08 Feb 7 Reasons Outsourcing E-Commerce Shipping with 3PL Makes Sense
Thinking about hiring an outside team to help with all of your e-commerce shipping needs? For a lot of online brands, outsourcing e-commerce shipping is the most efficient and cost-effective method to facilitate growth.
However, there’s a good chance that you have a lot of questions about the process. Or, you may be wondering if it is even worth taking that extra step to bring in another company to assist with warehousing, picking, packing, and more.
The answer? Yes, it is absolutely a good idea. Let’s explore seven reasons why outsourcing your e-commerce shipping with third-party logistics (3PL) just makes sense.
1. Warehouses Are Expensive
Perhaps the most common reason why outsourcing your e-commerce shipping with a 3PL provider makes sense is that renting or buying a warehouse is expensive. After all, unless you are exclusively dropshipping, you’ll need a place to keep all of your inventory until a customer places an order.
With a 3PL partner, this process is handled for you. By leveraging the use of space in their facility, you can rest assured that your items are safe, secure, and ready for shipment when a customer places an order. Best of all, you don’t have to fret about whether you’re using the right amount of space or need a bigger facility.
2. Bulk Shipping Always Gets the Best Rates
Another benefit to working with a third-party logistics company for e-commerce shipping is access to bulk rates. It is widely known that companies that only send out a few orders per month pay much more for services from UPS, USPS, FedEx, and others.
In contrast, 3PL companies send out tons of orders for a multitude of clients. This means they’re always able to get better logistics and freight rates than your company could probably get alone. Since the difference is passed onto you through your agreement with the provider, you’re still getting the best possible savings.
3. Picking and Packing Takes Time
Imagine having to stop everything in your day to attempt to pick and pack orders for a few hours. For most entrepreneurs, this would be a severe waste of time that could be spent on other important tasks.
That said, hiring a team to do this for you in-house isn’t always the best method. When you start to figure out the cost of wages, benefits, insurance, and more, it really adds up. This is another reason why passing these costs onto a 3PL to improve your e-commerce shipping is a good idea.
4. 3PL is More Efficient
If you’re considering a 3PL service, there’s a good chance you’re looking for a more efficient way to get orders out to customers. The truth is that most small or midsize e-commerce brands aren’t adequately equipped to push out tons of products in a short period of time.
Keeping that in mind, third-party logistics companies are always equipped to handle this type of process quickly, accurately, and effectively. The end result? Your ecommerce shipping times go down and shoppers receive orders in a much more timely fashion. That means they have a better overall experience with your brand, and that’s always a win.
5. More Flexibility in Packaging Options
As an online brand owner, there’s a good chance you’ve spent a decent amount of time considering the type of packaging used to send out orders. Depending on your niche, this might even mean having a custom solution created specifically for your needs.
When working with a 3PL for e-commerce, you can rest assured that your customer orders are packed and shipped in the most logical, safe, and efficient way possible. Best of all, situations, where you might have an oversized or unusual shipment, are handled quickly and expertly.
6. Knowledge and Experience
When it comes to shipping out large quantities of orders to adoring customers, there are certain times when you’ll come across unusual situations that need expert advice. The good news? When working with a 3PL, you don’t have to worry about anything.
In fact, being able to count on your logistics team’s knowledge and experience is one of the amazing benefits that comes along with outsourcing your e-commerce shipping. Whether it is finding the right packaging material or choosing one shipper over another for a specific item, 3PL companies take pride in knowing the best solutions for nearly any situation.
7. Improved Bottom Line
Taking everything we’ve mentioned in this guide into consideration, perhaps the biggest reason to outsource your e-commerce shipping to a 3PL provider is your bottom line. Why?
When you start to add up all the costs associated with commercial real estate space, employee wages, worker’s compensation insurance, packaging materials, and more, it adds up quickly.
Instead, leveraging another organization’s expertise, bulk rate, and staff means you can streamline your own operations and save over the long haul. For a lot of mid-size or small online brands, this just makes far more sense than going it alone.
Why Outsourcing E-Commerce Shipping is a Better Idea
If your growing online brand is still handling e-commerce shipping in-house, it might be time to look into working with a third-party logistics provider. It’s the most efficient way to ensure your customers get their orders on time. And, it can be an excellent way to obtain better shipment pricing and leverage their extensive knowledge, too.
At Tradefull, we help e-commerce brands find the right logistics, shipping, and warehousing solutions to meet a variety of needs. Whether your business is growing or you simply need a more efficient workflow, we’re here with the knowledge and expertise needed. Please contact us today for more details.