3PL stands for third-party logistics. It can also be referred to as outsourced fulfillment, third-party fulfillment service, and eCommerce fulfillment services. 3PL is when the entire warehousing and fulfillment of an eCommerce supply chain are outsourced to a third-party supplier.
This could include handling customer returns, warehouse management, packing orders, selecting the right shipping carrier, applying shipping labels, entering tracking numbers, managing customer returns, and everything in between. You can also visit https://eliteops.com/utah-service-area/ to know more about the 3pl eCommerce fulfillment center.
Image Source: Google
While 3PL services have been around for many decades, online sales have created a greater demand for them. This is not just for cost-cutting but also for improving the supply chain. An important consideration in any e-commerce operation is a 3PL provider, as the third-party fulfillment services may be the most important.
Your specialty as an online retailer is to know your product. Scaling and growing your business requires you to be able to delegate tasks that aren't core competencies. Outsourcing your e-commerce logistics can help you to concentrate on other tasks. Order fulfillment can be managed by a business partner who specializes in supply chain logistics.
This will allow you to free up resources and focus on seasonal peak seasons instead of packing orders or applying shipping labels.
3PL providers will help you reduce shipping costs by leveraging their relationships with major shipping carriers. This will allow you to get bulk shipping discounts and ensure that your packages are delivered quickly.
3PLs are familiar with the challenges of scaling eCommerce operations. Online retailers will have fewer headaches and fewer risks with their assistance, which allows orders to move forward.
3PL logistics can help with cross-border and international shipping. This allows online retailers to compete globally.