The transformation of the e-commerce sector is taking place at a far faster rate than we can imagine. Logistics is one of the most crucial components that can either help your e-commerce business grow or take down. That's why we're here to tell you about the groundbreaker- the third-party logistics (3PL) that can help mitigate some of these challenges. But what is 3PL, and how can it change your online store game? We'll dig into these questions and more in this ultimate guide, complete with actionable tips for newbies and seasoned pros on how to make the most of your Shopify orders.
Knowing the Basics of Third-Party Logistics!
What is 3PL(third-party logistics)?
Third-party logistics (3PL) is when you outsource your logistics functions, such as warehousing, transportation, fulfillment, real-time tracking, delivery, returns orders, and much more, to a dedicated service provider. They handle everything from storing, packaging, and shipping products to inventory and reverse logistics.
Who uses 3PL?
3PL services are a blessing for all types of businesses, particularly online businesses that deal with the hassle of goods storage and order picking. This partnership strategy can prove to be a game-changer for businesses that want to grow without expanding their logistics functions in-house.
Why is 3PL important?
Businesses constantly seek ways to streamline processes and lower costs. 3PL suppliers are the saving grace for low-cost solutions, backed by their hundreds of millions in knowledge, buildings, and equipment. Now that you know the basics about 3PL, let's dive into the main content you're looking for.
About Shopify 3PL Integration
Shopify 3PL integration is helpful for eCommerce companies looking to optimize their order fulfillment process. It automates order processing, inventory management, and shipment to ensure prompt and efficient delivery. Utilizing a network of fulfillment facilities enables businesses to reduce internal handling and storage, minimize shipping expenses, and improve the general customer experience.
Types of Shopify 3PL Services
Not all 3PLs are suited for all Shopify sellers. In reality, you need to get the right one. This 3PL will be almost, if not equally, as important as your product supplier/contract manufacturer and all other vendors that you deal with. Getting wrong, and you'll end up with angry customers and an unprofitable business. Choosing the right 3PL for Shopify store can give smooth, cost-efficient operations that keep your customers happy, your own time & attention focused on growing your business, and higher profits. Below are three types of Shopify 3PL services.
1. Full-Service Providers
These providers provide door-to-door logistics services, such as freight forwarding of bulk goods from your suppliers, warehousing, fulfillment, and potentially some last-mile delivery. They are generally industry-niche in approach.
2. Warehouse-based 3PLs
These 3PLs are experts at storage, inventory management, and order fulfillment. Generally speaking, this category of 3PL (such as MapMyChannel by WebBee) mainly delivers orders to last-mile shipping carriers such as FedEx, UPS, USPS, and others.
3. Transportation-based 3PLs
Transportation-based third-party logistics (3PL) firms transport products from one place to another. They can handle various duties, such as freight forwarding, receiving, and shipping.
Why to use Shopify 3PL?
1. Scalability
As your business expands, so does the complexity of handling logistics. Shopify 3PL providers can scale their services according to your growth path. Whether you are dealing with seasonal variations or a steady increase in sales, a 3PL can grow with you without the need to acquire additional infrastructure or personnel.
2. Cost-Effectiveness
Logistics outsourcing can significantly reduce overhead expenses like labor and storage costs. The best carrier shipping rates are possessed by 3PLs and are passed down to you. With a 3PL supplier's expertise and volume of assets, you will be able to reap economies of scale that could be difficult internally. A cost-saving advantage is that it allows you to redirect money to other key aspects of your company, such as marketing and product innovation.
3. Focus on Core Business
Logistics is labor-intensive and can distract from core business functions such as product development, customer interaction, and strategic planning. By outsourcing these functions to a 3PL provider, you can free up your time and resources to focus on what you do best: product development and selling.
4. Technology Advantage
Proven 3PL solutions use advanced technologies that effortlessly suit your Shopify shop. They use technologies for real-time tracking, inventory management, and data, thus giving you useful insights about your performance as a player in the online supply chain. You can derive much from this information by leveraging it to inform your decisions in order to further your business and maximize profits.
5. Decreasing Risk
A 3PL provider's knowledge of supply chain management and logistics can decrease the dangers of poorly handled inventory, delayed shipments, and compliance problems. Their understanding of traversing complex logistics grounds will also prevent expensive mistakes and legal issues.
6. Geographic Reach
Logistics entering a new market include customs, tax, and shipping regulations, usually with increased logistics complexity. The international-capable 3PL provider will support you through all these, opening up markets beyond your geographical confines.
Understanding these benefits will help you decide if a Shopify 3PL service is the natural choice for your store. This strategic move can be a pioneer, setting the stage for sustainable, scalable growth.
How can a 3PL provider enhance Shopify Business Operations?
Working with a 3PL business has several advantages, the biggest being freedom from the complex shipping universe. By delegating distribution and warehousing to professionals, the likelihood of mistakes is diminished considerably, keeping you out of the logistical mire. This gives you time and energy to focus on growing your brand and marketing, gaining a feeling of freedom and commitment to expansion.
Cost-Effectiveness Reimagined
A 3PL partnership is a testament to financial savvy. It allows businesses to save money through shared resources, lower overhead, and access to preferential freight and packaging rates. This sense of resourcefulness and fiscal intelligence can be liberating.
