If you manufacture products in China and sell to customers in the US, Canada, Europe, or other markets, you may have come across both NextSmartShip and Portless. Both brands assist brands that wish to fulfil orders from China without having to transfer all units to a local warehouse.
But they’re not based on the same model. Portless is primarily recognized for direct from China fulfillment, and NextSmartShip is a blend of China fulfillment and a more flexible hybrid model. This will depend on the type of product you are selling, the size of your orders, the markets you are trying to target, and the amount of risk you are willing to take for inventory.
Side-by-Side Comparison
| Area | NextSmartShip | Portless |
| Main model | China’s fulfillment with hybrid global warehouse options | Direct fulfillment from China |
| Best suited for | Brands that want flexibility as they grow | Brands focused on inventory-light direct fulfillment |
| Local warehouse options | China plus US/EU warehouse options | Primarily direct-from-China model |
| Crowdfunding support | Supports Kickstarter and Indiegogo campaigns | Not usually positioned as a crowdfunding-focused provider |
| Packaging and kitting | Supports custom packaging, kitting, and assembly | Mainly focused on fulfillment operations |
| Best use case | Brands that may later split inventory by region | Brands that want to ship directly from China for most orders |
What Portless Does Well
Portless is all about direct fulfillment from China. It’s an effective approach for brands that produce in China but don’t wish to ship a ton of goods to warehouses in their target countries until they know if they are selling.
A brand can also reduce inventory costs by not having to send bulk products to a US/EU warehouse, and instead, send them when orders arrive. This can assist with cash flow as there is reduced investment in foreign storage.
Portless can be particularly helpful for brands looking for a straightforward model with minimal inventory. It can also be of interest for DTC brands looking to minimise the risk of oversupply across multiple countries.
What it means is that once you reach a threshold of demand in a country, you may not be able to compete with domestic fulfillment anymore with direct fulfillment from China. For brands that demand quicker deliveries in the local market or wish to offer varying levels of service to each market, a China-only approach might become restrictive.
What NextSmartShip Does Well
NextSmartShip begins with a China-based fulfillment center but expands beyond with a hybrid fulfillment model. Brands can source from China and also avail of warehouse facilities in other markets like the US and Europe, where demand is adequate.
This is important, as not all brands have to use the same fulfillment strategy for all SKUs. While demand can be tested, a new product will stay in China. Once sales are predictable, a best seller can get closer to the American or European customers.
In addition, NextSmartShip facilitates integrations with platforms, custom packaging, kitting, product assembly and fulfillment for crowdfunding. It might be helpful if you’re a brand that requires more than pick, pack, and ship.
The key benefit for a brand that desires flexibility is that NextSmartShip is able to help with more than one way of life and growth. It can be used to help with direct China fulfillment early on, and can be used to support local inventory placement later.
How the Two Models Differ Day to Day
The difference becomes clearer as a brand grows.
Most orders are still fulfilled from the same general area of inventory with the direct-from-China-only model. This ensures simplicity of operations, but deliveries may not differ much even if one market is getting more significant than the others.
The brand can make changes to where the products are located with a hybrid model. So a product can begin in China, for example, but there is doubt as to its demand. In case the US turns out to be the strongest market, this stock can be shifted to a US warehouse. If there is another SKU that is still considered slow-moving, then it can still be left in China.
This provides additional planning; however, it offers additional control as well. Brands can align fulfilment location with the performance of the product rather than fulfil all orders using a single approach.
Which One Is Better for Newer Brands?
A newer brand typically doesn’t want to make big up-front commitments to inventory. Both models can contribute to that in different ways.
Portless could be a measure of interest for the brand that wishes to retain almost all China assets and deliver customer orders directly from China.
If the brand would like to begin in China and consider local warehouse fulfillment down the road, NextSmartShip might be the better choice since the brand wouldn’t have to rebuild its fulfillment processes.
That flexibility may be important for brands that are engaging in a crowdfunding campaign or looking to sell internationally from the get-go, or if they are conducting a test run on new products.
Which One Is Better for Growing Brands?
Fulfillment needs are more intricate as a brand grows. There may be a need for quicker delivery in the US, support for packaging, varying warehouse locations and greater inventory visibility.
This is where NextSmartShip’s hybrid ability comes in handy. A brand can still utilize China fulfillment as they introduce their successful products near their customers in stronger markets.
For brands that are looking to maintain simplicity with fulfillment and avoid keeping inventory in different regions and would rather leave the logistics to the experts, Portless is still a viable choice. But brands looking to expand into multiple markets may desire the added flexibility of a hybrid setup.
FAQ
Do both companies support China-based fulfillment?
Yes. NextSmartShip and Portless are both relevant solutions to brands that produce in China and deliver to customers around the world.
Which is better for product testing?
Both can be used for product testing, but NextSmartShip could provide greater flexibility to expand into hybrid fulfillment as it gets a clearer sense of demand.
Which is better for fast domestic delivery?
Typical delivery time is as per the availability of stocks in the national market. This is when the brand chooses to stock a hybrid model locally, which can support this.
Can a brand switch providers later?
Yes, changing between fulfillment providers will take time as Inventory, Integrations, and Order Routing have to be transferred and tested.
Final Thoughts
Portless is suitable for brands that are looking for a direct-to-China brand and do not wish to commit to inventory levels.
NextSmartShip is a better solution for brands looking for China fulfillment with the option for local warehouses as their business increases. Its hybrid model affords brands greater flexibility regarding which SKUs are kept in China and which are taken closer to their customers.
To learn how a hybrid setup might work for your product line, NextSmartShip is a useful starting point.
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