Shopify 3PL

Shopify 3PL

Growth may come with opportunities, but it also comes with different pains.

If you’re expanding your e-commerce business, you probably already know these are these, especially when it comes to logistics, shipping, and order fulfillment. When you spend all your time communicating about shipping timelines and costs, it can be hard to focus on marketing, product development, and customer relationship maintenance.

That’s why 90% of Fortune 500 companies turn to third-party logistics (3PL) providers for help. As the e-commerce market expands rapidly, so does the demand for the 3PL market, which is expected to reach $1.75 trillion by 2026.

There’s a reason 3PL’s services are in high demand. These shipping and fulfillment experts hold your inventory in their warehouses and pick, pack, and ship products to your customers.

If you’re ready to work with a 3PL for the first time, or considering using multiple 3PL partners to diversify and reduce risk, here’s what you need to know to find and choose the right supplier.

What’s a 3PL Warehouse

3PL Warehouses

Warehouses that store, ship, and process returns are the most common type of 3PL, and many of them can provide fast service that arrives within 2 days. And, if you want to promote your products and stores all over the world, 3pl can also help build a global supply chain.

When choosing a 3PL warehouse, first determine how many distribution centers you have access to. If you promise fast delivery to your customers, you will need a larger network of warehouses. Shipping speed depends on the warehouse geographically close to the customer. You also need to accurately detect the inventory quantity so that the inventory can be replenished in a timely and effective manner in order to avoid affecting the fulfillment of orders.

It’s also important to confirm when your warehouse stops fulfilling same-day orders. For example, if orders are placed after the 3pm warehouse cut-off time, they won’t ship until the next day. This affects your marketing effectiveness and the delivery date consumers expect. (Remember: just one later than expected delivery and you risk losing those customers.)

Full-service Providers

Do you have several warehouses located all over the place? Worldwide e-commerce has gotten much trickier to manage logistically. Plus, the supply chain crisis has made clear the importance of having real-time, multi-location inventory visibility.

Not only is knowing your on-hand inventory (and warehouse locations) a key component of operational efficiency, so is shipping orders out of the warehouse closest to your customers, which can reduce shipping costs. A full-service 3PL can effectively help e-commerce merchants become more efficient during and after a crisis.

An established logistics service provider, such as Honest Fulfillment Network, can provide an end-to-end solution that makes it easy and fast for your customers to get their orders.

Transportation-based 3PLs

For example, they might ship inventory between your suppliers and warehouses. They can also transfer inventory between your warehouses and warehouses.

When choosing a 3PL shipping provider, please state your origin and destination locations and your desired delivery time.

Check with them to confirm available shipping methods, service levels, and discounts they can offer once your inventory increases. Some include brokerage fees if you’re shipping goods worldwide; there are others like import and export taxes and duties.

Starting a 3pl Warehouse.

Finally it’s time to ask if Honest Fulfillment can address your business needs and remove the pain you’re experiencing. The best way to figure that out is to start a conversation and explain the problems in front of you. We are all here to listen.