Delivery speeds can make or break an eCommerce business. According to recent stats, 41% of shoppers around the world hoped to receive their online orders within 24 hours, while 24% would like their goods to be delivered within two hours. What’s more, survey data shows that 69% of customers are less likely to shop with a retailer if they do not receive an order within two days of the promised delivery date.
With this in mind, how can eCommerce providers live up to customers’ growing expectations? Third-party logistics (3PL) represents a popular solution for businesses hoping to scale up their operations and demonstrate their commitment to reliability and customer satisfaction. As well as freeing up time for employees to get on with other tasks, expert third parties help to minimize the chances of orders being lost, damaged, or delayed.
To help you get to grips with 3PL, we’ve put together a helpful guide explaining the benefits and processes involved.
Why is speed so game-changing in eCommerce delivery?
As mentioned, customers expect businesses to deliver goods at faster and faster rates. So, what are the factors behind this change? And why is speed so valuable for both customers and businesses? Here are a few reasons to consider:
1. An increasingly competitive landscape
In 2015, Amazon introduced same-day delivery options for Prime members, marking a critical moment in the race to become the most efficient and reliable eCommerce brand. While customers would previously have visited physical stores when they needed goods urgently, Amazon’s quick turnaround times helped it become the largest eCommerce site in the world.
While businesses don’t necessarily need to offer same-day delivery to satisfy customers, next-day or chosen-day options can help them gain a competitive advantage. Of course, eCommerce sites will need to live up to their stated delivery times, as failure to meet customer needs can lead to reputational damage and revenue losses.
2. Fast delivery can boost brand loyalty
Customers are more likely to shop with brands that have provided them with positive experiences in the past. If your delivery times are consistently short, you’re likely to boost the number of repeat shoppers and minimize issues such as cart abandonment.
3. Customers often have urgent needs
Fast delivery times help shoppers fulfill urgent tasks such as purchasing last-minute Christmas gifts, fixing DIY problems, or replenishing their supply of healthy supplements.
4. Expedite exchanges and returns
In the past, returning goods purchased using eCommerce sites was a lengthy and inconvenient process. However, the introduction of fast shipping times has made the process less stressful and complex. As well as improving customer satisfaction rates, this innovation has reduced the administrative burden on customer service teams.
What challenges do businesses face regarding order fulfillment?
Many people are unaware of the various steps involved in delivering items to customers. However, business owners must learn about the logistical challenges retailers face when it comes to shipping large quantities of goods to both domestic and international customers. Potential issues include:
Inventory management: Keeping track of constantly shifting inventory levels is hard work. Failure to keep up with demand could lead to problems such as overstocking, understocking, or unfulfilled orders.
Warehouse management: Maintaining a warehouse is more complex than many people assume. If you don’t pay sufficient attention to the warehouse layout or picking and packing processes, you could end up with damaged goods, fulfillment delays, and other problems that could harm your business.
Workflow management: Fulfilling customer orders involves several steps and departments. Failure to facilitate smooth workflows could lead to errors and delays.
Shipping challenges: Shipping eCommerce packages represents a more complex task than simply handing goods over to a delivery company. You’ll need to research shipping rates, invest in package tracking options, organize returns, and much more.
Technology issues: Integrating technologies into the fulfillment process is vital if you want to keep up with demand and grow your business. However, data synchronization problems, compatibility issues, and other obstacles can compromise the efficiency of eCommerce platforms, shipping software, and inventory management systems.
Stringent regulations: Businesses must comply with regulations surrounding the labeling, packaging, handling, and shipping of their goods. Breaches of these regulations could lead to fines, penalties, and legal troubles.
Cost optimization: From investing in new technologies to hiring staff, there are several costs associated with shipping goods to customers. As such, balancing the costs and maximizing profitability can present significant challenges to both small and large businesses.
How can 3PL help eCommerce brands deliver their products?
