Unlocking the Benefits of a Third-Party Logistics (3PL) Provider: Why You Need One

As an online seller, you are probably already familiar with Amazon's Fulfillment By Amazon (FBA) program, which is designed to make your life easier by handling all aspects of shipping and customer service. However, with the recent introduction of inventory limits, many sellers are finding it harder to keep up with demand. If you are struggling to meet these new restrictions, it may be time to consider enlisting the help of a 3PL (third-party logistics service).

In this article, we'll take a closer look at why you might need a 3PL and how it can benefit your business.

First, let's review how FBA used to work. In the past, you could order a large quantity of your product from China, enlist the help of a freight forwarder to ship it directly to Amazon's fulfillment center, and then sit back and watch as Amazon handled all aspects of storage, shipping, and customer service. This was the ultimate passive income stream.

However, with the recent changes to FBA inventory limits, many sellers are finding it harder to maintain their stock levels. If you have a new listing or a new store, your limit is just 200 units at a time. Even if you negotiate great prices and order a larger quantity from your supplier, you may not be able to send it all to Amazon. This is where a 3PL can come in handy.

A 3PL is a third-party logistics service that specializes in handling all aspects of shipping and fulfillment for online sellers. With a 3PL, you can store your products in their warehouse, and they will handle all aspects of shipping and customer service for you. This allows you to focus on growing your business, rather than worrying about the day-to-day logistics of shipping and fulfillment.

So, why should you consider using a 3PL? Here are a few key benefits:

1. Increased Flexibility - With a 3PL, you have the flexibility to store your products wherever you choose, rather than being restricted to Amazon's fulfillment centers.
2. Cost Savings - A 3PL can often provide lower shipping rates and better overall pricing than you would get through FBA.
3. Increased Scalability - As your business grows, a 3PL can help you handle larger volumes of orders without having to worry about the logistics of shipping and fulfillment.
4. Improved Customer Service - With a 3PL, you can ensure that your customers receive their orders quickly and efficiently, which can lead to increased customer satisfaction and repeat business.

If you are struggling to meet Amazon's new inventory limits, it may be time to consider using a 3PL to help you manage your shipping and fulfillment. With increased flexibility, cost savings, and scalability, a 3PL can help you grow your business and achieve greater success in the competitive world of online selling.