When you’re starting out, managing logistics for your e-commerce business feels manageable.
You’ve got smaller order volumes, so costs are in check, and you can personally oversee everything. But as your business grows, or you’re aiming for faster growth, it becomes a lot to handle.
Moving products from Point A (your supplier) to Point B (you) and then to Point C (your customers) can quickly eat up your time and energy.
That’s where a 3PL logistics company comes in. They handle the heavy lifting, including warehousing, packing, and shipping, so you don’t have to.
A trusted 3PL logistics company helps streamline operations, save on costs, and improve delivery times, giving your customers a better experience.
By partnering with a 3PL company, you free yourself up to focus on what matters most: growing your business.
It’s a smarter, simpler way to scale without the stress of managing logistics yourself.
What is Third Party Logistics?
According to third party logistics definition, 3PL logistics is when a business outsources its logistics operations, like warehousing, packing, and shipping, to an external company.
Instead of handling everything yourself, a 3PL provider takes care of storing your products, managing inventory, and delivering orders to customers.
If you’re wondering, what is third party logistics really about? It’s all about making life easier for businesses, especially as they grow.
A 3PL company acts as a partner, helping you streamline operations, save time, and reduce costs.
For e-commerce businesses, this third party logistics definition means you can focus on selling your products and growing your brand while the 3PL handles the behind-the-scenes work of getting those products to your customers quickly and efficiently.
It’s a win-win: you save effort, and your customers get a smooth, reliable delivery experience.
Top 3PL Solutions to Help Your E-commerce Business Scale
As your e-commerce business grows, managing logistics on your own can become overwhelming. This is where 3PL solutions come in.
A reliable 3PL logistics company can handle warehousing, packing, and shipping, freeing up your time to focus on growth.
By using the right 3PL solutions, you can simplify operations, reduce costs, and deliver a better experience to your customers, helping your business scale faster and smarter.
1. Ecommerce Order Fulfillment
Ecommerce order fulfillment is not so hard when order volumes are low.
It gets more complicated as order volumes increase, and it gets harder to get it right every time, too.
Ecommerce order fulfillment services offered by 3PLs such as Newl often include receiving freight, storing it until it’s ready to go to customers, picking and packing orders, and getting the product onto a truck so it can move on to its next destination. For practicality’s sake, 3PL inventory management often goes along with order fulfillment.
The 3PL oftentimes provides the technology (usually a warehouse management system, often referred to as a WMS) that’s necessary to facilitate the fulfillment of ecommerce orders, as well as security to help ensure inventory stays safe and undamaged.
2. Other 3PL Warehousing Services
Some of the biggest Ecommerce retailers in the world started out of someone’s garage, but what happens when you run out of room (or you need a place to park your car)?
If you just need a space to store your overstock or out-of-season items but don’t need order fulfillment, 3PL services can still help you.
Some additional 3PL warehousing services for Ecommerce retailers might include:
- Kitting, where individual items are put together into one saleable product
- Repackaging
- Import/export compliance to ensure products can be safely and legally shipped internationally
- Materials sourcing so you don’t have to worry about ordering or storing boxes, envelopes, filler, or tape
Simplify your e-commerce fulfillment with Newl, a trusted 3PL logistics company backed by over 35 years of expertise in the industry.
3. Transportation: Ground, Air, and Ocean
Shipping can be costly for any business, but for e-commerce retailers, getting individual orders to customers’ doorsteps can significantly cut into profit margins.
A reliable third party logistics company can help reduce these costs while improving delivery speed and efficiency.
Here’s how:
- Power of Scale: 3PLs ship large volumes of products, enabling them to negotiate better rates with carriers.
These cost savings are then passed on to their customers, helping e-commerce businesses save on shipping expenses.
- Strategic Shipping Solutions: Leveraging their expertise, 3PLs can design smarter, more cost-effective ways to transport products.
For instance, they may consolidate multiple shipments heading in the same direction onto one truck, saving on final mile delivery costs.
- Extensive Logistics Network: 3PLs work beyond national parcel carriers.
They tap into local and regional last-mile carriers, LTL/FTL providers, ocean freight services, and air freight solutions to ensure faster delivery at the best value.
Partnering with a third-party logistics company means quick transportation, reduced costs, and happier customers, all while you focus on growing your business.
