Product delivery is an important business operation for e-commerce stores. When customers get their orders delivered on time, they are usually happy. An issue in a company’s logistics can ruin customers’satisfaction. This is why many businesses partner with a 3rd-party logistics fulfillment company.
A 3rd-party logistics fulfillment company specializesin providing logistics to deliver a business product to its customer. The company helps to receive, store, pack, and ship e-store products to their customers.
Regardless of which industry your e-commerce business falls under, there is always a 3pl fulfillment company to manage your product’s logistics. With many logistics companies available, selecting the right one is very important.
Important Considerations When Choosing a 3PL Fulfilment Company
To help you avoid making mistakes in your logistics partner selection, here are a few important factors to consider:
Consider their Expertise
One important factor to consider is their expertise. When choosing a 3pl company, ensure to pick one that has the experience in delivering products like yours. There is a difference between shipping clothes and mechanical appliances. So, if your business specializes in fashion wear, choose a logistic partner that has experience in shipping them.
Apart from choosing based on similar products, you can also choose one that ships similar volume too. Some logistics companies do not package heavy goods. They do not have the materials to effectively pack this or a transport vehicle that can safely carry them or the manpower for this. Why? Because their expertise is in shipping lighter items.
If your e-commerce store deals with lighter products, you can hire such a logistic company.
Check their Logistics Operations
A 3PL company will be able to receive your products, pack them, and then ship them to your customers. To help them succeed, they require warehouses and a transport system. Check how effectively they carry out basic operations.
Ask yourself these questions:
- Do they have a warehouse? How many of such do they own and use?
- Where are their warehouses located?
The location of a 3pl warehouse is important to your order fulfillment. If they have warehouses close to the areas your customers live in, delivering goods will be easier and faster. To learn more about how warehouse location is vital in supply chain operations, you can check here: https://smallbusiness.chron.com/importance-warehousing-logistics-system-74825.html
Additionally, consider the type of vehicle the 3pl company uses in delivering goods. Is it a van, a truck, or a motorbike? Their transportation means will depend on what goods they specialize in delivering. If they are a heavy-duty logistics company, they will make use of trucks. But for smaller products like phones, they can use a van or bike.
Check Their Reputation
Are they dependable? Ask yourself this question. In a situation where a 3pl makes mistakes by damaging products in their stock or shipping to the wrong address, the e-commerce store that hired them loses money and customers.
So before hiring any 3pl you have in mind, check their reputation. Ask yourself questions like:
- Have situations like the one illustrated above happened to them?
- Is it a normal occurrence?
- What do other e-commerce stores think of their services?
- How long has their business been in operation?
If a logistic company has been in operation for years and is still functional, then it will be because of their good reputation. Choose a 3PL partner that others speak well of. You can check for this using the internet. You can find reviews on Google and third-party sites like Yelp. You will see what current and past clients have to say about their services.
Look for Certifications
This is not quite common in the logistics fulfillment industry but it is a necessity. There are important certifications like the IWLA (International Warehouse and Logistics Association) and the WERC (Warehousing Education Research Council). Check if the 3pl company you want to hire has any of these certifications.
Pricing
Ask the logistics fulfillment service how they charge their clients. Is it done monthly or yearly? How flexible do they make their pricing?
For instance, if your e-commerce store sells Christmas decorations, your sales revenue can only surge during November, December, and January to an extent. If the 3pl fulfillment company charges you monthly regardless of your sales, you will end up paying high fees than your sales generation in non-festive months.
To avoid this, choose a fulfillment service that charges at a low rate and is flexible in charging you based on how long your products stay in their warehouse. In this way, you can pay your monthly fees easily and not go broke. Why is price flexibility important? You can read this articlefor a detailed discussion.
Conclusion
Starting up a partnership with a 3PL fulfillment company can improve your e-commerce store greatly. Making your customers happy is a priority and with the right 3PL company, you can achieve this