Resilience Against the Unforeseen
An efficient 3PL operator can prevent supply chain interruptions by calling upon its proven network of distribution centers. This insulates your business against unexpected delays and provides a sturdy buffer against market volatility. This assurance and readiness can be comforting to your business.
Agile Expansion
International ambition can exist independent of the regulatory morass in the form of a skilled 3PL's ability to traverse administrative complexities while offering immediate entry into markets that would otherwise remain inaccessible.
Greater Customer Satisfaction
Lastly, the prestige of same-day delivery, frequently supported by a 3PL's logistical ability, has proven to turn first-time buyers into devoted customers.
Selecting the Ideal 3PL Provider
There is no checklist, blog post, or one-article solution for determining the right 3PL for your firm. Meanwhile, below is a concise list of categories that we see successful Shopify brands apply to assess a potential fit in a shortlist of Shopify 3PL firms.
Track Record: Find a Shopify 3PL firm with a good track record in your industry or sector.
Technology: Make sure the 3PL has real-time inventory tracking, order status, service level agreement (SLA) reporting, and analytics.
DTC vs. B2B: In addition to your DTC Shopify order fulfillment, determine whether B2B fulfillment and additional sales channels matter to you.
Compliance: If you're in a highly regulated environment or market with government regulation or strict compliance requirements, ensure your new 3PL is qualified and can demonstrate the expertise you require. For instance, medical / health products are frequently FDA-regulated, and the 3PL will need to capture serial or lot numbers on the device. Lithium battery products could also require a trained and certified 3PL to handle shipping.
Reverse Logistics / Returns: Understand how a 3PL processes open-box and sealed-back returns and how this affects your customer experience and cost.
Customer Service Integration: Customers will contact you with inquiries. Determine how you'll be processing order change requests, cancellations, lost tracking number requests, lost/damaged shipment claims, etc. Here at MapMyChannel by WebBee, we utilize the most current technology and innovative best practices to promote the customer experience.
Account Management Style: Your requirement for proactive, consultative assistance from your Shopify 3PL or otherwise. Both hands-on and hands-off styles are both potential options for the appropriate situation.
Geographic Coverage: If you sell internationally today or shortly, you will want to locate a Shopify 3PL with in-country fulfillment centers. It may seem simple to ship internationally out of the US, but customer experience is generally terrible. For instance, if necessary, MapMyChannel by WebBee has a worldwide fulfillment center presence.
Kitting, Assembly, and Value-Added Services: Assess the importance of these skills to your business and the 3PL's capabilities.
Cost: When evaluating your logistics options, it is important to examine the total cost involved. This means considering the costs of doing your logistics internally versus outsourcing it to a third-party company, as well as comparing the costs between various 3PL providers that support Shopify. Consider all the associated expenses from the factory (supplier) door to your end customer's doorstep.
Common Misconceptions Regarding 3PL
3PL is for Large Businesses Only
It's not true. 3PL service is not reserved for major corporations. Most providers, such as [Provider A] and [Provider B], offer options for businesses of any size. While some 3PL providers are a good match for large corporations, many also cater to the specific needs of small businesses and startups. Make sure to do your research. Putting aside momentarily which 3PL is the best fit for you, our complimentary resource, a comprehensive A guide to determining whether outsourcing with a Shopify 3PL needs to be entertained at all is below.
You Lose Control Over Your Inventory
An established 3PL provider will provide real-time tracking and analysis, allowing you to remain fully in charge of your inventory. However, a 3PL would need to provide an enhanced level of control that is otherwise accessible.
Implementing a Shopify 3PL Involves Compromising Customer Service
A few Shopify store owners fear that outsourcing logistics will damage the quality of customer service. A quality 3PL company, nonetheless, aims to enhance customer satisfaction by completing orders on time and accurately. Most 3PLs also provide value-added services that enhance the consumer experience, such as personalized product configurations and packing.
Shopify 3PL Providers are Only Focused on Warehousing and Shipping
While shipping and warehousing are essential elements of Shopify 3PL services, these services go much deeper than that. Contemporary 3PL providers now provide everything from inventory management to kitting and returns processing and even data analytics to assist you in making business decisions. Thus, 3PL can be an end-to-end solution touching several areas of your supply chain.
Changing to a 3PL Provider is a Complicated Procedure
Most business owners fear changing to a 3PL provider since they feel it will be too time-consuming and complicated. In reality, most 3PL companies want to make the experience as easy as possible and have tested and perfected ways of doing so. At MapMyChannel by WebBee, we provide dedicated support teams and seamless integrations with e-commerce sites like Shopify to make the transition hassle-free.
Still Stuck??...Choosing the right multiple 3PL providers to integrate your Store !!
MapMyChannel by WebBee helps you integrate your Shopify store with any 3PL provider. Yes, you read it right with any 3PL, such as ShipStation Shiprocket, ShippingEasy, ShipBob, Shipway, FedEx, UPS, DHL, OnTrac, LaserShip, and many more. A smooth logistic operation is an unseen thread crucial to consumer satisfaction in the rapidly expanding field of e-commerce. Consider the broader picture: Are you prepared to change course and pursue a 3PL collaboration that can help your Shopify business reach new heights? Join MapMyChannel by WebBee and become a pro in Shopify 3PL integration.
