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Finding the Best Cosmetics 3PL Companies for Your Ecommerce Business
by Rin Mosher on Sep. 4, 2024
Forget great branding and secret formulas – success as an ecommerce cosmetics business relies heavily on efficient logistics. It calls for not just speed but also order accuracy, reliable delivery dates, and well-packaged products. For many businesses, a third-party logistics (3PL) provider is the most cost-effective way of meeting consumers’ increasing expectations of timely and affordable online shopping experiences. This article zooms in on service offerings, responsibilities, and standards so you’re prepared to choose the best cosmetics 3PL for your company.
What Does a Cosmetics 3PL Do?
3PL refers to the outsourcing of logistics operations to a third-party provider. In the cosmetics industry, a 3PL provider takes charge of warehousing, inventory management, order fulfillment, shipping, and returns management. Cosmetics companies outsource these tasks to focus on core tasks they’re better equipped to do well, such as product development and marketing.
Why Your Choice of a Cosmetics 3PL Matters
The value of working with a 3PL lies in the external service provider’s ability to sustainably lighten logistical loads while maintaining a high level of performance. These companies focus on warehousing and fulfillment day in and day out. As such, they have extensive expertise in and infrastructure for both jobs. Where the average cosmetics business would need to start building its logistics system from scratch, 3PLs already operate on an incredibly sophisticated level. Partnership allows companies of all sizes to tap into pre-existing networks of fulfillment centers, well-trained teams of staff, and advanced warehouse management systems.
Outsourcing proves itself particularly valuable in competitive markets like cosmetics. With new products constantly being introduced, businesses need to ensure that their offerings reach the market quickly and efficiently. A 3PL’s streamlined distribution process mitigates the chances of delays and allows companies to capitalize on dynamic buzz and demand as it changes in real time. Fast order fulfillment can be a differentiating factor for retailers with similar product offerings as well. When customers receive their orders in a timely manner, they are more likely to have a positive experience and become repeat buyers.
Core Services Offered By Top 3PL Providers for Cosmetics
Selecting a 3PL for your cosmetics ecommerce business starts with understanding the range of services they offer. The best providers go beyond basic storage and fulfillment, offering comprehensive solutions tailored to the cosmetics industry. In the sections below, we cover everything worth prioritizing in your search.
Ecommerce Order Fulfillment
Order fulfillment is at the heart of what 3PLs do, but the best in the cosmetics sector tailor their services to the specific needs of beauty products. This includes secure packaging to prevent leaks or breakages, batch and expiration date tracking for quality control, and fast shipping options to meet customer expectations for rapid delivery. Good 3PL providers also offer value-added services such as gift wrapping, personalized notes, and can even include free samples in order packaging.
Inventory Management
As product ranges rapidly expand, select products enter the market, and old ones are pulled off the shelves, inventory management systems need to reliably keep track of it all. Good organization is important not only because it makes things simpler for supply chain managers, but also because it can have a big impact on fulfillment efficiency, product spoilage, and storage costs.
Top 3PL providers offer sophisticated inventory management systems that provide real-time visibility into stock levels, enabling proactive replenishment and minimizing the risk of stockouts or overstocking. Systems used in cosmetics fulfillment facilitate batch tracking and expiration date management so products are shipped in optimal condition and within their shelf life. That’s valuable to both compliance with industry regulations and customer trust and satisfaction.
Returns Processing
Given the personal nature of cosmetics, returns can be higher than in other sectors. The best 3PL providers for cosmetics offer efficient returns processing services, including quality checks to determine if returned items can be restocked, proper disposal of non-sellable items in compliance with environmental regulations, and seamless integration with your ecommerce platform to expedite refunds or exchanges. This not only improves the customer experience but also reduces the administrative burden on your business, allowing you to focus on growth and innovation.
How to Choose a Cosmetics 3PL
Choosing the right 3PL partner for your cosmetics ecommerce business is a decision that requires careful consideration. Beyond the services offered, several key criteria can mean the difference between a successful collaboration and one that’s sub-par or poor.
Industry Experience and Expertise
Experience in the cosmetics industry is non-negotiable. A 3PL provider with a proven track record in this sector will understand the unique challenges and requirements of cosmetics logistics, from regulatory compliance to high-quality customer experiences. Ask for case studies or references from other cosmetics businesses to gauge their expertise. Knowledge of global shipping regulations and the ability to navigate international customs and shipping requirements are essential if you plan to expand your reach beyond domestic markets.
Customer Service and Communication
Effective communication and responsive customer service are the hallmarks of a great 3PL provider. Your chosen partner should offer a dedicated account manager who understands your business and can quickly address any issues or changes in your logistics needs. Regular updates and transparent communication about inventory and orders will position you to provide your customers with the best experience possible.
