February 3, 2021

What is 3PL eCommerce Fulfillment: The Ultimate Breakdown

Sierra Jackson

Superior ecommerce fulfillment services are a necessary component for successful ecommerce companies. While logistics and the back end of things may not be as glamourous as your marketing and branding, it is still an essential feature of your companies’ success.  

Great 3PL partners help make your ecommerce fulfillment a breeze by handling all order fulfillment services, providing inventory management, as well as a good shopping experience for your customers. This guide will inform you of everything you need to know when it comes to 3PL ecommerce fulfillment.

What is 3PL eCommerce fulfilment?

First, let’s breakdown the term ‘3PL.’ 3PL is an abbreviation for third-party logistics, which is the outsourcing of logistics for your company from warehousing and storing your products, to fulfillment, distribution and delivery.

‘3PL ecommerce fulfillment’ is basically allowing your fulfillment partner to handle all of your fulfillment needs pertaining to your ecommerce orders.

How do you know when it’s time to outsource eCommerce fulfillment?

When you realize you no longer have the time or resources to fulfill orders on your own, its time to contact a top fulfillment company to outsource these tasks. At first glance, it could seem like a celebratory moment of victory that your company is growing at such a pace that you now have more orders than you can handle alone. However, that moment of victory can quickly turn into a moment of overwhelming chaos if orders are extremely slow getting to your customers.

An experienced 3PL partner will save you time and money while maintaining the entire fulfillment process with advanced order management technology. 3PLs prevent you from needing a warehouse to fulfill and ship your own products or hire any employees to help you do so. You will be able to free up space in your home or garage because your inventory will now be stored in a safe, secure warehousing facility. Your 3PL partner should have special order management and automation systems in place to optimize inventory from beginning to end.

At Fulfyld, we make order fulfillment easy. Its our job to handle the entire logistics process so that your supply chain can move as seamless as possible, and you can focus on other aspects of your business like building your brand.

Advantages of outsourcing your eCommerce fulfillment to a 3PL

There’s an immeasurable amount of advantages to outsourcing your ecommerce fulfillment to a 3PL. A reliable fulfillment services provider will be able to provide your company with these benefits:

Flexibility and scalability: A great 3PL partner will have an ample amount of space for your inventory and the ability to scale seamlessly as you grow.  

Frees up time to focus more on building your brand: Outsourcing your order fulfillment gives you more time to focus on other tasks like marketing, advertising and building your brand.

Experience and insight of your 3PL partners: Your fulfillment partner should be able to provide specific insights and suggestions that ultimately help create the best experience for your customers based on analytics and reports. As experts at e-commerce fulfillment, Fulfyld provides distinct insights and strategies needed for success.

No warehouse lease, hiring of employees, etc.: One of the greatest benefits of outsourcing fulfillment is the fact that you don’t have any responsibilities as it pertains to a lease or mortgage on a commercial building, nor will you have to worry about hiring any employees to fulfill your orders. As part of your fulfillment services, warehouse storage and experienced professionals who specialize in order fulfillment are included.

At Fulfyld, our knowledgeable warehouse team is highly skilled at order fulfillment and warehouse management.

World-class infrastructure and technology: It is vital that your 3PL partner has optimal infrastructure and robust technology to ensure your order fulfillment process runs as smoothly as possible. You should be able to leverage their company’s systems, which will help you control your inventory and stay informed with real-time updates about your orders.  

Dedicated account management and customer support: While automated systems are definitely necessary, good old-fashioned humanity is still essential as well. Having an account manager that is dedicated to providing any support you may need is a great advantage to outsourcing your order fulfillment.

Reduced shipping costs: By leveraging the 3PL providers’ distribution network, you are able to get cheaper freight rates and reduced shipping costs.

Important factors to consider when choosing a 3PL

While there’s no “one-size fits all” 3PL, there are several factors that are “must-haves” when choosing an order fulfillment partner so that you can select the company that’s best for you. A great 3PL should be able to provide several resources to your company ranging from storage, ecommerce fulfillment, customer service and branding, to expertise in logistics and robust technology.  Settling for a fulfillment provider that is missing one of these determinants may ultimately cause a disservice to your customers in the long run.

At Fulfyld, we offer fulfillment services for every step of the supply chain, so you can rest assured your order fulfillment is in good hands. Be sure that when you choose a 3PL, you can mark off each of these factors off as something they offer: 

Centralized location: Your 3PL should be centrally located in an area that allows your products to reach your customers in two days or less.

Fulfyld offers same-day order fulfillment and guaranteed two-day shipping services so that your customers never have to experience frustrating delays.

