Introduction
As a retailer in this ROI-driven world, you are abundantly aware of the growing importance of eCommerce in today's marketplace. Your job focus has been and continues to be incorporating a business strategy that succeeds in providing a seamless shopping experience across all channels. You aim to optimize the customer journey.
Here, you will be updated on the ins and outs of 3PL or Third-Party Logistics. You will glean precisely how alignment with a well-vetted 3PL company can level up your eCommerce business. This blog outlines the advantages of choosing the right eCommerce warehouse for your 3PL needs.
Understanding 3PL and eCommerce Warehousing
Third-party fulfillment, a.k.a. 3PL, is outsourcing the order fulfillment process to a third-party logistics provider. Efficient and reliable 3PL warehousing is a crucial resource for your omnichannel. With it, comes logistics intelligence.
Ecommerce order fulfillment and ecommerce warehousing services go hand in hand. A fulfillment company should offer industry expertise in these key areas:
· Inventory Management
· Order Fulfillment Operations
· Ecommerce Warehousing
· Customer Care
· Value-added Services (ex. kitting, labeling)
· Shipping
· Returns Processing
Experienced fulfillment companies understand that “it’s not just a box.” Every box represents a person - and the fulfillment of your brand promise.
Key Benefits of an eCommerce Warehouse for 3PL Needs
Fulfillment companies don’t all share the same business model. Some might own resources such as ecommerce storage facilities, while others serve as intermediaries and negotiate the services. Ensure to inquire about their duration in the industry and financial stability. It's crucial to collaborate with an ecommerce fulfillment firm that is experienced and financially secure.
Specialization in eCommerce Fulfillment
Whether you are a veteran in the industry or newly established, you want a 3PL that specializes in ecommerce fulfillment. Partnering with a company that understands the nuances of the ecommerce space is essential. E-commerce is a world unto itself, and it calls for a deep understanding of the intricacies to navigate it successfully.
Ecommerce businesses need a third-party partner that has expertise in handling orders. Peak season performance is often the most important contributor to a successful year - and order fulfillment plays a significant role. Were orders processed on the same day? Were they shipped properly? Were they accurate – was the right item shipped to the right customer?
Your 3PL partner needs to have expertise in packing and shipping. In the current era, repeat customers are most likely to purchase. The enhanced order precision offered by a 3PL is crucial for customer loyalty.
Ecommerce fulfillment associates utilize technologies that guarantee accurate inventory monitoring, automated selection of packaging, and instant order updates. The advantage is that it eradicates human mistakes, which substantially boosts customer allegiance and results in repeat customers.
Know-how in returns management is also a necessity. Search for a fulfillment partner that offers a completely US-based contact center solution. Collaborating with a US-based partner typically implies that customer service operates in the same time zone as your clientele, facilitating swift issue resolution. Representatives who are native English speakers can efficiently oversee the returns process, from responding to queries to managing grievances.
Scalability and Flexibility
You must partner with a 3PL that can scale its operations as your business grows. A reputable 3PL should be able to handle your fluctuating demand and seasonal spikes. Like many online retailers, you have cyclicality of sales. You need an ecommerce fulfillment partner that can handle a large influx of products to meet your seasonal demands.
Flexibility is key when dealing with order fulfillment and returns. Due to 3PLs’ vast infrastructures and resources, expert ecommerce fulfillment partners can quickly react to demand changes with little to no added expense. A professional ecommerce fulfillment company can easily ramp up or down its returns functions to meet fluctuating demand, which is especially beneficial when dealing with holiday returns. By outsourcing to a 3PL, you know your operations can scale up or down depending on fluctuations in consumer demand.
Advanced Technology Integration
Advanced technology in the ecommerce space is the backbone of order fulfillment operations. Warehouse technology streamlines the supply chain, enhancing efficiency and accuracy while minimizing costs. Top 3PLs will use robust state-of-the-art inventory management systems like these:
· Warehouse Management Systems (WMS)
· Transportation Management Systems (TMS)
Capitalization of inventory management is integral. When you collaborate with a fulfillment provider possessing top-tier systems and profound insights, your ecommerce success is assured. And if you select your ecommerce warehouse carefully and smartly, you can take your business to the next level. The right 3PL is crucial for your business growth.
