Anyone who runs an eCommerce business will know the ins and outs when it comes to eCommerce fulfilment, the good, the bad and the ugly. And from the very inception of your eCommerce business, you have had to navigate the often choppy waters of e-fulfilment. From exploring processes to developing sustainable packaging options, conducting market research to enhancing experiences for customers. We name it, you’ve done it.
At the beginning of your business journey, these teething problems were just that, but after a period of exponential growth, your order fulfilment is now one of, if not the key aspect to your online business. If this sounds like you, have you ever considered a 3PL partner and truly explored what one can do for you?
Business owners often look to a 3PL to take on the day-to-day of their fulfilment. Working as an extension of their business, a 3PL offers expert insight and an array of exceptional knowledge into the business. Which, when done correctly, can improve customer retention and help you to excel in other aspects of your business.
What do I have to do? When working with a third-party logistics partner you literally have to sit back, relax and let them take on the entire fulfilment process. Working with a 3PL means that an external fulfilment centre will tackle the day-to-day of any, and all, eCommerce fulfilment. From warehousing and storage to picking, packing, and shipping – you can spend your time focusing on the business operations and less time providing an exceptional delivery experience… that bit is on us.
What is a 3PL?
A 3PL or third-party logistics provider is an external fulfilment house that works alongside your eCommerce business, bridging the gap between your orders and their end destination. We work alongside you to create a fulfilment model which provides professional guidance on all things post-purchase.
3PLs often cover everything from inventory management, storage and warehousing, pick and pack, packaging, processing, courier relations, returns management, gifting, kitting, contract packing, and so much more. Seen as an extra cog in your business machine, a 3PL is an external safe space that is there to guide you through your fulfilment journey, providing expert insights into sustainable fulfilment, costings, and so much more whilst also helping to lower your returns rates, boost customer satisfaction and amplify your retention.
What are the benefits of using a 3PL?
1. Take back your time...
Time is one of, if not the biggest, factors in most people’s lives.
We have far too little time to get the important bits done! That is where outsourcing to a 3PL partner can truly benefit you.
Leaving the day-to-day of it to an external company will not only help you focus on what really matters… but on average working alongside a 3PL can help to save your business an astonishing 120 hours per week. Just think about everything that you could get done with that additional time. Whether that’s the core business elements or even that extra hour for your lunch break – take your time back with a 3PL!
All too often in this industry, we hear drastic underestimations for the time it takes to pick, pack and ship their orders – and that’s not to mention the day-to-day of warehousing and stock management.
Outsourcing your eCommerce fulfilment services to a trusted third-party logistics provider ensures timely, accurate delivery and frees up more of your time. Allowing you to spend it on what you do best – growing your business!
2. It’s more cost-effective in the long run
Decided to keep your eCommerce fulfilment in-house? That could be the best solution for you at this time. However, if you do decide to try and manage your fulfilment services in-house you will need to consider the following:
- Option one: Do everything yourself. Taking on your own fulfilment can be rewarding, however it also takes a lot of time. As previously stated, the eCommerce community often drastically underestimate the amount of time that fulfilment takes, and as your business begins to grow and more orders come in – the more time that will take. Remember that old saying time is money, that’s never been truer than when it comes to fulfilment.
- Option two: Hire a team to do it for you. Hiring a team to take on your fulfilment can be a great option, but this doesn’t come cheap! Recruitment, wages, storage, insurance, everything you’ll have to pay on an ongoing basis, regardless of demand and seasonal fluctuations.
If you decide to outsource this process to a third-party logistics (3PL) provider, you can take away the strain that eCommerce fulfilment puts on any growing business. Outsourcing provides the opportunity to reduce overhead expenses, such as leasing warehouse space, hiring and training staff, and covering insurance costs. While there are fees associated with partnering with any fulfilment centre, selecting the right partner is crucial for achieving meaningful cost reductions and operational efficiencies. The right 3PL partner can streamline logistics, reduce time spent on managing supply chain processes, and ultimately deliver long-term savings and convenience for your business.
