Running an eCommerce business, and want to significantly enhance your shipping logistics? There comes a point when managing packaging and shipping in-house begins to eat into your profits, time, and energy. When that happens — or ideally before — it’s best to begin the process of outsourcing the task to a 3PL service provider. They can store your inventory, ship your products to your customers when an order is placed, and even manage returns.
The result? You get to focus on growing your brand, secure in the knowledge that the all-important task of getting your products to your customers is being handled by a professional team.
Most eCommerce businesses that begin working with a 3PL service provider have no regrets. The ones that do typically do so because they chose the wrong provider to work with. So let’s make sure that doesn’t happen. If you’re currently in the market for a 3PL service provider, then looking for the following green flags can greatly increase your chances of picking a partner that can deliver long-term value to your brand.
All 3PL providers will deliver your products to your customers.
But that’s not the only thing that matters. How quickly they get your products to your customers is also key. Think of it this way: the faster the delivery, the happier your customer will be. The best companies provide same-day shipping for next-day delivery, increasing customer satisfaction.
It’s also worth taking a look at the finer details of the delivery service. The best companies offer a 4pm cutoff same-day shipping service, and should have an on-time dispatch rate as high as possible (ideally 99%+).
Leading 3PL providers know that their job is to make running your business easier. That’s why they offer as much flexibility as possible. Rather than having to sign up for fixed-cost, fixed-term packages, leading companies provide usage-based pricing that means you’ll only pay for what you actually need/use. They also provide transparent upfront pricing so that you can easily calculate how much their services will cost you.
This flexibility is important because your business may, like many, experience fluctuating demand throughout the year. This usage-based pricing model can give you peace of mind that you’re not paying any more than necessary during quieter periods.
If you run your eCommerce business across multiple platforms (for example: Shopify, Amazon, eBay, etc), then choosing a 3PL partner that provides multi channel fulfilment is essential. That ensures that all your orders can be expertly managed, regardless of the platform the customer used to create the order.
In addition, it can also be worthwhile choosing a 3PL provider that offers multi channel support even if you currently only sell via one platform. After all, you never know what selling platforms you might consider using in the future. Choosing one that works with all the major platforms ensures you won’t need to change your 3PL provider because of your strategic decisions.
Ideally, you’d hope that your customers would be fully satisfied with the product that they purchase from your brand.
But the fact of the matter is, return rates are rising — and that means that you need to be ready for them. Providing a smooth returns process really can make the difference between having the customer make another order in the future, and losing them forever.
A good 3PL partner can manage the returns process on your behalf. They’ll be there to receive and inspect the product, and even restock if necessary. It’s an extra detail that can boost the customer’s experience, all the while ensuring that you don’t have to handle additional work.
One of the primary concerns that eCommerce business owners have about working with a 3PL company is that they won’t know precisely what’s in their inventory. It’s easy to double-check when your items are sitting in a corner of your workspace. It can feel a lot more difficult to know when your items are in a warehouse, far away from where you run your business.
The best companies provide real-time inventory insights, so you can quickly and easily see what products you have in stock. This is especially important if you’re selling across multiple channels, but it’s recommended for all types of eCommerce businesses. After all, it’s much easier to make the right strategic decision regarding inventory when you know exactly what you have.
It’s increasingly common for brands to enhance their customer’s experience by including branded packaging, which can include custom boxes or inserts.
If you have custom packaging, or you think that you might in the future, then make sure that it’s something that the 3PL service provider offers. It’s one of those factors that’s easy to overlook, but custom packaging really can make a big difference when it comes to impacting customer perception and loyalty. Plus, if a company offers this service, then you’ll know that they genuinely care about making your business the best that it can be.
The best 3PL companies make running your business easier in more ways than one. Not only do they understand the importance of fast shipping and delivery, but they also acknowledge that communication is key, especially when something goes wrong. Some providers offer generic customer service processes. Leading companies ensure that each customer has their own dedicated account manager, so you know exactly who to contact when you need support. This is particularly useful during busy periods when you need every aspect of your operations to be on the same page.
Ultimately, the best 3PL service providers are there to make running your eCommerce business easier to manage. If you’re looking to outsource the shipping logistics, then keep the above considerations in mind. If a company can tick all of those boxes, then you can be reasonably confident that you’ll have found a partner that can go on to become a real operational asset for your business, both now and in the future.
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