A free guide on:
How to Launch an Ecommerce Product Successfully Using a 3PL supplier

Step 1: Choose a 3PL supplier

The first step is to choose a 3PL supplier. There are many different 3PL fulfilment suppliers out there, so it's important to do your research and find one that is a good fit for your business. Some things to consider when choosing a 3PL supplier include:

• Their location: You want to make sure that your 3PL supplier is located in a region that is close to your target market. This will help to reduce shipping times and costs.
• Their services: Make sure that the 3PL supplier offers the services that you need. Some 3PL suppliers only provide warehousing and fulfilment services, while others also provide marketing and customer service support.
• Their capability: In our experience not all 3PL suppliers are not equal.  Warehouse spaces vary and order processing power can be geared up for specific sizes of goods.  For example, if you are selling small and light products your 3PL suppliers are able to process your forecasted numbers and not let you down leaving you and your customers without their items. Great 3PL providers utilise technology to help pack efficiently and process orders quickly but all usually operate via an online system like a Warehouse Management System (WMS) which you can sign into to see your live inventory, order processing statuses, tracking details and communication into the warehouse.  Make sure you ask about order integrations and the ability to communicate to all your sales platforms so you are eliminating the manual admin required to upload orders.
• Their pricing: 3PL suppliers charge different rates, so it's important to compare prices before deciding. With three main cost centres in order fulfilment. Storage, Picking/Packing and Dispatch.  Each can have variables with the way a 3PL can present the costs for each section. Make sure you are being charged for storage accurately as this ticking overhead will soon add up.  We utilise our online tools to calculate storage used volumetrically on a daily basis as this is the fairest and most accurate for all concerned. Some 3PL suppliers will charge you for software usage, setting up, user licences, integrations and order volume costs.  Be careful you don't get caught out with low headline picking fees as there are lots of little cost centres and ways to hide charges with e-commerce fulfilment processing.

  Picking and packing prices include the labour and processing of your items to be packed according to your standards, they may include the printing of a dispatch note or this could be charged separately.  Packaging can be a huge variable and one to control costs on.  With trust and planning with your chosen 3PL fulfilment supplier, each order may have size variants so the picker has to select an outer shipping carton, padded envelope or postal box. Ensure you discuss how to pack your goods and how to control those costs or they will soon eat into your profit margins.

  Dispatch and logistics costs can equate to up to 80% of your fulfilment costs.  Good 3PL providers should have a range of services available from all major couriers and the Royal Mail giving you choice and the ability to upsell your customer's orders to quicker services when required.

Step 2: Set up your account

Once you've chosen a 3PL supplier, you need to set up your account. This usually involves providing the 3PL supplier with information about your products, inventory, and shipping preferences. Account Application Forms are reasonably simple for all to complete, but don't be surprised if the supplier asks you for a deposit or heavily restricts the amount of credit they give you. This is to protect the costs incurred prior to you paying and if you have little or no trading history, you can understand that it's a risk for the fulfilment supplier to take.

Take all opportunities to get trained on software, processes and details on how you and your chosen 3PL provider can work most efficiently together. This will help all concerned, creating a good foundation for your ongoing relationship.

Step 3: Ship your products to the 3PL supplier

Once your account is set up, you need to ship your products to the 3PL supplier. The 3PL supplier will then store your products in their warehouse and fulfil orders for you.  Make sure you adhere to Goods-in procedures this will ensure your goods are accepted and processed as quickly as possible to get your goods onto a shelf and ready to sell.

Step 4: Market your product

Once your products are in the 3PL supplier's warehouse, you need to start marketing your product. There are many different ways to market your product, but some of the most effective methods include:

• Search engine optimization (SEO): SEO is optimising your website so that it appears higher in search engine results pages (SERPs). This can help you to attract more visitors to your website and increase sales.
• Pay-per-click (PPC) advertising: PPC advertising is a type of online advertising where you pay each time someone clicks on your ad. This can be a very effective way to reach a large audience quickly.
• Social media marketing: Social media is a great way to connect with potential customers and promote your product. Make sure to create accounts on popular social media platforms and post interesting and engaging content.

There are many professionals that deal with marketing online. Even if you get some consultancy to help your foundations right, you will stand a better chance of getting a better Return on Investment (ROI) for all your marketing efforts. But be aware it can be a relentless treadmill that needs constant attention to get any success. Work with your 3PL provider when you launch any marketing campaigns, this will help planning on both sides to be able to pick/pack and dispatch your orders on time giving them the best chance of a 5-star review.

Step 5: Track your results

It's important to track your results so that you can see how your 3PL supplier is performing. Some of the metrics you can track include:

• Order volume: This will tell you how many orders your 3PL supplier is fulfilling.
• Shipping times: This will tell you how long it takes for your products to be delivered to customers.
• Customer satisfaction: This will tell you how happy your customers are with the 3PL supplier's services.

By tracking your results, you can identify any areas where your 3PL supplier is falling short and make adjustments as needed.