Article Rich Small Business E-Commerce: The Many Benefits of Outsourcing Logistics

E-Commerce: The Many Benefits of Outsourcing Logistics

The logistics industry has seen a boom like no other, as millions of small businesses around the world sell their products, all of which must be picked, packed and delivered. Private courier firms are everywhere, with vehicles ranging from motorcycles to 18-wheel articulated trucks, servicing the e-commerce industry. For a business that sells products online, the logistics are usually high volume and rather going to the expense of setting up a warehouse and investing in all of the equipment, simply outsource picking, packing & delivery to a third-party logistics (3PL) provider.

Here are some of the benefits for you and your business if you forge an alliance with a 3PL company.

  • Fast & Reliable Deliveries – We all know that slow delivery times are to be avoided at all costs and with an established 3PL company, they have a global network of carriers to ensure quick delivery. The e-commerce sector is extremely competitive and delays in delivery could be enough to turn the customer to look for another supplier. If, for example, you ordered factory electrical products by SQD, you can be sure of express delivery and they supply a wide range of electrical components for residential and industrial use.
  • Eliminate Picking and Packing – Ship your entire product range and packaging to the 3PL company’s warehouse and when orders come in, you simply email them on to your 3PL partner, who handles everything from there in. You don’t even have to see your products when you outsource the picking and packing and this makes financial sense.
  • Free to Focus on Improving the Customer Experience – At the end of the day, it is all about the customer experience and if you can ensure that the buying process is smooth and efficient, your business will steadily grow. Marketing needs to be ongoing and without the worry of logistics, you and your team can focus on innovative ways to reach new customers. Of course, we all know how important public relations are, as this article highlights.
  • Minimal Investment – If you don’t touch your products, you have no need to have premises and staff, indeed, you can have the manufacturer deliver the products directly to your 3PL partner if you prefer. Many one-man-show websites make it big and the entire operation is run by a single entrepreneur, while thousands of products are sold daily; outsourcing enables you to compete with the big players and with the professionals handling your logistics, your customers will always be happy.
  • High Volume Sales – If you got your digital marketing right and have hundreds of site visitors a day, then keeping up with the logistics would be a major issue, unless you are paired up with an established 3PL company, who are equipped to handle any amount of business. If your business is seasonal, the surge in orders will not be an issue for your logistics partner and as you only pay for orders processed, you are not wasting money.

Thanks to 3PL companies, the e-commerce industry is enjoying a boom, largely due to the pandemic and if you sell products online, 3PL is for you.