3PL for Amazon is a third-party logistics company that provides warehousing, order fulfillment, and shipping services to Amazon sellers. These companies specialize in managing inventory, picking and packing orders, and shipping products to customers on behalf of Amazon sellers. By outsourcing these functions to a 3PL provider, Amazon sellers can focus on other aspects of their business such as product development, marketing, and customer service.
What is 3PL for Amazon?
Any business, regardless of size or sector, can work with a third-party logistics provider to outsource some or all of their logistics tasks.
Third-party logistics providers (3PL) in the Amazon context are those businesses to which Amazon sellers can turn to outsource warehousing, inventory management, and order fulfillment tasks. Warehouse, order processing, and logistics services fall under this category.
Helium claims that by contracting with a reliable 3PL service, Amazon sellers will be free to focus on growing their business in other ways. According to JoeLister, working with a third-party logistics provider (or “3PL”) can boost an Amazon business’s growth, flexibility, and brand exposure.
According to eFulfillment Service, a third-party logistics provider can handle multiple facets of order fulfillment for online retailers. This includes storage and inventory management, SKU marking and bagging, and pick and pack services.
Amazon FBA vs. 3PL for Amazon
Amazon offers two primary logistics solutions for sellers: the first is Fulfillment by Amazon (FBA), and the second is Amazon’s third-party logistiCs service (3PL). Here are the main differences between the two:
- Ownership of Inventory: In FBA, Amazon takes ownership of your inventory once it is shipped to their warehouse. In 3PL, you retain ownership of your inventory at all times.
- Warehousing and Storage: FBA provides storage and warehousing services for your inventory in their fulfillment centers. With 3PL, you will need to find your own storage and warehousing solutions.
- Fulfillment Services: With FBA, Amazon picks, packs, and ships orders on your behalf. In 3PL, you are responsible for all aspects of fulfillment, including picking, packing, and shipping.
- Returns Management: FBA handles returns on behalf of sellers, while 3PL requires sellers to manage returns on their own.
- Fees: FBA charges fees for storage, fulfillment, and other services. 3PL providers typically charge fees for storage, handling, and shipping.
Overall, FBA offers a more comprehensive logistics solution that is ideal for small and medium-sized sellers who want to outsource their logistics operations entirely. On the other hand, 3PL is best suited for larger sellers who want more control over their logistics operations and prefer to retain ownership of their inventory.
What are the benefits of using 3PL for Amazon?
Some of the ways in which Amazon can benefit from 3PL are:
- Lower costs: Lower prices for storage, transport, and other logistics services are made possible by the economies of scale enjoyed by 3PLs.
- Scalability: Amazon merchants may focus on expanding their businesses without having to worry about logistics thanks to the scalability of 3PL suppliers.
- Flexibility: 3PL companies can tailor their offerings to the specific requirements of Amazon merchants.
- Faster delivery: Third-party logistics providers (3PLs) use their resources and experience to provide quicker delivery timeframes.
- Reduced risk: 3rd party logistics (3PL) services can help Amazon sellers reduce logistics-related risks like damaged or misplaced stock.
- Better customer service: By taking care of everything from order processing to returns and exchanges, 3PLs can deliver superior customer service.
How does 3PL for Amazon work?
To use 3PL for Amazon, sellers need to:
- Find a 3PL provider that meets their needs and budget.
- Set up an account with the 3PL provider and provide them with access to their Amazon account.
- Send their products to the 3PL provider’s warehouse.
- The 3PL provider will receive, store, and manage inventory.
- When an order is placed, the 3PL provider will pick, pack, and ship the product to the customer.
- The 3PL provider will handle returns and exchanges as well.
How To Choose A 3PL for Amazon?
Choosing a Third-Party Logistics (3PL) provider for Amazon can be a very important business decision. Here are some things to think about when choosing a 3PL for Amazon:
Experience and Expertise:
Look for a 3PL provider with experience and knowledge in Amazon fulfillment. They should know how to deal with the strict rules, requirements, and procedures that Amazon has.
Think about where the 3PL provider’s warehouse(s) are so that your products can get to Amazon’s fulfillment centers quickly and easily.
Make sure that the 3PL provider can handle the number of products you sell and can grow with your business.
Look for a 3PL provider that uses technology to handle inventory, orders, and shipping. The provider should have an order management system that works with Amazon’s API so that the fulfillment process can be done automatically.
Compare the prices of different 3PL providers to make sure that the cost of their services fits within your budget.
Choose a 3PL company whose customer service is top-notch. They should respond quickly, be easy to talk to, and be able to answer all of your questions about their services.
Look into the 3PL provider’s reputation by reading reviews from customers, checking their BBB rating, and talking to other sellers who have used their services.
By thinking about these things, you can choose a 3PL provider that will help you speed up your Amazon fulfillment process and make your customers happier.
3PL for Amazon is an essential service for sellers who want to streamline their logistics and reduce costs. By using a 3PL provider, Amazon sellers can focus on other aspects of their business while the 3PL provider handles inventory management, order fulfillment, and shipping. With the right 3PL provider, Amazon sellers can scale their business quickly and provide better customer service.