Introduction: What are 3PL Fulfillment Partners and How Can They Help?

As people become accustomed to the conveniences of shopping online, especially in developing countries where more and more people gain newfound access to the internet every day, the more rapid the burgeoning growth of eCommerce will become, as it gets transformed from a convenience to a necessity. The dawn of the pandemic and all the restrictions brought about by it inspired unprecedented growth among many internet-reliant services, including eCommerce. People the world over began relying on eCommerce for all their requirements, from basic resources such as ordering food through delivery apps to purchasing products they needed from eCommerce marketplaces such as Amazon and Flipkart. With this emergence of eCommerce as a highly sought-after means for businesses, small and big alike, to gain quick success, competition in the space has become rife. While Amazon pioneered many of the technologies and conveniences we take for granted today, such as same-day delivery and order tracking, other companies have had to keep up and expand their feature set while striving to reduce costs in order to attract the maximum amount of customers compared to the competition. While large companies have constant access to the latest resources and technology, it becomes easy for smaller companies that may lack the necessary finances and facilities, to keep up. This is where 3PL fulfillment companies can step up and help level the playing field. While services may vary between companies, they generally provide a vast suite of eCommerce services that encompass activities such as inventory storage, order fulfillment and much more while also arming their customers with state-of-the-art technology and features that they may not have had access to before such as fulfillment centers, warehouse management systems and order tracking facilities, among others. Let's explore 10 ways that 3PL eCommerce fulfillment companies can assist eCommerce businesses.

Top 10 Reasons for eCommerce Retailers to Outsource Fulfillment to a 3PL Fulfillment Partner

Improves Customer Satisfaction

While there is heavy competition among eCommerce retailers to gain the attention of customers, there is also a growing rivalry among 3PL fulfillment companies that seek to lure in online sellers by providing the most services for the least prices. This enables companies to offer the best facilities to their customers, such as same-day delivery, order tracking, reduced prices and sophisticated customer care, which will enhance their perception of that brand and encourage them to purchase from them in the future.

Reduces Shipping Expenses

3PL companies often partner with a wide variety of shipping aggregators and generally assign the quickest and cheapest option for every order. This means that eCommerce retailers can charge less for delivery, waive their shipping charges altogether or increase their profit margins by letting their customers bare the cost. Either way, it is highly beneficial to have access to low-cost shipping facilities that are offered by most 3PLs.

Provides Access to Faster Delivery

3PL companies constantly try to outperform each other when it comes to providing the fastest possible delivery for the least amount of money. With the onset of 2-day, same-day and even 10-minute delivery, customers have gotten used to instant gratification and retailers that don’t provide ultra-fast delivery tend to suffer compared to those that do. 3PL companies help their partners provide these services so that they can be on equal footing with the rest of the industry.

Enables Efficient Warehouse Management

3PL companies generally come equipped with warehouse management systems (WMS). These are advanced software solutions that provide insights into every aspect of warehouse operations, such as tracking which items need to be stored and which need to be shipped, monitoring orders as they come in and providing updates in real-time whenever an event or an incident takes place. Additionally, many of them can also integrate with multiple eCommerce selling platforms, allowing users to monitor essential data across all of them.

Enhances Inventory Management

Inventory is arguably the most important asset in eCommerce as it enables its sole function - selling products to customers. Using automated software solutions provided by 3PLs, retailers can forecast demand, place purchase orders with suppliers accordingly, get real-time updates when any units are added or removed and have access to all their SKU data in one location, among many other functions.

Offers Real-Time Order Updates

Most 3PL companies provide order tracking notifications and some even offer dedicated branded tracking pages that can be customised with a whole host of information such as product suggestions, social media links and much more. Order tracking has become an essential tool to provide customers with constant, real-time updates about the status of their order and when they can expect to receive it.

Provides Reverse Logistics Facilities

Returns are an unavoidable reality for every eCommerce seller. However, the damage caused by them in terms of inconvenience and additional expenses can be mitigated by using a 3PL fulfillment company as most of them generally provide reverse logistics facilities to inspect the returned products, pick them up from the customer and transport them back to their relevant storage facility.

Provides Access to a Vast Network of Fulfillment Centers

Most major 3PL fulfillment companies provide their users access to a large number of fulfillment centers and warehouses, usually located in various major cities and some even located in smaller towns. This enables retailers to store their products closer to their customers or in close proximity to transportation hubs to enable orders to be fulfilled at faster rates.

Offers Customisable Packaging Facilities

This a feature that is offered only by a select group of 3PL companies but its convenience is undeniable. eCommerce sellers are usually at the mercy of the packaging facilities of the online selling platforms they distribute their products on, such as Amazon and Flipkart, and most of the packaging is standardised, not giving any attention to the company itself. However, 3PL companies that offer highly customisable packaging can help highlight brands themselves, in whatever way they chose.

Enables Retailers to Focus on Other Business Activities

Because 3PL companies take care of the heavy hitting when it comes to inventory storage and order fulfillment, retailers are free to devote time to more core activities of their business such as researching new products, improving and refining existing ones, and marketing them so that they can be as visible to their target customers as possible.

Conclusion: Choosing the Best 3PL Fulfillment Partner for Your Business

If you are an eCommerce seller looking to expand your business and offer premium services to your customers, choosing to partner with a 3PL company can be the boost you need to accomplish your goals. While there are many types of 3PL fulfillment companies, specialising in a range of various eCommerce solutions, most of them do provide a standard range of order fulfillment and inventory storage facilities. However, it is up to you to analyse your requirements and financial capabilities and choose one that fits the bill accordingly, as some provide more services than others and also fall into different pricing brackets. Some of the best 3PL fulfillment companies in the game are as follows:

• WareIQ: A rapidly expanding eCommerce fulfillment company that is based in India, WareIQ offers multiple services such as a nationwide network of fulfillment centers, ultra-fast shipping through more than 20 shipping companies, a custom WMS, no minimum order requirements and much more.
• ShipBob: ShipBob is an eCommerce fulfillment company that originated in the US. The company provides most eCommerce services such as a vast network of fulfillment centers, a WMS that can integrate with multiple platforms, ultra-fast delivery and much more.
• Deliverr: Starting services in 2017 and based in the US, Deliverr offers multiple eCommerce solutions such as online customer support, integration with multiple selling platforms, transparent pricing and much more.
• Red Stag Fulfillment: Red Stag Fulfillment is another fulfillment company that originated in the US. It offers advanced features such as an expansive warehouse network, video monitoring, same-day delivery and much more.

We hope that this article gave you some insight as to how 3PL fulfillment companies can be useful and whether partnering with one would be the right option for you.