So, the time has come for you to start looking at outsourcing your eCommerce fulfilment. No matter what the reason, whether it is taking up too much of your time, you want to expand into international marketplaces, or you’ve simply outgrown your current fulfilment setup – looking to entrust your fulfilment to the experts is the first step towards promoting businesses growth and expansion. However, as is the case with eCommerce businesses, no two 3PLs are the same – and with so many to choose from the process of getting the ball rolling and taking that initial leap can be daunting.
There are quite literally hundreds of third-party providers across the UK and globally and with so many of them offering the same or very similar packages and often boasting the same great results it can feel like you’re navigating your way through a minefield.
The best place to start when it comes to making those initial steps is knowing what questions you need to be asking and what mistakes you should be actively avoiding. That’s why at SCEND we want to help you make an educated decision by providing you with the tools to choose the right 3PL for you!
We’ve devised a non-exhaustive list of seven essential questions, and common mistakes which will help you when looking into a new 3PL!
Question one:
Which fulfilment services do you offer?
Firstly, let’s cover the basics. Though seemingly obvious, the first and most important question which you need to be asking is all about the service offering. Whilst more than 90% of fulfilment centres will be offering the basics: eCommerce fulfilment, pick and pack, warehousing and storage and dispatch, other end-to-end logistics providers will go above and beyond the standard to offer their clients something which exceeds their expectations and current needs.
When it comes to asking the question about service offerings you need to ensure you’ve got all your bases covered, talk to your chosen provider about contract packing, returns and so much more. Not only that but do they offer any additional or value-added services to not only provide a fulfilment solution which works for your business but supersedes both yours and your customer's expectations?
It’s important to figure out what you need from your fulfilment company, and if you have specific requirements, make sure that the company can fulfil those needs!
Common mistakes, number one:
Not preparing for the future.
When it comes to discussing fulfilment services, many businesses go in from a “right now” perspective, and whilst this works in the short term, one of the biggest mistakes which we see when selecting a fulfilment centre is failing to prepare for the future. Even if you’re just starting out and are simply looking for a solution which will get your products from A to B you need to be future proofing your business by looking at a 3PL who can expand and grow with you as a client.
In a world where social media influence and online demand can make a product blow up overnight, you need to be looking at the full range of services which your 3PL has on offer even if you don’t utilise them just yet – you can sit comfortably in the knowledge that they have space to expand your product range, the means of shipping globally and so much more. Having a 3PL that can keep up with this demand and provide for you no matter whether you’re new to eCommerce or TikTok viral is essential.
Question two:
Are they equipped to work with your specific sector?
When it comes to eCommerce fulfilment, much like any other industry, each business will be suited to working with a specific sector. Whilst some specialise in food and beverages, others may be more equipped for fashion and apparel. That is why when looking for a 3PL you need to do some research into if that fulfilment centre is suitable for your specific business.
When looking for a third-party provider, you need to start by exploring their previous work and their client portfolio. This is a great way to see what types of businesses they’re used to working with. Their website may have sector pages, or case studies to give you some more information on this, but this information isn’t always readily available online so it might be worth asking the question directly! From there, you’ll have a much better idea of whether they’re a good fit for your business.
Common mistake, number two:
Selecting a 3PLwithout considering their specialty.
When it comes to completing your sector-based research it is imperative that you take on board your findings. When it comes to different sectors there are certain specific requirements that are needed to ensure safe and secure storage and appropriate delivery conditions. When doing your research make sure that your chosen 3PL has everything you need for your products, whether that be refrigeration for perishable goods or even expert handlers for fragile products. Using the right 3PL could be the difference between your business sinking or swimming in today’s economy.
Question three:
How much will outsourcing my fulfilment cost?
Taking steps towards outsourcing your fulfilment process for the first time can be daunting. It’s likely that before now, you’ve handled everything yourself, or as part of a small team, so the costs of outsourcing are naturally something you’ll question. It’s important you strike the balance between choosing a provider that works in line with your budget, whilst also providing all the services that you need.
When it comes to costs, find out exactly what you’ll be charged for, how that changes with fluctuations in demand, and if there are any hidden fees to think about. At SCEND, there are no hidden charges or setup fees. However, not all providers are the same, so make sure you find out before you commit – if you want to find out more about how much fulfilment costs, head to our blog. Or contact a member of the SCEND team.
Common mistake, number three:
Basing your choice solely on costs.
Whilst we are all too aware that costings will and should play a massive part in choosing the right 3PL for you – it is not something which should be used as a sole decision maker. And by this we mean, cheaper isn’t always the best option and a higher price point doesn’t always mean better quality.
A common mistake which businesses make when choosing their 3PL is to make a final decision based solely on the cost of the service – and whilst this is tempting it can lead to disappointment and having to make a costly move further down the line. SO, that being said, you should look at costs when considering your next 3PL – but it should be used in tandem with other key factors too.
Question four:
Where is your fulfilment house located?
Whilst the location of a fulfilment centre or warehouse might not be something you’d consider initially, it’s actually key when it comes to making an informed decision. In today’s society, we have come to expect retailers to offer a next-day delivery service or if not next day, some form of express delivery. As eCommerce continues to boom, we can expect a customer base who are less likely to want to wait a week for their goods to be delivered.
