E-commerce stores are fast replacing the conventional brick and mortar stores because of the convenience in shopping they offer. There is a general shift among buyers from retail stores to online stores. Although owning an E-store is profitable but managing one comes with its own sets of concerns. One of the major concerns being logistics management. Since, efficient logistics management warrants a professional approach, it is outsourced to companies offering third-party logistics for E-commerce.
What is third-party logistics for E-commerce?
When an E-commerce company outsources its logistics to a third-party, the 3 PL partner takes care of procurement, transportation, and distribution activities for its client companies. 3 PL companies could just be limited to performing functions such as freight and shipping or could include warehousing and distribution in their scope of work.
Based on the services they provide, there are different types of Third-party logistics companies for E-commerce:
Standard 3 PL Services:
These 3 PL companies perform basic 3 PL functions such as pick and pack, warehousing, and distribution.
These 3 PL companies offer their clients value-added services to their clients in addition to the basic services. These include services such as tracking and tracing, cross docking, specific packaging and customized security system. The client can choose the specific services relevant for his business.
These third-party logistics companies for E-commerce as set up especially to cater to the needs of specific clients as requested by the client. These companies usually provide comprehensive logistics services improving the logistics drastically.
A customer developer logistics provider is a company that integrates itself with the customer and takes over the entire logistics functions of the client. These companies perform detailed tasks for their clients.
When you are looking for third-party logistics services for your E-commerce business, you should be sure about the services that you require and choose the 3 PL provider accordingly.
Many E-commerce businesses cater to the demands of domestic markets only. However, globalization has made it possible to spread your business to countries that are located at remote distances from your location.
If your E-store caters to customers in foreign lands, there are logistics companies that provide logistics abroad for E-commerce.
How does logistics abroad for E-commerce work?
If you are located in a specific country and need to supply products to customers located in different countries, you will need a third-party logistics partner that has a global distribution network.
The companies offering logistics abroad for E-commerce will have multiple warehouses in different countries. Your 3 PL partner will offer you a choice of warehouses. You can choose a warehouse anywhere in the world that is located close to your customer. Your inventory will be sent to the warehouse of your choice and shipped by your third party logistics partner for E-commerce to your customers. Since, the satellite warehouse is located close to your customer, the deliveries will be done in a timely manner.
If you are looking for third-party logistics for E-commerce for your enterprise, you can rely on Prime Penguin!