6 advantages of outsourcing logistics to a 3PL fulfillment center

6 advantages of outsourcing logistics to a 3PL fulfillment center

The beginnings of many entrepreneurs are connected by the desire to bring or convey their products to customers. This is all the better if the product is useful and the entrepreneur can sell it any day of the week.

Over time, however, his orders grow, warehouses become overpacked, the need to sell to other countries and to find transport solutions increases, and instead of improving his offer, he spends a lot of time unnecessarily in the warehouse. He can’t keep up with logistics, for which he has to acquire new premises, employees, and technology, which also slows down the growth rate of his business.

Especially in the e-commerce environment, there are interesting possibilities to solve this problem. An increasingly popular step is to get rid of this redundant responsibility and outsource logistics to 3PL (third-party logistics) fulfillment centers.

The third party will take care of, for example, storage, orders, packaging, international delivery, cash on delivery processing, and returns management.

Apart from ensuring trouble-free logistics, they can even bring several other advantages for e-commerce businesses. We have therefore prepared an overview of the most important advantages that, in our opinion, can put your e-shop one step ahead of the competition.

1. Experience and professionalism add strength

Fear of the unknown is natural. This also applies to outsourcing logistics and relying on a third party.

However, for smaller and medium-sized companies, choosing an experienced and strong fulfillment partner is only a step away from the strongest players on the market. And with the right partner, you can ride the wave of their dominant position in the market.

Many years of experience and established processes help to smoothly transition to the new system. While in the future, they bring you options that even the biggest e-shops have.

This will give you the strength of the big players in the market and improve your position among the competition. In this way, you will be able to increase not only the number of your customers but also, for example, the scope of your business.

2. Worries aside and business forward

No one is perfect and every company has its strengths and weaknesses. Among the dominant features of an e-shop can be, for example, a strong product, interesting marketing, or good customer service.

However, it is not possible to excel in everything, especially if the company does not have sufficient capacity, either in the form of warehouses or employees. Moreover, most e-commerce sellers do not decide to do business just because they enjoy packing and delivering packages.

Unfortunately, the entrepreneur has to devote more time than he should to the weaker aspects, such as logistics. The advantage of outsourcing is, therefore, the almost complete elimination of these worries.

A good fulfillment partner excels in complete and trouble-free logistics, which is why they will safely store, prepare, and deliver the goods to the customer within 24 to 48 hours. The seller can thus devote himself to activities in which his business excels and thereby set his e-shop for growth again.

3. Speed and peaks

A good customer experience is perhaps the most important factor that will convince the buyer to return to the e-shop in the future. Among the decisive attributes of the purchase is one of the most important the speed of delivery.

Delivery time influences the decision of up to 87 percent of online shoppers to buy from a retailer again. The current trend is even set to deliver the shipment within 24 to 48 hours of placing the order.

During the season, there are some days that are more demanding for orders than others. These include, for example, Mondays, which process orders from the weekend, various sales events, or the popular Christmas season.

The advantage of high-quality 3PL services is that they set up processes so that these peaks do not pose any problem. For fast delivery, they have technologies, their own transport lines to several countries, or good deals with courier companies on the last mile delivery, through which they reduce the work associated with the order to a minimum.

4. Up-to-date technologies

Information systems and automation of processes help to ensure logistics effectively. For an e-commerce seller, securing the most modern technology on their own is very expensive and often impossible.

The advantage of outsourcing logistics to a fulfillment center is access to technologies that reduce costs and, at the same time, make processes more efficient. In addition, a quality partner has created their own information system, which greatly simplifies outsourcing.

For example, thanks to the information system, the client can check the status of the goods in stock, what their consumption is, have an overview of the orders, and track the shipments themselves. The e-shop, by using 3PL fulfillment, can only benefit from the partner’s technological readiness, which gives them a significant advantage over the competition.

5. For less money, more advantages

Rent for warehouse space, salaries of employees, and costs of packaging materials. These are just a few of the basic items that a business has to deal with if they want to deliver shipments on their own.

Moreover, if transport is added to it, logistics can significantly affect the company’s income. Outsourcing logistics to third parties helps to avoid some of these costs.

From the point of view of transport, some fulfillment centers have their own transport lines that go to several countries every day. If the delivery also takes place to countries outside their transport lines, they have more favorable prices with several courier companies based on the larger volumes of the orders.

They also have large warehouses, well-established employees, and processes set up to reduce costs, for example, in the overall package work. For a small or medium-sized e-shop, the fulfillment service can mean not only fewer worries but also lower costs.

6. Bigger reach, more customers

The expansion of e-shops to international markets is one of the most current trends in the field of e-commerce. Whether you are looking for expansion opportunities or plan to sell abroad in the future, transferring logistics to a 3PL fulfillment company may be the solution.

Such companies have know-how about the rules of delivery abroad, which will save you hours or even days of studying foreign websites. In addition, they already have an established international network, so expansion to any country should not be a problem with the right partner.

If the fulfillment company even has its own transport lines, the delivery time is even shorter for your foreign customers. Therefore, from the point of view of the internationality of business, the outsourcing of logistics brings many advantages compared to the independent provision of logistics.

Easier business operation with Fulfillment by FHB Group

The goal of our services is primarily to make your business easier for you. We rely on complex services that can adapt to the needs of our clients.

We have been operating in the fulfillment market for over 15 years now, during which time we have become the biggest fulfillment center in Central Europe. Our many years of experience are reflected in the quality of the services we offer.

By outsourcing your logistics to us, you will save a lot of time, especially thanks to our own information system, which is connected via API. At any time, you can check how many goods you have in stock, how your orders are being processed, and many other things.

Our entire fulfillment process is accompanied not only by top information systems but also by many investments in the most modern technologies and regular expansion of warehouse capacities. We are always ready for seasonal peaks, where thanks to our high-speed automated packaging line, we can pack thousands of orders within an hour.

We deliver packages within 24 to 48 hours of placing the order, which is helped by our daily transport lines that drive around Europe. Last-mile delivery takes place through cooperation with a wide portfolio of courier companies, thanks to which we can ensure fast delivery to almost all countries in the world.

Our experience in international e-commerce and warehouses in the heart of Europe give you the opportunity to seamlessly expand your e-shop to several countries. We handle millions of parcels every year, which only validates our established process system and not only saves you a lot of time but also money.

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