E-commerce business is experiencing phenomenal growth as more and more shoppers are preferring the online shopping route. With the availability of online shopping on mobile Apps, this trend is bound to rise further. This definitely is good news for e-retailers who can look for higher revenues for their business. However, managing an E-shop is not as simple as it seems. It entails tasks such as maintaining the store, working on the sales and marketing, managing the inventory, tracking orders, fulfilling customers’ orders. Managing all these tasks can be quite a challenge for a business. Hence, E-commerce companies look for logistics solutions to a third party.
What is a third-party logistics solution for an E-commerce store?
Third-party logistics solution for an E-commerce store implies outsourcing certain logistics activities to a third party.
The logistics functions that are usually outsourced are:
Any E-commerce store needs a warehouse for storing its goods. There are two options before the store owner. Either he can own the warehouse or he can let the 3 PL logistics company provide the warehouse.
The main problem in owning the warehouse is that it may not be located close to the customers and hence the distribution of the goods could become difficult. Besides this, the E-shop will have to incur expenses such as the rent of the warehouse, the salaries of the staff for managing the warehouse. Maintaining the warehouse is also the responsibility of the owner. The issue of storage becomes a bigger problem as your business grows and you spread it internationally.
When you outsource your complete E-commerce logistics, the 3 PL Company undertakes the responsibility for storage and 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 pack the articles for delivery to your customers.
Third-party logistics solutions for E-commerce also include shipping of your goods using appropriate means of transport to the destination.
Complete third party for E-commerce entails the inventory management of your goods to ensure a seamless supply chain for your store.
As is apparent third parties take over a number of tasks from the E-retailer. This has numerous benefits for the E-shop.
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 yourselves. This implies additional expenses. These expenses could be for renting warehouses, hiring staff for various functions, etc. Although 3 PL companies will charge you for their services, it will work out lesser than what you would otherwise incur.
It saves your time and efforts
By outsourcing logistics functions to the best logistics solutions provider for your E-commerce store, you are saved of a lot of hassle. You can focus on various areas of your business while your 3 PL partner completes the logistics functions.
Helps you grow your business
If you want your E-shop to have a global presence, you will need to partner with a company that provides the best logistics solutions for E-commerce. This is because as your business grows, you will need effective distribution channels which your logistics partners can provide.
Complete logistics for E-commerce ensures timely delivery of the goods to your customers. The E-commerce market is highly competitive where the customers are looking for quick delivery. Third-party logistics companies use multi-modes of transport to ensure timely deliveries.
As you can see, complete third-party solutions for E-commerce are necessary for the growth of an E-business.
Prime Penguin, a Stockholm based Company, is a leading name in providing the best logistics solutions to an E-commerce business.