The Top 5 Benefits of Outsourcing Fulfillment to a 3PL

A Guide for Ecommerce Merchants

Navigating the world of ecommerce involves juggling many tasks – from product development to customer service and logistics. It’s a complex puzzle, and every piece matters. One solution to streamline this process is outsourcing fulfillment to a Third-Party Logistics (3PL) provider.

In this article, we’ll discuss the top five benefits of partnering with a 3PL and highlight how FlavorCloud can work with your 3PL to accelerate growth by making international logistics easy. Whether you’re a growing business ready to scale or a seasoned brand aiming for global reach, this guide offers practical insights.

Note: FlavorCloud works with many 3PLs and Partners and can recommend the best to work with if you want direction. We constantly update and expand our partner list for an evolving and tailored approach and are always happy to integrate with new partners.

1. Harnessing Economies of Scale

Third-party logistics (3PL) providers can optimize their systems and processes by handling large volumes of inventory and prioritizing logistics and supply chain management. This optimization results in marked operational efficiencies. Such efficiencies streamline the logistics process and lead to noteworthy cost savings. A study by Capgemini Research Institute found that 75% of organizations using 3PLs reported reduced logistics costs, and 76% experienced an increase in overall supply chain efficiency.

2. Focusing on Core Competencies

Outsourcing logistics to a 3PL allows ecommerce businesses to focus on what they do best – creating great products and servicing their customers. With the logistics handled by experts, merchants can devote more time and resources to product development, customer service, and marketing

3. Leveraging Advanced Technology

With 90% of consumers seeking to track their deliveries and only 1 in 3 able to do so, it’s essential to use technology to create a competitive advantage. Advanced technology offered by 3PLs, such as real-time tracking, precise inventory management, and automated returns handling, can significantly enhance customer satisfaction. If you’re shipping internationally, 3PLs integrate seamlessly with FlavorCloud to handle cross-border shipping, customs, compliance, and returns

4. Scalability and Agility

Sales volumes in ecommerce can fluctuate significantly due to seasonal trends or promotional campaigns. A 3PL can quickly scale operations and swiftly adjust to match fluctuations, scaling fulfillment up or down as required. This provides financial efficiency by only paying for services needed at a given time.

5. Global Market Penetration

The global ecommerce market is projected to be worth $9.3 trillion by 2027. By leveraging the expansive networks of 3PLs and an international partner like FlavorCloud, you can tap into growth and cater to customers anywhere.

With FlavorCloud integrated with your 3PLs, you can easily achieve friction-free international shipping and logistics. FlavorCloud works with numerous 3PLs and recommends working with one of the following to turbo-charge global growth.

• ShipBob
• Saddle Creek
• Moby Dick
• Red Stag
• Barrett
• PFS
• H2O Logistics
• Gap Platform Services
• Or any warehouse integrated with ProShip.

 

Outsourcing fulfillment to a 3PL can offer transformative benefits—cost savings, global market access, increased focus on core business, advanced technology, and operational flexibility.

Contact our team today to learn more about FlavorCloud’s offerings and the 3PLs we partner with.