Ask any e-commerce business owner what they are afraid of, and the answer will not be related to traffic or spending on ads. The answer will rather be related to delayed orders, pallets that are delayed in some warehouse, or clients who ask, “Where is my package?”
Having an online business today means not only being able to sell your goods. You should also be able to ship the order fast enough to provide customers with the accurate price for shipping and to provide the correct tracking information for the package.
Here is some positive news for you: there is no need for you to own your own fleet or big warehouses to beat big brands at their own game. The right transportation and logistics solutions will ensure you get what you require to operate.
Delivery speed is an aspect of your marketing efforts
Most online shops will put a huge investment into drawing their customers' attention, just to lose them at the delivery stage.
When the order comes in two days, most customers won't pay much attention to that. This has become the usual norm for many people. When an order is delivered in nine days with hardly any tracking info, this becomes noticeable to the customers.
Good shipping can make your company:
- Cut down cart abandonment due to shipping time.
- Decrease the number of customer support tickets related to lost or delayed packages.
- Inspire customers to make repeat purchases.
An excellent product attracts a client, but good shipping can help you retain that client.
Where E-commerce Growth Begins to Stall
Some brands begin small. Packaging takes place in-house, stock is stored in one single location, and everything seems doable.
Until sales skyrocket.
Then shipping costs increase. Stocking levels get depleted. Peak seasons see labor shortages. Suppliers' deliveries arrive late, while stock depletes before it becomes apparent that there is a problem.
By then, the problem is never one of not trying hard enough. The problem is one of infrastructure.
Building warehouses, hiring employees, securing good shipping rates, and handling incoming freight can prove to be costly and difficult.
What 3PL Services Are Able to Do
This is the point where third-party logistics (3PL) services will come into play.
In contrast to having to manage all aspects of the fulfillment process yourself, you collaborate with an organization that has already had the facilities, systems, carrier connections, and personnel established.
Here are some things that a well-versed 3PL can take care of:
- Warehousing and inventory management
- Order picking, packing, and shipping
- Carrier rate negotiations
- Returns processing
- Inventory and shipment reporting
For expanding brands, the major advantage of utilizing a 3PL is often not cost-efficiency but the regained time. Instead of spending your time solving fulfillment issues, you can concentrate on sales, products, marketing, and customer relations.
Streamline Your Inbound Freight Logistics
The process of bringing your goods to the warehouse is as important as sending them out to customers.
This is where freight brokerage services come into play. A freight broker helps shippers find an appropriate carrier and thus makes it possible to get available capacity and better prices by not calling different trucking companies individually.
In case your shipment is large enough, you can consider using truckload freight transportation service. In case you need to ship a whole trailer of your product from your supplier, manufacturer, or port to your fulfillment center, truckload freight will be more beneficial for the following reasons:
- fewer handling locations;
- lower risks of any damages or losses;
- more efficient route;
- lower prices on a per-unit basis.
In case your shipment is smaller, it will be more convenient to use LTL or parcel shipping.
Think of Your Entire Logistics Operation as a System
E-commerce companies that do well do not treat shipping, warehousing, and transportation as discrete operations. Rather, they consider the process as a whole, from supplier to storage to the consumer.
This is one place where supply chain management services can add value. Coordinated logistics processes and increased visibility may be able to stop a small problem before it becomes a larger inventory issue.
There are a number of straightforward steps that can make all the difference:
- Monitor on-time deliveries, order accuracy, damage percentages, and shipping costs
- Conduct forecasting on an item-level basis
- Maintain secondary carriers for critical routes
- Perform regular reviews of carrier pricing and performance
- Maintain accurate inventory and order data
There is no requirement for complex enterprise software here. Processes, data, and logistics expertise are sufficient.
Frequently Asked Questions
At what point does it make sense to shift from in-house fulfillment to 3PL?
Generally, when order volumes start consuming too much time, or when your operations cannot handle it anymore. This often occurs at roughly a few hundred orders per month for many brands.
Is 3PL more expensive than doing fulfillment on my own?
It is not necessarily true. With all costs associated with warehouse space, people, packing, technology, and carriers added up, it might become cheaper. Additionally, a 3PL will offer you shipping discounts you would hardly be able to get otherwise.
What is the difference between a freight broker and freight carrier?
A freight carrier owns or rents trucks to move your freight. A freight broker helps to connect you with a freight carrier and arranges transportation for you.
Do e-commerce brands that operate on a smaller scale require truckload shipping?
Not really. Truckload shipping is more suitable for larger inbound shipments.
Final Thoughts
A sound logistics process can give your e-commerce company a competitive edge. The price of advertising will vary, products can always be replicated by your competitors, and consumer demands will continue to rise. However, having a supply chain that is reliable in delivering the goods to where they need to be can foster long-lasting trust.
Are high freight shipping prices, delays in freight shipments, or peak season issues hampering your company’s performance? It might be time for a reevaluation of your logistics process.
Value Loads offers e-commerce companies the ability to ship freight safely through freight brokerage, truckload shipping, and logistics solutions customized to fit the company. Reach out to Value Loads for a quote today.