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There are many thousands of Aussie digital entrepreneurs that make a living selling products online and for every e-store startup there comes a time when it makes sense to outsource order fulfillment, which is what this short article is about.
So, you have built your e-store, set up digital payment gateways, and invested in SEO and social media marketing; all good so far, and when the orders start trickling in, you can easily handle the packing and delivery, but you should reach a stage when you either have to hire picking and packing staff. Before you do, consider the liability you are taking on when hiring employees, which is a considerable drain on any business.
Third-Party Logistics (3PL)
A 3PL warehouse is fully automated, with robotic picking, strapping machines, fragile package handling, and many other processes that ensure your orders are swiftly handled. Choosing the best 3PL provider is the go-to solution for most e-commerce businesses; deliver your products and packaging, then you simply forward all orders to your logistics partner and they handle picking, packing, and delivery, keeping your customers happy.
Outsource everything
The smart e-commerce entrepreneur outsources everything from digital marketing to delivery; all IT needs can be provided by a single company, and your store can be constructed, hosted, and managed, which frees you up to focus on other aspects of your business. If you work on the principle, running 3-4 e-stores is doable with just a laptop. Click here for the role of organizational leadership in business success.
In-house logistics
Handling your own picking, packing, and delivery is very labor-intensive and when you consider how cheap it is to use a 3PL company, it really is a no-brainer! Some e-commerce businesses start out by using the garage for packing and while that is fine for a low volume of orders, once your marketing kicks in, you will quickly be stretched and orders will arrive late – something you should avoid. People expect rapid delivery these days, which is why hooking up with a 3PL provider makes total sense.
Cost calculation
It is easy to work out the cost of your logistics and you can compare this with 3PL. This type of business is designed around your business processes and order fulfillment is assured. The great thing about 3PL is you can turn the service on or off with a simple call; some stores use 3PL at busy times such as Xmas and New Year in order to handle a high volume of orders. There are no long contracts to bind you, with monthly billing and you only pay for services you have used.
Fleet of vehicles
The 3PL company operates a large fleet of vehicles from motorcycles to large trucks; they offer same-day delivery to your state and sometimes interstate. If a customer in Darwin placed an order, their goods would arrive within 48 hours, while Sydney and Melbourne are same-day.
If you are starting out with a new e-commerce business, start looking for 3PL companies and take the first step to automated picking, packing, and delivery.
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