The fast-paced technological evolution has led to the development of new ways of shopping. Today most people prefer to shop online rather than visiting the traditional brick and mortar stores. Online shopping has experienced a boom globally and the trend is continuously evolving, where e-shop owners have stood to gain from this popularity. However, in order for e-shops to evolve and meet the growing demand, efficient management of logistics are required. E-shop owners have the option to either do it themselves, or they could outsource the logistics to a third party.
What is third-party Logistics for an E-shop?
Logistics is the umbrella term for all those activities such as procuring raw material, manufacturing the goods and their delivery to the customers. Third-party logistics, also known as 3PL or TPL, entails the functions such as storage of inventory, packing of products, and shipping the orders.
Third-Party logistics offers numerous benefits to e-shops such as:
3PL logistics provide storage facilities for your goods
By outsourcing to 3PL companies, you do not need to have your own warehouse for storing the goods. This helps you minimize your expenses on the rent of the warehouse while also saving time and effort involved in finding a suitable warehouse and the maintenance of it.
You get a warehouse close to your costumers
Most e-shop owners who have their own warehouses face the difficulty that the location of their warehouse serves as an inconvenience by being far away from their customers. Therefore it follows that they require an efficient distribution network to deliver viable options. However, by outsourcing the logistics to a third-party solution, it resolves this issue by having multiple warehouses that are well-distributed within a proximate distance of their customers.
Lower shipping charges
Third-party logistics companies have the capability to ship high volumes of goods. Hence, they have the benefit of discounted shipping charges from shipping companies, which they in turn pass on to their customers, making it more affordable to transport products.
As your store grows in terms of business, the logistical management becomes more complex. Outsourcing your logistics to a third-party solution helps you scale your business in a seamless and progressive manner.
Reduce your workforce
You will need an extensive workforce in order to manage the logistics of your e-commerce business. By outsourcing to a third party you can reduce the extra workforce along with cost and get the benefit of working with experienced people that are specialized within the field of logistics.
Although third-party logistics offer multiple benefits to an e-commerce business, the risk of losing control might occur as the logistical process is being under someone else’s care. The solution to this is to choose the best third-party logistics provider that not only offers the benefits of outsourcing but also ensures that the e-shop is still in complete control.
One company that offers outsourcing services in terms of third-party logistics is Prime Penguin!
– We work with our clients by connecting them to different third-party logistics partners, offering hassle-free logistics management while providing a complete overview of a warehouse through a cloud-based platform.
– Prime Penguin can easily integrate with the major e-commerce platforms such as Shopify, Magento, etc. through a plug and play plug-in.
– We have a long list of partners who provide services all over the world, where you can choose a warehouse according to your preference.
– As our interface can integrate to other e-commerce platforms, we have made sure that you get access to the Prime Penguin platform on your favorite device.
– You can monitor your warehouse using the device, where you have the ability to check real-time metrics such as inventory levels, order trends, sales, etc.