4 Things to Consider When Hiring a Fulfillment Service (3PL)
When it comes to shipping products, many businesses choose the DIY route.
But there are some cases where it's better to use an order fulfillment company also known as a 3PL.
If you're thinking about hiring a fulfillment service, here are four things to consider first:
How much will it cost?
There are many factors that go into determining the cost of order fulfillment. Some of these factors include:
The number of orders you intend to fulfill
the frequency at which they will arrive
the size of the package they’ll need to be shipped in
how much inventory will you need to store in the 3PL warehouse
If you're planning on hiring a fulfillment company to manage your online orders, keep in mind that they will charge a per-item fee that varies based on the type of item and size/ weight of your shipments.
And you typically get better rates with higher order volume.
If you want a fast and accurate order fulfillment quote for your business, here’s a mini-quiz to get you started.
Or check out our 7 Best 3PLs for Small Businesses blog where we compare rates from the top 7 fulfillment centers in the industry.
2. Will they take care of everything from start to finish?
If you're in business, you know how much time and energy goes into running the day-to-day operations of your company. Now, how about a second full-time job? Figuring out logistics.
Logistics catches most business owners by surprise…
Shipping out orders, managing inventory, and tracking shipments are just a few of the tasks that take up your valuable time—time that could be spent doing something more productive for your business.
When you partner with a fulfillment service, they'll handle everything from storing your inventory to deciding how much product to keep in stock.
They’ll even source packing materials and pick out just the right box for each item to ensure the most cost-effective and efficient way to get your products to your customers.
3. How quickly can they get your orders to customers?
3PLs can help you offer faster shipping options, providing one-day, two-day, and sometimes even same-day delivery.
With 3PL order fulfillment, domestic orders typically take 2 -3 business days to be processed and shipped but times can vary depending on which shipping line your 3PL is using.
You'll also want to make sure that your 3PL will be able to scale up as needed. For example, if you typically receive 200 orders per week and suddenly there is a spike in demand and you’re receiving 2000 orders in a week, then having a third-party fulfillment service on hand that can handle this sudden growth can be extremely helpful.
4. Are there any hidden fees or other costs?
To avoid being surprised by hidden fees, it's important to ask questions about the specific services a 3PL offers including storage and transportation fees.
If a company's website doesn't have straightforward information readily available, call or email them directly and ask for details.
Check out this blog that goes over 3 common ways a logistics company can overcharge you.
It's a no-brainer: partnering with an order fulfillment company is the easiest way to get your product into customers' hands without worrying about logistics.
You'll be able to focus on marketing, sales, and product development instead of inventory or packaging.
And 3PLs make it faster by offering 2-3 day shipping while saving you tons of money on postage and packing materials.
If you’re thinking about hiring a logistics company to manage your online orders, check out our blog 7 Best 3PL’s for Small Businesses to help narrow down your list.
Or even better, schedule a quick, free consultation with us for the most accurate quote and all your questions answered.