How to Choose an East Coast 3PL Built for DTC fulfillment
Growing e-commerce brands eventually hit a point when packing and shipping orders in-house starts to hold the business back. The growing pains become obvious when business owners spend more time affixing shipping labels and standing in line at the post office than on marketing, product development, and growth. That’s often when they begin talking with 3PL companies and exploring how much outsourcing fulfillment will cost.
Plenty of East Coast 3PLs can provide warehouse space and a competitive quote. But for a DTC e-commerce brand, those factors alone don’t determine whether a fulfillment partner is the right fit. The right East Coast 3PL should be built for the operational demands of high-volume direct-to-consumer fulfillment while helping the brand deliver a better customer experience and scale as demand grows.
When comparing providers, evaluate three areas: operational capabilities, customer experience, and scalability. The following framework can help you assess each one.
Key takeaways
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1. The 3PL’s DTC Fulfillment Capabilities
What do I need to look for when evaluating a 3PL?
The first two things that come to mind when evaluating 3PL providers are typically cost and warehouse space availability. Those two elements matter when evaluating 3PL partnerships, but they don’t capture the full picture of a 3PL’s capabilities.
A 3PL should be equipped to handle a high volume of direct-to-consumer orders with processes and automation in place to provide a seamless experience. A modern 3PL uses technology and systems to keep inventory up to date across multiple sales channels and find the best shipping rate for each order, passing the savings along to the e-commerce business owner.
To get a better feel for how a potential 3PL operates, ask them the following questions:
5 Questions to Ask a 3PL About its Operations
| Q. Pick-and-Pack Capabilities | Is every item scanned by a barcode scanner before it’s packed? |
| Q. Technology | What level of automation does your warehouse use to reduce errors? |
| Q. Integration | How many systems does your warehouse management system integrate with to facilitate retail sales to consumers? |
| Q. Inventory | Do you offer online visibility of inventory that is synchronized across all sales platforms? |
| Q. Pricing | Does your quote include shipping markups? |
Once operational capabilities are confirmed, e-commerce business owners should consider how their 3PL can drive increased sales through the customer experience it provides.
2. The 3PL Supports the Customer Experience
How can a 3PL enhance the customer’s experience?
Research from a nationwide survey by Bringg found 65% of shoppers said a positive delivery experience convinced them to buy again, even when prices were higher than competitors. The best 3PLs will support this priority with systems in place to make every sale successful.
This begins with a seamless sale unencumbered by confusing shipping prices or delivery timeframes. It continues with quick, accurate deliveries that customers can track online. It’s enhanced with customizations like seasonal package inserts. And it’s aided by growth capabilities like multiple warehouse locations to minimize shipping distances, ultimately lowering shipping costs.
To see how a 3PL will enhance your customers’ experience, ask them the following questions:
6 Questions to Ask a 3PL About its Delivery Experience
| Q. Shipping Speed | Do you offer same-day shipping on orders placed by 2:00 pm? |
| Q. Order Accuracy | Is your order accuracy rate 99% or higher? |
| Q. On-Time Shipping Rate | What is your on-time shipping rate? |
| Q. Customization of Package | Do you offer specialized packaging or package inserts? |
| Q. Growth Capabilities | Do you offer multiple locations to minimize shipping distances? |
| Q. Returns | What is your process for handling customer returns? |
The best fit depends on your business needs. The right partner will act as if your business is an extension of their own, working diligently to ensure your success.
3. The 3PL Can Scale with Your DTC Brand
What determines if a 3PL can scale with a DTC brand?
Growing brands need a partner that can scale with them. That extends well beyond the size of a single warehouse. A growth partner uses advanced technology and has access to a multi-warehouse fulfillment network to help your business grow.
Look for Access to a Multi-Warehouse Fulfillment Network
Your requirements today may include less than 500 shipments per month from one centrally located facility on the East Coast of the US. Over time, that may double in volume, with the need to store products in multiple locations to minimize shipping costs. The right provider will have access to a multi-network fulfillment network to facilitate your growth.
Make Sure the Technology Can Handle Higher Order Volume
Additionally, they will likely be among the 20% of warehousing operations that use technology to automate processes, including integration with platforms such as Amazon, Shopify, and Walmart Marketplace. Technologically advanced facilities offer inventory synchronization to minimize stockouts across platforms as sales increase.
How to Choose the Right East Coast 3PL for DTC fulfillment
Finding available shelf space in a warehouse and a basic cost estimate is not enough to determine which 3PL is the best fit as a fulfillment partner specializing in direct-to-consumer ecommerce orders. When comparing East Coast 3PL companies, look closely at their operational capabilities, their ability to enhance your customers’ experience, and their ability to grow with your business, including access to a warehouse network.
Sweetwater Logistics exceeds expectations through advanced technology, a global warehouse network, strong operational metrics, and transparent pricing. Reach out to us to set up a time to talk through your business’ needs.
