3PL and fulfillment

A strategic asset for eCommerce companies. See how you can benefit from 3PL and use it to grow and scale your business.

What can you expect from a 3PL partner?

Choosing a 3PL partner can solve multiple challenges for eCommerce businesses, from reducing logistics costs to expanding global reach. These partners take on crucial logistics tasks—inventory management, order processing, and shipping—freeing businesses to focus on growth. The right 3PL not only saves time but also enhances efficiency and scalability, offering a strategic advantage in today's competitive market.

Beyond Pick and Pack

A 3PL, or third-party logistics provider, jumps into action when an order is placed. They pick the correct product, package it with care (ensuring all the necessary documents and labels are included), and ship it off to the customer, sticking to set service levels and shipping preferences. They might even handle returns for you. But it doesn't stop there.

Over time, companies often evolve from just needing help with shipping to forming strategic partnerships with their 3PLs, diving into deeper areas of the supply chain to boost efficiency and growth. It's all about making sure the right products get to the right people, smoothly and swiftly.

Flexibility

What if your product needs a special type of packaging, or you want to customize the way you package your products? Or, how about if you want to launch custom promotions or campaigns, include giveaways or product samples, or do bundles in your orders?

Scalability

When your business grows, the demands get more complex. If you experience rapid growth in demand, it’s important to feel secure that your 3PL logistics partner can handle the increased volumes accordingly and appropriately.

Efficiency

With a 3PL partner, you can truly start to optimize your supply chain. Standardized shipping times and improved inventory management are some of the benefits. SLAs guide the work of the 3PL partner, so you can rely on things to get done on time.

Internationalization

The easiest way to execute cross-border eCommerce is to warehouse your goods as close as possible to where most of your customers are based. This is especially true if you need to ship your goods from, for example, the EU and the UK, or the EU and the USA.

Data-Savvy

Use the data and insight you gather from your collaboration to make better, data-based decisions. For example, the information you collect can show you which products are shipped from which warehouse to where which in turn helps you shape better decisions regarding stock levels and product availability across your entire warehouse network.

1. Scaling eCommerce companies

Is your business growing fast? Does it have (potentially) international expansion on its list of goals and ambitions? If so, you might need a solution that can help you handle increasing shipping volumes instantly and reliably.

The alternative option, in fact – hiring new warehouse staff, training them, acquiring a new warehouse space, and updating all your contracts – can turn out to be extremely expensive and inconvenient, while often also hindering your expansion plans.

2. Large and established eCommerce companies

Even larger and longer-established eCommerce businesses can reap great benefits from working with a 3PL company. If you run or manage one of these companies, you might already be working with a 3PL partner – but, maybe, you aren’t fully happy with them and are seeking a more suitable partner.

Sometimes, the operational goals of big corporations change significantly, introducing new challenges and requirements. Whether it’s about saving costs, entering a new market, or becoming more sustainable, the right 3PL partner can offer you tailor-made support.

Platform integrations

3. eCommerce companies that sell globally

Sitting almost in between the two eCommerce businesses that we have described above are those companies that are already well established domestically, but are now looking to enter new markets. To do so in an optimized, streamlined, and cost-efficient fashion, it’s vital to multi-warehouse.

Multi-warehousing consists of distributing the inventory to several locations and always shipping from the closest possible warehouse to your end customer. If this sounds like something that might suit your business, you’ll need to make sure that the 3PL partner that you team up with can support multi-warehousing through an advanced and reliable order management system.

How to evaluate 3PL companies?

When evaluating different kinds of 3PL service providers, you need to consider a few key areas: customer service, warehousing, specialization, management tools, and costs.

Customer service

Does the service provider prioritize customer service? What communication channels are there? What are the service levels in case you need to contact support?

In partnering with a 3PL company, reliable customer service is essential. If the service provider doesn't have clear and consistent processes in place, you may not get help quickly when you need it most. OGOship has an excellent track record of providing first-class customer service for its clients.

Warehousing

Does your partner have automatic or manual warehouses? Are different warehouse locations available?

OGOship offers both automated and manual warehouses to match your needs: choose automated for high volumes and speed, or manual for customized shipments. With global multi-warehousing, store your goods strategically for quicker deliveries and a cost-efficient supply chain.

Specialization

Some 3PL service providers specialize mainly in transportation between locations, while some can handle everything from storage, fulfillment, inventory management, and transportation. Some 3PL companies are even specialized in a specific industry.

OGOship is specialized in eCommerce logistics and warehousing. We provide outsourced logistics, warehousing, and fulfillment services.

Management tools

Do they offer a management system that easily integrates with your eCommerce platform? Smooth integration ensures that orders are picked, packed, and shipped, and inventory levels are updated in real-time.

Some service providers have systems that allow eCommerce businesses the possibility to boost sales through logistics — cool, right? OGOship's myOGO, for example, has features like Campaign Engine, which allows mass customization of orders straight from the system.

You can add rules to change shipment types according to the order value or add additional products. Talk about getting creative!

Costs

When choosing the right 3PL partner for your business, it's crucial to have a clear understanding of the costs. Remember to check the small print and ask: is there a minimum monthly spend? What are the account set-up fees? How much does software integration cost?

OGOship's pricing model has no hidden or getting-started fees — just pay as you go by order volume. Integrations with the most common eCommerce platforms are free and ready to use.

Talk with our eCommerce experts

Ready to learn more? Our experts will answer any questions you may have on how to get started, what the key features are, and which warehouse locations bring your e-commerce business the maximum benefit.

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