If you're reading this, chances are you've already hit the exciting stage of growth where handling all your fulfilment in-house is starting to feel like a juggling act gone wrong. Don't worry, if you have stumbled across this article because your current 3PL is underperforming, we've also got your back.
Either way, you're probably eyeing the world of 3PLs (Third-Party Logistics) with a mix of hope and trepidation.
And that's totally normal!
Finding the right 3PL partner can feel like navigating a maze blindfolded. There are so many options, so much jargon, and so many hidden pitfalls.
But don't worry, I'm here to shed some light on the common challenges you might face, and give you some actionable tips to find your perfect match.
Challenge #1: Information Overload (The 3PL Jungle)
There are literally tens of thousands of 3PLs out there, each claiming to be the best at this or that.
It's easy to get overwhelmed by the sheer volume of information. Where do you even start?
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The Stats: A recent study found that 76% of ecommerce companies consider finding the right 3PL to be a major challenge.
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The Reality: It's like trying to pick the perfect pair of jeans online – too many choices, too many variables. How do you know the perfect fit?
Challenge #2: The "One-Size-Fits-All" Myth
Many 3PLs market themselves as all-purpose solutions, but the truth is, they specialise in different areas.
Some are great for small businesses, others excel with large-scale operations. Some focus on certain product categories, while others have specific geographic strengths.
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The Stats: A whopping 44% of ecommerce report issues with their 3PLs not meeting their specific needs and and would consider changing.
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The Reality: Trying to force a square peg into a round hole will only lead to frustration (and doesn't benefit anyone).
Challenge #3: The Hidden Cost Iceberg
When you're comparing 3PLs, it's easy to fixate on the quoted price (especially the delivery proces). But there are often hidden costs lurking beneath the surface – things like setup fees, receiving fees, storage fees, and even unexpected surcharges.
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The Stats: Did you know that the average cost of a single mis-pick (a common fulfilment error) can be as high as £40? Those mistakes add up quickly.
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The Reality: What seems like a bargain initially might end up costing you a fortune in the long run. Never believe a 3PL that says they are 99.99% accuracy on everything, this definitely is a big B***S*** alarm bell.
Challenge #4: The Communication Breakdown
Effective communication is crucial in any partnership, but it's especially important with your 3PL. You need to be confident that they understand your business, your customers, and your brand values. And most importantly, it won't take them 7+ days to respond to support tickets (this happens more than you might think).
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The Stats: Last year, from 608 ecommerce brands surveyed, 63% experienced fulfilment issues that directly impact customer satisfaction. Many of these issues stem from miscommunication or lack of transparency.
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The Reality: A 3PL that doesn't keep you in the loop is a recipe for disaster.
So, How Do You Solve the 3PL Puzzle?
Don't despair! Here are a few tips to help you find the right 3PL partner:
- Get Crystal Clear on Your Needs: Before you even start researching, take a deep dive (we mean really deep) into your own business. What are your specific fulfilment requirements? What are your growth goals? What kind of budget are you working with?
- Ask the Right Questions: Don't be afraid to grill potential 3PLs. Ask about their experience in your industry, their technology capabilities, their customer service practices, and their track record with similar businesses. Don't always trust online reviews, reach out to the 3PL customers listed on their website directly yourself.
- Read the Fine Print: Pay close attention to the contract details, especially the pricing structure. Look out for hidden fees and make sure you understand how and when you'll be billed.
- Trust Your Gut: If something feels off, it probably is. Don't settle for a 3PL that doesn't inspire confidence or doesn't seem to "get" your business.
Want to de-stress the selection process? Check out our 3PL Matchmaking Service
If the thought of sifting through endless 3PL options makes your head spin, there's another way.
3PL matchmaking services like ours specialise in connecting eCommerce businesses with the right partners.
We take the time to understand your unique needs and leverage our network of over 100 tried, tested and vetted 3PLs in the UK, Europe, USA and Brazil to find your perfect match.
Finding the right 3PL is an investment in your business's future. Take the time to do it right, and you'll be rewarded with smoother operations, happier customers, and a whole lot less stress.
Happy fulfilling!