What is Third-Party Logistics?
3PL fulfillment services: Defined
Third-party logistics (3PL) services are an invaluable resource for ecommerce sellers. They are used to outsource vital logistics processes such as warehousing, inventory, and order fulfillment—all of which impact their end-consumers.
When brands leverage 3PL services, logistics become much more efficient, allowing them to save on various overhead costs and improve how orders are handled and shipped out. This provides them with an advantage in the market—improving customer satisfaction and bringing in more business while reducing operational costs.
Even though 3rd party logistics are not a new concept, technology-first logistics partners like ShippingTree are taking it to another level by offering comprehensive 3PL fulfillment services for direct-to-consumer businesses, providing coast-to-coast coverage with 2-day shipping, and flexibility that can adjust to any situation.
What are the benefits of 3PL services?
There’s a reason why 3PL services have become so popular. Working with the right 3PL partner can completely change how your business operates, allowing you to make more sales, boost the customer experience, and focus your resources more effectively. But how exactly can third-party logistics improve your ecommerce business? Let’s look at a few key benefits below.
Reduce expenses
Building an effective supply chain from scratch is difficult, especially if you’re a small ecommerce brand without the necessary resources or network.
But if you want to compete as an online seller, you must match the expectations of your audience, which are a reflection of the types of order fulfillment speeds offered by industry leaders. And that can get expensive, fast.
By leveraging a 3PL, logistics doesn’t have to be a challenge. You can take advantage of the operational expertise of your 3PL provider and drive down costs while offering a premium order fulfillment system to your customers.
Focus on operations
As an ecommerce owner, you probably have enough on your plate besides having to worry about logistics. With this in mind, it’s a good idea to outsource the process to professionals who know what they’re doing and can offer their expertise and proven processes.
The results? You can focus on running your business, building your brand, and offering the best products to your customers. Once they place an order, you can rest assured that the products will reach them quickly and without any issues.
Expansion opportunities
Being able to reach new markets is the fastest way to grow. But if you don’t have the right connections or logistics systems in place, expanding can be difficult.
One limiting factor is the lack of connections in a new area. But there’s also the additional warehousing, equipment, and labor requirements that can put a massive strain on your budget.
But, not to worry! This is where a 3PL can be beneficial.
By leveraging the nationwide networks a 3PL partner has, you can ensure timely order fulfillment to customers anywhere in the country, greatly expanding your reach and providing you with more opportunities to make sales.
What 3PL logistics services does ShippingTree offer?
Order Fulfillment
Stored, packed, delivered! Our cloud-based fulfillment software easily integrates with your shopping cart platform and automatically captures your orders. You’ll have real-time visibility of your product during every step of the process; everything is streamlined to ensure your customers get their orders as quickly as possible!
FBA Prep Services
We receive, inspect, and prepare your goods to be received at Amazon FBA centers.
Returns Processing
Returns are annoying – but they don’t have to be! The ShippingTree platform enables easy returns processing with a customizable model that gives you various options in terms of inspection, quarantine and re-stocking of your returned inventory.
Efficient Warehousing
Warehousing is one of the most frustrating overhead costs businesses have to deal with. But even when working with 3PL, logistics involved in ensuring that warehousing works effectively is not a given.
Working with a 3PL service provider doesn’t mean you will be protected from delays in logging inventory, lack of visibility, or even regularly lost items. It all depends on the level of operational expertise of the 3PL.
At ShippingTree, we take steps to eliminate as many common warehousing challenges as possible. For one thing, we have an average dock-to-stock time of just 25.8 hours, meaning that your products will be processed and added to inventory at a rate that will ensure you’re always covered.
You can also expect to know exactly how your inventory changes in real-time, allowing you to make adjustments as necessary and accurately project both immediate and long-term needs.
Optimized Shipping
The order is not fulfilled until the products reach the customer safely and quickly. And that’s why shipping is such an integral part of 3PL services. Brands that partner with a 3PL who can give you optimized shipping rates
You need to use a service that provides you and your customers with accurate tracking information that is updated immediately, which can help spot issues quickly and ensure that there are no hiccups.
At the same time, using a third-party logistics provider will also give you better shipping rates. This is because of the more established network that ShippingTree has established over time.
The ShippingTree Difference
With ShippingTree 3PL, logistics are simplified. You don’t have to be a supply chain expert to use our platform—it was built on the idea that ecommerce stores of all sizes should have an easy-to-use and intuitive way to outsource their order fulfillment. Plus, you can trust our established warehousing and fulfillment networks nationwide and know that we’ll be a reliable partner every step of the way.