While businesses face a range of challenges surrounding order fulfillment, they can streamline the process and keep customers on-side by enlisting 3PL services. If you’re wondering how 3PL works, the following steps explain the broad processes involved:
1. Receipt of goods
At the start of the process, the manufacturer or eCommerce business will send products directly to the 3PL provider for storage in its warehouse. While every 3PL organization establishes its own processes for receiving and storing goods, it will likely track the inventory very closely to support timely shipping and order fulfillment. If any goods are damaged or missing, for example, they will account for these issues using their inventory system and relay the information to the client. This information is especially valuable for ensuring your accounts are kept up to date with relevant wastage statistics.
2. Inventory storage
Once the inventory is received and checked, the 3PL provider will store the products in a suitable environment. For perishable items and fragile goods, this step could involve controlling warehouse temperatures or providing personnel with special garments to ensure appropriate handling.
3. Order processing
As soon as a customer orders an item via the eCommerce site in question, the 3PL provider will receive the relevant details they need to deliver the package on time. Typically, this step is automated using inventory management software.
4. Picking and packing
A cohort of pickers receives orders and picks them from the warehouse floor, ensuring the order number corresponds with the goods the customer has purchased. Next, the goods are securely packed up using suitable materials and labels. Typically, such materials include cardboard boxes, packing tape, bubble mailing bags, dunnage, and other durable padding materials. Thanks to their extensive expertise in the industry, 3PL providers are able to choose the best packaging materials for clients’ needs and budgets.
5. Shipping
Once packages are ready to go, they’re handed to a partner courier. While some 3PL providers rely on one carrier to ensure consistency, others use a variety of carriers to make the most of their varied costs. For example, some may charge a relatively low cost for large items while charging a premium for small or next-day items.
Most couriers offer tracking updates for customers, ensuring they know the whereabouts of their goods and putting their minds at rest. If there’s an issue or delay with the delivery, the courier will alert the client and customer as soon as possible.
6. Returns and customer service support
Once the item has been delivered, the support doesn’t end. Many 3PL providers manage returns and refund processes, as well as answer any enquiries about delivery and order tracking.
What are the benefits of using 3PL?
So, now you know the basic function of a 3PL provider, what potential benefits could they deliver? Some of the most game-changing advantages for businesses include:
Cost savings: Many 3PL providers have access to discounts and offers from shipping and warehousing businesses. As such, they can pass on these savings to your business and boost long-term profitability.
Improved service and customer satisfaction: While you may believe you can handle the logistical aspects of running an eCommerce site, scaling a business often requires dedicated support from experts. With the help of seasoned 3PL professionals, you can rest assured that your customers receive the support they need and receive their goods in good time.
Access to cutting-edge tech: 3PL providers tend to use high-level logistics technology that can maximize the speed and accuracy of your delivery service.
Extended geographical reach: If you’re hoping to reach new customers and offer an expansive international service, a 3PL provider will help you navigate customs regulations, international shipping costs, and much more.
Reduced financial and reputational risks: Many 3PL providers can help clients mitigate the fallout from natural disasters, adverse geopolitical events, labor strikes, and other supply chain disruptions.
Get started with 3PL today!
If you’re a business owner struggling to keep up with delivery-related demands, there’s never been a better time to invest in 3PL services. As well as helping you save time and money, a 3PL provider will give you the peace of mind needed to scale a business and develop effective relationships with customers. For more information about high-quality 3PL services in New Jersey, get in touch with the Snapl team at 800-966-3478 or email sales@Snapl.com.
Related Articles
Warehousing Solutions: Trends and Innovations in Storage Fulfillment | April 2, 2024
Streamline Your Cratejoy Subscription Box Fulfillment with Snapl | March 27, 2024
Mastering Markdowns: Optimize Your Retail Inventory with a 3PL | March 19, 2024
10 High-Demand Products and How to Sell Them Online | March 15, 2024
What is Distributed Order Management? | March 13, 2024