7 Fulfillment Business Success Stories [2023]
As e-commerce becomes the pillar in our retail landscape, fulfillment businesses are becoming more important.
Fulfillment companies enable e-Commerce by processing order receipts, packing, delivering, and handling returns from clients. These businesses act as a third-party warehouse and their core responsibilities include preparing and shipping orders. Thus, they store goods until they are ready to send to stores and customers. If you are planning to start a fulfillment service, some of the services will include:
- Same day-delivery
- Customer support through chat, text, and phone call
- Complete order tracking from arrival at the fulfillment center to delivery to customer's door
- Custom API integration
- Climate-controlled storage space
To start a fulfillment center you need to find space, streamline with software, and set up and understand business KPIs with the target e-Commerce companies.
Here are some real life success stories of starting a fulfillment business:
1. ShipMonk ($300M/year)
Jan Bednar, the CEO and founder of ShipMonk, came up with the idea for his business when he realized the demand for American products from friends and family overseas. He started a package forwarding company called BedaBox, which eventually expanded into order fulfillment after he saw the potential and the need for improvements in the industry. With a focus on technology and automation, Bednar rebranded the company as ShipMonk, revolutionizing the fulfillment industry.
How much they make: $300M/year
Current team size: 2500
ShipMonk, a technology-driven fulfillment center, went from $130K in revenue in 2014 to nearly $30M in 2018 and was named America's Fastest Growing Fulfillment Center, with projected revenue of $60M for 2019.
2. Honest FulPhilment ($24M/year)
and presence on social media platforms like Facebook and Instagram was crucial in attracting and retaining customers. We were able to showcase our expertise and build trust with potential clients through engaging content, timely responses to comments and inquiries, and providing valuable information to the community. Additionally, word-of-mouth referrals played a significant role in bringing in new customers, as satisfied clients spread the word about our exceptional service and results.
How much they make: $24M/year
How much did it cost to start: $5K
Current team size: 28
"Founder of Honest FulPhilment built a $24M branding and fulfillment company based in China, offering a complete solution with high levels of service and excellent customer satisfaction through communication, onboarding, and product quality."
So... can you actually make money with a fulfillment business?
Of course. There are millions to be made in this industry.
But how?
- Research real, profitable businesses and see exactly how much money they make.
- Study exactly what works, and what doesnโt.
- Take action, because now you have the roadmap.
Join Starter Story and build your next big thing:
3. OTW Shipping ($3.6M/year)
Nick and Parker, the co-founders of OTW Shipping, started their business in 2020 with a mission to provide eCommerce brands with top-notch fulfillment services. Despite their lack of experience in supply chain or eCommerce, they recognized the potential in the market and quickly scaled their business. In their first 12 months, they achieved $1M in revenue, shipping over 120,000 packages. With plans to triple their numbers in the next year and moving into a larger space, OTW Shipping is poised for continued growth and success.
How much they make: $3.6M/year
How much did it cost to start: $15K
Current team size: 10
OTW Shipping co-founders Nick and Parker hit $1M in revenue in their first year of operations, providing eCommerce brands with best-in-class fulfillment and shipping out over 120,000 packages, with plans to triple that number in the next 12 months.
So... can you actually make money with a fulfillment business?
Of course. There are millions to be made in this industry.
But how?
- Research real, profitable businesses and see exactly how much money they make.
- Study exactly what works, and what doesnโt.
- Take action, because now you have the roadmap.
Join Starter Story and build your next big thing:
4. KO-Pack ($1.8M/year)
Payton LaCivita, co-owner of KO-Pack, had a lifelong passion for entrepreneurship. After successfully launching his own brand and consulting for others, he saw an opportunity to disrupt the contract manufacturing and copacking industry. With a vision to provide fast and reliable services to e-commerce brands, Payton and his co-owners raised capital, built a state-of-the-art facility, and started attracting clients with their innovative product offerings and exceptional customer service. Since their launch in May 2020, KO-Pack has experienced impressive growth, adding new client partners weekly and averaging $150k in monthly revenue.
How much they make: $1.8M/year
How much did it cost to start: $1M
Current team size: 20
KO-Pack is a contract manufacturing and copacking company for menโs grooming, haircare, skincare, aroma therapy, and natural household products, growing at 40-60% YoY growth and averaging $150k per month.
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