Right behind maintaining steady cash flow, finding new ways to reduce logistics costs is probably your eCommerce brand’s highest priority. It’s difficult to manage the cost of logistics alone. Everything from inventory to packaging can frustrate your efforts to keep expenses low.
But before you start cutting costs in unnecessary places, consider working with a third-party logistics (3PL) partner. The right 3PL can help lower logistics costs in ways you simply couldn’t manage on your own.
3 Ways You’ll Reduce Logistics Costs When You Partner with a 3PL Provider
It’s tricky to striking the right balance between fulfilling customer orders correctly and keeping operating costs low. You don’t want to sacrifice excellent customer service, but you also don’t want sky-high logistics expenses. The key to finding that balance is partnering with an experienced 3PL provider.
A fulfillment company that understands the intricacies of the eCommerce space can reduce logistics costs for your brand in several areas, without completely overhauling your existing distribution strategy:
- Consolidating Shipments – Growing eCommerce brands typically don’t have large freight volumes, which puts additional pressure on shipping costs. Plus, you have to negotiate space on trucks and vessels, something that’s difficult to work out on your own. Look for a 3PL partner with ties to several shipping providers. They’ll be able to negotiate crate space for consolidated shipments, reducing freight fees.
- Kitting & Assembly – Picking and packing individual orders as they arrive takes time and financial resources. Kitting preassembles individual items in packaging that is ready to ship as soon as customers hit checkout. A strong 3PL company should have robust kitting and assembly services to bundle products based on order patterns. Kitting is a great way to cut costs and make warehouse personnel more efficient.
- Using Warehouse Technology – Keeping track of warehouse inventory with pen and paper is a disaster waiting to happen. To maintain reasonable logistics costs, pick a 3PL partner that uses real-time fulfillment technology to track warehouse inventory, orders dispatched and more. With careful monitoring, you can prevent customer returns and inventory ordering mistakes, both of which drive up operating costs.
Ready for Lower Your Logistics Costs? Dotcom Distribution Has You Covered
Successfully managing operating and logistics costs isn’t something that should be taken lightly. At Dotcom Distribution, we want to help your eCommerce brand grow, without breaking the bank. That’s why we’ve dedicated ourselves to providing cost-effective logistics solutions for online retailers.
Experience. Reliability. Trust. That’s the Dotcom Distribution way. To learn more about how we can help you better manage logistics costs, contact us today.