Expanding Your Business By Outsourcing The E-commerce Fulfilment
The success of any e-commerce company is dependent on a variety of factors. Fulfilment of the shipments, timely dispatch, and safe delivery are key to its success. As the company continues to grow, tracking the logistics and managing the daily operations might seem like a daunting task. The most effective way to expand your business while streamlining the order fulfilment simultaneously is by outsourcing your supply chain to a third-party logistics provider, better known as 3PL service. Extending your logistical operations to a 3PL service provider enables you to keep up with the increasing demand and focus on crucial aspects like business growth.
Optimizing your logistics will help you save time and effort, thereby allowing you to shift your focus on other key operations. E-commerce businesses consider outsourcing their logistics to a 3PL service mainly to scale their businesses and avoid unnecessary allocation of resources. Employing the services of a 3PL provider can prove beneficial for your e-commerce business. Here’s why you should outsource your e-commerce fulfilments to a 3PL service provider.
Outsourcing the e-commerce fulfilment to 3PL services offers convenience as businesses can devote more time to other important tasks. These services provide you with an opportunity to improve in other areas of business. According to a 2019 study on third-party logistics, about 90% of the 3PL customers witnessed their business expand after using these 3PL services.
Employing the services of a 3PL provider can bring your expenses down significantly. Since 3PL services offer end-to-end solutions for warehouse management, inventory, equipment, and transportation, it lowers the unnecessary capital expenditures of an e-commerce business.
- Enhanced delivery and distribution
E-commerce businesses can expand their distribution networks without compromising on the delivery time by partnering with a 3PL service that provides consistent, lightning-fast, and efficient delivery to customers. It also allows you to scale with the growing customer demand and deliver in a timely manner.
That’s how e-commerce companies can benefit by seeking the assistance of a 3PL service for e-commerce fulfillment. However, there are certain parameters that need to be considered while choosing the e-commerce fulfillment partner. They are:
1. Shipping speed– A quick, hassle-free delivery has become the priority of e-commerce businesses. So, the efficiency of the business ultimately boils down to the shipping speed offered by the 3PL provider.
2. Warehouse location– 3PL services direct the incoming fulfilments to a warehouse closest to the customer. Outsourcing your e-commerce fulfilments to a 3PL provider allows you to deliver beyond geographical borders as such services cover various market locations.
3. Tech-savvy- A 3PL service usually employs the use of advanced digital technology for easy management of shipments. Choose such a service that is technologically advanced and uses integrated operational systems in its daily mandate.
4. Ability to scale– The 3PL service should have the capacity to sustain as your business scales or undergoes a hefty loss.
5. Reverse logistics– It is also essential for the 3PL service provider to have a return management system, in case of processing replacement and refund of goods.
With these KPIs in place, choosing the right 3PL service provider aligned with the potential to scale your e-commerce business is possible.
To know why partnering with a 3PL service is beneficial to your E-commerce business, check out our whitepaper.
Deliver your freight efficiently across the globe by connecting with Qafila at email@example.com or contact us at +971 4 523 3933.