3PL

What is 3PL?

3PL stands for Third Party Logistics and refers to outsourcing logistics tasks to an external partner. In practice, this means that a professional warehouse receives, stores, picks, packs and ships your orders. You don't need to have your own warehouse or spend time on shipping.

How 3PL works

The process is typical:

1. You send your goods to the 3PL provider, who registers and stores them in their warehouse.
2. When a customer places an order in your webshop, the 3PL provider receives the order automatically via API integration.
3. The warehouse staff picks the ordered goods from the warehouse premises.
4. The goods are packed in suitable packaging, possibly with your own branding material.
5. The package is shipped using the chosen shipping method and track & trace information is returned to your webshop.

Benefits of 3PL

• Save time: No need for daily packing and shipping and you can spend your time on sales, marketing and product development.
• Scalability: The warehouse can handle sudden surges in orders (e.g. Black Friday or promotional periods) without having to hire extra staff.
• Professional handling: Experienced packers minimize errors and damaged shipments.
• No warehousing: No need to rent or maintain your own warehouse.
• Better shipping rates: 3PL providers typically have better volume deals with shipping companies than standalone online stores.

Disadvantages of 3PL

• Cost: You pay per order and for storage space, which can be expensive at low sales volumes.
• Less control: You don't have direct control over the packing experience and can't spontaneously add personal notes or gifts.
• Dependency: You rely on a third party to deliver a good customer experience. Failure on their end is failure in the eyes of the customer.
• Complexity of returns: Returns management via 3PL can be slower and more expensive than internal management.

When does 3PL make sense?

3PL is typically relevant when:

• You ship more than 30-50 orders per day and spend too much time on logistics.
• You're experiencing growth and your current warehouse can't keep up.
• You want to scale quickly without investing in warehouse infrastructure.
• You sell in multiple markets and want local warehouses close to your customers.

Choosing a 3PL partner

Consider these factors when choosing a 3PL provider:

• Integration: Do they support direct integration with your webshop platform?
• Location: Is the warehouse located close to your primary markets?
• Pricing: Understand the structure - startup fee, storage fee per pallet/box, picking and packing per order, shipping fee.
• Capacity: Can they handle your peak periods?
• Branding: Can they pack with your own brand materials (branded tape, packing lists, inserts, etc.)?

3PL in Shoporama

Shoporama integrates with multiple 3PL providers via API and webhooks. You can set up automatic transfer of orders to your warehouse when they are created or paid. Stock status can be synchronized back to your online store so that product pages always show correct inventory.