The 3PL or third-party logistics is the service provided by third-party couriers and logistic companies to eCommerce stores in assisting with their shipping and order deliveries. The third-party logistics takes care of order procurement, storage, warehousing, stock management, labelling, picking, packing, and final deliveries of the orders to the ultimate customers.
The 3PL logistics support scaling the business much faster because the online companies assign the responsibility of shipping and order fulfilment to 3PL providers.
The majority of eCommerce top 3pl companies, outsource shipping and logistics to third-party logistics services with the advantages that are delivered. As the eCommerce online store experiences growth and with time if it starts receiving bulk orders on a weekly or monthly basis, it looks for an applicable 3PL for providing smooth and streamlined shipping and contoured delivery experience for its customers.
Therefore, a third- party logistics provider can usually store items in their warehouses, managing stocks and replenishing them wherever necessary for the final deliveries of the item when the customers place an order. The 3PL also provides customized packaging, picking, kitting, bundling, customs clearance, etc for large-scale eCommerce retailers.
Advantages of Third-Party Logistics
Reducing freight shipping rates
One of the biggest advantages of 3PL is the cost viabilities it provides. The third-party logistics providers work with several companies and for that reason, there are many offered individual eCommerce companies with cheaper and attractive freight shipping services prices. The in-house management of logistics is a very costly investment, therefore third party logistics services companies can scale the economy by providing beneficial shipping services at reduced rates.
The 3PLs can carry orders from one place to another in a time-sensitive aspect even by handling a greater number of delivery fleets. The 3PLs also have several warehouses widespread across the nation. Therefore, the 3PLs are better equipped with faster delivery orders to the customers. Therefore, amazon normalised one-day delivery to customers, and the eCommerce third-party logistic providers have also started providing faster deliveries for customers at the shortest notice.
The warehousing solution is one of the extensive benefits offered by third-party logistic providers. Therefore, for 3pl warehouse management, the 3PL companies solicit the entire stock for eCommerce companies and store them in their warehouses.
Therefore, as the customer places their orders, the third-party logistic providers immediately fulfil the orders from the nearest warehouse of the customer.
The 3PLs not only take loads of inventory management but also make faster deliveries for the clients. Newly found eCommerce companies should always consider logistics inventory management services offered by 3PLs.
One of the significant benefits offered by third-party logistics is inventory management. Ecommerce stores can comfortably rely on 3PLs for managing their inventory, keeping stock of the available items, replenishing them when required and updating the inventory in cases of product returns or exchanges. Inventory management involves the storage of inventories in racks and bins in the warehouse. Therefore, the majority of the 3PLs use Warehouse management software (WMS) or Order Management Software (OMS) for automatically updating the inventory and displaying fresh stocks on the eCommerce company's websites or virtual marketplaces.
Real- Time Order Tracking
A reliable order tracking feature is necessary for maintaining transparency and communication among eCommerce companies and their customers. Therefore, the third-party logistics company offers a self-serve order tracking page which must be reliably assessed by customers by entering the Order ID or tracking number. The 3PLs can even send order update notifications to customers by email and phone.
Several Payment Gateways
Third-party logistics are very beneficial for customers because of the number of payment gateways that are offered. The third-party logistics are equipped in handling cash payments like Cash on delivery (COD), bank transfers, UPI, Credit/Debit cards or even pay-on-delivery options. Thereby offering numerous payment options for the customers means lesser chances of cart abandonment and increased customer satisfaction.
Better Delivery Options
Amazon Prime's same-day delivery option has made it significantly easier for customers as it increases customer satisfaction. Therefore, there is an increasing demand for customers for same-day or next-day delivery services for them. As customers are an asset for any business, thereby providing faster delivery options will leave customers more satisfied than ever.
Elevated customer satisfaction
The customers do not want any delays in their deliveries. Thereby, the third-party logistics provide the services with exceptional delivery fleets, customized packaging, timely updates on the status of orders, and safe transit of orders. Therefore, as eCommerce companies experience growth in their initial stages, they simultaneously want to develop their customer satisfaction rate too. An elevated customer rate of retention signifies fewer product returns and exchange requests. The benefit of 3PL is that they provide a reach of online stores without spending extra money on hiring a workforce and renting bigger warehouses.
Personalized Shipping Services
The third-party logistic companies offer diverse customized shipping services for B2B and B2C sectors. The 3PLs also print customised shipping labels and can efficiently create personalized packaging for special orders.
Benefits of Insurance
In case of any shipping mishap or major loss of inventory, third-party logistics have insurance plans for covering these setbacks. Insurance plans are one of the biggest safety factors in case of any unforeseen event.
There are towering advantages of working with 3PL or third-party logistic companies. Working with third-party logistics service providers can significantly help the new eCommerce stores reach contemporary markets by providing hassle-free shipping. The choice of working with the 3PL is entirely dependent on the business's needs and resources. Therefore, this article can help you understand all the benefits of working with a third-party logistics service provider.