In today’s competitive online shopping world, being successful means paying close attention to all parts of your business. Everything from making your products to how you advertise them is important. One big thing that can really help you succeed is how you get orders to your customers. Many online stores that don’t focus on shipping and handling choose to have someone else do it. These companies are called third-party logistics providers (3PLs). The 3PL industry is growing fast, with ecommerce making up over half of it.
With so many 3PL options out there, picking the right one can be hard. To help you decide, here are seven important questions to ask when you’re thinking about which 3PL to go with:
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How big is your network and where is it?
Finding out how big a 3PL’s network is can help you know if they can handle shipping your stuff where it needs to go. They should have places to keep your products and move them from one place to another quickly. For example, Amazon Multi-Channel Fulfillment has lots of centers and vehicles all over the world, which helps businesses send things internationally.
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What makes your shipping services special?
While most 3PLs offer basic services like storing and sending products, you should look for something more. Things like using advanced robots in warehouses or having new ways to move things around can make a big difference. Amazon Multi-Channel Fulfillment stands out with its big network and tools like Buy with Prime.
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What do you track to make sure things are going well?
To make sure things are running smoothly, ask what the 3PL keeps an eye on. They should be able to show you how well they stick to their promises about when things will get to customers. Amazon Multi-Channel Fulfillment, for example, gets things to customers on time more than 97% of the time.
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How do you deal with changes in how much stuff is being sent?
The online shopping world changes a lot, so ask how the 3PL handles big changes in how much stuff is being sent. They should have ways to handle sudden big changes in demand. This helps keep up with how busy the market is.
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How do you decide how much things cost?
Knowing how much things will cost is important for planning how much money you’ll need. Some 3PLs ask for long-term deals, while others let you pay as you go. You should also know if you’re paying for each thing they do or if there’s a set price for everything. Amazon Multi-Channel Fulfillment, for example, has a flexible plan where you pay for storage and shipping when you need it.
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How do you help when there’s a problem?
Good help for customers is important for fixing problems and planning for the future. Ask how fast the 3PL can help you and if they use tools to make things faster. They should be ready to fix daily problems and help you plan ahead to grow your business.
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What businesses have you worked with before?
Knowing who a 3PL has worked with can show you if they know how to help businesses like yours. Look for ones that have worked with businesses that are about the same size as yours and do similar things. Hearing from other businesses that did well with a 3PL can help you feel good about picking them.
In conclusion, picking the right 3PL is a big choice that can make a big difference for your business. Asking about their network, special services, how well they do, how they handle changes, how they set prices, how they help you, and who they’ve worked with before can help you make a good choice.
