No, this isn’t a clickbait title. We must assume most businesses like yours are looking for ways to save thousands while improving efficiency in your small business. What many business owners aren’t aware of (probably because they don’t think its for them) is a simple yet powerful solution: 3PL, or third-party logistics. This “hidden trick” allows businesses, of almost any size, to cut operational costs significantly in their order fulfillment process, all while streamlining their logistics and growing faster than they ever thought possible.
Who are we? Speed Commerce is an end-to-end provider of outsourced customer experience solutions, including TikTok fulfillment for retailers (on Shopify and Bigcommerce & more) as well as manufacturers. We grow our clients’ businesses by providing winning customer experience strategies such as 24/7/365 eCommerce customer service, order fulfillment, and warehousing – get a free quote from a fulfillment expert. Read our annual top-ranked 3PLs in the US list.
What’s a 3PL?
Third-party logistics involves outsourcing your company’s logistics and fulfillment needs to specialized service providers. These companies manage warehousing, shipping, and even returns, so you don’t have to.
Small businesses often struggle with the complexities of logistics, especially when scaling. In fact, according to research from the Council of Supply Chain Management Professionals, 79% of companies with superior supply chain management achieve higher shareholder returns. Partnering with a 3PL can be a game-changer, saving both time and money.
Who are we? Speed Commerce is an end-to-end provider of outsourced customer experience solutions for eCommerce retailers (including for Shopify and Bigcommerce and more) as well as manufacturers, for close to 20 years.We grow our clients’ businesses by providing winning customer experience strategies such as 24/7/365 eCommerce customer service, order fulfillment, and warehousing – get a free quote from a fulfillment expert. Read our annual top ranked 3PLs in the US-list.
| Service | Description |
| Warehousing | 3PL providers offer storage solutions, eliminating the need for small businesses to own warehouses. |
| Order Fulfillment | Manage order processing, picking, packing, and shipping to customers. |
| Shipping Management | Negotiate better rates and ensure quick deliveries through bulk shipping deals. |
| Returns Processing | Handle product returns, reducing the burden on small businesses to manage this internally. |
The Hidden 3PL Trick
While outsourcing logistics is the foundation of working with a 3PL, the real magic happens behind the scenes. Many small businesses mistakenly think that partnering with a 3PL is simply about handing off shipping and fulfillment tasks. However, the true value lies in how logistics providers optimize every aspect of the supply chain to drive down costs and boost efficiency.
This trick isn’t always obvious, but the savings it delivers are undeniable. By leveraging their industry expertise, established relationships, and advanced technology, 3PL providers unlock cost-saving opportunities that small businesses would struggle to access on their own.
Savings from 3PL Partnerships
- Bulk Shipping Discounts: 3PLs leverage long-term relationships with carriers to secure bulk shipping rates that can be 20-30% lower than standard rates. A study by Logistics Management found that companies using 3PL services experienced an average shipping cost reduction of 10-15%.
- No Need for Expensive Infrastructure: Small businesses can eliminate warehouse management costs by utilizing established fulfillment centers. According to Statista, U.S. logistics costs reached $1.6 trillion in 2021, making this a crucial area for savings.
- Streamlined Operations: 3PLs employ cutting-edge technology, such as warehouse management systems (WMS) and automated inventory tracking, which reduce human errors. The National Retail Federation reported that reducing order processing errors can save businesses up to 5% of their total sales.
How This Trick Saves Small Businesses Thousands
Here are a few specific ways small businesses save money by partnering with a 3PL:
- Lower Shipping Costs. Thanks to their negotiating power, 3PL providers can offer rates that significantly lower shipping expenses. This can save small businesses thousands over time.
- Reduced Warehouse Management Costs. Managing a warehouse incurs costs related to space, staff, and technology. Outsourcing to a 3PL can save businesses up to 30% on these expenses, freeing up capital for other investments.
- Fewer Order Processing Errors. With fewer errors in order processing and shipping, small businesses see a decrease in returns and refunds. A study by Harvard Business Review indicated that improving order accuracy can lead to a 25% increase in customer satisfaction.
Timing Matters for Small Businesses
With eCommerce continuing to grow—estimated to reach $6.4 trillion by 2024—and rising customer expectations, small businesses need to stay competitive. Shipping costs are climbing, and fulfilling orders in-house can quickly become overwhelming.
By partnering with a 3PL, your business can immediately access cost-saving measures while improving order accuracy and fulfillment speed. The sooner you implement this trick, the sooner your small business can benefit from the competitive edge it provides.
The ‘hidden’ trick of partnering with a 3PL can save small businesses thousands in logistics costs while offering streamlined operations and scalability. By lowering shipping costs, reducing warehouse expenses, and minimizing errors, 3PLs make running a small business more efficient and profitable.
If you haven’t considered working with a 3PL yet, now is the time to act—before your competition does. Contact Speed Commerce today to find out how we can serve your eCommerce business.
