The e-commerce business is experiencing phenomenal growth as more and more consumers are starting to prefer to shop online. With the availability of online shopping on mobile phones, this trend is bound to rise even further. This is definitely good news for e-retailers who are aiming for higher revenues for their businesses. However, managing an E-shop is not as simple as it seems. It entails tasks such as maintenance of the store, working on sales and marketing, inventory management, tracking orders, fulfilling customers’ orders, etc. Managing all of these tasks can be quite a challenge for a business. Hence, e-commerce companies look for logistics solutions from third parties.
What is a third-party logistics solution for an E-commerce store?
Third-party logistics, commonly known as 3PL or TPL, are solutions for an E-commerce store that implies outsourcing certain logistics activities to a third party.
The logistics functions that are usually outsourced include the following:
Any E-commerce store needs a warehouse for storing its goods. There are two options that are viable for a store owner. An e-commerce business could either own the warehouse itself or a 3PL company could provide the storage.
The main problem in owning a warehouse is that it may not be located close to the customers, hence the distribution of the goods could become difficult. In addition, E-shops are responsible of the warehouse and everything that follows with it. This includes expenses such as rent and salaries to the staff that makes the logistics run smoothly. The issue of storage could also become a problem as the business grows and gains customers internationally.
When you outsource your complete E-commerce logistics, a 3PL Company undertakes the responsibility for storage and the maintenance of your goods. The problem of the warehouse being located far from the customers is solved as these companies usually have connections with multiple warehouses located at different locations.
When a company undertakes complete third-party logistics services for your store, they provide packaging serivces as well of the articles that is delivered to your customers.
Third-party logistics solutions for e-commerce businesses also include shipping of your goods, using appropriate means of transport to the desired destination.
Lastly, 3PLs for E-commerce businesses entails the inventory management of your goods, in order to ensure a seamless supply chain for your store.
Third-party logistics companies take over a number of tasks, as mentioned above, from an E-retailer which has has numerous benefits for the E-shop itself.
Here’s a brief look at how an E-shop can benefit from the best logistics solutions for E-commerce:
- IT WORKS OUT AS AN ECONOMICAL METHOD
If you do not outsource, you will need to perform a number of logistics tasks yourself. This implies additional expenses, such as renting warehouses, hiring staff for various functions, etc. Although 3PL companies will charge you for their services, it will cost you less to choose a third-party solution rather than dealing with it yourself.
- IT SAVES YOUR TIME AND EFFORTS
By outsourcing logistics functions to the best logistics solutions for your E-commerce store, you will save time and avoid any hassle. You can focus on other various areas of your business while your 3PL partner undertake the supply-chain process and logistics management.
- IT HELPS YOU GROW YOUR BUSINESS
If you want your E-shop to have a global presence, you will need to partner with a 3PL company that provides the best logistics solutions for your E-commerce business. As your business grows, effective distribution channels are essential in order for the company to keep their customers satisfied and provide reliable services. Your 3PL partners are connected to many different partners all over the world which lets expand to new markets in a simpler way.
- TIMELY DELIVERIES
Third-party logistics for E-commerce ensures timely delivery of the goods to your customers, by being closer to your customers and using multiple modes of transport. The E-commerce market is highly competitive where the customers are looking for quick deliveries that are handled with precision and care, therefore 3PL or TPL solutions is a good fit for your e-commerce business. They also facilitate the growth of the business, by allowing you to focus on sales and marketing instead of logistics management.
If you are looking to outsource to a third-party logistics solution, Prime Penguin has a vast network of different 3PL companies all over the world and mediates the connection. Prime Penguin, a Stockholm based tech venture, that gives you the ability to remain in full control while having a complete overview of the logistics process through their cloud-based platform.