The eCommerce industry is booming and during COVID-19 time, it has become the saviour. Due to COVID restrictions, people were able to get the necessities at their homes with help of eCommerce companies. Now people have adapted to this new facility and enjoy this convenience. With every passing day, the eCommerce industry is growing. Many factors affect the services of the eCommerce industry like eCommerce order fulfilment, customer order cycle etc. The ecommerce fulfilment companies in australia do not have to make the selling platform but they all need backend infrastructure to deliver the order to their customer. The infrastructure may involve a warehouse, fleet of vehicles and delivery riders. All this infrastructure is not cheap and for a start-up eCommerce company, they don’t have the financial muscle to invest in all this capital investment. Then usually the new start-up eCommerce companies opt for 3PL.
In third party logistics, they get a ready partner for logistics who have all the available resources and have experience in logistics. This helps to improve their eCommerce order fulfilment plus they save investment on infrastructure. Not only this hiring the 3PL services helps you to improve supply chain efficiency.
As we have already established that new eCommerce companies don’t have ample budget to invest in the logistics infrastructure. They hire 3PL companies to serve their business needs. But bigger eCommerce also opts for 3PL because that helps them to reduce their cost in certain regions or areas. For example, an eCommerce company is planning to sell in Brisbane but they don’t have any expertise or facility in Brisbane. The fastest way to tap the market is to hire a 3PL company in Brisbane. This will help them to deliver an order in Brisbane at a lower cost plus it will reduce their time to enter the new market.
Any company can increase their revenue by serving more customers. When it comes to the eCommerce business, the eCommerce order fulfilment will define the revenue stream of the company. Hiring the 3PL can help you to serve more customers even in those areas where you were unable to reach before. The established 3PL companies have better fleet and route management, that can reduce the customer’s order lead time plus they can provide the customised solution to the business. They have all the right resources and data, to serve the customer quicker and faster.
Logistics is not an easy job; many factors affect logistics operations. Every eCommerce company have their Core competency and few are competent in logistics. It is smarter to hire a competent 3PL company, as it will reduce your time to market and you will not be wasting time on operational matters. The 3PL company will ensure eCommerce order fulfilment and the client company can spend their time on marketing. Usually, companies prefer 3PL to free their resource on other business functions.