As your online business grows, internal order management becomes a significant challenge. Initially, managing and returning orders yourself might seem simple; you have complete control over processing and packaging products and thus keep your costs under control. However, over time, you might wonder if it would be better to outsource these processes instead of handling them yourself. After all, managing and delivering orders isn’t the reason you started your business.

What does using a third-party logistics (3PL) provider mean?

3PL (Third Party Logistics) refers to outsourcing logistics processes to a specialized provider. Services that can be outsourced include inventory management, product warehousing, order processing and delivery, as well as return management. 3PL service providers allow online merchants to optimize their processes by offering them, among many other things, the tools and infrastructure necessary for automation.

While the term “3PL” doesn’t have a clearly defined origin, companies began outsourcing their logistics processes to third parties in the ’70s and ’80s. With the emergence and growth of e-commerce in the ’90s and 2000s, the term “3PL” has become ubiquitous, and the services offered by 3PLs have expanded.

So, how do you know when you’re ready for a 3PL?

The decision comes down to a key aspect: your order volume has increased, and you can’t keep up. You find yourself asking colleagues from other departments (or friends and family if you’re a solo entrepreneur) to prepare orders and meet the demand. More specifically, we’re talking about hundreds of orders per month.

The problem with this situation is that it hinders growth. As the number of orders increases, you’ll end up spending more time managing them and less time running your business.

The opportunity cost of higher-value tasks is one of the hidden costs of internal order management. Not all activities have the same value and importance. Every hour you spend reacting to new orders that come in – packaging products, printing labels, ordering the courier, etc. – you lose the opportunity to attract more customers.

Delegating operational tasks that can be performed by someone else regains your time and helps you scale your business much faster.

If this scenario sounds familiar, it’s probably time to stop managing and delivering orders yourself. You can’t allow order processing to distract you from growing your business. You’ll either need to expand your team and invest in some equipment and space or turn to the services of a 3PL.

Altexpress – More than just a simple 3PL

When it comes to eFulfillment, Altexpress stands out through its unique and efficient approach, providing services that cover the entire order management cycle. From the moment products are received and inventoried at our specialized center to the careful preparation of orders, issuance of necessary documentation, and rapid delivery, we ensure that every detail is treated with utmost care.

Moreover, our efficient return management system promptly reintroduces products into stock, offering total transparency and control over inventory.

With Altexpress, you benefit not just from simplified eFulfillment processes but also from efficient communication and optimal payment management, whether online or cash-on-delivery, thus ensuring a complete and worry-free experience.

In short

Identifying the right time to outsource order management and delivery to a 3PL can be a crucial step in scaling your online business. By partnering with Altexpress, you can benefit from the necessary expertise and infrastructure to streamline order processing, allowing you to focus on growing and developing your business.