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The Benefits of Using a 3PL for Direct-to-Consumer (DTC) Businesses

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3pl for direct to consumer

It’s no secret that there’s been a rapid explosion of new direct-to-consumers businesses entering the market. Plus, with the current supply chain being more volatile than ever, there’s a reason why brands, large and small, are flocking to third-party logistics (3PLs) for fulfillment solutions.

What is a 3PL?

A 3PL allows direct-to-consumer businesses to outsource their eCommerce operations, like warehousing, inventory management, order fulfillment and more. Many 3PLs handle everything from subscription box services and cold storage to traditional direct-to-consumer fulfillment. MyFBAPrep’s tech-powered solutions are designed to get your products to your consumer’s door quickly and efficiently.

In this article, we’ll take a look at the top 5 benefits for a direct-to-consumer seller utilizing a 3PL to help take their brand to the next level.

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The Benefits of Utilizing a 3PL

1. Save Time So You Can Focus on Business Operations

Especially in the beginning stages of a business, sellers must spend their time growing their sales and customer base instead of tedious and time-consuming item prep, pack, and ship for every order. Employing a 3PL, like MyFBAPrep, can give business owners and key personnel more time back in their day to redirect their focus on expanding their product line, increasing sales, lowering customer acquisition costs and perfecting their buyer experience.

2. Handle Logistics as Experts

While order fulfillment is the backbone of any eCommerce business, there are a myriad of mistakes that can be made from the time a customer places an order to the time the package finally lands in their hands. These mistakes can end up being extremely costly to a growing eCommerce business, as they have to dedicate valuable resources, time and energy to mitigate the issue while also trying to retain customer satisfaction.

By outsourcing this process to an established 3PL, their team becomes your eCommerce masterminds that will expertly streamline your supply chain management and logistics. While these warehouses are run by experts in the field, they have also perfected their processes and systems that ultimately reduce the risk of human error and late deliveries.

The end result: increased customer retention and more sales.

3. Scalability

3PLs give direct-to-consumer sellers the opportunity to remain nimble and flexible while their business goes through ebbs and flows. This comes without having to incur the costly expenses of additional labor, warehouse facilities and equipment necessary to make that happen.

Whether a seller needs to ramp up its distribution efforts to keep up with the demand or stabilize as it anticipates an upcoming dip in the market, 3PLs like MyFBAPrep allow sellers to tap into a nationwide network of warehouses and connections and tailor their experience to best fulfill the needs of the company. This scalability is hard to come by when handling logistics and operations internally.

4. Replenish Products Quickly

One of the biggest challenges merchants face within the eCommerce industry is not having the flexible space to bring in new inventory until the previous stock is sold-out. With millions of square feet of available warehouse space across the country, 3PLs have the capacity to hold onto extra inventory, giving direct-to-consumers the chance to better prepare for their peak seasons.

This also allows the seller to shift inventory to different warehouses to better suit their shipping needs, while positioning items closer to demand, resulting in happy consumers who get their products delivered quickly and with no issues.

5. Mitigate Supply Chain Issues Through Enhanced Visibility

One of the biggest problems that eCommerce sellers have throughout the industry is managing the supply chain. Whether it be overstock or out-of-stock problems, it is becoming increasingly more difficult to predict consumer buying habits while also trying to oversee all inventory through a small microscope.

That’s where 3PLs can come in handy. Powered by cutting-edge technology, MyFBAPrep’s proprietary platform allows merchants to keep track of their inventory through the entire process from prepping to packing and shipping. These systems can help sellers manage their inventory over time and provide real-time analytics that can help forecast upcoming trends and supply needs. This enables sellers to operate more swiftly and make informed decisions about their logistics needs that impact the company’s bottom line.

Final Thoughts – Why Use 3PLs for DTC

If you feel that you’re ready to take the next step in your eCommerce business, whether it be direct-to-consumer fulfillment or outsourcing FBA prep, start looking for a partner that can best suit your needs. Keeping the benefits above in mind, you’ll also want to prioritize partners, like MyFBAPrep, that can offer dedicated support, proprietary software and an international network of strategically placed 3PLs with fast shipping capabilities when making your decision.

About The Contributor

Tom Wicky is the Co-Founder of MyFBAPrep, the largest 3PL e-commerce warehouse network with over 50 warehouses and two million square feet of warehouse space globally. He is an entrepreneur with more than two decades of senior management experience and lived abroad for 10 years working for private equity managing investments in technology and digital media.  He has built multiple Amazon businesses in the grocery and apparel categories and is fluent in Spanish and German.

 

We are a team of writers passionate about innovation and entrepreneur lifestyle. We are devoted to providing you the best insight into innovation trends and startups.

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