Navigating third-party logistics management is a major headache confronting ecommerce businesses. However, it plays a key role in shaping global supply chains. About 80% of 3PLs admit that enhancing supply chain capabilities is crucial for streamlining ecommerce operations.
Increasing operating costs and evolving customer expectations make it challenging for both small and large online retailers to effectively manage logistics in-house. Outsourcing your logistics to trusted 3PLs is the surest way to boost growth and address major issues that cause disruptions to your online retail business growth. Fortunately, knowing the key factors to consider when choosing 3PLs can help you partner with the right provider.
Top 4 Factors to Consider When Choosing a Third-Party Logistics Company for Ecommerce
Here are four important qualities to look for in a 3PL partner:
1. Capacity and Scalability
You can ensure that your ecommerce business can efficiently manage shipping and handle inventory management if you choose a 3PL that has the capacity and scalability to handle existing volumes and seasonal spikes.
3PLs with scalable systems can help address disruptions in peak seasons to ensure sustainable business growth. You may also want to find out whether your 3PL fulfillment partner is equipped to manage specific products, including delicate, large, and temperature-controlled goods.
2. Proven Experience
Collaborating with industry leading 3PLs with several years of experience in offering outsourced logistics management services is a wise decision. Top 3PL fulfillment partners like Packageman have years-long relationships with thousands of businesses in the US.
Their experience in guiding ecommerce brands to effortlessly navigate supply chain complexities is a gamechanger. One way to find out about the 3PL company’s level of experience is to read reviews from previous customers.
3. Affordability
While investing in third-party logistics management solutions for your ecommerce can help take your brand to the next level, you don’t have to break the bank doing so. Considering the costs or pricing models of various 3PLs, and choosing one that fits your budget is highly recommended.
A few factors that determine the affordability of 3PL services include storage fees, pick and pack fees, reversal policies, and shipping rates. There are hidden charges that may apply for some services. Therefore, you should consider working with transparent 3PLs to avoid unexpected charges.
4. Technology and integration
Technology and integration are also vital factors to prioritize when choosing 3PLs services for ecommerce. As a tip, you must ensure that a third party logistics company’s systems can seamlessly work across all ecommerce platforms, including sales channels.
Real-time tracking can help update order status for customers while automated fulfillment can be simplified by utilizing technologies like barcodes and processing robots. 3PLs with robust systems for managing returns efficiently and improving customer shopping experiences are your best partners for growth.
Order fulfillment forms an integral component of ecommerce business operations. Your customer retention rate may be affected if you don’t receive orders and deliver products on time.
If you lack technology and other resources to pick, pack, and ship orders efficiently, you should consider collaboration with 3PLs. For efficient warehouses to scalable systems and reliable customer support, Packageman has everything you need to build a successful ecommerce brand with 3PLs.