Technology drives everything in today’s world. At the same time, system capabilities evolve constantly. This consequently enhances efficiencies, decision-making processes, and the customer's experience. Align with a fulfillment partner that leverages advanced systems.
Premier fulfillment firms acknowledge the vital role that contemporary technology plays for their clientele. Numerous entities in the consumer direct sector have strived to construct order-management platforms that enhance the sales process. However, this doesn't imply they are sturdy, efficient, PCI-compliant, or capable of making cost-efficient choices.
An advanced architecture guarantees compatibility with ecommerce platforms. It commences with a unified web platform, which includes:
· Order Management System (OMS)
· Payment processing
· Order fulfillment
· Advanced Reporting and Business Intelligence (BI)
Warehouse technology lets clients view and interface with the data online, giving end-to-end visibility into their order fulfillment. Shipping via logic-based optimization supports customizable goals that balance cost and transit time. You should expect a seamless integration with existing systems.
The takeaway is that you can proactively assess your provider’s technology and system integrations. Ecommerce 3PLs should have easy-to-use tools for order tracking, inventory management, and reporting. You want to ensure seamless integration with your ecommerce platforms for real-time analytics and inventory sync.
Cost Efficiency
Looking to cut down on costs? By utilizing the appropriate 3PL, a business can often decrease its outbound expenditure by 15% or more. Given that medium to large ecommerce warehouses dispatch millions of parcels, they have the leverage to negotiate bulk discounts with shipping carriers.
The advantage for you as an e-retailer is that your fulfillment partner transfers these reduced shipping rates to its customers. It would benefit you to scrutinize domestic and international shipping costs closely. The calculation is simple. The more packages a 3PL ships, the greater the shipping discount. Like any e-retailer, you always seek new ways to reduce overhead costs.
For most e-commerce leaders, economies of scale in shipping and logistics are at the top of their minds. To scale your operations effectively, you must capitalize on technology and infrastructure.
Opt for the right fulfillment partner to scale your warehouse business and reap cost efficiency. It is important to make sure your fulfillment provider has the infrastructure to meet your shipping needs.
With many ecommerce retailers, you have seasonality. Partner with a fulfillment partner that can handle any number of products, large or small, to meet your seasonal demands. Leading ecommerce fulfillment partners can accommodate demand changes. They do this with little to no added expense to the client.
Improved Customer Returns Experience
As online retailers know, returns are part of a product's lifecycle. And you aim to find every way to streamline the returns process. A fulfillment partner’s robust returns management system can help you recoup value from returned goods. An efficient and customer-friendly returns system ensures that goods are returned to inventory and resold immediately, thus improving the CX.
In the US in 2021, 21% of online orders, valued at $218bn, were returns. Managing returns efficiently is vital for maintaining your customer loyalty program. A competent 3PL can handle the returns process seamlessly, from processing customer refunds to refurbishment or recycling, turning potential losses into value recovery. Your customers deserve a first-class customer experience.
Another benefit is that 3PLs with a dedicated space, trained staff, and leading-edge technology designed for reverse logistics can manage returns more efficiently and with less overhead. They can easily scale returns operations to meet fluctuating demand, which is especially beneficial when dealing with holiday returns. Leading 3PLs leverage modern technology platforms with AI and machine learning capabilities to automate and optimize reverse logistics processes. The result is a reduction in operating costs and an increase in CX optimization.
Factors to Consider When Choosing an eCommerce Warehouse
Location and Proximity to Customers
You may or may not know that the location and proximity of an ecommerce warehouse to your customers makes a difference. Your customers want it fast. Shortened transit and efficient operations achieve this.
Strategic warehouse locations for faster delivery are key. 3PLs with multiple fulfillment centers offer many advantages. With warehouse vacancies rising from 3.1% to 5.2%, today is the opportune time to consider an ecommerce warehouse. Retailers can boost operational productivity, cut down on shipping expenses, and heighten customer satisfaction by partnering with the right 3PL services provider.
