3PLs are logistics firms that specialize in inventory storage, packaging, and delivery. Of course 3PLs charge fulfillment costs, but it is typically more cost-effective to collaborate with them than to attempt to do it yourself.
Affordable warehousing costs
Warehouse capacity is becoming ever more costly, and demand for it is growing fast. You may store your inventory in parts of a 3PL’s fulfillment center with other ecommerce firms when you work with one. This method of allocating storage expenditures across numerous organizations minimizes costs while improving efficiency.
You won’t have to worry about overpaying for a space you might never fill out if you only pay for what you use.
3PLs can help you scale if you grow faster than anticipated, whether it’s obtaining additional shelf space for a new product release or adding into more of their fulfillment centers to better serve different areas where your consumers reside with faster, more affordable shipping.
With our help, you get the geographic footprint required to cut down on shipping expenses that would otherwise be impossible to achieve on your own.
Eliminate running a warehouse and operations teams
The continual addition of new goods, inventories, and workers during a sales season creates difficulty for warehouse managers.
When you outsource fulfillment, you don’t have to worry about any of that. 3PLs are experts in reducing logistics costs and avoiding delays by driving efficiencies.
Bulk carrier discounts
3PLs negotiate bulk discounts from shipping carriers like UPS, USPS, FedEx, and DHL to offer lower rates for expedited shipping, 2-day delivery, foreign delivery, and other services. Of course, the more packages you send out, the better prices you can get to further decrease logistics expenditures.
Technology and forecasting
Most 3PLs have best-in-class technology and tools as a result of their high volume of shipments and wide range of expertise. This includes inventory forecasting, so you’ll always know when to restock product to avoid running out and also projecting any changes in demand during peak seasons.
A 3PL’s inventory management is easy since they manage the organization, real-time tracking, and product distribution for you. Furthermore, various 3PLs have distinct tools and integrated systems to handle everything from returns to EDI compliance.
Scalability for seamless growth
As your business expands, ecommerce fulfillment becomes more difficult to handle. You may spend your time focusing on the activities that drive new customers to your website and generate ecommerce sales rather than managing fulfillment yourself.
You won’t have to worry about doing anything because 3PLs assist you in automating shipping and logistics operations for everything from ecommerce order tracking to initiating a return, so you don’t have to.