How 3PL Logistics Can Help Businesses Achieve Financial Sustainability

Financial sustainability is the main goal of any business from day one. It ensures that a business has a strong foundation with enough resources for growth and success. In simple terms, when a business earns enough to cover its expenses and make a profit, that business is financially sustainable. A successful business should have a strong business model, efficient operation, and a safety net in case of market fluctuations.

A business’s success depends on various factors, such as customer loyalty, shareholders’ satisfaction, return on investment, demand and value for the product/service, operational sustainability, and more. For most e-commerce companies, logistics performance decides the fate of the company. Timely, accurate, and cost-effective deliveries are the pillars of customer satisfaction and success for such companies. In this blog, we will explore how 3PL logistics can help businesses achieve financial sustainability.

1. Cost Savings

Cost-saving is a priority for all businesses and their customers. For an ecommerce company, logistics incurs the most expenses – from inventory management to final delivery, which requires people, space, and time.

A 3PL company is efficient at handling all the logistics processes. Due to economies of scale, they are able to provide the same services of warehousing, shipping, and distribution at a much better price. They have the space, technology, and experience to process your inventory and deliver it to the customers at a reduced cost. They are able to provide a true rate shop for every order, which makes your shipping fee attractive to potential customers.

2. Customer Experience

Customer loyalty depends on their experience with each purchase. Ideally, you want every delivery to be accurate, on time, and give people the satisfaction of receiving and unboxing their items packages. There are many dynamic factors involved in managing all that, such as sourcing, storage, picking and packaging, and final shipping. A single error can ruin the customer’s experience and their loyalty to the company.

When you hire a company to handle all these operations for you, they are responsible for each process and step to ensure that every transaction is carried out perfectly. Their entire service is based on accuracy, timeliness, and effectiveness, which ensures customer satisfaction with each purchase. A loyal customer is worth a hundred new ones. Customer retention ensures regular business for your company, maintaining regular cash flow and financial sustainability.

In order to enhance logistical efficiency for optimal customer satisfaction and financial sustainability, it is crucial to partner with a robust, reliable delivery services provider. For example, utilizing a stat delivery service ensures swift and precise package deliveries which can dramatically elevate the level of customer experience. This not only leads to higher retention rates but also supports a growing ecommerce business model.

3. Growth and Expansion

For an ecommerce business, the goal is to reach as many customers as possible. The business plan is to cover newer places and a larger customer base. As your business grows, there is a need for more resources like people, space, technology, and transportation.

However, if you are a side hustler in the ecommerce area, long-term investment in all these resources is a huge expense that affects your capital and savings. Instead of investing in assets, you can outsource the entire logistics operations to a third party for a fraction of the cost. You can avoid huge operating costs and only pay for the transactions that do occur.

3PL companies are generally established and operating efficiently across all of their service areas. Using an already established service provider helps you gain their expertise and knowledge regarding the area and its consumers. You can scale up or down based on how well your business does in the location, and the 3PL company will manage the changes without you having to make additional expenses or investments.

4. Customization

Every purchase should be a unique shopping experience for the customers. Depending on the brand and the product you sell, there can be different customizations in packaging and delivery. Most 3PL companies provide the option to customize the products and deliveries. This includes creating bundles or kits of the products in the warehouse, including inserts and brochures during packaging, and using special or unique packaging material according to the nature of the product.

Customization service helps you provide a unique experience to customers. You can select different customization options for different kinds of products and customers. Such customizations help to retain customers, attract new ones, and enhance your business.

5. Improved Efficiency

A business should constantly strive to be efficient, i.e., get maximum output from minimum input. Partnering with an expert 3PL provider ensures your inventory is managed with precision and efficiency. They handle your inventory in a safe and efficient way to lower damages. They also provide value-added services like labeling, bundling, packaging, labeling, and warehousing. They have better infrastructure to transport the product to the customers accurately and on time. It means an efficient operation from sourcing to delivery that adds value to your product as well as services.

When the 3PL handles all these processes for you with fewer damages and errors, you do not have to worry about logistics efficiency. You actually have extra time and resources to focus on other important business functions like acquisition, marketing, and finances. Then, you can improve efficiency throughout the company and yield better results for a successful business.

6. Networking

An experienced and well-established 3PL company has better relationships with all the big players in the industry. Some allow you access to these companies or their services at a lower rate and also provide industry secrets and expertise that you can utilize for your benefit. Such networks can be instrumental in the growth and expansion of your business.

7. Advanced Technology

If you are a new or small business, you might not have the best or most advanced technology required to excel in the industry. However, your 3PL might be using the right technology for cost-effective and time-efficient operation results. Through your 3PL, your products will be processed by these technologies, giving you an edge over your competition.

Most 3PL services also provide API and EDi integrations so you can have streamlined logistics from sourcing to delivery. This access can be essential to continue and grow your business over time.

8. Optimizing Network Infrastructure

In the rapidly evolving digital landscape, maintaining a robust and scalable network infrastructure is crucial for e-commerce businesses. Leveraging advanced technologies, such as the Meraki networking solution, can streamline network management, enhance security, and improve overall operational efficiency. This not only ensures smoother day-to-day operations but also supports growth by accommodating increasing data demands and expanding customer bases. Investing in such infrastructure solutions is a strategic move that complements the cost-saving and efficiency benefits offered by 3PL logistics providers.

Conclusion

In conclusion, partnering with a 3PL logistics provider can significantly enhance an ecommerce business’s journey towards financial sustainability and success. By outsourcing logistics operations to experts, businesses can achieve cost savings through economies of scale, ensure exceptional customer experiences that drive loyalty, and facilitate seamless growth and expansion into new markets without the burden of heavy investments in infrastructure. Moreover, leveraging advanced technology and benefiting from established networks further strengthens operational efficiency and competitiveness in the market. Ultimately, integrating 3PL services not only optimizes logistics processes but also empowers businesses to focus on core strengths, driving overall business growth and long-term profitability.

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More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.