Technology
Technology is a big part of running successful logistics operations today, and its prevalence will only grow in the years to come. To that end, it’s worth prioritizing a cosmetics 3PL that appreciates the power and invests in the potential of digital solutions. With proper insights into order trends, inventory levels, and shipping performance, you’ll be able to make informed decisions about your logistics strategy.
As for specific types of technology, everyone should be using warehouse management systems (WMS) and inventory tracking software – both are essentially standard nowadays. However, the capabilities of those tools aren’t equal among service providers. Custom APIs, integrations with popular ecommerce platforms, real-time data syncing, automated workflows, and comprehensive reporting features all serve as signs that you’re looking in the right direction.
Warehouse Capacity and Flexibility
Just like software, warehouse space isn’t made equal. Virtually every 3PL offers standard storage – racks for pallets of inventory in an air-conditioned facility. Specialized providers have additional spaces better equipped to hold perishable goods, as well as certifications from relevant regulators to prove the compliance and integrity of those spaces.
As a cosmetics business, you’ll want to look for a provider that offers secure and temperature-controlled warehousing facilities with FDA and SQL approval. Robust inventory management systems are further indicators that stock is handled in a smart, product-conscious way.
Also consider location. Opting for a provider with strategically located warehouses can help reduce shipping costs and transit times, ultimately improving customer satisfaction and optimizing your distribution network.
Performance
The value of Key Performance Indicators (KPIs) doesn’t end with traditional business applications. Supply chain KPIs are their own window of insight into fulfillment operations, whether in-house or outsourced to a third-party service provider. You should make an effort to note any metrics you come across when searching for a 3PL. Numbers don’t lie; the best service providers can back their claims of being the ‘best 3PL’ up with hard data.
Every business owner’s definition of ‘the best’ can vary depending on what matters most to them. Generally, though, high order accuracy rates, fast shipping times, and sizable cost savings among existing clients are top criteria.
Returns Management
Returns are an inevitable part of any retail business, including cosmetics. An efficient returns process not only ensures customer satisfaction but also allows for timely restocking of returned products, reducing inventory holding costs and minimizing waste in the supply chain.
Good 3PL providers have well-defined reverse logistics processes in place. This means ample staff and warehouse space for coordinating the acceptance of returned packages, inspecting products for damage, and initiating any necessary actions for repair, replacement, or refund.
Balance Between Cost and Value
Cost is always a key consideration when choosing a 3PL provider. However, it’s important to also consider the value offered by the provider. Look beyond the price and evaluate the provider's services, expertise, and technology capabilities. A slightly higher cost may be justified if the provider can deliver superior service and help your business grow.
Reputation and Reviews
Take the time to research the reputation and reviews of potential 3PL providers before making a decision. Look for testimonials and case studies from existing clients to get an idea of their experience working with the provider. Also check if the provider has any certifications or industry affiliations that demonstrate their commitment to quality and compliance.
The 10 Best Cosmetics 3PL Companies for Your Ecommerce Business
Your choice of a cosmetics 3PL company can pay off greatly in order speed and accuracy. But it can also do harm; inexperienced service providers often end up costing their clients remedial expenses for issues that could have been avoided with a better-qualified partner. It’s in the best interest of your brand’s reputation and bottom line to carefully vet potential candidates. Our list of the 10 best cosmetics 3PL companies in North America is a great place to start searching.
1. Shipfusion
What Shipfusion Offers
Shipfusion is a full-service third-party logistics provider in white-glove services for rapidly-growing ecommerce businesses. It offers a wide range of solutions for cosmetics businesses, including order fulfillment, inventory management, returns processing, freight forwarding, and special warehouse projects.
A proprietary Warehouse Management System (WMS) that integrates seamlessly with major ecommerce platforms like Shopify, WooCommerce, and Amazon equips Shipfusion to handle both direct-to-consumer (D2C) and business-to-business (B2B) orders.
Why You Should Use Shipfusion
Shipfusion’s tightly run warehouses consistently maintain a 99.9% order accuracy rate while enabling 99.9% on-time delivery across North America. That’s especially beneficial during peak times of the year like Black Friday and Cyber Monday. This cosmetics 3PL further stands out by providing business owners with a Dedicated Account Manager for on-site, personalized support.
Shipfusion Reviews and Ratings
Upsides: Customers appreciate Shipfusion’s robust customer support and high-quality service.
Downsides: Shipfusion’s value-added services may not be the best option for businesses prioritizing cost above all else.
