Discover everything you need to know about third-party logistics and ecommerce fulfilment, exploring its processes and uncovering its pivotal role in propelling your business forward.
2. What is ecommerce fulfilment?
3. What does a fulfilment centre do?
4. What services do 3PLs offer?
5. How do fulfilment centres work?
6. What are the benefits of using a 3PL?
7. What industries work with 3PLs?
8. When should you consider partnering with a 3PL?
9. How to choose a 3PL for your business
10. How much do 3PL services cost?
12. Get started with 3PL fulfilment
A 3PL (third-party logistics) supplier supports e-commerce businesses by navigating the logistics landscape on their behalf, handling their operations with services like order fulfilment, warehousing, returns processing, and inventory management. They know a thing or two about logistics, and this expertise helps growing brands achieve more by streamlining their supply chain and avoiding the challenges they'd face going it alone.
E-commerce fulfilment is the process of getting products to customers who have bought online. It includes storing inventory, picking & packing orders, and shipping them directly to the customer. It may sound simple, but getting it right can be tricky. In today's fast-paced world of e-commerce, it's vital to provide customers with an experience they won't forget and will keep them coming back for more.
That's why so many companies partner with a 3PL, who act as the bridge between their website and the customer's doorstep, putting their expertise & logistics capabilities to work to ensure their products are handled properly and delivered on time.
A fulfilment centre is a facility where the entire order fulfilment process takes place. It includes the storage of products, the picking and packing of orders, the shipping of packages to customers, and the careful handling of any returns or exchanges. These vast warehouses are set up to streamline operations so your products arrive at your customer's door without a hiccup. Think of a fulfilment centre as a central hub of your e-commerce activity that gives you all the benefits of a warehouse without having to find, run, and pay for your own.
When a customer snaps up one of your products online, they set the order fulfilment process into motion. This process begins with a warehouse team that meticulously prepares the order, ensuring it's packaged correctly and looking good. They will then pass this on to the courier who delivers the items to your customer's doorstep safely and on time.
One of the most common problems growing businesses face is having enough storage space to keep up with growing demand. Brand growth and storage requirements go hand-in-hand, and this quickly gets out of control. That's why 3PLs offer handy storage services that allow you to store your goods in their warehouses, giving you room to grow as your demand does. Storage services include things like stock replenishment & rotation, which ensures the best quality products are shipped and then re-stocked quickly so you never miss a beat.
Offering a seamless returns & exchange policy is vital for e-commerce businesses that want to provide a top experience for their customers. There are many reasons why someone might return or exchange their orders, and when they do, it's your job to ensure the process is quick & easy. 3PLs give you a helping hand with this, ensuring the process is ultra-fast and efficient for both your business and your customers. When your items arrive back at the fulfilment centre, your provider will thoroughly inspect them to see if they can be added back in stock, helping you to stay profitable and minimise waste.
It's the little things that can set you above the rest - and custom packaging is the trick to making a purchase memorable. The top 3PLs, like GNOC, provide bespoke packing solutions that turn your first-time customers into lifelong fans. Whether you want to repackage your goods, add custom branding, or include coupon inserts or thank-you notes, 3PLs can help you create a unique brand experience. As experienced shippers, your 3PL provider will find the best & most cost-effective packaging solutions to keep your products safe and costs low.
It all begins here. When a retailer's products arrive at an e-commerce fulfilment centre, they're inspected thoroughly by the warehouse team and then scanned and synced with an OMS (order management system) before moving to a designated storage area.
In general storage, your goods are stored safely on shelves or pallets, with SKUs organised based on several factors, including order frequency, size, weight, special requirements (such as best-before dates), so fulfilment is fast and efficient.
Thanks to the strategic storage of products, order picking is a breeze for 3PLs like GNOC. When your customers hit the buy button on your website, the warehouse team springs into action, selecting the product from your inventory and ensuring it's correct and suitable for shipping.
After picking, the items are securely packed based on your requirements, making sure they arrive to your customer safely & efficiently. Once the box has been scanned and labelled for the courier, it undergoes a final check before it's ready to move into the final phase.
