Deliverr is a 4PL that connects you with their network of e-commerce fulfillment centers to provide 3PL services. They started in 2017 and have grown exponentially over the past three years. In 2021, Deliverr raised $170 million to fund further growth. Their model is based on providing fulfillment services through a variety of independent warehouses within their network to obtain a higher percentage of 2 day shipping options (although they do not make the cut for Amazon’s new SFP guidelines).
Deliverr Fulfillment Pricing
Deliverr has a flat-fee based fulfillment pricing model that varies based on the # of units, dimensions, and weight of your product. The fees included in their fulfillment costs are receiving, pick & pack, packaging, and shipping fees. While it is nice to have fees simplified into 1 number for fulfillment, this may be more beneficial for some clients than others. Pricing will vary based on the dimensions, weight and characteristics of your product. You can use their price calculator to determine the rate for your product. Deliverr also allows for custom quotes for clients selling over 1,000 orders per month.
Deliverr 2-Day Shipping
Deliverr offers 2-day shipping options that allow customers to have badges on certain selling platforms which are meant to improve conversion rates. This is meant to work similar to Amazon Prime’s service. However, 2-day shipping is not guaranteed like Amazon Prime.
"Does Deliverr guarantee delivery SLAs? No. Deliverr does not generally provide any guarantees or remedies towards shipments that miss SLAs. We make our best efforts to meet the delivery SLAs and continually strive to improve upon them."
Additionally, their cutoff time is not a promised standard in their delivery SLA.
"[...] 11AM PST / 2PM EST will typically ship the same day, if not the next business day."
When considering offering 2 day shipping, it can be less expensive (if you have multiple locations) because you can utilize cheaper ground shipping methods since your packages don't have to travel as far. Although multiple locations for higher percentages of 2-day shipping sounds nice, it is not for everyone. According to our connections at Growe Network: as a general rule of thumb, if you are doing less than 3,000 orders per month you are likely going to be spending more splitting your inventory than you will save on shipping costs. After 3,000 orders per month, savings can be marginal until you are closer to 10,000 orders per month and must be weighed against the complexities of managing inventory across multiple locations. This is something to discuss with Deliverr about if/when they will split your inventory across multiple locations.
Deliverr Services Pricing
Deliverr has a very strict list of service offerings.
Deliverr does not offer:
Shipments to FBA
Deliverr currently only offers international shipping from the US through their pilot program. They intend to extend international shipping to their entire client base at some point in the future.
Deliverr breaks their pricing into 2 categories: fulfillment and storage costs. While receiving costs are normally an auxiliary service fee, Deliverr includes them in their fulfillment pricing.
As for storage fees, they charge $0.75/cubic foot from Jan-Sep, while rates get over 3x more expensive during holiday season at $2.40/cubic foot. They also have long-term storage rates of $6.90/cubic foot, with a per unit minimum of $0.15/unit.
One big thing to note is that Deliverr does not process returns back into sellable inventory. Deliverr will accept the return but will place your inventory into unfillable inventory. Items will not be put back into sellable inventory and to remove them you are subject to removal or disposal fees. If you don’t remove them, you will be subject to Deliverr’s storage fees.
Overall, Deliverr is part of the new wave of 4PL's that consist of networks of independent warehouses! Their unique feature is the potential for 2-day delivery badges on certain selling platforms that they claim boosts conversion rates. As always, it is best to compare many 3PLs as pricing and pricing models can vary greatly between different fulfillment centers.