Significance of Fulfillment Services in eCommerce
The demand for third party logistics fulfillment companies has surged over the past few years in the eCommerce segment. As eCommerce continues to grow, the demand for storage, packing, and shipping of products has surged. As a result, third party logistics fulfillment and eCommerce companies have a huge market. This post discusses the rising market for 3PL eCommerce fulfillment companies.
At 3PL Business, we understand the complexities of eCommerce and hence the increasing demand for ecommerce fulfillment solutions. We use our experience and expertise to ensure your e-commerce fulfillment is seamless and efficient. We offer end-to-end support at every stage for safe and timely delivery. We are committed to relieve you of burdens related to storage, packaging, logistics, and more that allows you to focus on other areas and growth aspects. If you have any requirements or questions pertaining to our third-party logistics fulfillment services, feel free to contact us today!
Surging Demand for 3PL eCommerce Fulfillment and its Reasons
The market for third party logistics fulfillment companies is huge, and eCommerce accounts for a huge share of it. According to a report, the market size for 3PL was $1044 Billion in 2022 and is expected to reach $2190 Billion by 2031 at a high CAGR of 8.58% from 2022 to 2031. Here are some reasons why the demand has increased over the past few years.
While online retail started gaining prominence when eCommerce as a technology was thriving at the beginning of this century. The consumer preferences have changed over the years with high disposable incomes, hectic schedules and lifestyles, and the convenience of placing orders through mobile phones and laptops.
This garnered more demand during COVID, when people were unable to venture out. This industry grappled with certain challenges during the lockdown in terms of last mile connectivity, unexpected surge in the demand for certain products due to stockpiling mindset, and more. However, most businesses overcame these challenges. The pandemic actually set a new normal, which continues even today, in terms of increased consumer expectations and advancements in supply chain and logistics software, workflow automation, vendor networking, and more.
With several eCommerce players and increasing number of mobile applications, online shopping became incredibly convenient and even addictive at times.
This trend was not just for B2C but also observed in B2B dealings.
One of the major drivers for this demand was 3PL companies investing in technology to boost their supply chain and logistics, facilitating online tracking of shipment, OTP-based delivery, and many other advancements.
How eCommerce Businesses Benefit by Partnering with 3PL Companies?
eCommerce businesses hugely benefit in terms of cost and time among other factors once they partner with a 3PL company. This is because their investments in terms of storage, packaging, shipping, and transportation are reduced and taken care of by 3PL companies. They do not have to invest in warehouse space, packaging equipment and technology, supply chain and logistics part, and so on. Here are some other benefits.
Partnering with 3PL companies speeds up order processing, reduces time to market, and ensures scaling up and down based on product demand.
eCommerce being a highly-competitive, consumer-driven market segment, fulfillment services need to go beyond just delivering products. In this scenario, sharing an advanced software with the 3PL partner can help in timely deliveries, real-time tracking, managing returned items which includes preventing product recalls, inventory management, customer service, packaging, shipping, and delivery.
The best part is that the manufacturer does not have to stock products or invest in the required infrastructure once they partner with a storage and fulfillment services provider.
The speed and efficiency at which the eCommerce segment functions today can be largely attributed to 3PL partners that manage the entire backend processing work.
For many eCommerce businesses, partnering with the right 3PL company has increased customer satisfaction, reduced product recalls, and boosted sales and revenue.
If you are an eCommerce retailer and require third party logistics fulfillment services, ensure to partner with a known and certified 3PL ecommerce fulfilment services company. Ensure they understand timelines and product-related requirements. Check the industries they’ve worked for before making a decision, and estimate the rise in sales and revenue. 3PL Business has helped several small- and mid-sized eCommerce businesses increase revenue, customer satisfaction, and more. For any further questions, feel free to contact us on (732) 983-4801 or email us at sales@3plbusiness.com