Capterra - 4.5 (29)
Trustpilot - 4.5 (20)
2. ShipBob
What ShipBob Offers
ShipBob is one of the largest 3PL providers in North America. It provides warehousing, inventory management, order fulfillment, shipping, tracking, and returns management with the promise of performance perks like two-day shipping and real-time data tracking. The company’s software integrates with over 100 retail platforms, most notably Shopify, WooCommerce, and Magento.
Why You Might Use ShipBob
ShipBob is the best cosmetics 3PL for ecommerce businesses that are just starting out or need cost-effective logistics solutions. Its large-scale network of fulfillment centers allows anyone to tap into a wide-reaching infrastructure for a relatively low monthly rate. However, ShipBob’s focus on keeping prices low comes with a performance tradeoff. Its average order accuracy rate of 99.95% is below industry average and often insufficient in a competitive, customer experience prioritizing industry like cosmetics.
ShipBob Reviews and Ratings
Upsides: Cost-effectiveness and user-friendly software are frequently praised by customers.
Downsides: Negative reviews often mention poor order management and lack of accountability.
Capterra - 3.6 (100)
G2 - 3.6 (714)
Getapp - 3.7 (108)
3. ShipMonk
What ShipMonk Offers
ShipMonk is a cosmetics 3PL provider that offers services like inventory storage, order preparation, shipping, returns management, and B2B order fulfillment. Its efulfillment software integrates with 75 third-party apps to provide clients with a comprehensive, all-in-one control center for fulfillment operations.
Why You Might Use ShipMonk
ShipMonk’s innovative use of in-warehouse robotics sets it apart from other cosmetics 3PLs. Automation proves particularly valuable for businesses experiencing rapid growth or dealing with high order volumes. However, some ShipMonk customers have reported difficulties with reaching customer service and concerns over service pricing, which may be a drawback for businesses requiring more hands-on support.
ShipMonk Reviews and Ratings
Upsides: Customers appreciate the wide range of services and the flexibility offered by ShipMonk.
Downsides: Customer service can be difficult to reach, and some feel the services are overpriced.
G2 - 3.8 (41)
Trustpilot - 4.3 (348)
4. Red Stag Fulfillment
What Red Stag Fulfillment Offers
Red Stag Fulfillment is known for its commitment to high standards and attention to detail. Its core services include order fulfillment, warehouse storage, shipping, custom kitting, and FBA preparation. The company guarantees two-day processing times and prides itself on accuracy and timeliness.
Why You Might Use Red Stag Fulfillment
Red Stag Fulfillment’s accuracy guarantee is a significant draw for ecommerce businesses in search of a cosmetics 3PL capable of ensuring the proper storage and packing of their high-value and fragile products. But while the promise of compensation in the event of mishaps can provide peace of mind, it doesn’t mean Red Stag Fulfillment has a true 100% order accuracy rate. Mistakes will still happen – this company simply commits to refunding clients when they do.
Red Stag Fulfillment Reviews and Ratings
Upsides: The company is praised for its transparency, accountability, and consistent turnaround times.
Downsides: Some customers feel that the protection offered by the accuracy guarantee isn’t a substitute for prevention of mistakes.
Various sources - ~4 stars (limited reviews)
5. Fulfillment.com
What Fulfillment.com Offers
Fulfillment.com is worth considering as a cosmetics 3PL for its vast network of warehouses around the world. The company currently maintains order picking, packing, shipping, returns management, and storage operations in facilities located in North America, the United Kingdom, the Netherlands, and Australia.
Why You Might Use Fulfillment.com
With its extensive global network, Fulfillment.com is well-suited for ecommerce businesses with international ambitions. The company offers specialized solutions like subscription box fulfillment and Amazon FBM preparation, which are both relevant to the business models of many cosmetics companies. However, a focus on high-volume clients may make Fulfillment.com less accessible to smaller businesses. It’s also unlikely to be able to provide the kind of direct, personalized support large companies need to fulfill complex orders at scale.
Fulfillment.com Reviews and Ratings
Upsides: Clients appreciate the reasonable fees and the quality of services provided.
Downsides: Some customers are frustrated by the confusing ‘pre-pay’ fee system.
TrustPilot - 3.1 (2)
Clutch - 5 (2)
6. GoBolt
What GoBolt Offers
Although mainly known for its fleet of last-mile delivery vehicles, GoBolt also offers order fulfillment, inventory management, and shipping services. The company is notable for its use of electric delivery vehicles and responsible disposal practices.
Why You Might Use GoBolt
GoBolt is the best cosmetics 3PL for ecommerce brands that sell to environmentally-conscious audiences. Most of its energy goes into prioritizing sustainability and eco-friendliness. A 99.9% order accuracy rate across several small fulfillment centers proves reliability at a limited scale. Some negative reviews mention issues with incomplete shipments and lack of tracking data, which could be problematic for businesses requiring high reliability.