4. Reverse Logistics
Reverse logistics, also known as returns, can be expensive and time-consuming, but they’re inevitable.
One survey by WooSuite showed that more than 16% of Ecommerce orders in 2021 were returned.
The same research found that 58% of consumers expect a “no questions asked” return policy, while 49% of retailers offer free shipping on returns to stay competitive.
A generous return policy has become essential to keeping customers happy.
However, executing those returns can be tricky, leading to inefficiencies and potential customer dissatisfaction if not managed properly.
This is where a 3PL comes in:
- Streamlined Process: A 3PL receives, restocks, or disposes of returned products as needed.
- Effortless Replacements: If replacements are required, they handle the process seamlessly.
- Efficiency Advantage: 3PLs manage reverse logistics as effectively as forward logistics, ensuring faster and smoother operations.
A 3PL will receive the returned product, restock or dispose of it, and get a replacement to the customer if applicable with very little effort from the retailer.
Bonus: they can often manage the entire reverse logistics process for all the reasons 3PLs ship more efficiently.
5. Logistics Consultations
Most e-commerce retailers have little to no professional experience in logistics and that’s completely fine.
Your focus is on selling great products, not managing warehouses, handling endless orders, or figuring out shipping solutions.
This is where 3PLs step in with logistics consultations to help:
- Simplify Your Operations: Consultations are designed to identify inefficiencies in your logistics processes and suggest ways to optimize them.
- Reduce Logistics Spend: Expert advice can help you cut costs while improving delivery times and efficiency.
The best part is that these consultations are valuable even if you decide not to use other 3PL services.
Some 3PLs take it a step further by offering managed logistics services. This means they take care of all logistics functions for your business.
Managed logistics is ideal for retailers looking to focus their time, capital, and energy on growing their core business.
Instead of getting bogged down by the complexities of warehousing, shipping, and inventory management, you can invest your resources where they matter most scaling your brand.
Managed logistics can also be a game-changer for businesses undergoing a major growth phase.
By outsourcing logistics, retailers can focus on driving sales and innovation without worrying about whether their operations can keep up.
Manage Logistics with Newl
Running an e-commerce business is exciting, but managing logistics? Not so much. That’s where Newl steps in.
With over 35 years of expertise, we take the stress out of logistics so you can focus on growing your business and delighting your customers.
Here’s how Newl makes it simple and effective:
1. End-to-End Logistics Solutions
From warehousing to inventory management, order fulfillment, and shipping, we handle every step to ensure your products reach customers on time and in perfect condition.
2. Cost-Effective and Efficient Shipping
Using our extensive network of carriers, ground, air, and ocean, we negotiate better rates and optimize delivery routes to save you both time and money.
Partnering with Newl means more than just outsourcing logistics; it’s about gaining a trusted partner who helps you scale seamlessly while keeping operations smooth and hassle-free.
Reach out to us and let us handle the heavy lifting while you keep your business moving forward.
Final Thoughts
Logistics can get tricky as your e-commerce business grows, but it doesn’t have to be stressful.
A reliable 3PL can simplify things, helping you save time, cut costs, and speed up deliveries. That means you get to focus on what really matters: growing your business.
Whether it’s warehousing, shipping, or managing logistics end-to-end, a 3PL has the tools and experience to handle it all.
With their support, you can scale faster, keep your customers happy, and stay ahead of the competition.
If you’re ready to take logistics off your plate, companies like Newl can make it simple and smooth. The right 3PL partner can make all the difference for your success.
Frequently Asked Questions
1. How do 3PLs get clients?
3PL providers attract clients through various strategies:
- Identifying and segmenting target audiences within their ideal market.
- Building targeted outreach campaigns to connect with prospects.
- Optimizing their website with valuable, trending 3PL-related content.
- Engaging with current and potential customers via social media platforms.
2. Does a 3PL handle packaging?
Yes, 3PLs handle packaging as part of their logistics services. They manage receiving, storing, picking, packing, and shipping products to customers.
Some 3PL providers also offer additional value-added services like custom packaging, kitting, or labeling to meet specific business needs.
3. Is Amazon a 3PL or 4PL?
Amazon operates as a 3PL through its Fulfillment by Amazon (FBA) program.
This service allows businesses to store, pack, and ship their products using Amazon’s extensive logistics network, helping e-commerce sellers fulfill orders efficiently for their customers.