3P Shipping provides third party fulfillment. Third party fulfillment services include picking, packing, and shipping orders to the customer on our customer’s behalf. Utilizing a third-party warehouse can help customers lower their shipping costs by taking advantage of discounts, save time, and increase their inventory management, thus increasing their business. Third party warehouses reduce a customer’s cost of leasing a warehouse, labor costs, material costs, and taxes. Using a third party warehouse can help customers shift their focus elsewhere, such as marketing, growth, and strategy.
Third-party order fulfillment services are meant to help in the storage of products, pick and pack items as per the orders received, and ship a merchant’s items to the customer on that merchant’s behalf. While all of these services come at a price, there are various ways that employ third-party order fulfillment services and help an eCommerce business grow.
Employing a fulfillment service provider may reduce shipping costs and enhance delivery times, augment operating effectivity, and save time. Out of this, all of these enhancements can help an eCommerce business grow.
Provide Dispersed Shipping Locations
It costs less to ship orders to customers near your business’s warehouse. Moreover, it also consumes lesser time for shipments to arrive at your customer’s location when that location is not far.
These elements may appear certain, but sometimes they get ignored by some eCommerce retailers and they exhibit one of the major benefits of using a third-party order fulfillment firm to warehouse products and ship orders.
Think of a situation where your current warehouse is in Boise, Idaho, but most of your customers are in the New York region. You want to provide free shipping to gain a competitive edge. But it costs you about $11 to ship a typical order to New York, where, again, many of your orders initiate.
One feasible solution is to associate with a fulfillment company that has a warehouse in New York. When an order comes in from the East Coast, your fulfillment service can ship it for, let’s say, $6. It may take up to 5 days to ship the order but in this case, you can deliver the product the next day.
Lower Operating Costs
There is a number of ways an online retailer might associate with third-party fulfillment services, including easily substituting the retailer’s own warehouse.
While each retailer’s situation will be distinctive, using a service company that concentrates in warehousing and fulfillment could help some e-commerce businesses lower operating expenses. For instance, using a third-party fulfillment firm could:
- Avoid or at least lower the cost of hiring a warehouse or storage unit,
- Bring down labor costs and taxes associated with order fulfillment,
- Lower packing material costs, since fulfillment services, may have better prices,
- Pack and ship more rapidly, enabling more affordable shipping services to be used,
- Reduce shipping expenses due to volume and warehouse location.
Concentration on other areas
Besides to the probable monetary advantages described in the region above, joining hands with a third-party fulfillment service may also free up a merchant’s time& resource.
This is particularly true for small online retail operations. For instance, if it’s your job to both develop the store’s content marketing and pack orders from noon to 5:00 p.m., employing a fulfillment service may refer that you get a lot more time for other things like blog posts, customer-attracting articles, a video FAQ section, or likewise.
If you think content marketing will help your business grow, sparing the time to make the most out of it or to be more effective at it is very crucial.
