What is a third-party logistics solution for an e-commerce store?
Third-party logistics, commonly known as 3PL or TPL, are solutions for an e-commerce store that implies outsourcing certain logistics activities to a third party. Simply put, you’ll let an external provider handle your supply chain.
The functions of a 3PL include:
Any e-commerce store needs a warehouse for storing its goods. There are two options that are viable for a store owner. An e-commerce business could either own the warehouse itself or a 3PL company could provide the storage.
The main problem in owning a warehouse is that it may not be located close to the customers, hence the distribution of the goods could become difficult. In addition, e-shops are responsible for the warehouse and everything that follows with it. This includes expenses such as rent and salaries to the staff that makes the logistics run smoothly. The issue of storage could also become a problem as the business grows and gains customers internationally.
When you outsource your complete e-commerce logistics, a 3PL company undertakes the responsibility for storage and the maintenance of your goods. The problem of the warehouse being located far from the customers is solved as these companies usually have connections with multiple warehouses located at different locations.
Packing & Shipping
When a company undertakes complete third-party logistics services for your store, they provide packaging services. 3PL partners will pick, pack, and ship your products, often on the same day the order was made. A third-party logistics partner can guarantee both high-speed and high quality when it comes to delivering your products. They also have more options and appropriate means of transport to the desired destination.
Lastly, 3PLs for e-commerce businesses entail the inventory management of your goods, in order to ensure a seamless supply chain for your store.
Third-party logistics companies take over a number of tasks, as mentioned above, from an e-retailer which has numerous benefits for the e-shop itself.
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