I'm working with http://www.direct-outbound.com/ to fulfill orders for Action Tea. It works fairly well, although the shipping prices are a bit tough, but that depends on the volume and the type of deal you negotiate.

I'm paying 1.60 USD per fulfilment item + shipping. And the whole operation is in the US, while I'm sitting in Switzerland and shipping worldwide, without touching the product. I'm doing low-ish numbers, but do know a lot of eCommerce experts who are doing the exact same thing.

I hope that helps!