If something is worth doing, it is worth doing right, and this is definitely true when it comes to selecting your 3rd party Logistics (3PL) supplier. For many eCommerce, partnering with such an organization is a no-brainer. After all, if you are currently processing around 1000 orders per period and want to expand your business, fast, productive, and low-cost shipment is critical.
Nevertheless, while outsourcing this aspect of a business can be extremely beneficial to the success of the brand, it is critical that you select the right provider to ensure that your vision of the perfect customer experience is met. This requires time, research, and an understanding of the main characteristics to look for in a 3PL provider.
A Good Reputation
One of the most tangible indicators of success is the ability to maintain a reputable name in the business. When you decide to outsource your order fulfillment, an important first step is to conduct research to learn some important facts about your chosen company. You’ll want to know how many clients they work for if they’re an end-to-end service provider, and if you’ll be assigned a dedicated account manager so you can make an informed decision.
Along with client reviews, the company’s performance record in terms of fulfilment accuracy, return rates, and proof-of-delivery tracking will tell a lot. Why not request a conversation with one of their current clients? If the service is excellent, happy customers will most likely be eager to spread the word.
Warehouse Network and Scalability
Brexit, together with the abolition of the EU duty-free allowance in July 2021, has created a slew of logistical issues for eCommerce businesses. Selecting a 3rd party logistics provider with a network of warehouses in various locations will enable you to reap the benefits of lower tariffs and faster customs clearance.
Look for extra perks, such as AEO certification, to make the process go even more smoothly. A partner who provides scalability is also appealing. This demonstrates that they support your company’s growth and will be ready to broaden with you when the time comes.
A Good IT Infrastructure
The quality of a 3PL company’s IT infrastructure should also be a deciding factor. Search for a partner who uses eCommerce software that integrates seamlessly with your own inventory management system, allowing you to track the progress of all orders until the delivery destination is reached.
Inventory controls, integration with significant couriers, and API solutions that allow for quick and efficient communication are also advantages of technologically advanced infrastructure.
Great Customer Service
As the owner of an eCommerce store, you undoubtedly have a clear vision for your brand in terms of style, quality, demographics, and, of course, profitability. All of this is intertwined with your company’s ideology and how you want to be perceived by your customers.
When you outsource a part of your business, such as order fulfillment, you want to make sure that the company you’re partnering with shares your vision for the benefit of your customers. As a result, the provider you select should meet the criteria. Tracking updates, on-time shipment, and individualized orders are just a few of the checkboxes your fulfillment partner should check to ensure your vision and ideology are respected.
A Reasonable Price Point
While it is critical to secure a satisfactory financial deal with your selected 3PL partner, it is also important to keep in mind that you get what you pay for. Companies that offer you the sun, moon, and stars for a low price may appear too good to be true – and for a valid reason. Stick with an operator who will negotiate your desired price point with you and offer a billing plan that works for both of you.
Insights Into Omnichannel Marketing
With omnichannel selling will become the norm for many eCommerce businesses, it is beneficial to select a 3PL partner who understands this particular sales model. Look for a provider who has extensive experience with brands similar to yours and explain your plans and baselines for effective omnichannel fulfillment with them.
A Bespoke Experience
Many 3PL companies operate in a different manner in that some provide a specific service, such as cargo or warehousing, whereas others provide an end-to-end service that includes everything from processing orders to packaging to delivering. The latter is the preferred option for eCommerce brand owners seeking a seamless experience every time, protected by an experienced partner who employs cutting-edge technology.
Further to that, most end-to-end providers will offer you a customizable plan, pick and choose the services that will best suit your objectives. A reputable third-party logistics partner should provide you with a service level agreement (SLA) outlining their duties and roles to you, the client, based on the customized package you have signed for.
Hopefully, this post has given you some points to look out for and helped you to understand the importance of choosing the best 3PL partner for your business.