-time inventory tracking, order management, and efficient picking and packing processes. It’s scalable, integrates with multiple carriers, and provides data analytics for warehouse performance improvement.
ShipHero, in comparison to ShipBob, has its own warehouses for quality control.
ShipBob vs. Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) is a service that allows third-party sellers to outsource their order fulfillment and shipping to Amazon, allowing them to focus on product development, marketing, and customer acquisition.
FBA works by sending products to Amazon’s fulfillment centres, handling inventory storage, and handling orders.
Its benefits include prime eligibility, increased sales, fulfillment expertise, customer satisfaction, and more time to product development and marketing.
ShipBob vs. Deliverr
Deliverr is a fast, affordable fulfillment service for e-commerce businesses, offering two-day shipping on large scales just like ShipBob. It offers competitive pricing, operates in multiple US centres, and seamlessly integrates with popular platforms.
>>> PRO TIPS : How To Make Money On YouTube
WHAT AFFECTS SHIPBOB FULFILLMENT’S PRICES?
ShipBob’s pricing is customized for each business and it can vary depending on a range of factors, including:
- Product-related factors: Larger and heavier weight items, fragility, and type can all have an impact on storage and shipping prices, as they require special handling.
- Fulfillment center factors: The location of the fulfillment centre and its proximity to customers and suppliers can affect pricing. Also, storage space requirements and peak season demand all have an impact on shipping costs, storage fees, and overall business operations.
- Shipping-related factors: The shipping methods your business uses can affect the pricing, as different carriers and services offer varying rates and speeds. Longer distances generally result in higher shipping costs.
- Order volume: The volume of orders, order frequency, and order size and weight can influence pricing. The order’s consistency can also have an impact on pricing.
WHAT AFFECTS PRICES IN THE INDUSTRY OVERALL?
The fulfillment industry is influenced by a variety of factors that impact pricing. These range of factors can be:
- Economic conditions: These are characterized by inflation, where the rising costs of goods and services impact overall expenses, and recession, where decreased consumer spending may lead to price adjustments.
- Customer demand: Peak seasons and market trends can influence pricing strategies, with increased demand resulting in higher prices.
- Competition: Competitive pressures in the e-commerce fulfillment market and industry trends can influence pricing strategies, necessitating adjustments to stay competitive in the market.
- Supply chain disruptions: They are aggravated by material shortages due to increased costs of raw materials and packaging and transportation challenges due to fuel prices and capacity constraints.
- Operational costs: These include labor, warehouse space, technology investment, and packaging materials, as well as wages, benefits, overtime, rent, utilities, maintenance, and automation. These factors are major factors in the overall cost of fulfillment, as businesses need to pay for the warehouse space and the workers that help out during the fulfillment process.
>>> GET SMARTER : E-commerce Product Descriptions: All You Need to Know
HOW TO GET THE BEST DEAL WITH SHIPBOB FULFILLMENT?
Getting the best deal with ShipBob involves a combination of some of these tips to help you get the best deal:
- Understand ShipBob’s pricing structure: This can be achieved by understanding and knowing costs you’ll be paying for, such as storage, picking, packing, and shipping fees. Also, calculate your order volume, product dimensions, and weight, as higher volumes often lead to better rates. Based on the particular demands and requirements of your business, ShipBob’s pricing calculator on its website can help you project the cost of fulfilment.
- Optimize operations: You can optimize operations by minimizing package size to reduce shipping cost, shipping large quantities at once, and leveraging peak season to reduce shipping costs and avoid storage fees.
- Negotiate: To negotiate effectively, showcase your business value and large volume of orders to get a better deal with ShipBob.
- Request a detailed quote: This is done by clearly outlining your business needs and getting a quote from ShipBob.
CAN YOU AFFORD SHIPBOB FULFILLMENT’S PRICES?
ShipBob is a great fulfillment platform that offers features, including inventory management, shipping optimization, and more.
Although ShipBob doesn’t necessarily post prices on its website, you can determine that its fulfillment is cost-effective by considering factors like order volume, profitability, growth plans, labour costs, warehouse space, inventory management, and shipping costs.
Make an informed decision by calculating current costs, request a quote from ShipBob, compare costs and benefits, and consider long-term implications.
FINALLY: IS SHIPBOB FULFILLMENT A WASTE OF TIME OR NOT?
ShipBob is a reputable fulfillment that is a viable investment for businesses with high order volume, a focus on growth, fast shipping needs, and complex fulfillment needs.
ShipBob’s effectiveness depends on your specific needs and circumstances; if you require comprehensive services and can afford it, then ShipBob is a suitable fit.
