Top 12 3PL Providers: Choosing the Right One For Your Business

How Does a Third-Party Logistics Company Work?

Third-party logistics or Amazon 3PL partners help e-commerce businesses manage their supply chain. In simple terms, you outsource your business’s logistics needs to a third-party service. This includes inventory management, warehousing services like picking and packaging, and order fulfillment. 

Amazon 3PL partners can handle your products before shipping and prepare them to deliver either to a fulfillment center like Amazon FBA or to the end customer. 

As your business grows, managing your own warehouse gets complicated and expensive. 

In such cases, outsourcing your logistics needs to a third-party logistics (3PL) provider is a smart move. However, it’s hard to find Amazon 3PL companies that are cost-effective yet efficient in operations. We’ll get to that in a bit.

The key difference between 3PL and freight forwarder

If you are someone new to e-commerce, you may be confused between a 3PL provider and a freight forwarder. 

Let me make it clear. 

One of the key differences is the way they handle the supply chain. While a third-party logistics partner can manage your entire supply chain from inventory, warehousing, order fulfillment, and shipping, a freight forwarder gets your products from place A to place B. In some cases, freight forwarders offer limited storage and warehousing capabilities. 

Another key difference is that a 3PL company helps you integrate your business with other channels to receive orders, ship goods to customers, and seamlessly manage your operations. On the other hand, the freight forwarder usually handles the journey part and has their shipping rates in place. In some cases, they may offer a limited warehousing basis for a short duration.  

How to choose the right 3PL partner for your Amazon or e-commerce needs

The most frequent question we get from sellers is ‘how do i choose the right Amazon 3pl?’

Here’s you answer!

Businesses should look for 3PL providers that offer fast and streamlined fulfillment, storage, and warehousing services to cater to the growing demand of the customers.

Reliability

The right logistic providers have the expertise and resources to ensure reliable and consistent delivery. They can handle the complexities of shipping, warehousing, and distribution, giving your business much-needed peace of mind. In case the shipment is delayed or something goes unplanned, you need a reliable 3PL provider that can assist you with quick solutions 24/7/365. 

Better inventory management

Inventory management is a key part of the e-commerce fulfillment process. An ideal 3PL provider should be able to seamlessly integrate inventory management between your online business and the warehouses where your products are stored. They should also sync real-time inventory to your storefront so your customers would be aware of the products that are in stock and those that aren’t.

Expedited shipping

On-time deliveries are crucial for exceptional customer service. When asked about the expected delivery time for their online orders, 41% of shoppers said they preferred their products to be delivered within 24 hours. Today’s shoppers want swift and reliable delivery services, making it imperative for businesses to meet these expectations. 

Depending on your standard delivery options and the market you serve, you should find a 3PL partner that can provide expedited shipping to stay ahead in the e-commerce world.

Improve customer experience

3PLs contribute to an improved customer experience in several ways. They can process and ship orders more efficiently, reducing lead times. They can also provide accurate order tracking, enabling customers to monitor the status of their shipments. Consistency and reliability in meeting delivery promises are crucial for customer satisfaction and loyalty.

Stay informed with shipping updates

Customers want real-time updates regarding their shipments. So, you need robust tracking and reporting systems to stay informed about shipping updates consistently. This transparency boosts overall communication and promotes trust among your customers.

Distribution

Many third-party logistics providers have warehouses spread across different cities, allowing you to distribute your inventory among fulfillment centers. If your business spans multiple cities, it’s worth considering a 3PL provider that can distribute your goods to various locations. It is cost-effective, too.

Cost-effective solutions

This is an extension of the previous point. Your logistics mistakes can potentially harm your customer experience, hamper your business’s growth, and eat into your profits. You should find a fulfillment provider who has expertise in the field and make your process simple, easy, and effective. 

Find a cost-effective fulfillment provider to help you expand your customer reach and handle a substantial volume of shipments. This way, you can reduce the expenses associated with freight, ensure backup supplies, and prepare for unexpected situations.

Automation and analytics

Reliable Amazon 3PL companies should invest in innovation and data capabilities to help you stay ahead of the competition and changing trends. Their technology should enable you to understand data and offer insights into performance. You can further use these insights to reduce operational costs, increase efficiency, and identify areas for improvement.