If you have the following questions, this article may be helpful to you:
- What is a 3PL?
- What are the benefits of using a 3PL?
- Are 3PL and fulfillment service the same?
- How poor Shopify 3PL integration hurts your business
What is a 3PL for Shopify?
3PL (Third-Party Logistics) refers to outsourcing all or part of a company's logistics operations to a third-party service provider. These providers handle product storage, receiving, shipping, and delivery-related operations on behalf of the original company.
While the term 3PL is sometimes confused with "warehousing services," it generally refers to a more comprehensive logistics solution. This article will explain 3PL in a broader sense, including logistics consulting services, import/export freight forwarding services, customs brokerage, and paperwork.
A 3PL should be able to provide the following services:
- Picking & Packing
- Cost-efficient shipping methods
- Return management
- Powerful Warehouse Management System (WMS)
- Accurate and real-time inventory visualization
- Logistics expert consulting service
- Import/export freight forwarding services
- Customs clearance and paperwork preparation
When integrated with a Shopify store, a 3PL service can help fulfill orders, manage inventory, and handle shipping and returns on behalf of the e-commerce business.
This allows e-commerce entrepreneurs to focus on other aspects of their business, such as marketing and product development, while leaving logistics to the experts. Some 3PLs have an app in the Shopify app store, making it relatively easy to connect your store to the warehouse or fulfillment centers, streamlining the setup process.
Shopify 3PL vs. Shopify Fulfillment Services
Are Shopify 3PL and Shopify Fulfillment Services the Same?
While 3PLs and fulfillment services are related, they are distinct concepts in terms of the scope of services they offer and their coverage in the supply chain.
3PLs provide comprehensive logistics services, including warehousing, transportation, and distribution. They operate and improve the entire supply chain, from procurement to delivery, on behalf of their clients.
Fulfillment services, on the other hand, store products on behalf of companies and perform shipping processes such as picking and packing according to shipping instructions. Fulfillment is generally considered one of the services that a 3PL can provide.
In short, fulfillment services are a part of 3PL. Therefore, many logistics companies that offer 3PL also offer fulfillment services.
Why Do Shopify Stores Need 3PL?
Shopify, like other online store platforms such as WooCommerce and BigCommerce, helps businesses sell products on the internet. But Shopify doesn't take care of the physical tasks like storing, packaging, and shipping products. This is where Third-Party Logistics (3PL) providers come in to help with these tasks.
When store owners find it hard to handle logistics by themselves or want to focus on important activities like creating new products and marketing, they need help to make sure orders are delivered quickly and efficiently to their customers. In these situations, they can hire a 3PL service provider to take care of the logistics for them.
How Does a 3PL Work with Shopify?
A 3PL works by integrating with a Shopify store (ideally through an App with API connection).
When an item arrives at the 3PL, then the sellable stock will be counted, recorded and shared with Shopify. It will be ready for sale once it is registered in the 3PL warehouse.
When a customer places an order on the Shopify store, the order details needed for the shipping process including the item quantity, shipping address etc are forwarded to the 3PL. The 3PL receives the order, picks the products from the inventory, packs them, and ships them to the customer’s address.
Benefits of 3PL
What Are the Benefits of 3PL? 3PLs offer several benefits, including:
- Cost Savings & Increased Efficiency:
Reduce costs and man-hours associated with hiring and training warehouse staff.
Save on developing and upgrading inventory management systems and leasing warehouses. Access advanced Warehouse Management Systems (WMS) and services such as temperature control, security systems, and disaster prevention.
- Improved Customer Satisfaction:
Faster, more reliable delivery with better tracking and tracing.
Increased customer satisfaction and repeat sales.
- Reduced Risk:
Entrust logistics risks to experienced 3PL providers.
Handle operations related to product transportation, inventory management, customs clearance, etc., in accordance with industry laws and regulations. Quickly find alternative solutions to unforeseen challenges, keeping your supply chain running smoothly.
How 3PLs Integrate with Shopify?
Understanding 3PL-Shopify Integration
Third-party logistics (3PL) providers often integrate with Shopify to streamline order fulfillment and inventory management. This integration typically involves API connections that enable a seamless flow of data between the two platforms.
