How 3PL Logistics Solves e-Commerce Fulfillment Challenges

Managing an online store isn’t as easy as listing items, ordering items, and shipping items as quickly as you can. As order volumes increase, so do customer expectations. Before you know it, you are spending lots of time managing warehouses, order fulfillment, transportation, etc., and things get out of hand. This is where Third Party Logistics, or 3-PL logistics, comes in, and it could be revolutionary for your business. This article aims to provide you with the information you need about how 3PL logistics services can help you focus on expansion, marketing, and customer satisfaction instead of fighting day-to-day issues.

Here are the advantages of 3PL logistics to help solve e-commerce fulfillment challenges:

Scalability and Flexibility

Perhaps one of the biggest problems companies face in managing their businesses today is managing erratic orders. With 3PL logistics solutions, you do not have to worry about running out of workforce or space. Your company's requirements will determine if a 3PL logistics solution can be scaled up or scaled down. With 3PL logistics solutions, you instantly gain access to manpower, space, and shipping capabilities as orders increase. This flexibility allows you to grow your company without incurring unnecessary capital costs.

Automation and Computer Technology

Today’s fulfillment centers are highly dependent on technology, making it costly and difficult for companies to build their own. Investments made by 3PL services in order tracking, cutting-edge automation, and warehouse management technologies are available for you to use instantly. Such technologies allow you to have real-time visibility of your inventory levels, process orders quickly, and improve accuracy in your order picking process. Accurate information enables you to make better decisions and avoid stockouts, reduce delays, and communicate better with your customers.

Geographic Growth

It is always fun and exciting to explore new markets for growth, and for that reason, many businesses do so. In fact, for e-Commerce businesses, longer-distance shipping means that delivery costs and times are much longer, which ultimately means that cart abandonment is much higher. 3PL logistics solves this problem for you by providing you access to multiple locations that are geographically dispersed. You can check out Packageman to allow your business to compete on a regional or global scale and enable you to enter new geographies without having to start from scratch.

Management of Costs

Internal fulfillment management often includes hidden costs, such as labor, equipment, software, rent for the warehouse, and shipping. However, these costs often become more predictable and performance-based with 3PL logistics. In most cases, you only pay for what is actually used, which is much more profitable compared to maintaining a costly full-time business. Due to the high volume of orders, 3PL companies negotiate better shipping rates, which are often passed on to clients.

Knowledge and Compliance

Regulatory requirements in the specialized field of logistics are always changing, especially for international shipping. 3PL logistics providers have up-to-date knowledge regarding tax regulations, industry standards, and customs regulations. Instead of trying to understand complex rules, where any mistakes can be damaging to the brand, you can trust the experts to ensure a smooth, compliant shipping process. As a result, the risk of delays, penalties, and damage to the brand is minimized. Their knowledge can greatly improve the efficiency of the supply chain, returns, and packaging.

Conclusion

In addition to good products and marketing strategies, e-Commerce also requires speedy, reliable, and cheap delivery services. Scalability, state-of-the-art technology, geography, cost management, and expert compliance services offered by 3PL logistics solve most common delivery-related issues. By saving your time and money, logistics outsourcing allows you to focus on expansion.