You can have the best product and the most effective marketing tactics…
Yet, none of that matters if you can’t deliver the product to your customer’s doorstep.
In other words, if your customers can’t get a hold of your product—then you can’t make a sale. And without sales, your business won’t profit.
That’s why eCommerce shipping solutions are so important. With the right eCommerce 3PL provider, your products are delivered quickly, securely, and conveniently. More than that, you ensure customer satisfaction and improve your bottom line.
But to find the best shipping solution for your business, you need to first understand what an eCommerce shipping solution is and the different eCommerce shipping options.
So, let’s dive right into it.
What is eCommerce Shipping?
eCommerce shipping refers to the entire logistics operations of an eCommerce business. This includes warehousing, inventory management, order management, picking & packing, and transportation. It also involves reverse logistics, insurance, tracking, and carrier coordination.
As the online industry continues to grow, so does eCommerce shipping. So much so that the eCommerce logistics market is expected to reach $8 billion by 2026.
4 Types of eCommerce Shipping Solutions
With eCommerce shipping playing an integral part in your online business, you need to evaluate the pros and cons of each eCommerce shipping option.
So, here’s a list of the top 4 eCommerce shipping solution today.
#1 – In-House Shipping and Fulfillment
In-house logistics is when an eCommerce brand handles its own logistics operations. They are the one storing and selling products, managing the orders, and delivering them to the customers.
Because of this, you have complete control of your supply chain management, including delivery time and customer experience. However, this can be an expensive eCommerce shipping solution as you have to consider storage and transportation.
Plus, it will also take time away from other aspects of your business. Another drawback is that delivery is limited to nearby locations, depending on your ability to travel.
#2 – eFulfillment
On the contrary, eFulfillment is when an eCommerce business works with a logistics provider to manage and deliver online orders. While this allows you to focus more on your sales process, it also has its disadvantages.
By working with an eFulfillment logistics company, you have less control over the logistics process. This means that you can’t dictate delivery schedules, pick the packaging materials, or oversee quality control. Additionally, eFulfillment is often expensive and can amount to thousands of dollars annually.
#3 – Drop Shipping
Unlike the other eCommerce shipping options, drop shipping doesn’t require you to own or store the products. Instead, the products are kept and distributed by the manufacturer or supplier.
This way, you can focus on increasing sales and expanding your business. You also don’t need a lot of capital for drop shipping as your manufacturer takes care of inventory and supplies, making it a low-risk and low-cost business model.
However, that also means that there’s higher competition and smaller profits. Not only that, but you also don’t have control over your logistics and customer experience since most of the transactions will be with your manufacturer.
#4 – Third-Party Logistics Providers
Third-party logistics (3PL) providers help eCommerce businesses with their shipping and fulfillment. They can manage the entire supply chain process—from storage to last-mile delivery. Or they can just handle only specific parts of your logistics.
Because 3PL companies often have multiple locations, you can easily expand your business locally and globally. Another advantage of 3PLs is that some customize their services according to your needs, reducing your overhead costs.
On the flip side, you have less control over your logistics as you’re outsourcing it to a logistics company. So, there’s always a risk of lost or damaged packages and delayed shipments.
That’s why it’s so crucial to partner with a professional 3PL provider with years of expert experience. In doing so, you guarantee quality delivery to your customers, increase your profits, and reduce supply chain risks.
Looking for a reliable 3PL company to work with?
At San Legend, we help eCommerce businesses scale their brands and break into new markets by providing customized, agile, and forward-thinking third-party logistics solutions. Reach out today to see how we can help.