Building a successful E-Commerce company requires a lot of work even without 3PL services: You need a great product, a strong marketing campaign, and the ability to get your products to customers as quickly as possible.
However, managing your fulfillment process internally will become increasingly challenging as your business grows. Eventually, you’ll need to scale up your logistics operations to meet the growing demand, whether you aim to reach more customers, expand into new markets, or both.
One of the most effective ways to accomplish this is by assigning supply chain management to a trusted 3PL provider. Doing so can help you save significant time and money while also freeing up internal resources, which you can then focus on other critical tasks, such as sales, marketing, or product development.
What Is 3PL?
Third-party logistics, often called 3PL, is a service that takes care of a company’s logistics operations. Businesses offering 3PL services handle some or all aspects of supply chain management, including:
• Storage
• Managing inventory
• Packing goods
• Transporting items
• Knitting and assembling
3PL is a widely used solution for E-Commerce businesses. These providers connect online retailers and their customers by speeding up the process of order fulfillment. E-commerce companies that work with 3PL services store their products in specialized warehouses called fulfillment centers. When a customer places an online order, the item is selected, prepared, and sent straight from the fulfillment center to the customer’s home.
The main purpose of 3PL in E-Commerce is to improve business operations by outsourcing logistics tasks. That’s why companies of all sizes—from small online shops to large Fortune 500 businesses—choose 3PL services to simplify their supply chain and build a more efficient fulfillment strategy.
Why 3PL Providers Are Useful For E-Commerce Brands
The biggest benefit of handing fulfillment over to 3PL providers is convenience. When someone else manages their logistics, E-Commerce brands can focus more time and effort on other important business areas.
However, 3PL providers do more than lessen the workload: They can also provide e-commerce brands an opportunity to improve other business areas.
Lower Costs
Partnering with a 3PL provider for parts of your supply chain operations can greatly improve your company’s ability to save money.
How does this work? First, you won’t need to spend money renting a warehouse or shared industrial space or hiring and paying for a dedicated fulfillment team. Handing over your back-end tasks to a 3PL provider removes your responsibility for liabilities like damaged goods, broken equipment, or accidents in the warehouse or during delivery. Your 3PL partner will cover these costs and other operating expenses, such as training programs, certifications, IT systems, and specialized equipment.
Smaller Staff
Companies that manage their entire supply chain must employ and supervise drivers and warehouse staff, which can pull resources away from other business priorities. Each new hire brings added responsibilities like handling schedules, payroll processing, and tax management. This is particularly difficult for smaller businesses that might not have the tools or team to build and run a fulfillment operation efficiently.
Outsourcing to a 3PL provider can help you avoid unnecessary staff expansion. You won’t need to recruit, train, or oversee additional employees like warehouse workers or delivery drivers. These team members are directly employed by the 3PL provider, freeing you to focus on growing and strengthening your main business team.
Improved Delivery And Distribution
Third-party logistics (3PL) helps small and midsize e-commerce businesses grow their distribution networks and reduce delivery times without building more infrastructure.
E-commerce companies can use 3PL to expand their reach by outsourcing fulfillment services to other regions or even their entire supply chain. This allows smaller businesses to compete with giants like Amazon and other large retailers without spending much time and money creating their logistics infrastructure. For this reason, many e-commerce businesses see 3PL as an important part of improving customer satisfaction.
Scale With Demand
Third-party logistics offers e-commerce businesses a flexible and scalable solution to grow operations and meet rising demand quickly. This feature benefits businesses of all sizes. However, it is especially helpful for smaller and mid-sized e-commerce brands struggling to improve logistics to meet growing customer needs.
Using a 3PL provider allows companies to respond better to spikes in demand. For example, you can outsource logistics during busy times like the holiday season when sales are expected to increase. You can also choose long-term solutions that support business growth over time. During slower periods, you can reduce 3PL services, helping you save money by not paying for services you don’t need.
Work With Professionals
How much do you understand about shipping and fulfillment? Of course, you could put together your team. But without real industry experience, you wouldn’t be as efficient or effective as a professional 3PL provider. These providers specialize in logistics and fulfillment, using advanced IT solutions to prevent bottlenecks, ensure the supply chain stays smooth, and meet deadlines so orders are delivered on time.
A Reliable 3PL Partner Supports Growing E-Commerce Brands To Expand
In today’s technology-focused world, customers expect even more speed and efficiency from online shopping businesses. However, smaller and mid-sized e-commerce brands often lack the resources to provide ultra-fast deliveries across the country.
A reliable 3PL partner like us at Vareya helps these businesses grow and stay competitive by providing a comprehensive solution that ensures goods are properly stored, carefully transported, neatly packed, and delivered to customers on time.
This way, you can keep meeting customer expectations without constantly planning and refining your fulfillment strategy. Please reach out to us today!
