3PL, or third-party logistics, ensures lower shipping costs, real-time order tracking, and fast delivery.
FREMONT, CA: In eCommerce logistics, 3PL is a service offered by third-party couriers and logistics software businesses to online stores for shipping and order delivery. A third-party logistics provider manages order procurement, storage, warehousing, stock management, labeling, picking, packing, and delivery to the final customer. Online companies generally delegate responsibility for shipping and order fulfillment to these services. According to research, collaborating with 3PLs allows eCommerce organizations to scale significantly more quickly.
Because of the benefits, most eCommerce businesses begin to outsource shipping and logistics to third-party logistics providers. As an online company expands and receives larger orders on a monthly basis, 3PL provides its consumers with a seamless and simplified shipping and delivery process. A third-party logistics provider may store items in warehouses, manage stock levels, restock them as needed, and finally deliver the item when a customer orders. A 3PL not only provides shipping services but also customized packing, picking, kitting, bundling, customs clearing, and so on for eCommerce companies.
Top benefits of 3PL or third-party logistics
Reduced shipping costs: One noteworthy benefit of 3PL is its cost-effectiveness. Third-party logistics providers deal with various businesses. As a result, they may offer individual eCommerce companies significantly lower and more appealing shipping prices.
Managing logistics in-house is a prohibitively expensive expenditure. 3PL businesses, on the other hand, can leverage their economies of scale to offer valuable shipping services at significantly cheaper costs.
Warehouse management: Warehousing solutions are another significant benefit third-party logistics companies provide. As part of warehouse management, 3PL businesses acquire an eCommerce company's inventory and store it in multiple warehouses.
When a customer places an order, it is proactively and systemically fulfilled and shipped from the nearest warehouse to the destination. As a result, 3PLs not only handle inventory management but also deliver goods more quickly. Young eCommerce companies with limited space can consider employing 3PLs' warehouse management services.
Quick delivery: Because 3PLs specialize in shipping, they manage a large number of delivery fleets. This makes it easy to transport shipments from one location to another in a timely way.
Another advantage of third-party logistics is that they have multiple warehouses across the country. As a result, they are far better able to deliver orders to customers worldwide. They can provide lightning-fast deliveries to consumers even on short notice. This is extremely handy for dropshipping businesses that ship to several places.