GoBolt Reviews and Ratings
Upsides: Customers appreciate the company’s Transportation Management System and its focus on sustainability.
Downsides: Some customers report problems with incomplete shipments and a lack of up-to-date tracking data.
G2 - 4 (2)
Trustpilot - 4 (200)
7. Airhouse
What Airhouse Offers
Airhouse is a tech-focused cosmetics 3PL with software-driven inventory management, order preparation, shipping, special projects, and returns processing services. The company’s tech tools facilitate real-time data reporting while keeping account management and billing processes completely digital.
Why You Might Use Airhouse
Airhouse’s custom software solutions are particularly appealing to cosmetics ecommerce business owners that value seamless experiences. Warehouses across North America and the United Kingdom make cross-Atlantic expansions easy. With that reach comes potential lapses in performance; Airhouse maintains a below-average 99.5% order accuracy rate and three-day fulfillment timeline.
Airhouse Reviews and Ratings
Upsides: Customers appreciate the customization options and the simplicity that Airhouse’s software brings to operations.
Downsides: Some clients report that service quality declines after the initial few months.
G2 - 4.5 (54)
8. Cahoot
What Cahoot Offers
Cahoot operates a peer-to-peer network of over 100 fulfillment centers across the United States. Its model is different from that of other cosmetics 3PLs, which typically own or lease facilities and operate with in-house staff. Instead, Cahoot partners with and outsources existing infrastructure and staff from local independent fulfillment centers. Everyone and everything is connected via a shared software platform.
Why You Might Use Cahoot
Cahoot’s low-cost solutions are ideal for businesses that prioritize budget and accessibility over premium service. A diverse ensemble of North American locations puts major markets within easy reach while positioning clients to reportedly save 30% on average. However, the outsourced, siloed nature of this system is inherently prone to result in inconsistent performance, which could impact a brand’s reputation if not managed carefully.
Cahoot Reviews and Ratings
Upsides: Customers appreciate the fair pricing and timely support responses.
Downsides: Inconsistent performance and a slow setup process are common complaints.
Trustpilot - 4.6 (55)
Capterra - 4.9 (11)
9. Ware2Go
What Ware2Go Offers
Ware2Go, an affiliate of UPS, offers on-demand fulfillment and warehousing services for ecommerce businesses across the United States. The company’s cosmetics 3PL solutions focus on D2C and B2B order fulfillment.
Why You Might Use Ware2Go
Ware2Go aims to set itself apart with reliability and scalability. Combining UPS’ existing infrastructure with specialized fulfillment software implies seamless operations on a large-scale. Not all cosmetics companies may be able to realistically take advantage of Ware2Go, though. Relatively high setup costs are a barrier for some businesses and an unjustified expense for others given the lack of specialized solutions available.
Ware2Go Reviews and Ratings
Upsides: The software’s usability and integration options are highly praised.
Downsides: Some customers feel the high costs are not always justified by the service provided.
Capterra - 4.7 (11)
Trustpilot - 4.5 (30)
10. Fulfyld
What Fulfyld Offers
Fulfyld provides third-party logistics services tailored to ecommerce businesses in large ecommerce markets like cosmetics, home goods, and apparel. Clients can have orders fulfilled from their online stores and social commerce platforms like TikTok Shop and YouTube Shopping. Amazon prep services are another value-added solution for businesses that sell on the world’s largest online marketplace.
Why You Might Use Fulfyld
Fulfyld is a good fit for cosmetics brands with sales spread across multiple online platforms or an interest in offering subscription boxes. It has solutions that answer most online businesses' needs today. That specialty just may not be worth compromises in performance. Fulfyld clients report inconsistent order accuracy, lost inventory, and delays among the main challenges of working with this cosmetics 3PL.
Fulfyld Reviews and Ratings
Upsides: Customers appreciate support from assigned Account Managers.
Downsides: Performance issues such as lost inventory and delayed shipments are common complaints.
Trustpilot - 4.8
Your Search for the Best Cosmetics 3PL Ends Here
Remember, the right 3PL partner is not just a service provider but a strategic ally in your journey to ecommerce success. Take the time to make an informed decision, and you'll reap the benefits of a smooth, efficient logistics operation that delights your customers and sets your brand apart in the competitive world of cosmetics.
99.9% order accuracy and 99.9% on-time shipments make Shipfusion the best 3PL for cosmetics companies in search of genuine performance. Our dedicated Account Managers act as an extension of your team on the warehouse floor, ready to address needs as they arise. With a robust network of fulfillment centers across North America that continues to expand, there’s no limit to how far we can grow together. Contact us today and discover why Shipfusion is the best 3PL, period.
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