Dropshipping can be tough, especially with the increasing competition. Everyone wants to be a dropshipper, but the rising number of stores makes it challenging to succeed. Duplicated products are flooding the market, and it’s getting harder to stand out.
But there’s a powerful move you can make—partnering with a third-party logistics, or 3PL, dropshipping company for your Own Branded Product.
If you’re wondering, “How do I work with a 3PL dropshipper, and why?” we’ve explained everything in this article.
What is a 3PL Dropshipper?
3PL, or third-party logistics, is an order fulfilment process in which online businesses depend on a third party. This third-party partnership helps e-commerce businesses with warehousing, order packaging, and shipment. 3PL dropshippers can ease an e-commerce business’s supply chain. Several large and small-scale e-commerce companies outsource their logistics and fulfilment utilizing 3PL logistics.
Working with a 3PL will benefit your supply chain performance in several ways. So, let’s see why you should consider working with a 3PL company.
Benefits of Third-Party Logistics (3PL)
Saves Money
The first and foremost benefit of 3PL fulfilment is the significant difference it offers in lowering order costs. A 3PL company lowers per-order costs with its extensive software, technology, and automation investments. Their expertise in inventory management and directing numerous businesses helps reduce costs. Experienced 3PLs are always looking for ways to cut the cost of orders for their clients and their client’s customers.
Not dealing with packaging, warehousing, and shipments in-house automatically saves you money. In addition, their long-term commitments with shipment companies give them leverage for better costs that no small independent e-commerce website can get. It helps them cut the shipping expenses for their clients, giving them a beneficial reason for a 3PL partnership.
Avoids Inventory Issues
Inventory issues are among the most common problems online sellers face, but not when you have a 3PL dropshipper on board. A good 3PL is efficient, has a no-limit inventory, and always keeps you updated. Their ample volume of inventory storage allows the warehousing of large stock for several days. They also notify their clients when they have loads of stock or are running out. This way, a 3PL company supervises e-commerce businesses and helps smoothly run their sales without any challenges and risks.
Time Efficiency
Time is money, especially when running a retail business or e-commerce website. A 3PL fulfilment company like Wefulfil saves you plenty of time by taking the burden of warehousing, packaging, and shipping off your shoulders. By handling these roles, a 3PL lets you get on with new production, provide better quality services, and work on enhancing your business strategies. When you get enough time to work on these areas, your e-commerce business will likely grow quicker and for the better.
Faster Shipments
One thing other than the order quality that pleases customers is lower shipment time and expenses. Third-party logistics not only provide lower shipping charges but also time. Their long-term connections with significant big-box online shopping platforms like Amazon, eBay, Walmart, and Target help them with frequent deliveries. Plus, they group their different clients’ customer orders based on their locations to reduce shipment time.
Compared to an in-house shipment procedure, which may take around a week, a 3PL company takes a maximum of 2-3 days to ship orders. Partnering with a trustworthy 3PL like Wefulfil means saying goodbye to late shipments. We’re dedicated to fast, efficient processing and shipping, ensuring your customers are always satisfied and your reputation is spotless.
Flexible and Efficient Scalability
Not all e-commerce businesses run all four seasons, and in such cases, unlike an in-house team, 3PL companies don’t struggle with peak or low seasons. Their expertise in dealing with rush times saves you money and time. They scale the warehouse resources and staff to match the ongoing situation and requirements. Their strategy to upgrade the warehousing limits and hire more staff to handle busy seasons beats all.
Moreover, a 3PL allows its clients to grow and expand their businesses with flexibility. Thus, 3PL saves e-commerce websites from spending money and effort on hiring new and competent staff.
Easy Returns and Refunds
Another great benefit that comes as a bonus with 3PL partnerships is that you no longer need to deal with return processing and logistics. Order returns are expected in online businesses, and a 3PL helps you by dealing with returns and refunds. They handle returns and refunds, maintain and fix any damages, and resend them to the inventory or retail stores. You need not worry about these factors when working with third-party logistics.
Smooth International Order Completion
With a 3PL partnership, the perks of uninterrupted order fulfilment are undeniable. From getting orders to shipping them, it is a seamless process with no extra effort from your side. A trustworthy 3PL’s area of shipment is large, which helps them effortlessly ship international orders.
No More Fixed Expenditures
When you handle warehousing, packaging, and shipping on your own, the expenditures in these sectors remain fixed. Regardless of sales and business scale, the cost of technology, labour, and handling is constant. However, when working with a 3PL, your monthly expenditure in these areas becomes variable. With the flexible scalability of your business, the cost of labour and tech changes based on sales. It saves money in low seasons and costs you more in busy seasons, which you definitely won’t mind considering the profit you will make.
Reduced Investment Needs
Handling your online business in partnership with a 3PL eliminates the need for significant capital investments. You don’t need to put all your eggs in one bucket; instead, start with small-scale projects. Lower initial investments save you from risking everything and drastic failures. Also, it allows you to invest in new projects, promotions, workshops, and merchandise for increased sales.
Client Satisfaction
Any business’s primary goal is customer satisfaction, and 3PL fulfilment never lets your business lack in that area. From proper packaging and careful handling to timely shipments and lower shipping expenses, every sector ensures ideal client service. As a result, it promotes your business and paves the way for establishing a loyal customer base.
Conclusion
Like a retail business, running an e-commerce website has its fair share of worries. However, with 3PL fulfilment, you can get rid of most of these challenges, including warehousing, packaging, and shipments. Businesses benefit from 3PL partnerships in several ways, such as saving expenses and time, better customer experience, and risk mitigation. To determine how its perks relate to your business, you must work with a trustworthy 3PL first. Wefulfil is a favourite among clients who wish to focus on scaling by relying on a dependable 3PL dropshipper. We manage all the logistics and order fulfillment-related issues so you can strategize and grow your business.
FAQs
What factors should be considered when deciding if logistics should be outsourced to a 3PL?
When deciding to work with a 3PL company, it is important to check their previous record and satisfied clientele. Moreover, your ideal 3PL dropshipper may differ from another business, depending on your needs. For example, some businesses focus on technology, while others want the 3PL to offer fast deliveries. So, choose the one that ticks all the important factors regarding your business.
What is the reason for using 3PL services?
3PL services benefit your business by streamlining the process, eventually saving you time and money. You do not have to spend money on hiring multiple team members or getting the latest management technologies. These services help you scale your business by accelerating restocking and deliveries.
What are the risks involved in using 3PL?
While 3PL dropshipping is a blessing for online sellers, it comes with challenges and risks. You may encounter safety and product handling risks as you rely entirely on the logistics company. At the same time, an inexperienced company may also hinder scalability.