With that in mind, what are the right questions to ask when discussing location? If you’re shipping to the UK, you need an eCommerce fulfilment centre which is conveniently located in central England, connected to transport hubs up and down the UK and will allow you to confidently promise next-day and express delivery services to your customers. Asking for information on their final cut-off times is also a good idea so you can be in the know when it comes to your customer's orders.
Here at SCEND, we offer a 9PM cut-off on all eCommerce orders. And are currently operating at 99.6% of all products being dispatched same day.
Common mistake, number four:
Just choosing your local 3PL.
When it comes to the location of your 3PL we often see brands favour their closest fulfilment centre. And whilst this is great for convenience and optimal for regular visits it might not be the prime position for your customers. Though proximity to you and your business should be considered it certainly shouldn’t be the only factor to consider when it comes to location. Choosing a 3PL that has access to transport links and is conveniently positioned in the UK to reach all areas swiftly and efficiently should be your number one priority.
Question five:
Do you offer international shipping support?
Whether you currently market to consumers around the globe or have plans to do so in the future, it’s important to find out whether your chosen eCommerce fulfilment provider has the ability to ship internationally.
If this is an option, even if just for the future, it gives you the opportunity to expand into new marketplaces should you wish to do so. Find out the costs associated with this and ensure that they are able to adhere to international laws and regulations to avoid costly fines and penalties.
Common mistake, number five:
Not considering international shipping options.
Another one that looks at future-proofing a business, getting in gear when it comes to globalisation is one of the best things that you can do for your brand. All too often brands work alongside 3PLs who are ill-equipped for international shipping and whilst initially this won’t cause any significant issues as your brand grows and begins to tap into new marketplaces you may find yourself being held back and having to move provider.
Question six:
Do you offer personalised packaging?
No matter the size of your business, custom and personalised packaging is essential. It’s safe to say that packaging is much more than just a cardboard box. In fact, over 70% of consumers said their decision to purchase is influenced by the design of the packaging. What’s more, 40% of consumers will share your packaging on social media if it is unique. Giving you another great way to market your products!
With that in mind, ensuring that your new fulfilment partner is able to offer custom packaging such as labels, messages and materials is key if you want to stand out from the crowd and make a great impression with your customers. Not only are they more likely to make a repeat purchase, but they’ll also share your brand with others. If personalised packaging is important to you, make sure you check the added costs of personalisation to ensure that it still fits within your budget with your chosen fulfilment provider.
Common mistake, number six:
Dialing back the personalisation.
Getting personal with your parcels is the best way to show your customers just how much they mean to you. And customisation is so much more than just a name on a box. Personalised packaging goes from intriguing designs which are centered around the customers’ likes and interests to custom inserts which provide product recommendations, discount codes and so much more. There are so many things that your 3PL should be able to offer you when it comes to personalised packaging. Just don’t make the common mistake of underestimating the power of making your customers feel like their journey was all about them!
Question seven:
Which technology and integrations do you use?
One of the key benefits of outsourcing your fulfilment services is freeing up more of your time, therefore making sure that a company has the right technology and integration systems in place is key. You want to ensure that all your orders from all of your sales channels are fed through automatically, there should be no need for you to check for new orders or update your inventory levels. With SCEND’s fulfilment software, you get access to your own online portal and order fulfilment software that shows you what’s happening in our warehouse.
Not only that, you also want to make sure that your fulfilment provider offers seamless integration with your chosen eCommerce platform. At SCEND we integrate seamlessly with all major eCommerce platforms including Shopify and Magento, and also offer a fantastic integration with marketplaces like eBay, Amazon and social commerce platform TikTok. Giving you the freedom to sell online, wherever you want! Speak to the team to find out if we offer integration with your chosen eCommerce platform.
On top of our tech stack – we also offer integration with a list of tech partners which are set up ready to integrate with your business. Having a list of external tech partners allows you to exceed your current set-up utilising different technology which you might not have access to without the help of a 3PL.
Common mistake, number seven:
Avoiding the use of tech partners and integrations.
Finally, tech partners and tech integrations are some of the best resources you can use for your fulfilment process. Therefore,this is one thing which you should definitely consider when offered by your 3PL. Integrations such as Inventory Planner which is great for managing stock, or Rebound which is great for dealing with returns are great programs which should be highly considered when taking on a 3PL.
Ready to get on board with a new 3PL partner?
Get in touch with the SCEND team to supercharge your eCommerce fulfilment, returns management, contract pack and so much more!
TL; DR
Seven Questions to Ask
- Which fulfilment services do you provide?
- Which sectors do you specialise in?
- How much will outsourcing my fulfilment to you cost?
- Where is your fulfilment house located?
- Do you offer international shipping support?
- Do you offer personalised packaging?
- Which technology and integrations do you use?
Common mistakes to avoid:
- Not preparing for the future.
- Selecting a 3PLwithout considering their specialty.
- Basing your choice solely on costs.
- Choosing your local 3PL.
- Not considering international shipping options.
- Dialing back the personalisation.
- Avoiding the use of tech partners and integrations.