The order fulfillment process is a tedious one. You want to select the best service to get your products to your customers, but you also need to figure out which type of order fulfillment service is the most fitting one for you and your business. As a seller, you need to understand which option provides a better Amazon inventory management system to meet your needs. Whether it’s 3PL, FBA, FBM or a mix of all three. In the long run, the goal is to improve logistics and optimize supply chain management, which helps keep your customers satisfied.
What is 3PL?
3PL, which is the common abbreviation for third-party logistics, is an outsourced service that manages a company’s supply chain by providing storage, handling shipping and returns, and managing overall order fulfillment. This allows companies to save on logistics costs and operate more efficiently.
Pros of 3PL
- Fulfillment Optimization and Automation
Outsourcing to a 3PL can speed up the order fulfillment process for sellers. This means that storage, packing, shipping, processing returns, etc. are handled by someone else, namely a provider who has expertise in fulfillment. Most 3PLs will also support multiple sales channels so you can process orders from Shopify, Etsy, Amazon, and more. You can also distribute and store inventory across multiple warehouses managed by your 3PL for a more cost-efficient way of shipping products to your customers.
- Save on Additional Costs
3PLs can handle a high volume of orders across multiple sellers. You get more than what you pay for since they have lower shipping rates and fulfillment costs. Sellers no longer have to pay for extra staff since fulfillment centers already have their own in-house staff built in. Larger and more established fulfillment centers often have partnerships with shipping carriers to offer discounted prices to sellers.
- Scale Business Quicker
Sellers can shift their efforts to marketing and growing their business while the 3PL is responsible for logistics concerns. When you use a 3PL to handle fulfilment and logistics, you can focus on running PPC ad campaigns and grow your customer base. Easily and safely request for product reviews with the help of SellerMobile’s Request for Review Chrome extension to build your brand reputation.
Cons of 3PL