Efficiency in all operations has become more important in global markets. Consumer trust increases and cross-border sales grow more rapidly. In order to compete in this rapidly-growing market, online retailers must find innovative ways to engage their customers.
What happens if the retailer cannot focus all of its energy on its core competencies?
If the online store can’t focus on the customers the competition is lost. This is why, more and more online retailers choose to outsource order handling to a 3PL provider. In fact, over 85% of Fortune 500 companies use 3PLs. Here are a few reasons why.
Free your time from logistics operations
Outsourcing storage and shipments is no longer just for companies with large volumes. Actually, the benefits of outsourcing are most vital to those who have limited time or investment resources in use. You can outsource the entire logistics process: inventory, pick & pack, packaging, deliveries and customer returns.
Shipments don’t need your attention – your customers do
For online retailers, it is more productive to focus on adding value for the customer, rather than the logistics chain. Sales and conversions can be increased by improving customer relations, marketing, sales actions or by SEO optimization for the site. By outsourcing logistics operations, online retailers also ensure that warehouse facilities are being kept up-to-date with digitalization, freight contracts are being negotiated yearly and delivery peaks are met. In addition, international deliveries and shipments with customs needs are efficiently handled.
How to select the right 3PL service provider?
Once you decide to outsource your logistics, you need to identify the right service provider. Here are some factors to be considered:
- Warehouse management system and integration with your online store.
- The variety of shipping methods they provide.
- Transparent pricing (monthly fees, startup fee, fees per title, etc.).
- Warehouse location and capacity.
- How the receiving of goods is handled.
- Scalability when your operations grow – pricing and capacity.
- International shipping possibilities.
Which 3PL service provider is the right for you?
Benefits of outsourcing logistics
Focus on growth
Does maintaining your online store inventory use up time from the core business itself? Could you use your time more efficiently? Outsourcing storage and shipments can bring entrepreneurs time to focus on online marketing and sales as well as online store site optimization and product descriptions, thereby generating growth.
Logistic services with experience
For many business owners, the supply chain is not their first area of expertise, which can make optimizing logistics more challenging. When outsourcing to a third party, you can rely on in-depth industry knowledge as well as a proven success. OGOship has designed the order management system and value-added services to meet the demands of growing online stores.
No fixed costs and ease of scaling
If you are growing or entering new markets, or even experience seasonal changes, inventory levels and shipment needs naturally vary. It may not be possible to accurately predict the amount of warehouse space or the volume of shipments that your online store needs, but with outsourcing, it is easy to scale operations with minimum risk.