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Why Should My Business Use Third-Party Logistics?

Why third-party logistics? For e-commerce industries in particular, it becomes useful in establishing a central hub for inventory, especially for sellers who have limited commercial space.

Imagine running your business and feeling overwhelmed. Not slightly stressed, not occasionally under pressure, but submerged by the demands of your company.

First things first: it’s okay.

It’s natural to experience that as you work hard to build your brand. However, it doesn’t mean that you have to settle for being overwhelmed. There are many avenues you can take to make the road to success more enjoyable, one of which is relying on third-party logistics.

What is Third-Party Logistics?

Building your business, especially if you focus primarily in the e-commerce industry, means handling multiple logistical fronts. Logistics of this nature may include storage, packing, transportation, and product inspection, among others. This process can become more intricate as your inventory diversifies or your client reach extends beyond traditional locations.

Third-party logistics in this case is outsourcing many of the aforementioned logistical fronts to another company. For e-commerce industries in particular, it becomes useful in establishing a central hub for inventory, especially for sellers who have limited commercial space. The company’s endgame for using third-party logistics is to move those areas of concern to experienced hands while focusing on other areas of growth.

How Can Third-Party Logistics Help My Business?

Running your business is very much like home repair, in that there are a lot of tasks that can be handled by yourself but plenty that could be delegated to specialists. Many of these tasks include:

 

Warehouse Storage

If you’re just starting out as an e-commerce business, maintaining your stock can be cumbersome depending on your storage space. By opting to use a 3PL for storage, you now have a larger central hub perfectly suited to hold most (or even all) of your products. This allows you to free up space for your office or work setting for other productive means.

 

Packing and Picking

It’s one thing to actually have a product in storage, but it’s quite another to maintain it’s condition prior to and during transportation. A 3PL will have qualified staff ready to collect your products into pallets for large-scale storage or distribution. By doing so, you save valuable manpower and money by outsourcing product selectors (not to mention liability).

 

Tracking Inventory

You shouldn’t have to leave any of your product numbers to guesswork. Instead of having to crunch the numbers yourself, your 3PL can take care of the inventory legwork. As this process becomes more automated, their numbers will be updated on your online store or database, making it easier for you to see which items are popular and which items need additional promotion. In short, they’ll count the product numbers while you count your profits.

 

Distribution

Amazon FBA and e-commerce sellers thrive on consistent product distribution. Whether it is UPS, FedEx, or other major couriers, knowing exactly where your product is being sent and tracking its progress is vital to your business’ success. Using a 3PL streamlines the process to route your orders to the best fulfillment center. This also extends your reach to more parts of the country and beyond, giving your business more exposure in the long run.

 

Returning Products

Part of maintaining a loyal client base is knowing what to do when things don’t go as planned. If a customer receives the wrong product or an item that is not up to their satisfaction, they should be assured that it will be handled in a timely manner. 3PL’s can help in that endeavor by providing return labels with each shipment in order to make it easier for the customer to return the product to the fulfillment center. As a result, you are given the information automatically in your inventory or database so that you can address the concern and retain their patronage.

Who Can Benefit From Third-Party Logistics?

Your business does not have to fit a certain mold to enjoy the perks of a 3PL. From brand-new Amazon FBA sellers to experienced e-commerce companies, anyone can benefit from third-party logistics. Over time, your business will save money on storage costs, track inventory and shipping information online with ease, and give your brand room to expand to new heights.

If you’re ready to stop worrying and start celebrating, start your 3PL journey by contacting 3rd Eye Logistics today! Talk with our experienced staff to give your e-commerce business a clearer future.

I’m ready to see what 3rd Eye Logistics has for me!

 

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