What is 3PL?

As of July 2020, there are 24 million e-commerce sites established worldwide, and more are being created every single day. Along with that, many of them have grown large enough to reach new levels of monetization and business prosperity. And as great as that might be, it more than likely warrants the need of a third-party logistics (3PL) provider in order to continue that evolving domestic and international success.

If this sounds like you, or if you are merely looking into e-commerce logistics outsourcing to reduce stress and streamline online business more efficiently, then below is a comprehensive overview of 3PL, and why going this route just might be the ideal business integration you need to thrive.

What is 3PL?

Third-party logistics, aka 3PL or TPL, is a significant part of effectively running a smooth, successful supply chain. Reliable 3PL providers make it simple for e-commerce businesses to outsource some, or all, of their warehousing,logistics, and inventory. They can even provide consolidation services, otherwise known as freight consolidation, which is sending many smaller packages as one larger one.

Depending on your needs and goals, these professionals can partly or wholly take over any of your transportation needs so you can get back to running your business with the confidence that your backend is being taken care of properly.

The E-commerce 3PL Fulfillment

E-commerce fulfillment is the part of your online operation that delivers your products to your customers. Though it sounds straightforward, it breaks down into several steps:

  • Prepping the product
  • Picking out and packing the order(s)
  • Shipping durations and delivery methods
  • Return processing if need be

It is essential to note that you could be selling the best product on the market, but if your fulfillment is not on point, then the chances of your staying stagnant or failing increase. If one or more of the above are poorly managed (say because you are spread too thin on your own), then it can throw off your entire fulfillment system, resulting in a reduction in sales and more negative reviews.

Luckily, 3PL providers are trained with this business sector and generally have adequate tools to enhance profit and customer satisfaction. By handing this over to them, you can take this entire process off your plate and know that your business will still be competitive because you can focus more on marketing to gain brand awareness/sales.

Key Benefits of Utilizing Third-Party Logistics (TPL)

For starters, the most obvious benefit that you can gain by going with a third-party logistics company is that you do not have to worry about doing logistics by yourself anymore. You can finally have the ability to dedicate your time to other areas affecting your bottom line and give your e-commerce the best shot at reaching its full potential. However, the advantages do, in fact, go much deeper than this. Some of the most promising benefits of hiring a 3PL include:

  • Your products need somewhere to be stored. In comparison to renting a warehouse space that usually entails alengthy, fixed commitment,with a 3PL, there may not be any long-term leasing. Many logistic companies tend to offer flexible pricing. As you grow in domestic and international markets, they would be able to adapt to your new needs and adjust the cost accordingly.
  • As e-commerce businesses grow, it is inevitable that there will be a breaking point where you cannot do everything yourself as you could before, and hiring new people is a given. But with an outsourced logistics company, you will not need to hire staff as you scale up anymore. By turning to a TPL, they are the ones responsible for scoping out and hiring the right people to keep your business running well.
  • You will save money! Sure, you will have to hire a 3PL company, but this initial investment will more than likely result in a net gain as you continue to grow. For example, no need to hire a logistics team as noted above, no warehouse commitments, and no more packaging/shipping materials. These are all assets that add up over time and get even more costly as you grow and require more to meet the supply and demand requirements.

    There will always be evolving, continuous optimizations being done to make your e-commerce the best it can be. 3PL professionals are dedicated to getting your supply chain needs met while also seeking new ways to make it run even better. Between new technologies, restructuring, and installing sophisticated software, you can have the peace of mind that there will be improvements going on at all times to maximize profits, reduce wasted money and time, and improve customer service as a whole.

    Conclusion – E-commerce Logistics Outsourcing with Prime Penguin

    It is no secret that there are monumental benefits and advantages of an e-commerce business over a traditional brick and mortar store. But one of the most complicated aspects that all online entrepreneurs face is organizing the logistics. Overall, logistics challenges increase when you operate online vs. a physical store, which is why hiring a third-party logistics provider is such a compelling asset to implement regardless of the size your e-commerce is scaled at.

    With that being said, if you are ready to discover the perfect TPL partner to optimize your business, then it’s time you get started with Prime Penguin. This is a powerful, centralized platform that can connect you with authentic, local 3PL fulfillment providers who can run your logistics processes no matter where you are in the world, domestic to international. In summary, understand that you do not have to manage logistics all on your own. There are trusted 3PL providers out there who can support your e-commerce fulfillment, allow you full control, and give you the opportunity to focus your attention on your business at hand. And the best part is all you need to do is leverage the Prime Penguin 3PL inventory to get started.