3PL FAQ
⊕ What is a 3PL?
The term 3PL stands for third-party logistics. This is an outsourced logistics company that ensures safe and efficient delivery of your customers’ online orders. Cooperating with a 3PL company means having a group of dedicated people who will deal with inventory management, logistics, warehousing, and shipment. You will have time to work on marketing, brand, and business growth. 3PL logistics also helps to reduce time-to-customer and shipping costs while increasing delivery time. Overall, it means better sales, satisfied customers, and focused management time.
⊕ How does a 3PL work?
Depending on the 3PL company you choose, the offered services can vary. However, this is how 3PLs usually operate:
- After contacting the manufacturer and ordering desired products for your ecommerce business, the 3PL warehouse receives and organizes each SKU (stock-keeping unit).
- Following the order’s placement in your online store, the 3PL software or a human receives it.
- The worker in the 3PL picks the selected products, puts them in the box for shipment, and sends shipments through the local shipping service.
⊕ What is Dropshipping
Dropshipping is a business model that allows you to sell products online without the need to ship them or stock them yourself. You can sell products on your online page, while another company deals with shipping, warehousing, packing, and sending your products to customers. Droppshipping allows ecommerce business owners to focus on their brand and marketing strategies, saving them the time they would spend on logistics.
⊕ What is SKU?
stock-keeping unit, or SKU, allows vendors to track inventory easily. It’s usually a scannable code, unique for every product in the inventory. SKU allows for easy tracking of the number of available products, as well as easy picking and shipping. E-commerce owners can also easily track which products require restocking shortly.
⊕ What is Pick-and-Pack?
Pick-and-pack is a method of selecting and packing products in the warehouse. As the name suggests, this method combines picking the desired number of products with a unique code and packing them directly into the shipping box without the need for repacking. Pick-and-pack is mostly used for smaller orders by ecommerce fulfillment companies.
⊕ What is a Fulfillment Center?
A fulfillment center, or distribution center, refers to a large building where businesses selling goods can stack their products. Unlike a warehouse that only stacks products, a fulfillment center covers logistics for online business owners, such as receiving, processing, and shipping customer orders, which can streamline e-commerce operations.
⊕ How to Choose the Best Ecommerce Fulfillment Company?
A reliable logistics partner can make your business flow easier and your customers satisfied. So choose a 3PL that cares about your customers as much as you do. What is most important to you when it comes to fulfillment services?
Here at Save Rack, we offer a variety of services, such as integrating your online e-commerce store, receiving your products, organizing your products in the warehouse, and picking, packing, and shipping them to customers. Our inventory management software helps you stay organized and see live inventory, including reordering notifications, bundles of your products, and much more. With the Save Rack software, you can monitor your orders and track reporting and analysis.