The Ultimate Third-party Logistics Guide Required For E-commerce Business

By Author: prepecommerce
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If you are an e-commerce business owner, fulfillment services and logistics will be an integral part of your business. So let us invite you to an interesting topic where you can hold onto the feasibility of your customers’ orders with improvement and growth in business. This is what brings us to third-party logistics (3PL) services. The traditional model of business handling doesn't always prove to be effective which is why most businesses try to look for third-party logistics companies to focus on marketing, expansion, improvement, and customer satisfaction. Well now you might wonder what exactly is a third-party logistics service and how can it attend to all the exact necessary aspects of a business. Third-party logistics companies are usually providers who focus on a wide range of services mainly for the satisfaction of commercial and industrial customers. Enough with the short descriptions, let us dive right into the actual attributes.
What are third-party logistics services?
If you have the idea of outsourcing, it will become easy for you to understand what exactly third-party logistics services are. Well, ...
... you see, third-party logistics are the process of outsourcing e-commerce logistics services for necessary aspects that are not maintained or provided by your own business, like inventory management, fulfillment services, and delivery. Third-party logistics services allow e-commerce businesses to accomplish more with the tools and services provided by third-party logistics companies. The trend of third-party logistics is not recent, it originated back in the 1970s when inbound and outbound logistics were a thing. Further in the 2000s, 3PL services became ubiquitous, with the noticeable growth in economics that it brought.
The third-party logistics fulfillment process
If you are new to the e-commerce business and thus considering hiring third-party logistics companies then there are certain things you need to know about 3PL services. Third-party logistics services need not be a mystery or a black box, you must be clear about every aspect of 3PL services and their processes. So, let's explore more
● Order receiving: receiving orders is the first process that is conducted by 3PL service providers, although shipping those orders become invalid until the 3PL company is provided with the inventories. Each third-party logistics company has its own capacity of accepting orders depending on its storage and shipment capacity. So choose your third-party logistics company wisely.
● Warehousing and fulfillment: once you are prepared with what you are going to sell, and make your e-commerce business all about, you can be ready to send your inventories to your chosen 3PL service provider and they will be ready with their warehouse/fulfillment center to store your items. Each warehouse has a separate storage, location, pallet, and shelf for your dedicated items. It is important for you to choose a proper 3PL service so that you get enough space for your inventories since all warehouses are not equipped with ample space.
● Packing: after orders are placed by customers and picked by the 3PL service providers, they start packing the items depending on their capabilities, brand preference, and other aspects. As 3PL service providers are experienced shippers, they provide the best packing material to keep the item safe. The dimensional weight of a package also determines the rates of a shipment thus, packages are optimized by the 3PL companies to reduce the rates for better business growth and ultimate customer satisfaction.
● Shipping: Shipping is an included service of a 3PL company. They print or purchase shipping labels on behalf of your e-commerce company, and decide upon the rates of shipment for your customers which are considered affordable by not just customers but e-commerce companies as well. The shipment delivery speed of each item depends on the 3PL policies and the distance between the warehouse and the shipment location.
● Return and refund: not every 3PL services provider offers return and refund services, however, if you find one that does, here are certain things you must know. In case your customer returns an order to your selected 3PL provider, then the service-providing company will be responsible for the order return, restocking, and disposition depending on their policies and your company’s agreements. Third-party logistics services provide shipping labels for your customers to keep a track of the returning order.
Benefits of hiring third-party logistics companies
The satisfaction and less direct responsibility that fulfillment services provide are unmatchable. Although different logistics companies have different capacities and services, most of them provide the basic service of inventory management, packaging, shipment, and data analytics. Depending on your business requirements, the services are provided accordingly. Here are a few benefits of hiring a 3PL company for your e-commerce business;
● Less time-consuming and cost-effective: investing in the partnership of a third-party logistics company, you can eliminate the need for any other in-house fulfillment investment. As your business starts to grow, maintaining the fulfillment service becomes expensive, thus, it is a smart choice to invest in something that is less time-consuming and cost-effective like 3PL services.
● Reach expansion: with in-house fulfillment services you can only expand your reach to a limited area, whereas with 3PL services you don't need to limit your businesses’ true potential, and can expand your reach. With fulfillment centers located in most cities, you can reduce the cost of the shipment and create a wise investment along with market expansion.
● Get served with expertise: leveraging the responsibilities of your business on experienced professionals reduces the chances of complexities. Thus, hiring 3PL services that are known for providing fulfillment and logistics services can reduce the problems related to the task.
With this, we come to the end, where we can simply glorify the use of third-party logistics companies. Outsourcing your logistic services can be beneficial for it can increase your business capacity and expand your reach. In the long run, 3PL services can help you keep your business graph headed upward.