3. Reduce shipping costs for clients
Working with the experts does come with its perks! And one of those…reduced shipping costs.
Most fulfilment centres, like SCEND, are working alongside a range of both larger and smaller clients, some of which are shipping out thousands of orders on a daily basis. These regular larger order volumes allow us, and other 3PLs like us, to benefit from reduced shipping rates using a selection of trusted and respected couriers. These special rates not only benefit our clients directly – but with lower shipping costs you’re in a great position being able to offer lower rates to your customers, keeping you competitive within your sector.
Bulk orders, and high volume is just one of the elements keeping shipping costs competitive. Specific to SCEND, our clients benefit from a central location too. Our safe and secure warehouses are located at the heart of the UK, being within close proximity to the M1 and East Midlands Airport helps us to keep shipping costs low and reduce shipping time to your customers.
For your customers, this can result in more attractive shipping options, including discounted rates and next-day delivery. When customers are happy, they come back – increasing revenue and retention rates.
4. Get access to the best technology
When logistics is what you do, you spend time, money and energy perfecting the entire fulfilment process. As a fulfilment centre, SCEND invests heavily in the very best technology. From the best software programmes to the latest tech hardware, as a business we make the investments to ensure our clients have access to the best technology that the industry can offer. This investment allows us to increase efficiency and reduce delivery times.
Investing in the best doesn’t just cover advanced management and tracking systems and effective shipping coordination, we also invest in the best training for our warehousing staff. By partnering with a third-party logistics (3PL) provider, you gain access to this wealth of specialised knowledge and resources without having to develop or maintain it in-house. Our expertise becomes your advantage, empowering your business with cutting-edge technology, streamlined processes, and the skills of industry professionals dedicated to optimising your logistics operations.
And it doesn’t stop there. In addition to our in-house experts we work alongside a full stack of tech partners. These are industry experts who have specialised fields and programmes – having access to these tech partners allows our clients to continue to advance.
Having the very best technology at our disposal means that we keep you in the loop every step of the way. You have full visibility of every aspect of the process allowing you to live check stock availability, order status and more! Meaning that even though you’re outsourcing – you’re never that far away.
5. Expand into new marketplaces with ease
One of the most exciting elements of growing an online business is that when it comes to growth, the possibilities truly are endless. The growth of eCommerce has helped businesses to expand their borders and remove boundaries put in place that brick-and-mortar stores would seldom be able to crack. That is why if you’re looking to expand your business into new unchartered territories in the near future, you should be able to achieve this. However, though international expansion is now even more possible, it definitely isn’t easy. And that is why a 3PL partner could be a key element in that transition.
With the ability to easily ship your products all over the world, a reputable 3PL is your best friend when looking to expand globally! Internationalisation in eCommerce is a massive consideration in today’s market, and it can be costly and time-consuming to take this process in-house. With so many other aspects to consider getting that professional guidance can help the process progress smoothly and relatively hiccup-free.
Turning to a 3PL for advice and assistance can help you to break through and tap into new flourishing markets – giving you a positive ROI!
How do I choose a reputable 3PL?
When deciding it is time to make the switch and work with a 3PL there are many ways in which you can determine which 3PL is best suited to you. At SCEND we have created a list of some of the key questions which you should be asking when choosing your 3PL. These questions include:
- What eCommerce fulfilment solutions do they offer?
- Are they equipped to work with your specific sector?
- How much will outsourcing my fulfilment cost?
- Where is their warehouse located?
- Does your 3PL offer international shipping?
- Can your 3PL provide customised packaging?
- Which technology and integrations do you use?
In addition to these key questions, you can also look at the accreditations associated with the 3PL. This is the perfect way to see where they stand and which standards they hold.
Sound good? Here at SCEND we have processes in place to help with saving time, money, exploring new technologies and growing in new spaces.
Get in touch with a member of the team and discuss how you can benefit from a 3PL.
