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If you run an eCommerce store, take a moment to think about what a third-party logistics provider (3PL) could do for your business. And before you say that managing your own warehouses will result in better cost control and savings, you may want to keep reading. The truth is that partnering with a 3PL provides your company with many solutions and benefits that help you stay competitive and run a smoother supply chain. Today we’ll discuss everything you need to know about the benefits of using a 3PL.

Table of Contents

7 Important Benefits of Using a 3PL

Cost Savings

The cost savings of hiring a 3PL are unmatched in terms of time and money. First, using these providers eliminates your need for leasing warehouse space and paying for other overhead costs such as transportation, technology, and staff to perform logistics tasks. Yet, furthermore, 3PLs can prevent your company from making costly mistakes and help build a worldwide global logistical network that increases return and lowers risk.

The cost savings of using a 3PL doesn’t stop there, though. Since third-party logistics providers specialize in these services, partnering with one can allow you to tap into their extensive network of industry partners such as shipping carriers. In turn, you receive their shipping discounts and may even be able to offer further volume discounts. You can look at the prices of various major 3PL’s by clicking here.

Time Savings

As we briefly mentioned, hiring a third-party logistics provider also offers considerable time savings. If you stop to think for a moment, you’ll realize that you spend a great deal of time focusing on managing and optimizing your business strategies; which is where your attention is best kept. However, when you’re strategizing and making moves, the last thing you should have to worry about is taking on a full workload.

This is where a 3PL comes in and essentially shoulders all of your responsibilities so that you can remain focused on growth, core competencies, and so on. The point is that you really can’t go wrong hiring a 3PL to save time and money. In fact, their expertise may be what keeps you from making costly shipping mistakes that will waste even more of your resources and time.

Any business looking to expand into international markets will benefit from the vast support and know-how that a 3PL will provide. In the long run, this reduces cycle time, helps entry into a new market go smoother, and minimizes costly delays.

Direct Access to Vast Expertise and Resources

In today’s complex global market environment, it’s challenging to accommodate and anticipate the internal expertise required for all regions and capacities. If your company is struggling with this, then partnering with a 3PL is an excellent option. Not only do these companies have proficiency and experience with matters such as export and import, but also with compliance regulations, transport documentation, and more.

Any business looking to expand into international markets will benefit from the vast support and know-how that a 3PL will provide. In the long run, this reduces cycle time, helps entry into a new market go smoother, and minimizes costly delays.

Provides Scalability & Flexibility

Another considerable advantage of signing up for 3PL services is that they allow you to effectively scale space, labor, and transportation to your company’s unique needs. Even seasonal businesses benefit significantly from third-party logistics providers in terms of transitioning between low and high seasons while also allowing them the ability to utilize more logistical resources and warehouse space when needed.

Perhaps the best part of partnering with a 3PL is that it better enables your company to grow into new regions with fewer entry barriers. As your business scales up, a 3PL will help you scale effectively, as they offer the perfect capabilities and resources needed to enter new regions and markets seamlessly.

Improved Customer Satisfaction

As you can see, hiring a 3PL frees up a lot of time for a business owner. And more free time means that you can focus on improved customer response and service time to ensure everyone receives nothing but the best service. Ultimately, timely service and delivery translate to better brand reliability, which leads to improved customer satisfaction rates. Every business owner knows this is the primary, fundamental goal of every company, and it’s that easy with the help of a 3PL.

3PLs Help You Compete with Amazon

Though many eCommerce companies partner with Amazon to sell their products, not everyone chooses to go this route. If you are one of many who use other online selling platforms, a partnership with a 3PL can help you compete with Amazon. This is especially true when trying to match their level of delivery performance, such as 2-day delivery. You may also find that fees with a 3PL are less than that with Amazon, so this is something you’ll want to consider for your eCommerce business if you currently only sell on Amazon.

3PLs Help You Work with Amazon

Alternatively, if you are an Amazon seller, a third-party logistics provider can also help! If you’re currently enrolled in FBA (Fulfillment by Amazon), then you know that storage fees with Amazon can be costly. In fact, often, they are higher than the cost with a 3PL and may even go up during holidays. In addition, Amazon’s system offers less fluidity with inventory cycles, so it can be more challenging to negotiate your inventory based on dips and spikes.

The Bottom Line

In the end, your company cannot lose by partnering with a 3PL. While it will obviously cost money to invest in this partnership, it’s one of the best ways to sell your product without ever having to partner with Amazon or any other large selling platform that might cause you to lose your brand’s identity. Even better is that a 3PL is just there to help streamline your services, not sell your product themselves like companies such as Amazon do(eg. Amazon Basics)

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