Third-party logistics (3PL) companies come in many shapes and sizes, but they all have one thing in common – how well they perform directly impacts eCommerce retailers. Here’s all you need to know about 3PL pros and cons and what you can do to minimize the latter.
Like it or not, first-person logistics (1PL) just isn’t feasible for many businesses. A small eCommerce retailer on the way up may have room to store merchandise themselves (as well as make regular runs to the post office to handle shipping and returns), but a larger company usually can’t handle every step of the fulfilment process alone.
Enter 3PL – the third-party processes that handle storage, shipping, and delivery/distribution. Here are the advantages and disadvantages of 3PL.
The pros of 3PL
Third parties typically have a large and well-established infrastructure in place. Here are a few advantages eCommerce retailers can expect:
There are also downsides to 3PL that can eat into any financial benefits the advantages offer.
The cons of 3PL
Like every factor in business, 3PL boils down to two metrics – is it cost-effective and are the customers happy? The way to protect those two factors is to monitor your third-party parcel carrier as closely as possible.
How 71lbs helps manage your eCommerce logistics
71lbs fights for customers by helping them hold parcel carriers accountable to get back any refunds they’re entitled to. We’re happy to handle all the paperwork necessary and we audit your invoices by analyzing more than 65 different surcharges to make sure you’re not paying more than you should. We fight in your corner to get refunds for lost, damaged, or late deliveries.
Did you know that if FedEx or UPS deliveries are even 60 seconds late, you’re entitled to a refund? That fact is often overlooked by eCommerce retailers, and so are plenty of other money-back opportunities.
That’s our job – to find every opportunity to minimize your expenses and maximize your returns, then pass that insight onto you through easy-to-understand, comprehensive shipping-data analysis.
When you give a third-party control over a vital part of your operations such as shipping, you need to know they’re treating that responsibility with respect. Over 5,000 clients have already partnered with us to be a third-party logistics watchdog they can count on.
Get in touch with us to make sure third-party parcel carriers meet your expectations.
At 71lbs, we clarify the shipping process for our clients, making it easier and faster for them to access refunds and optimize their expenses. Our human-operated platform gathers all your shipping information into one easy-to-use customs analytics dashboard.