In this article we are going to discuss the benefits as well as any drawbacks of using a 3PL provider.
3PL is short for Third Party Logistics, also known as Fulfillment or Fulfilment if you are in the UK, Canada or Australia 🙂
A 3PL provider offers companies that sell goods, the facility to outsource the physical action of actually packaging and sending the goods out, indeed many companies bypass even seeing or dealing with their goods altogether, we will get to that shortly, so why would a company want to outsource this part of their operation?
Setting up a distribution warehouse is a complex, expensive and time consuming business, whilst you can get a website online selling goods within just a few days, the infrastructure behind the fulfillment operation is a long process involving planning, health and safety as well as geographical aspects, transportation links, import and export knowledge, postal accounts, racking, barcoding software and hardware, specialist printers and scanners, the list goes on.
By outsourcing that side of your business you are using a professional company who already has all the infrastructure in place as well as the knowledge of dealing with paperwork and distribution.
How much does it cost?
It is a common question put to us, its like someone you don’t know asking you to buy them an item of clothing, we need a certain amount of information, as every scenario is different, costings depend on quantity of orders (we give discounts the more you send), size and weight of packages as well as where the item is going and how quick they want it there.
Our rates start at less than $1 for smaller items plus the cost of postage, storage and any packaging required.
Compared to shipping from the USA or Outside the EU, the fulfillment fee can often be covered by the savings in postal costs, add onto that the speed your customer receives the item from when posted within the EU, then it becomes a no brainer! It often works our cheaper to use a 3PL as opposed to trying to manage doing it all yourself.
Why would i want to sell in Europe?
That decision is entirely yours but considering there are 741million people in the Europe and Europe have the biggest percentage of buyers online, i would consider you a fool not to consider this lucrative market.
What about Imports?
Importation into the EU is a fairly straightforward affair, once goods are within any EU country they then benefit from free movement within the EU, so there is no customs, taxation or other charges once goods are here.
We can help with all aspects of importing your goods to the EU including help with VAT and importation taxes as well as physically arranging transport and getting the goods to one of our warehouses or distribution centers.
We can also accept goods direct from your manufacturers or importers anywhere in the world.
So to sum things up by using a 3PL partner such as EU Fulfillment you will find out that costs can be reduced, performance enhanced and stress removed helping you achieve more time to concentrate on growing your business sales.