Where parcel shipping once ruled, LTL and 3PL services are becoming increasingly common for online retailers. Let’s take a closer look at how 3PLs are improving online fulfillment for retailers while reducing shipping costs.
What Are 3PLs?
3PLs specialize in logistics services for many different types of companies. Many companies who don’t have an in-house logistics team or are looking to supplement their in-house efforts trust 3PLs to handle their transportation, warehousing, cross-decking, distribution, and other logistics-related needs. While some 3PLs offer a long list of logistics services, others focus on one industry or a specific area of logistics.
How 3PLs Support Online Retail Businesses
So, how do 3PLs impact the online retail business? To answer this question, think about what consumers want these days. One of the biggest “wants” from consumers who make purchases from online retailers is fast shipping. Gone are the days when they are okay with waiting weeks or even months to receive their orders.
Since many online retailers cannot meet these consumer demands on their own, they trust 3PLs with all or some of their supply chain management. A 3PL can offer multiple shipping options through a variety of carriers as well as warehousing and fulfillment services. With a supply chain partner by their side, they can deliver an excellent customer experience and ensure their customers keep coming back.
3PLs Save Online Retailers Time and Money
If an online retailer wants to succeed in today’s incredibly competitive market, strong supply chain management is a necessity rather than a luxury. While they can manage their supply chain on their own, doing so is costly and difficult.
It requires a large upfront investment in staff, technology, and warehousing. By partnering with a 3PL, online retailers can save money and time while knowing their supply chain efforts are in the hands of professionals. For example, a 3PL might offer warehousing and fulfillment services for products being shipped directly from the manufacturer. From the warehouse, goods can be shipped directly to end users. A 3PL can often find ways to improve efficiency and reduce shipping costs.
The Big Benefit of 3PLs for Online Retailers
The greatest benefit of 3PLs for online retailers isn’t just time and money savings. Many e-commerce clients find that the intangible value of working with a specialized logistics company far outweighs the singular value of savings. Supply chain logistics can be scary and confusing. Partnering with a 3PL removes the weight and fear that often accompanies having to manage it on their own.
3PLs can also offer online retailers the ability to focus their efforts on customer experience and everyday operations. It allows for greater flexibility and better use of their time and resources.
Let Amware Be Your 3PL Provider
If you are interested in learning more about how a 3PL can benefit your online retail business, contact Amware today. We look forward to hearing from you! Download a 30-day trial of Amrate, our proprietary LTL shipping software for LTL shipping rates and options.