How I Got Faster Shipping On Shopify

Welcome back, everyone! If you're new here, I'm Davey. I've done over $ 200 million in sales on Shopify. Today’s episode is going to be a comprehensive guide on fulfillment. I’ll be taking you on a tour of one of our top 3PLs. You’ll learn everything you need to know about setting up a 3PL, shipping rates so you don’t get ripped off, and the red flags to watch out for when scouting for the best 3PL.

3PL Basics

3PL stands for third-party logistics. They manage all parts of warehousing and fulfillment, including receiving shipments from your manufacturer, storing products, and shipping orders to your customers. 3PLs also handle packaging, promotions, returns, and other marketing elements. Using a 3PL allows you to focus on what you’re best at - growing your brand and marketing. The point of getting a 3PL is to help you scale, ensuring your customers have a fantastic experience, so you can get good reviews and maintain scale.

When Should You Use a 3PL?

Here are a few indicators that you might need a 3PL:

You’re filling more than 10 to 20 orders per day.
You’re running out of inventory storage space at home.
You’re getting negative reviews due to long dropshipping lead times.

You might be surprised to learn that 3PLs can be cheaper than dropshipping, depending on your region and the size of your goods.

Steps to Set up a 3PL

Research and Outreach: Start by doing a quick Google search for 3PLs. Use an outreach template to contact them with the necessary details about your products, sales volume, and SKU count.
Cost Considerations: Check if going cross-border will drastically increase your rates. Try to get a 3PL with warehouses in multiple states and countries to expand easily as your business grows.
Distributed Inventory: Work with a platform that offers inventory in multiple locations to ensure quick and cost-efficient delivery.
Transparent Pricing: Demand a transparent pricing model. A good 3PL will clearly outline how their model changes as you grow with no surprises.

Red Flags to Watch Out For

Integration Issues: A good 3PL should integrate seamlessly with shopping carts like Shopify. If integration is a hassle, it’s a red flag.
Confusing Onboarding: The onboarding process should be straightforward. If it’s confusing, their processes might not be streamlined.
Barcodes: Your 3PL should require barcodes for all products. This ensures inventory accuracy.
Real-Time Data: They should provide real-time data on inventory to ensure you don’t oversell.
Accurate Reports: Access to clear stats and financial reports is crucial for matching your sales and outgoing stock.
FIFO Fulfillment: Orders should be fulfilled on a first-in-first-out basis to prevent overselling.
Customer Service: Ensure they have good customer service with timely responses.

Understanding the Operation

Take a look at the facility if possible. You should understand their delivery capacity, inbound capacity, and overall operation size. This will give you a sense of their efficiency and reliability.

Realistic Expectations

While using a 3PL gives you greater capabilities, expect some teething problems. Logistics are complex, and even big companies have issues. Ensure your 3PL shares your values, especially putting the customer first and always seeking to fix problems.

Thank you for reading! If you have questions, feel free to email me at davey@daveyco.com, and we’ll help you with your warehousing questions. Make sure to subscribe!

Keywords

3PL (Third-Party Logistics)
Warehousing
Fulfillment Process
Shipping Rates
Inventory Management
Shopify Integration
Customer Experience
Distributed Inventory
Barcodes
Transparent Pricing
FIFO (First In, First Out)
Customer Service

FAQs

Q1: What is a 3PL?
A: 3PL stands for third-party logistics. They manage warehousing, fulfillment, shipping, returns, and other aspects of the logistics process.

Q2: When should I consider using a 3PL?
A: If you’re filling more than 10-20 orders per day, running out of storage space, or receiving negative reviews due to long shipping times, it's time to consider a 3PL.

Q3: How do I find the right 3PL?
A: Start by researching online. Use outreach templates to contact them with your product details, sales volume, and SKU count to get quotes. Look for red flags and ensure they meet your integration, pricing, and service needs.

Q4: Why are barcodes important for 3PLs?
A: Barcodes help maintain inventory accuracy by ensuring each item is tracked from storage to shipping. Without barcodes, the process is prone to human error.

Q5: What are some red flags to look out for in a 3PL?
A: Lack of integration with e-commerce platforms, confusing onboarding, no requirement for barcodes, lack of real-time data, unclear reporting, not using FIFO for order fulfillment, and poor customer service are significant red flags.

Q6: Are 3PLs more cost-effective than dropshipping?
A: Depending on your region and the size of your goods, 3PLs can be cheaper than dropshipping from China.

Q7: Can I visit the 3PL facility before deciding?
A: Yes, if possible, visiting the facility can give you a good sense of their operation size and efficiency.

Feel free to reach out with more questions or for assistance on warehousing topics.