Exploring 3PL and ShipAccel for Ecommerce

What is Third Party Logistics (3PL)?

Third Party Logistics (3PL) refers to the outsourcing of ecommerce logistics processes to a third-party business, which includes inventory management, warehousing, and fulfillment services. This model allows ecommerce companies to focus more on their core business activities while leveraging the expertise and infrastructure of specialized logistics providers.

Benefits of Using 3PL for Ecommerce Businesses

In the competitive ecommerce landscape, reducing shipping costs is crucial for retaining customers and maintaining profitability. Shipping software tools can be of great help by optimizing carrier choices, streamlining returns, and automatizing shipping processes. These tools also enable businesses to negotiate better rates by consolidating shipping volumes and leveraging multi-carrier management capabilities.

Benefits of shipping software

• Scalability and Flexibility: 3PL providers can scale operations and storage space according to the needs of the business, accommodating seasonal fluctuations and business growth without requiring direct investment from the retailer
• Cost Efficiency: By leveraging the logistics network of a 3PL provider, businesses can benefit from reduced costs in shipping and warehousing due to the economies of scale achieved by the 3PL
• Expertise and Experience: 3PLs bring specialized knowledge of logistics, compliance, and transportation, which can help ecommerce businesses navigate complex logistics challenges more efficiently
• Enhanced Reach: With multiple warehousing locations, 3PLs can facilitate quicker delivery times across various geographies, enhancing customer satisfaction

Comparison: Third Party Logistics vs. ShipAccel

While traditional 3PL services offer substantial benefits, ShipAccel provides additional unique services and cost savings that can be particularly advantageous for ecommerce businesses:

• Negotiation Services: ShipAccel offers negotiation services that can lead to significant savings on shipping rates, potentially saving businesses upto $16k annually
• Discounted Shipping Rates: By leveraging bulk buying and negotiation, ShipAccel secures on average 10% discounted shipping rates, enhancing cost efficiency
• Address Validation: ShipAccel’s address validation feature helps avoid failed delivery penalties, saving upto $5k per year by ensuring accuracy in shipping addresses
• PB Delivery Guarantee: This feature reimburses for late USPS deliveries, potentially saving $0.2-0.4k annually and increasing customer trust
• Real-Time Tracking and Automated Customer Emails: These features reduce the need for customer support interaction by keeping customers informed, potentially saving upto $10k annually by reducing customer support tickets
• Self-Service Return Portal: ShipAccel provides a portal for customers to print their return labels, reducing the need for customer interaction and further decreasing support costs

Conclusion

Choosing between a traditional 3PL provider and ShipAccel depends largely on the specific needs and scale of an ecommerce business. For businesses looking for standard logistics services, a traditional 3PL might suffice. However, for those seeking deeper cost savings and enhanced customer service features, ShipAccel offers compelling additional benefits.

By understanding these distinctions and evaluating their unique business needs, ecommerce companies can make an informed decision that best supports their growth and customer satisfaction strategies.