Supply chain management is the most complicated part of e-commerce logistics since it
requires a lot of resources and effective monitoring and puts a lot of strain on the e-commerce company’s operational infrastructure.
In order to save time and resources, the majority of large and small-scale e-commerce businesses these days prefer outsourcing their logistics needs to either third-party logistics providers or shipping aggregators.
To ensure complete client satisfaction, 3PL providers give e-commerce companies access to timely, well-coordinated logistical service and fulfilment centres facilities.
The size of the worldwide third-party logistics market was estimated to be USD 956.80 billion in 2021, and it is projected to increase at a CAGR of 8.6% from 2022 to 2030.
While the 3PL providers are consistently growing, what exactly are the benefits of
choosing them for outsourcing your e-commerce fulfilment needs?
Stay with this blog to understand every aspect of outsourcing and the role of 3PL providers in e-commerce fulfilment.
What Does E-Commerce Outsourcing Mean?
In e-commerce, outsourcing fundamentally refers to hiring a third-party logistics provider to complete logistics tasks that would otherwise be completed internally by a company’s workers.
Web development, marketing, accounting, inventory management, and
Benefits of Outsourcing Your Fulfilment Need to a Third-Party Logistic Provider
There are many benefits of outsourcing your fulfilment to a third-party logistics provider (3PL).
By using a 3PL, you can free up valuable resources within your company and focus on your core business.
Additionally, a 3PL can provide you with the latest technologies and processes to help improve your fulfilment operations.
Some of the benefits of outsourcing your fulfilment to a 3PL include:
Outsourcing your fulfilment to a 3PL gives you the flexibility
to scale up or down as needed, without the need to make major changes to your internal operations.
This can be a major advantage when your business is growing or experiencing seasonal fluctuations.
2. Cost Savings
Outsourcing your fulfilment to a 3PL can lead to significant cost savings for your company.
3PLs can often provide economies of scale that are not possible for companies to achieve on their own.
In the 2016 Global Outsourcing Survey conducted by Deloitte, 59%
of businesses indicated that outsourcing is a practical way to reduce costs.
- Gaining the most up-to-date expert knowledge
The vast majority of brand owners are not specialists in supply chain logistics.
Having a 3PL partner on hand that is skilled in e-commerce fulfilment allows you to recognize and minimize these issues,
preventing your company from making costly errors that could restrict growth and impact customer satisfaction.
- Risk Reduction
Outsourcing your fulfilment to a 3PL can help reduce the risks associated with fulfilling orders, such as stock outs or incorrect shipments. This can lead to improved customer satisfaction and reduced costs.
- Improve the experience of customers with cutting-edge technology
Fulfilling orders for online sales involve more than just packaging them up and mailing them to your customer. The secret to data-driven decision-making that improves your fulfilment strategy and shortens
lead times is partnering with a fulfilment provider that
offers a robust software system and advanced automation.
When Does it Become Crucial to Outsource e-commerce Fulfilment?
Some indicators that e-commerce fulfilment should be outsourced:
- Your order volume is quickly increasing
- Fulfilment process is slowed down by manual procedures
- The amount of storage you have is dropping rapidly
- You are in urgent need of employing extra personnel to pick up and pack orders
How to Pick a Reliable e-commerce Fulfilment Company
Every e-commerce company has its own requirements and fulfilment goals.
But when they search for the ideal 3PL partner in today’s quickly changing e-commerce industry, every business should consider the following features:
- By collaborating with an e-commerce fulfilment provider with a countrywide network of fulfilment centres, businesses can develop a flexible, dependable multi-node fulfilment strategy.
- Your third-party logistics provider should be able to provide a seamless connection between their own system and your preferred platforms.
- By outsourcing e-commerce fulfilment to a company that provides custom fulfilment, you can make sure that your unboxing process can scale as your order volume increases.
- Working with an e-commerce fulfilment provider that can manage your returns workflow will assist you in turning returns into a source of cash for your organisation.
A 3PL provider company can offer a cost-effective logistics solution to your business which is currently juggling with insufficient warehousing and express delivery issues.
If you are looking forward to collaborating with more than a 3PL provider, then a shipping aggregator like NimbusPost can be your ultimate companion.
NimbusPost was established in 2018 with the goal of assisting MSMEs and even major corporations in streamlining their end-to-end logistics operations through shipping (domestic and cross-border),
warehousing, and excellent fulfilment centre facilities. Across the nation, the business collaborates with 27+ different courier partners, including Blue Dart, Delhivery, XpressBees, DTDC, Shadowfax, etc.