With e-commerce on the rise all around the globe thanks to Fulfillment by Amazon (FBA), business owners are constantly on the lookout for third-party logistics (3PL) to handle their inventory effectively. While numerous companies claiming to own 3PL warehouses may come before you, as a business owner, you must know to whom you will hand over your business operations. Since 3PL shippers become the face of your business due to their direct services to the customers, you must choose a 3pl shipment partner wisely.
Image Text: Preparing shipment at a fulfillment warehouse
Alt-Text: 3PL warehouse fulfillment
Image Description: Preparing shipment at a distribution center
Image Source: https://unsplash.com/photos/sczNLg6rrhQ
What Is a 3PL Shipper?
A 3PL shipper is a company that provides third-party logistics services, which means they handle all the logistics and shipping for their clients. It can include everything from warehousing and transportation to order fulfillment and customer service. In other words, they take care of all the behind-the-scenes work that goes into getting a product from point A to point B.
3PL shippers can be an excellent solution for businesses that don’t have the resources or expertise to handle their shipping and logistics. They can also be a cost-effective option for companies that want to outsource this part of their operation. Working with a 3PL can help businesses save time and money.
What Services Does a 3PL Shipment Company Offer?
A 3PL is a third-party logistics company that handles goods’ transportation, storage, and distribution. The term is short for “third-party logistics,” but there’s more to a 3PL than simply being the middleman between producers and retailers.
The main functions of a 3PL are inventory management, order fulfillment, and customer service.
Inventory Management – 3PLs manage the logistics of your shipment, including warehousing, shipping, and receiving. Inventory management involves tracking inventory levels, forecasting demand, keeping up with seasonal fluctuations, and managing back-orders. These activities can be challenging for a retailer with limited resources because they require constant monitoring of multiple warehouses worldwide. That’s where 3PLs come in handy — they can use their storage facilities to manage inventory levels better, so retailers don’t have to worry about it themselves.
Order Fulfillment – Order fulfillment involves fulfilling orders directly from suppliers to customers’ designated warehouses or distribution centers (DCs). A 3PL typically has its own DCs and relationships with other DCs that it can use to fill orders in real-time while still maintaining quality control over its shipments. 3PLs provide fulfillment services for orders that require assembling or packaging of your products before shipping them to their destination.
Customer Service – Customer service involves everything else that goes along with running a successful business: answering customer questions via phone calls or email, delivering packages, handling returns or exchanges, and providing technical support.
Image Text: FBA prep and ship
Alt-Text: 3PL amazon fulfillment services
Image Description: FBA prep and ship package
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What Should You Look for in a 3PL Shipping Partner?
As a 3PL shipper, you want a supplier that can provide excellent service and quality for your business. You also want to know that the company has a good reputation in the industry, which will make it easier for you to find work with them.
There are several characteristics one should look for when searching for a 3PL company:
You must check out the company’s history with third-party logistics providers (3PLs) before signing up with them as a client. This way, it will help make sure that they are legitimate, reputable businesses that have been providing their services for some time now and not just fly-by-night operations trying to cash in on your business without doing adequate research first or charging unreasonable rates for their services or services that don’t meet your needs as efficiently as possible for your company’s needs.
One thing that many customers look for is simple, hassle-free business operations. They want to be able to place an order and not worry about any problems or delays in delivery times. Your supplier must have no delays or issues with their operations so that your orders go out on time every time!
Because you are taking on multiple suppliers, you need to ensure that each one is competitively priced and cannot be undercut by another supplier on price alone! Make sure you compare prices from several different suppliers before deciding which one will provide you with the best value for your dollar!
Quality service is the most important thing you should consider when looking for a 3PL shipping partner. You want to work with someone who will provide high-quality services at all times, no matter what the situation is. A good provider will always meet your needs and deliver the goods on time. It means that they will be able to handle any situation during delivery, which means fewer interruptions and delays in your supply chain.
Another important factor when choosing a 3PL shipping partner is their competence level. The best providers have been operating in this industry for many years now, so they know what they are doing when managing shipments through their system or customers themselves.
How Should You Choose a 3PL Shipper for Your Business?
For many small businesses, the decision to ship products is often a question of whether or not they can afford to do so. Whether you ship domestically or internationally, there are some essential things to consider when looking for a 3PL shipping partner.
Here are the top five considerations when choosing a 3PL:
- Is it right for my business?
- Can I trust them?
- Do they manage returned shipments?
- Can I get the best rates from them?
- How easy is it to work with them?
Why Should You Partner with a 3PL Shipment Company?
The benefits of having a 3PL shipment partner are varied. For some, it’s an opportunity to save money. For others, it’s a way to leverage the expertise and services of other companies.
Here are some of the most common reasons why companies choose to outsource their logistics operations:
Cost savings: Most 3PLs can offer lower prices than in-house shipping departments, especially if they have access to large networks of carriers and warehouses.
Automation: The ability to handle shipments without human intervention can significantly save labor costs and time spent managing inventories.
Coordination: Having a partner familiar with your business’s specific needs will allow you to focus on what matters most — growing your business — while they manage your shipping processes from start to finish.
Image Text: International shipping fulfillment
Alt-Text: 3PL companies international deliveries
Image Description: Shipment under Golden State Bridge
Image Source: https://www.pexels.com/photo/architecture-barge-bay-beach-161764/
To Wrap It Up!
With Amazon FBA, people earn their incomes at a click’s expense. And instead of worrying about the logistics and order shipping processes, these businesses are focusing on doing what they love and bringing things into existence. The other worries are taken care of by 3pl shipment partners.
In a state like California, where e-commerce is constantly on the rise, the demand for e-commerce fulfillment services and 3pl companies has surged. If you’re a small business planning on getting a reputable and trustworthy 3pl shipper on board, you should contact E-Box Fulfillment.
With 24×7 customer service and cost-effective unique fulfillment solutions for your business, E-Box Fulfillment is at the top of its game in the e-commerce fulfillment industry. They offer accessible return services for the packages sent back, ship international orders, and have easy payment methods for your convenience. If you’re interested in learning more, check out their website.
1 thought on “What is a 3PL Shipper?”
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