Exploring 3PL and ShipAccel for Ecommerce

Discover how 3PL and ShipAccel streamline ecommerce logistics, reduce costs, and enhance customer satisfaction.
ShipAccel Staff ShipAccel
11/29/2024 Domestic Solutions

What is Third Party Logistics (3PL)?

Third Party Logistics (3PL) refers to the outsourcing of e-commerce logistics processes to a third-party business, which includes inventory management, warehousing, and fulfillment services. This model allows e-commerce companies to focus more on their core business activities while leveraging the expertise and infrastructure of specialized logistics providers.

Benefits of Using 3PL for E-commerce Businesses

  • Scalability and Flexibility: 3PL providers can scale operations and storage space according to the needs of the business, accommodating seasonal fluctuations and business growth without requiring direct investment from the retailer
  • Cost Efficiency: By leveraging the logistics network of a 3PL provider, businesses can benefit from reduced costs in shipping and warehousing due to the economies of scale achieved by the 3PL
  • Expertise and Experience: 3PLs bring specialized knowledge of logistics, compliance, and transportation, which can help e-commerce businesses navigate complex logistics challenges more efficiently
  • Enhanced Reach: With multiple warehousing locations, 3PLs can facilitate quicker delivery times across various geographies, enhancing customer satisfaction

Comparison: Third Party Logistics vs. ShipAccel

While traditional 3PL services offer substantial benefits, ShipAccel provides additional unique services and cost savings that can be particularly advantageous for e-commerce businesses:

  • Negotiation Services: ShipAccel offers negotiation services that can lead to significant savings on shipping rates, potentially saving businesses upto $16k annually
  • Discounted Shipping Rates: By leveraging bulk buying and negotiation, ShipAccel secures on average 10% discounted shipping rates, enhancing cost efficiency
  • Address Validation: ShipAccel’s address validation feature helps avoid failed delivery penalties, saving upto $5k per year by ensuring accuracy in shipping addresses
  • PB Delivery Guarantee: This feature reimburses for late USPS deliveries, potentially saving $0.2-0.4k annually and increasing customer trust
  • Real-Time Tracking and Automated Customer Emails: These features reduce the need for customer support interaction by keeping customers informed, potentially saving upto $10k annually by reducing customer support tickets
  • Self-Service Return Portal: ShipAccel provides a portal for customers to print their return labels, reducing the need for customer interaction and further decreasing support costs

Conclusion

Choosing between a traditional 3PL provider and ShipAccel depends largely on the specific needs and scale of an e-commerce business. For businesses looking for standard logistics services, a traditional 3PL might suffice. However, for those seeking deeper cost savings and enhanced customer service features, ShipAccel offers compelling additional benefits.

By understanding these distinctions and evaluating their unique business needs, e-commerce companies can make an informed decision that best supports their growth and customer satisfaction strategies. Get started here