The 3PL method: Gain control over your inventory

Are you a bit of a control freak? Do you wish to start an online business “the right way”, but still don’t want responsibility of warehouse managing? Well, there is an option; Work with a 3PL (shortened from Third Party Logistics). A 3PL is a service a lot like the one dropshippers offer customers; A warehouse that handles the daily logistics management, such as inventory, staff, picking/packing and also shipping and freight forwarding. 

Dropshipping vs. outsourcing to a 3PL

Unlike dropshipping, you will need to invest in your own inventory, but if you have a clear product in mind that you want ownership over, this is definitely the way to go for you. You will naturally also have to pay to have this inventory at a 3PL warehouse, but the cost of outsourcing your warehouse can surely be worth it depending on the volume of your shipments. This is because 3PL’s have great carrier agreements that you yourself just can’t compete with. Read about Cost Control here.

Let’s view the benefits of outsourcing your warehouse to a 3PL: 

• Cost reduction
  This is the big plus. Freight companies will, as mentioned above, give better pricing on carrier agreements to 3PL’s since they have a lot more goods going out, than the small customer. This is great for the customers who can now save on large carrier expenses. 
  
  
• Provide a better shipping experience
  Customers are demanding. They often expect same or next-day delivery. Third party logistics provider can meet your customers expectations, even in returns. Also, if any damage or loss of goods should happen during delivery, you will not be held responsible.  

• No worries about international logistics
  You don’t have to lift a finger when out of country customers place an order in your online shop. Documentation, customs, duties etc. will be handled for you. 
   
• Try new products and markets
  Since you don’t have to maintain your own warehouse, the flexibility and possibilities are endless. This gives you space to test out new concepts in your shop, without having to commit to large investments in the warehouse.
  
  
• Sell your own chosen products
  You will know exactly what you’re selling from the product’s strengths to its weaknesses. You have the control to brand the products and packaging to a more suitable style for your business, which in return will signify seriousness and professionalism.