Key Questions to Ask Your 3PL
To ensure a smooth integration and efficient operations, consider asking your 3PL these questions:
- Shopify App Integration:
Does your 3PL offer a dedicated app listed on the official Shopify App Store? Does this app provide real-time API connections to Shopify?
- Inventory Management:
Can the 3PL's app automatically return canceled orders to your sellable inventory?
- Order Fulfillment and Tracking:
Does the app automatically send tracking numbers to Shopify and mark orders as fulfilled? Can you monitor real-time order fulfillment status through the 3PL's app dashboard?
By asking these questions, you can assess the level of integration and automation your 3PL can provide, ultimately optimizing your e-commerce operations.
Why Do You Need Shopify 3PL Integration Expertise?
Integrating a Third-Party Logistics (3PL) provider with your Shopify store can significantly streamline your e-commerce operations. However, a successful integration requires expertise.
Key Benefits of Expert Shopify 3PL Integration:
- Seamless operations with the lowest upfront costs:
Expert integration ensures that your Shopify store is seamlessly connected to your 3PL provider's systems. This minimises disruptions and errors in order processing, which can otherwise lead to delays and customer dissatisfaction.
A well-executed integration will automatically synchronise data between your store and your 3PL provider, ensuring that all systems are up to date and working in harmony, without costing you a fortune.
Ideally, the integration should be as simple as installing a Shopify app. Avoid 3PL providers that require manual data transfer, such as daily Excel or CSV file uploads.
- Automated Fulfillment:
Expert integration automates order fulfillment, reducing manual intervention and improving accuracy. This speeds up order processing, leading to faster delivery times and increased customer satisfaction. Customers receive timely updates, including tracking information, enhancing their overall shopping experience.
- Real-time inventory:
an expert integration connects your Shopify store to your 3PL provider's systems with the least amount of lag time, minimising order fulfillment errors and delays. A well-executed integration will synchronise data between the two systems in a timely manner, ensuring efficiency and accuracy.
More about Real-Time Inventory Management
By leveraging expert Shopify 3PL integration, you can optimize your e-commerce business, reduce operational costs, and improve customer satisfaction.
How Poor Shopify 3PL Integration Hurts Your Business
A poorly integrated 3PL system can significantly impact your Shopify store's operations and customer satisfaction.
Here are the key risks:
- Order Processing Delays: Slower order fulfillment and longer delivery times.
- Inventory Mismanagement: Stockouts, overselling, and inaccurate inventory data.
- Increased Manual Work: Time-consuming and error-prone manual processes.
- Poor Customer Experience: Delayed shipments, inaccurate tracking, and dissatisfied customers.
- Scalability Issues: Difficulty handling increased order volumes and business growth.
- Data Security Risks: Exposure of sensitive customer information to potential breaches.
- Higher Operational Costs: Inefficiencies leading to increased expenses and reduced profit margins.
- Inaccurate Reporting: Difficulty in tracking performance and making informed decisions.
If the above sounds familiar and you need advice on possible solutions, click the button below to contact us.
Get a free consultation today
Why Choose DCX as Your Shopify 3PL?
We believe that DCX is among the best 3PL services in the market because:
- Advanced WMS:
- Cloud-based system continuously updated to the latest Shopify API connection mechanism.
- Monthly upgrades for improvements and additional features.
- Even with a huge number of orders received daily, the API Failed Delivery Rate for orders is less than 0.1% Response Time less than 0.8s.*Data as of 3 Dec 2024 (failed order updates can be covered by retrying)
- Experience and Expertise:
- Built on NX Group's years of experience and expertise.
- Access to a wide range of NX Group's logistics and fulfillment services, including customs clearance, import/export services, and transportation services.
- NX handles a diverse range of products, including branded goods, apparel, household items, cosmetics, and food, providing comprehensive logistics solutions for some of the world's largest retail and online stores across various industries.
- Comprehensive services:
- Benefit from NX Group's extensive network of warehouses and skilled personnel around the world.
- Ongoing research and proposal of logistic solutions from our wide range of warehouses, tools, systems, etc.
- Our solutions also include warehouse visibility and analysis, shipment tracking, shipment volume forecasting, multimodal transportation (air, sea, and land) and more.
With Nippon Express Group's global 3PL network and superior physical logistics operations, as well as DCX's constantly updated WMS capabilities, we can become the best logistics partner for your business.
Contact us
Also read:
