Amazon sellers can lose money when they have large volumes of orders to fulfill without a solid logistics plan in place. Third-party logistics providers offer affordable solutions for sellers who need to outsource warehousing, inventory, or fulfillment services.
Third-party logistics 3PL provides services to facilitate the delivery of products purchased in the Amazon store. Using 3PL services usually ends up costing less than other services.
They ship products to customers within Amazon's global fulfillment network of over 150 distributed fulfillment centers worldwide.
Using Amazon's global network of third-party logistics providers makes it possible for Amazon sellers to ship products almost anywhere in the world with the help of one of the world's largest logistics providers.
Sellers who get online orders without reliable shipping or logistics services to track their shipment lose money when customer deliveries arrive damaged, late, or not at all.
Third-party shipping services offer affordable options for Amazon sellers of all sizes to deliver products to customers — without worrying about having fulfillment issues.
Sellers can outsource the following logistics to 3PL providers powered by Amazon.
According to Amazon Supply Chain, over seventy-five percent of US-based Fortune 500 companies use third-party logistics providers and services to deliver products to customers around the world's shipping network.
Amazon 3PL providers make it possible for sellers and shippers to reduce shipping costs and increase customer satisfaction when they invest in outsourced logistical services.
People who want to outsource logistics services and change how their products are shipped to customers can partner with Amazon 3PL providers to save time and money to deliver products on-time.
3PL providers on Amazon offer end-to-end supply chain solutions that help Amazon sellers complete the order process by managing their inventory, warehousing products, and fulfilling orders.
Amazon sellers partner with Amazon 3PL sellers to outsource the following services.
One of the main reasons Amazon sellers partner with 3PL providers is to reduce overhead and shipping costs.
Partnering with experienced logistics professionals can help sellers find the best providers and the lowest prices. It also eliminates the need to purchase their own warehouses or storage facilities for products.
Amazon 3PL providers can offer volume discounts and bundled services to manage logistics. They help Amazon sellers stay on the leading edge of using logistics technology powered by artificial intelligence (AI) and machine learning (ML).
Sellers who partner with 3PL providers save money on logistics costs and can increase revenue by delivering more products to customers.
Another major benefit of using Amazon logistics services by partnering with 3PL providers is that some products are eligible for the "Fulfilled by Amazon" badge. This coveted status symbol builds trust and loyalty with Amazon shoppers when their online orders arrive in Amazon packaging on-time and in tip-top shape.
When Amazon sellers decide to work with third-party logistics providers, there are a few key indicators that increase the likelihood of successful partnerships.
Key indicators of a successful partnership with a new 3PL provider are customer reviews and delivery performance.
Delivery Locations - Partner with Amazon 3PL providers that have a wide network of delivery locations where your customers are located.
Shipping Speed - 3PL logistics providers with a wide variety of shipping options for customers make it easy for sellers to increase sales when customers control how quickly they receive their online orders.
Excited online shoppers and impulse buyers are more likely to buy products when they receive their orders as fast as the same day!
On-Time Delivery - Avoid partnering with 3PL providers with a poor track record of on-time deliveries and many complaints and customer service issues. These issues can cause a sharp decrease in Amazon customer satisfaction and product sales.
Dissatisfied customers who don't receive their deliveries on time will probably report their experiences and leave negative Amazon seller reviews.
Volume - Choose providers who offer volume discounts and those that can accommodate volume changes with an unexpected increase or decrease in Amazon product sales.
Partnering with an Amazon 3PL provider for outsourced warehousing, inventory management, and product delivery is a great way to increase revenue when you can focus on marketing and sales without having to worry about logistical operations.
Amazon sellers can log in to their Seller Central account to learn more about how to choose the best third-party logistics providers to partner with.
Click here to read the Guide to Third-Party Logistics from Amazon Supply Chain.