Now your item is picked & packed, it's ready to begin its journey to the customer. At GNOC, we book your items with couriers who we trust and who offer the fastest delivery times and the best prices. The courier takes it from here, carefully guiding your products into your customer's hands.
What are the benefits of third-party logistics?
In todays ecommerce landscape, the benefits of 3PL are endless. We've picked out a few of the key advantages that can help you take your brand to the next level.
Focus on your core competencies
It's no secret that starting an e-commerce business takes up a massive amount of time and effort. There's a plethora of challenges you have to overcome, and many of them lie in logistics. These challenges can quickly become overwhelming and stand in the way of your goals and ambitions.
That's where 3Pls come in. When you partner with a third-party logistics company, you're freeing up your time, money, and resources to focus on the important, and let's face it, fun stuff - building your brand and maximising sales. This extra time means you can focus your energy on marketing, branding, merchandising, and exploring new product ideas and territories while your 3PL takes care of the rest.
Improve service levels
3PLs help you provide superior service levels that would be tough to achieve in-house. When brands are in the growth phase of their journey, they don't have the time or resources to keep up with growing order volumes. This increase in demand leads to resources being stretched too thin, not to mention customers being unhappy with late deliveries.
When you partner with a 3PL, they elevate your services with improved response times, faster delivery options, and better reliability, helping you eclipse your competition and turn your new customers into loyal ones.
Faster growth
3PL companies open up a range of opportunities for you to take your brand further than you ever thought was possible. By taking advantage of their extensive distribution network, you can reach more customers domestically, or even take your brand global, without the challenges of doing it in-house. Plus, with your 3PL literally doing the heavy lifting, you can focus your attention and resources on growth initiatives and new opportunities to scale your business.
Flexible growth
One of the biggest advantages of 3PL support is scaling at peak times. During high-sales periods, (think Christmas for greetings cards, summer for sportswear brands) most e-commerce businesses see their demand skyrocket. Relying on small in-house teams to meet demand during these periods leaves you open to challenges like recruiting & training new staff and or expanding your site, both of which are pretty costly. On top of that, when your demand naturally falls, you'll be stuck with extra resources you don't need.
A 3PL can help you scale up resources swiftly and efficiently, handling increased demand with ease using their experienced warehouse teams and extensive fulfilment centre. This flexibility gets you ahead of the game and keeps costs low so you can fully focus on maximising revenue in busy sales months.
Logistics expertise
3PLs like GNOC, have been there, done that, and have the tracking. They have been navigating the logistics landscape for years, and know the best and most efficient ways to handle operations and achieve sustainable growth. Their extensive knowledge covers all the boring stuff - such as importing & exporting, transport documentation, regulations, compliance documents, packaging requirements, and more.
The best 3PL companies have dedicated e-commerce teams that pass on invaluable advice to up-and-coming brands to help them overcome the common hurdles and challenges they might face. After all, our goal is to support brands at every step of their journey.
Advantages of partnering with GNOC
When you work with us, you're doing way more than outsourcing your fulfilment, you're unlocking over a decade's worth of e-commerce expertise. What sets us apart from other 3PL companies? Our history. We began our journey building and nurturing our own e-commerce brands into industry leaders. We've been exactly where you are - and have navigated the pitfalls and challenges that growing an e-commerce business presents, learning valuable lessons that have shaped our approach to order fulfilment to help brands grow without a hitch.
3Pls are the ideal partner for health & nutrition companies. These brands leverage third-party logistics (3PL) providers for their rapid and effective fulfilment capabilities, alongside their advanced inventory management systems, to maximise seasonal opportunities and maintain high accuracy with deliveries.
A 3PL is the perfect team mate for sports brands. They help these brands to forecast and cope with high order volumes during peak seasons through fast & efficient order fulfilment, detailed inventory oversight, and the handling of store equipment regardless of its size or shape. This help frees the brands up to focus on maximising sales during
Keeping furry companions happy is a top priority, and pet product suppliers understand this urgency better than anyone. They depend on the swift delivery of their goods, along with sophisticated inventory management systems to handle their extensive range of SKUs. Storage solutions play a crucial role for these companies, offering the necessary space to accommodate their diverse product portfolio, from tiny chew toys to large bags of pet food.
