Let's be honest — customers don’t like to wait. Today, being a top-notch Amazon seller means more than just having awesome products. It's about making sure those goodies land on your customers' doorsteps exactly when they want them.

On-time delivery isn't just a bonus. It's the key to happy customers who keep coming back. For Amazon sellers, it's not just about meeting expectations; it's about going the extra mile.

Now, here's the tricky part: as your business grows, dealing with orders and keeping tabs on inventory gets seriously complicated. It can turn into a real hassle and cost you a pretty penny, especially with hefty packages.

Enter the pros—companies that know the logistics game, like third-party logistics (3PL) providers. If you're unsure whether teaming up with one of these logistics whizzes is the way to go, this guide is your go-to.

We'll break down what 3PL is all about and help you figure out if it's the right move for your Amazon-selling adventure.

What is a 3PL provider?

Third-party logistics is an outsourced service that provides comprehensive logistics support, managing everything from inventory and warehousing to shipping and final delivery coordination. 

Acting as an extension of a business’s logistics team, 3PL offers:

• Warehouse space
• Inventory management
• Shipping coordination
• Order fulfillment
• Return and exchange management
• Logistics consultation.

What are the benefits of using a 3PL provider?

Teaming up with a 3PL provider brings various advantages that can power your company's long-term growth. When you hand over tasks like warehousing, inventory control, and order fulfillment to a 3PL, you can:

Reduce costs

Outsourcing logistics to a 3PL provider is a cost-effective move. With no in-house need for warehousing, inventory management, and shipping responsibilities, you sidestep hefty expenses. No hiring additional staff for logistics tasks, no need for pricey infrastructure investments.

Increase logistics efficiency

Outsourcing fulfillment tasks, like order management, packing, shipping, and returns, to a specialized partner transform your business operations. By leveraging the expertise of a dedicated 3PL provider, your business becomes more streamlined and efficient. This shift saves valuable resources that would otherwise be tied up in managing these processes.

Improve customer satisfaction

By delegating product shipping to professionals like 3PLs,  you guarantee that your customers receive their products on time, every time. This strategic decision guarantees that your customers not only receive their products consistently but also punctually — every single time.

How do 3PL providers work?

While third-party logistics companies provide different services, the process typically follows these key steps:

1. Receive inventory

You send your products to the 3PL either from your storage or directly from the manufacturer.

2. Store products‍

The 3PL optimally receives and stores your products, ensuring they are ready for easy delivery.

3. Process orders‍

As orders roll in, the 3PL efficiently picks, packs, and gets shipments ready for dispatch.

4. Picking items‍

Using advanced systems 3PL gathers the ordered products.

5. Packing shipments‍

Your products are carefully packed and ready for shipping

‍6. Shipping to customers‍

3PL dispatches orders ensuring a smooth journey from the warehouse to your customers. 

Does your business need a 3PL provider & when you should use one?

At first glance, it might seem like every business can benefit from a 3PL provider due to the many advantages they offer. However, there are specific signs that indicate your business could particularly benefit from such services. Here are a few indicators:

Expanding your business‍

Whether you’re growing your Amazon business, or are entering new marketplaces, a 3PL can be a strategic move. 

Having a huge volume of orders‍

You’re selling way more products than you can store and handle. 

Managing inventory is becoming too expensive‍

Logistics operations require a lot of investments and getting a 3PL partner eliminates the need to invest in all these resources. 

Factors to consider when choosing a 3PL provider

Once you know you need a 3PL provider, it's time to choose one. But how can you make sure you make the right choice when there are so many suppliers around?

Here are a few factors to weigh when making your choice:

Experience & expertise

As in any industry, past collaborations matter. Look for a 3PL provider that has a proven track record in your industry and a track record of success. Experience with similar products and services ensures they understand the nuances of your business.

Technology integration

Before you team up with a provider, ensure that it utilizes advanced technologies for real-time tracking, order processing, and shipping management. 

‍Locations

Strategic location will help you ensure on-time delivery, avoid stockouts or overstocking, and ensure you have the right amount of inventory in the right places at the right time.

‍Customer service

Prioritize a 3PL provider with excellent customer service. Accessibility, responsiveness and a commitment to resolving issues promptly contribute to a smoother partnership.

Curious about the intricacies of 3PL services and how they revolutionize logistics for Amazon sellers?

In our latest MDS Podcast episode, Ephraim Ausch, the CEO of Tactical Logistics Solutions, provides an insider's perspective. 

Discover how Tactical Logistics Solutions evolved into an end-to-end service provider, offering licensed freight forwarding, customs clearance, warehousing, and Amazon delivery.

Check out the podcast episode right now on all major platforms: Spotify, Apple Podcasts, Google Podcasts, Amazon Music, our website, or watch all our video content on our YouTube channel.