Seamless integration: It shouldn’t be a pain trying to integrate your store or marketplace with your 3PL’s system. An experienced 3PL partner has the ability to seamlessly integrate any store, shopping cart or marketplace with their software so that your orders and tracking information automatically update.

Receiving Management: Inventory shouldn’t be sitting on pallets for several days or weeks after your 3PL has received it. The longer it sits, the longer you have to wait for your inventory to be logged. This can be a serious burden and cause hiccups in your supply chain, because you can’t sell what your customers don’t see (no inventory in stock).  

Make sure your 3PL quickly places stock (your products) into inventory within the first two days of receiving it.

Inventory and Order Management: In addition to receiving and stocking inventory, another important factor is inventory and order management. Your 3PL should have a modern system that shows real-time updates of your stock levels and orders. This helps you to see when certain items are running low and provides forecasting data and analytics.  

Account Management and Customer support: As we mentioned earlier, having a dedicated account manager to act as your eyes and ears in the warehouse is critical to your business and ecommerce order fulfillment success. Additionally, having friendly, professional customer support to boost your customer experience is equally as important.

Returns Management: The reverse logistics process is just as pivotal as the traditional logistics process. At Fulfyld, we have a modernized, custom returns process based on your specific needs. This helps to make returns easier and speed up the process, because the faster your returns are processed, the faster your customers can receive a refund and your inventory can be placed on shelves again if its resalable.  

3PL specialization: Its important to research what products your 3PL partner already fulfills and whether they have experience shipping your products, so you don’t run into any issues in the future. For example, if your company sells supplements and vitamins but your potential 3PL partner doesn’t have the means or resources to ship items that must be stored in temperature-controlled storage areas, you now run the risk of shipping expired or damaged products. Therefore, its important to choose a 3PL partner that knows the unique details of your industry and can also offer the best fulfillment solutions for your company. 

Quick, accurate shipping: Not only is it imperative that orders are fulfilled and shipped quickly, its also important that they are shipped accurately. What good is it for your customers to receive an order quickly if the order is incorrect? Choosing a 3PL with great order accuracy, in addition to speedy shipping, is crucial to your company’s success.  

In addition to knowing the important factors of a great 3PL, there may still be specific questions you want to ask to determine whether you’re choosing the best fit for your company.

Questions to ask your potential 3PL partner

Picking and Packing:

  • What type of products do you ship?
  • Do you offer value-added services?
  • Do you charge for additional items per order?
  • Is there a charge to include marketing materials, such as inserts?

Fulfillment services costs:

  • What type of price model do you have for your services? (percentage of sales, flat-rate, activity-based, etc.)
  • What is the initial set up fee? Are platform integrations included?
  • What is the cost for managing returns?
  • Who pays for fulfillment mistakes?
  • Are there any additional fees?*

* Several companies have hidden costs within their contract. Be sure to thoroughly read the term of an offer before signing the contract.

Shipping:

  • Do you offer discounts on shipping?
  • Is international shipping offered?
  • How long will it take my orders to be shipped?
  • Do you have an order management system that will track my orders?

Customer service:

  • Do you have account managers available to answer my fulfillment questions?
  • What are your customer service practices?

At Fulfyld, we handle everything from storage to picking, packing and shipping your ecommerce orders. We truly understand how important a good fulfillment partner is to your company’s growth. This is why we offer flat-rate pricing for our fulfillment services, unlike many of our competitors, and we don’t have any hidden fees. If unique, easy-to-understand, fulfillment services at no extra charge sounds like something you need, contact us today and let us help your ecommerce business.

Share

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

More blog posts

Customized Order Fulfillment Made Easy

Ecommerce Order Fulfillment

Here at Fulfyld, we don’t think e-commerce fulfillment should be rocket science. By minimizing our overheads and adhering to best-in-class processes, we’re able to provide your company with flat-rate pricing on our order fulfillment services.

FBA Prep and Kitting Service

Contract Manufacturing and Custom Packaging

Subscription Box Fulfillment

A big part of subscription box fulfillment is making sure customers receive…

Ecommerce Order Fulfillment

Here at Fulfyld, we don’t think e-commerce fulfillment should be rocket science. By minimizing our overheads and adhering to best-in-class processes, we’re able to provide your company with flat-rate pricing on our order fulfillment services.

FBA Prep and Kitting Service

Contract Manufacturing and Custom Packaging

Subscription Box Fulfillment

A big part of subscription box fulfillment is making sure customers receive…

Learn how we help top
e-commerce brands make ship happen