In the fast-paced world of fashion, where reputation is everything, fast & efficient fulfilment is essential. Fashion brands partner with 3PL's to ensure they provide the best possible customer service and stay ahead of the competition. It's safe to say that 3PL & fashion brands are the perfect fit.
DIY & Hardware enterprises gain huge advantages from leveraging storage and fulfilment solutions. Such businesses often deal with an inventory that includes large, bulky products that can swiftly overwhelm limited warehouse spaces. Additionally, they benefit significantly from the specialised knowledge of a 3PL, adept at optimising shipping strategies for items of diverse dimensions, thereby reducing costs effectively.
In today's fast-paced and ever-evolving electronics market, the majority of companies within this sector are turning to Third-Party Logistics (3PL) providers to handle their extensive product inventories. This strategic partnership allows these businesses to not only streamline their supply chain operations but also to leverage the advanced capabilities and expertise of these 3PL services.
Typically, this is the moment when numerous businesses consider leveraging a 3PL partner. As a business experiences a surge in growth, meeting the expanding demand can become a formidable challenge. Engaging a 3PL can solve this by offering additional storage solutions, access to a skilled warehouse team, and a comprehensive logistics network.
When a company reaches its growth limits and seeks to explore new opportunities, partnering with a Third-Party Logistics (3PL) provider can be an excellent strategy for expansion. A 3PL not only grants access to superior infrastructure but also opens doors to a wealth of logistics expertise. By delegating your order fulfilment tasks, you free up valuable time to concentrate on scaling your business and boosting sales.
As your business grows fast, so will your expenses. Many companies outsource their fulfilment operations as a strategic move to reduce their overall operating costs. This shift transforms a complicated, labour-heavy process into a streamlined, cost-effective operation. Working with a 3PL helps you save on warehouse space, logistics costs, and hiring additional staff to meet growing demand.
Every successful business understands how important it is to provide a first-class service. However, as your business expands, keeping up with these standards becomes increasingly challenging. It's at this juncture that numerous businesses turn to a Third-Party Logistics (3PL) provider for assistance. A 3PL partner can dramatically improve your order accuracy by rigorously applying detailed quality control measures and integrating cutting-edge barcode scanning technology.
The most important thing is making sure your provider offers the services to meet your immediate requirements, and those you will have as you grow. This all depends on your individual requirements, but ideally, you should be seeking a 3PL that provides fulfilment, storage, reverse logistics, comprehensive inventory management, and additional packaging services. This way, you can scale your brand with confidence, without worrying about switching providers in the future.
Your 3PL providers size must match your ambition. If you want to scale your operation fast, you need a provider who has the infrastructure to help you do so. This means a fulfilment centre that can handle your increasing volumes for fulfilment, a warehouse that can provide you with more storage space as your inventory and overall business grows, and a logistics network with sufficient reach.
This is essential for the growth of your business. Your 3PL provider should provide integrations for your key sales channels, and should have a trusted courier network to help you reach as many customers as possible.
Pricing models will vary with different companies, but at GNOC, we offer pricing based on the unique requirements of each business. Get in touch with us to let us know a little about the services you need to help you grow, and we'll work out the most cost-effective way to get you going. Our pricing is fully transparent with no hidden costs, so you know exactly how much your bill will be.
Cost | Description |
Inventory onboarding | This is the cost of setting up your brand within a system - it includes importing your SKUs and setting up your channels via API integration. |
Storage costs | This is the charge for storing your items in a warehouse. at GNOC, you're charged per CBM (cubic meter) meaning you only pay for the space you use. |
Picking costs | When you outsource your fulfilment, a warehouse team will pick & pack your items when the orders roll in. This is the charge for the process, and if often billed per parcel. |
Packing & labelling costs | If you require additional services or re-labelling, a 3PL will charge you per-parcel for this service |
Shipping | Your 3PL partner will charge you for shipping your items from the warehouse to your customers door. This takes several things into account, such as shipping service (next-day, Saturday delivery etc), shipping zones, item size and weight, etc. |
Store, Ship, and save, with GNOC.