Ecommerce Why Third Party Logistics Solutions Are So Valuable

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Warehousing and distribution

Ecommerce is a one of the most exciting and, to some extent, most difficult fields to break into at the moment. Although 80% of the online population has purchased something over the web, with 50% of those people purchasing something more than once, the issue is competing. Several online companies can sell the same products, for example, but the one that will most likely attract the most customers is the one that can provide better shipping options or more reasonable prices. Then there are other things to consider … from warehousing and distribution to marketing logistics. This is why so many online companies have started to turn to third parties for logistics solutions.

What Is Third Party Logistics?

There’s a good amount of evidence indicating that the need for third party logistics solutions is increasing … namely that third party logistics solutions is growing, expanding at a rate of 12 to 15% annually. Essentially, a third party can be objective when confronting issues that their clients face. The types of problems a third party can solve include but are not limited to ecommerce order fulfillment, inventory management, marketing, and warehousing issues. A third party can provide personal attention to their clients, while at the same time offering the large … scale needs necessary for growing companies.

Third Party Logistics Does Not Equal A Big Commitment

Some business owners may be reluctant to “commit” to a contract with a third party. It’s true that once, 5 to 10 year contracts where the standard among ecommerce third party logistics. However, third party logistics have adapted to work with their clients’ needs. Now, 3 to 5 year contracts have become the new standard, with room for negotiation.

Working To Accommodate The Consumers

Ecommerce is made to build off of the needs of the consumer; making them happy ensures the company’s success. One of the things that consumers prefer is free or discounted shipping, with 58% surveyed saying that that is what they want retailers to improve the most. Third party logistics can help find a way to make free or discounted shipping possible, and encourage consumer growth. By contrast, online shoppers are most satisfied with things like the check of check … out at 83%, the variety of brands and products at 82%, and online tracking ability at 79%. Third party logistics can also make it easier for ecommerce companies to target what their clients need to improve, and what doesn’t have to be changed.

Third party logistics solutions can be revitalizing for many ecommerce companies, making it easier for them to do their jobs and make the most money possible. Ecommerce is about having a strong consumer base and being able to compete … that’s difficult to do alone but luckily, thanks to third party logistics solutions, few companies have to do it alone.

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