Running a small online store often means you have to be a jack of all trades. In the early days, you could do the marketing, manage your inventory, and also do deliveries. However, as your business expands and you start getting more orders, packaging and shipping become more challenging.
It is at this point that most businesses start looking for 3PL services to help them handle inventory management and order fulfillment.
Let’s Start: What are 3PL Services?
3PL is short for third-party logistics. They are companies that offer storage, packaging, and order fulfillment services on your behalf. Instead of renting a warehouse and hiring employees, you can outsource those services.
Most 3PL services include warehousing and inventory management, order fulfillment, and returns handling and processing. This means you can channel your attention toward marketing, product development, and scaling your business.
However, the biggest question is, when is the right time to switch and start using 3PL services?
When Orders Start Increasing
Handling 10-20 orders per week is manageable. But what happens when you suddenly have 100-200 orders? Packaging and delivering turn into full-time jobs, and it can be time-consuming, especially if you have other responsibilities or a 9-5.
Spending more hours taping boxes means you need to seek outside help. Fulfillment can hold back growth if you spend more time packing orders instead of marketing or expanding your store.
Running Out of Storage Space
Your garage or that spare bedroom cannot handle your weekly or monthly inventory. As your business grows, so does your stock. You now need more space to store your items, and this can turn into a logistical nightmare.
3PL service firms provide warehousing services with storage units in multiple locations. This makes it easier to restock and monitor the inventory. Having warehouses closer to where the majority of your customers reside also makes delivery easier and cheaper.
Struggling to Keep Up With Customer Expectations
Customer expectations will grow over time. There will be demand for same-day deliveries or affordable shipping rates. Competing with giants like eBay, Walmart, and Amazon will be difficult when shipping from a single location and relying on manual systems.
Companies like Packageman offering 3PL services can help you improve and exceed customer expectations. The service providers offer same-day shipping, multi-channel support, and cheaper delivery fees.
You Want to Scale
Maybe you want to open a new store or plan to expand your product catalog. Switching to 3PL services is crucial at this point. Fulfillment from your garage or bedroom can work when running a small store and serving people living nearby.
Partnering with 3PL services can help you expand or scale faster. You can start shipping to international customers and open stores on multiple channels without worrying about order fulfillment.
A 3PL company can help you achieve your business goals faster.
Final Takeaway
Switching to using 3PL services is a major decision. However, it is a necessary step when scaling your business. A 3PL is a growth partner who will help you move from delivering straight from your garage to handling local and international customers.
