3 Reasons 3PL Management Is Essential for Online Retailers

You've built an online retail business from the ground up through sheer grit and determination. Congratulations, that's no small feat! Now it's time to take your business to the next level. How? By partnering with a third-party logistics provider, or 3PL.

A 3PL can handle key logistical operations for you so you can focus on growing your business. Not convinced yet? Here are three reasons why 3PL management is essential for taking your online retail store to new heights.

What Is 3PL Management and How Does It Benefit Ecommerce?

As an ecommerce business owner, you know that order fulfillment and shipping are two of the most important parts of running a successful online store. Handling these logistics yourself can be complicated and time-consuming.

That’s where 3PL management comes in. 3PL stands for “third-party logistics” and refers to outsourcing fulfillment and shipping to a dedicated logistics provider. Using a 3PL offers some major benefits for ecommerce companies:

Cost Savings

Working with a 3PL can significantly cut costs compared to managing logistics in-house. 3PLs already have warehouses, trucks, and the systems to efficiently handle high volumes of orders. They can also negotiate the best rates with carriers due to the volume they ship. These savings are passed onto their customers.


3PLs specialize in ecommerce logistics, so they have expertise and experience that would take you years to build internally. They stay on the cutting edge of shipping technology, carriers, and strategies to optimize delivery and costs.


As your business grows, a 3PL makes it easy to scale up or down as needed. They have the infrastructure to handle seasonal spikes and long-term growth. You don’t have to invest in more warehouse space or shipping partners as your order volume increases. The 3PL does it for you.

In summary, using a 3PL for ecommerce order fulfillment is a smart move for cost savings, operational efficiency, and scalability. Outsourcing logistics to the experts lets you focus on growing your business while providing the best delivery experience for your customers.

Outsource Order Fulfillment and Shipping to Reduce Costs

As an e-commerce store owner, finding ways to reduce costs is essential to improving your bottom line and staying competitive. One of the best ways to cut costs significantly is to outsource order fulfillment and shipping to a third-party logistics (3PL) provider.

A 3PL has the infrastructure, technology, and volume-based carrier relationships to handle picking, packing, and shipping orders at a fraction of the cost. They can also handle returns, provide real-time tracking information to your customers, and help ensure on-time delivery.

Lower Labor Costs

Outsourcing fulfillment means you don’t have to hire additional staff to pick, pack and ship orders in-house. A 3PL already has the staff and resources to handle this for you at a lower cost.

Save on Shipping

3PLs can negotiate steep discounts - up to 50-90% off retail shipping rates - with carriers like UPS and FedEx based on their high volume. They pass on a portion of these savings to their clients. You’ll get access to these discounted rates without having to commit to the high shipping volumes yourself.

Focus on Your Business

Letting a 3PL handle logistics means you and your staff can focus on growing your business instead of day-to-day shipping and fulfillment tasks. Your time and resources are better spent enhancing your product, improving customer service, and boosting sales.

Outsourcing to a 3PL is a smart move that allows e-commerce businesses to scale successfully while keeping costs low. If reducing expenses and improving efficiencies is a priority, partnering with a reputable 3PL provider is essential. They have the means to fulfill orders accurately and on-time so you can concentrate on what really matters - keeping your customers happy and your business thriving.

Improve Scalability and Keep Up With Demand

As an ecommerce business owner, keeping up with customer demand and scaling efficiently is essential to your success. A third-party logistics (3PL) provider can help in several key ways:

Reduce Costs

Using a 3PL allows you to outsource fulfillment operations so you can focus on growing your business. They already have the infrastructure, technology, and resources in place, so you don’t have to invest in purchasing and maintaining your own warehouse space, equipment, and staff. This significantly cuts costs, especially as you scale.

Improve Scalability

A 3PL makes it easy to scale your operations up or down as needed to match demand. They have the flexibility to ramp up extra staff, increase warehouse space, and boost fulfillment capacity during busy seasons or sales. Then scale back down during slower periods. This agility is difficult to achieve on your own and allows you to provide the best customer experience even during fluctuations in demand.

Access Advanced Technology

3PLs invest heavily in warehouse management systems, routing software, RFID tagging, and other technologies to streamline fulfillment. As a customer, you get to benefit from these technologies without the capital investment. Things like inventory tracking, pick-and-pack automation, and shipping integration can help speed up your supply chain and minimize errors.

Using a third-party logistics provider is a strategic move that allows online retailers to improve scalability, reduce costs, and leverage advanced technologies. Focusing on your core business while outsourcing fulfillment operations to a trusted 3PL partner is the key to sustaining growth and keeping your customers happy.

Focus on Your Core Business While We Handle the Rest

Focusing on running your e-commerce business while outsourcing fulfillment and shipping to a third-party logistics (3PL) provider means you can zero in on what really matters—growing your customer base and increasing sales.

A good 3PL partner handles all the logistical details so you don’t have to, freeing up your time and resources. They take care of:

  • Warehousing and inventory management. A 3PL receives and stores your products, keeps track of stock levels and handles reorders to ensure you never run out of inventory.

  • Picking and packing. When an order comes in, the 3PL pulls the items from storage, packs them carefully and ships them out. No more dealing with the hassle of packing and mailing orders yourself.

  • Shipping and delivery. The 3PL handles getting the packages into the carrier network via the most cost-effective method based on the delivery address. They also deal with any issues that come up to ensure your customers receive their orders on time.

Outsourcing to a 3PL means lower costs and fewer headaches for you. They leverage economies of scale to negotiate better shipping rates and their advanced technology streamlines the fulfillment process. Since logistics is their area of expertise, they do it faster and more efficiently than you could in-house.

A good 3PL partner becomes an extension of your business. They get to know your products, customers, and priorities to provide customized solutions that fit your unique needs. And as your business grows, they have the flexibility to scale their services accordingly so you never have to worry about outpacing them.

When you hand over fulfillment and shipping to the professionals, you're free to focus your energy on the big picture—growing your company. Find the right 3PL and you'll wonder how you ever managed without them.

Invest in a 3PL

By now you've seen why investing in a robust 3PL management strategy is so critical for the success and growth of your e-commerce business. When you tap into the expertise and technology of a specialized 3PL partner, you free up your time and resources to focus on the big-picture strategies that will set you apart. You can drive more sales, improve the customer experience, and scale your operations with confidence knowing your logistics are in expert hands. At the end of the day, 3PL management is what allows you to stop worrying about the delivery details and start dreaming about where you want to take your business next. The possibilities are endless.

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