Even better is the presence of multiple warehouses, enabling orders to be dispatched from locations nearer to customers. Collaborating with a 3PL that operates from various locations will cut down on shipping expenses and expedite delivery times. With numerous locations, you can access 95% of the United States within a 2-day ground network, significantly reducing shipping costs.
An additional benefit of having multiple locations is that businesses can penetrate new markets and demographics, broadening their customer reach and offering a competitive edge. An often-overlooked aspect is the enhancement of risk mitigation. Spreading operations across several facilities lessens the effect of potential disruptions at any single site. Therefore, if a hurricane hits the East Coast, the West Coast facilities will persist in fulfilling orders, ensuring a smooth experience for your customers.
Technology and Automation
In this Age of Information, advanced tech in warehouse operations ranks high in importance. Technology is the component of a 3PL and covers every aspect of a warehouse. Some 3PLs have invested millions of dollars in cutting-edge technology, and you want an ecommerce warehouse that stands at the forefront of technology.
Warehouse technology and automation include everything from robotics, warehouse management systems, work execution systems, and transportation management systems. All these warehouse systems are integrated and provide visibility into every aspect of the order fulfillment process.
Technology enables all these processes to happen seamlessly, allowing clients to interact with and view data online. It then proceeds with shipping through logic-driven optimization to accommodate customizable objectives that harmonize cost and transit duration. A flawless integration with pre-existing systems should be anticipated.
A high-tech 3PL equipped with a BI platform offers real-time insights into inventory, orders, shipping, and trends. This data is designed to be clear, easy to understand, and, most importantly, actionable. Leveraging advanced technology is crucial for maintaining a competitive edge.
Experience and Reputation
You can see the criticality of partnering with a reputable 3PL provider. With more than 68,937 3PLs in the United States, the market is vast. That's why it's crucial to carefully research your chosen 3PL—after all, they serve as an extension of your brand.
A vetted ecommerce provider will welcome the opportunity to share references or case studies with you from similar businesses. This will enable you to verify their claims and assess how well they can meet your specific ecommerce requirements.
Don’t forget to investigate whether your 3PL is financially stable. Building a great reputation is challenging, and maintaining it requires constant effort and dedication. To ensure your success, research whether your 3PL has a strong reputation among customers, suppliers, and employees.
Customization and Flexibility
A flexible 3PL provider can adapt to your business needs, whether you're entering new markets or managing seasonal demand fluctuations. You need a fulfillment company that offers tailored solutions to meet your product and company’s unique needs and goals.
By outsourcing to a 3PL, you can quickly and flexibly scale operations up or down depending on fluctuations in consumer demand.
Your projects are unique. So, too, is the approach. You may need value-adding services like reverse logistics, kitting, and product refurbishment. Look for providers with customized kits that precisely match your specs. Choose a 3PL that can offer tailored solutions with flawless execution.
Conclusion
Partnering with an e-commerce warehouse brings many benefits to your omnichannel. Supply Chain Optimization. Inventory Management. Fulfillment Automation. Real-Time Syncs. Logistics Intelligence. A best-in-class Order Management System (OMS).
When you join hands with a specialty warehouse, you get perks. Enjoy economies of scale. Cut costs with heightened efficiencies. Nix overhead with a smarter logistics model. Improve sales by making more of your customers happier. Follow through with your growth plans via the scalability of your business. It is amazing what a digital transformation can do for your market expansion.
Assess your current logistics setup and consider how an ecommerce warehouse will exceed your 3PL needs. Check the boxes of what you currently have. Do you want to propel your business to the next level with these:
· Actionable insights
· Market Expansion
· Data-driven decisions
· Tailored solutions
· Sales Enablement
· Cutting-edge technology
· Robotics
Get a read on your current mode of operation and consider how the perfect 3PL can do all of the above and more. Consider a2b Fulfillment for your third-party logistics leveling up. Boasting close to a quarter-century of expertise in ecommerce order fulfillment and warehousing services, we provide customized solutions that align with your distinct requirements and objectives. Reach out to us today to explore how we can assist your business in reaching unprecedented levels.
Choosing an a2b ecommerce warehouse is critical to your business success. If you are ready to learn how a fulfillment company can transform your business, contact a2b Fulfillment.
