Third-party logistics services (3PL) are in huge demand these days because they design their distribution facilities to be scalable and flexible for serving a wide range of clients. These capabilities help them in aligning with the needs of growing e-commerce businesses. However, the benefits don’t really stop there. Teaming up with a logistics service can provide a horde of advantages to an e-commerce business, regardless of its size. As long as the logistics service experiences, you can enjoy the following prominent advantages:
- Leverage expertise
Many third-party logistics services have extensive experience under their belts when it comes to picking and packing high volumes of orders accurately and quickly. This expertise can prove to be invaluable for those who are new to the e-commerce space. Those with existing distribution operations can also take advantage of logistics services for handling their e-commerce fulfillment, while they can focus on their stores.
- Test new markets
Using a third-party logistics service also enables e-commerce businesses to test new markets and also try out new product offerings before they decide to take the plunge. This approach can provide valuable insight into the actual potential of the new market before a business makes a major investment.
- Reduce capital costs
Availing the services of a third-party logistics service may also have tax benefits, as compared to depreciating capital costs over a long period of time. In fact, it can also help in delaying large capital outlays before you can determine the expected returns.
- Optimize shipping
There are a number of logistics services that cater to multiple customers from the same facility. This is actually an advantage because they are able to consolidate the packages from individual clients into LTL (less-than-truckload) and this can help them get better rates. They can pass off these reduced costs to the e-commerce business.
- Test-drive new technologies
New technologies are introduced on a regular basis, but a business cannot possibly invest in all of them. Using a third-party logistics service, such as https://atifulfillment.com/, gives an e-commerce business the opportunity to test-drive new technologies and determine if they would provide any benefit to their operations or not.
- Handle seasonal peaks
As third-party logistics services are catering to a diverse clientele that have ever-changing products, they ensure that their facilities are designed to flex easily. This makes them a good choice because they will be able to handle fluctuating volumes, particularly seasonal peaks.
- Avoid labor issues
Health insurance, hiring and letting go of employees, union issues, and other responsibilities that come with managing a logistics team are no longer your headache when you choose to use a logistics service. These tasks are handled by them, along with the paperwork, and this can save you a great deal of hassle and time in the long run.
- Scale operations
Predicting the fortunes of an e-commerce business can be hard to predict and using a third-party logistics service allows them to scale their operations as markets fluctuate, without having to invest in infrastructure.