What is 3PL? How Can a 3PL Help Ecommerce and D2C Business?
Posted by Quick Shift on November 17th, 2022
3PL is an acronym for third-party logistics, a term widely used in the context of online businesses. With the increase in the magnitude of eCommerce orders worldwide, the need for streamlined logistics is a major requirement for businesses of all kinds. Whether it’s an online store selling apparel and cosmetics, or whether it’s a global seller of heavy machine parts, the need for a 3PL distribution partner is inevitable.
Businesses that operate online have their core competency in the domain they operate in, and they don’t need to concentrate their focus on packaging, delivery, and the whole door-to-door fulfillment process. Therefore, to keep the supply chain streamlined and ensure that the product and service delivery to the clients is hassle-free, the role of a 3PL logistics service provider comes into play.
What Role Do 3PL Partners Play?
Whether it’s a standard eCommerce business or a D2C business, or an online business operating through dark stores, 3PL is the one-stop solution for each of them. Fast shipping is a major demand from the customer side, which the D2C businesses often lack. They generally operate in a highly competitive arena with traditional marketplaces and offering 2-3 days of shipping is quite challenging.
In addition to it, Pay On Delivery options, exchanges and returns are also a major part of the order fulfillment process. It is a practical fact that not all D2C and eCommerce businesses can undertake all these processes in-house, therefore a 3PL partner is a right solution for these businesses.
Let us understand the main advantages of engaging with a 3PL partner:
3PL for E-commerce and D2C
The main benefits of having a 3PL partner for order fulfillment and inventory management system are:
A 3PL service provider like Quickshift fulfillment has vast experience in logistics and they have an extensive supply chain and logistics network. They maintain friendly relations with the various stakeholders of the logistics sector and they also exercise influence over certain negotiations because of the significant volumes they move. In the end, they can bring down the shipping cost for your business to a considerable level.
If you engage with a 3PL partner, you can further focus on infrastructure, staff, technology, and product improvement with saved funds.
Every business has a core competency, and if they divert from it to focus on other aspects of the supply chain like delivery and warehousing, they may lose their edge over the competitors. The best thing an eCommerce or a D2C business can do is leave the hassle of delivery to a 3PL solution provider.
The reason why there has been an increase in the number of fulfillment centers in India is that businesses are establishing their trust in the 3PL partners who are the best at their job!
Order fulfillment today is way different than it was a decade ago. There are certain rules and regulations to take care of and the order fulfillment radius has also increased considerably. A 3PL solution provider has the right expertise in the involved documentation, import and export duties, international compliances, etc. A business operating in a distinct domain may not have the beforehand knowledge of all these aspects, but a 3PL expert can make the job easier for them.
It is very common for businesses today to look for international expansion in the initial days of their establishment, and they can take the help of a 3PL partner and seamlessly move their product to their international customers.
Flexibility and scalability are two intrinsic KPIs in any business and the best advantage of using 3PL warehouses is their seamless performance on these two indicators. A business gets the independence and comfort to use its resources based on its needs, and there won’t be any unutilized resources when the sales volume is low.
Customers today certainly want more from online business, than they did before. For example, online tracking, pay on delivery, exchange, and return are some aspects that increase the worry of online businesses until they have partnered with a 3PL logistics provider. It is observed that customers are expected to order often from an eCommerce site that delivers on time, offers pay-on delivery, and online tracking of orders.
Outsourcing your logistics and delivery to a third-party logistics solutions provider makes the difference between your business growth and that of your competitors in the arena. An online business before coming into existence first looks for eCommerce fulfillment services in India, as early preparation is key to success.
If you also own an eCommerce site or D2C business and you want a seamless logistics solution provider, you can begin now by engaging with a trusted 3PL partner like Quickshift fulfillment who takes care of all your logistics needs, hassle-free!
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About the AuthorQuick Shift
Joined: January 7th, 2019
Articles Posted: 76
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