Researching and choosing the right 3PL in D2C (direct-to-customer) brands can be difficult. In that instance, you need to ensure your 3PL provides fast delivery, customizations, client satisfaction, and more.
Therefore, this guide summarizes the steps to finding the best 3PL for D2C brands in six quick steps.
How To Choose The Best 3PL For D2C Brands?
Step 1: What Are Your Business Requirements?
Before you begin hunting for the right 3PL provider, you need to narrow down your business conditions. Here’s how you do it and what you must consider:
- What is your order volume? It would be best to analyze your order volume and expansion plans. You must effectively convey these requirements to 3PL to build a collaborative relationship.
- What are the product types you sell? For example, you must note whether your brand sells fragile, oversized, or perishable items. Therefore, 3PL can effectively handle specific requirements.
- What are your delivery expectations? Depending on your business, you must outline your delivery expectations, such as same-day or next-day delivery.
- How do you want to manage returns? Generally, D2C brands may face high rates of returns. For example, if it is a fashion or electronics brand, there are instances where you may get returns and need to handle your logistics, too.
Step 2: Analyze The 3PL’s Capabilities
As the next step, you need to analyze your 3PLs capabilities. Doing so lets you identify whether they will fit your requirements and objectives. The key capabilities you need to assess are as follows:
- Technology integration capabilities
- Networking capabilities
- Scalability
- Delivery style
Technology Integration Capabilities
Do you know that modern logistics are mostly related to technology? Being experienced in advanced technology helps you gain in-depth help and analysis for your business. Here are some preferred tools your 3PL can possess:
- Real-Time Tracking: You need to establish transparency within your business and customers. Therefore, real-time monitoring helps customers update their orders and allows you to check the current order progress.
- Inventory Management: Your 3PL can have inventory management systems that can easily integrate with your e-commerce platform.
- Analytics: When you have analytics for your business, it helps optimize the business activities.
Network Reach
One key question you can assess is, “Does your 3PL have warehouses near your customers?” If the answer is yes, it helps you reduce travel and shipping costs and even save time.
Moreover, you can also consider expanding towards international markets.
Scalability
Can the 3PL scale with your brand? For example, can the 3PL help you handle logistics and business activities if you launch a new product? This is an important aspect you need to analyze.
Delivery Speed
Does speed matter in D2C business? Yes, it does. You can compare and contrast to analyze whether the 3PL’s speed of delivery matches your customer expectations.
Step 3: Evaluate The Customer Experience
Your 3PL will serve as the face of your brand during fulfillment. Therefore, you need to ensure you provide an effective customer experience. Moreover, that’s a top priority you must consider.
Packaging
Packaging isn’t just functional; it’s a wing of your brand. Ask if the 3PL offers customizable packaging options and eco-friendly alternatives.
Returns Management
A robust returns process can build trust with customers. Ensure the 3PL has an efficient return, refund, and exchange system.
Customer Support
How responsive is the 3PL to issues? Test their support channels to gauge responsiveness and problem-solving capabilities.
Step 4: Analyze Costs And Contracts
Remember, cost comes with quality, but can you afford the cost your 3PL asks for? Here’s what you need to assess in terms of costs and contracts while choosing a 3PL for your D2C business:
- Get a transparent pricing scheme: Ensure the 3PL provider doesn’t have hidden fees, costs, or pitfalls in logistics contracts. Therefore, obtain a detailed breakdown of costs, including storage, picking, packing, and shipping.
- Ensure you get the value for what you pay: Make sure the service you get is valued for your price. For example, there can even be a slightly expensive 3PL that provides better reliability and technology (and even may save money in the long term)
- Assure contract flexibility: When you start, go for short-term contracts. They help you understand how well the 3PL works and extend if you’re happy. If you are unhappy with services, you can easily switch to another provider in a short-term contract.
Step 5: Research 3PL Provider And Their Reputation
Never sign an agreement without researching the 3PL provider. Background research on the 3PL’s reputation, client testimonials, industry recognition, and experience is conducted to build trust, reliability, and expectations.
Step 6: Ensure Customization (If Required)
Most D2C brands are unique to one another. Therefore, ensure the 3PL fits your requirements and is flexible enough to provide customization options. Here are some tips you can consider if you need customization:
- Omnichannel support: Can your 3PL provide omnichannel support? This would be very handy when you expand your business into wholesale or marketplace selling.
- Special services: Depending on your 3PL business, you may need unique customizations such as kitting, subscription box assembly, promotional inserts, and more. Therefore, check whether your 3PL can assist with it.
Final Thoughts
In conclusion, choosing the right 3PL provider for your D2C brand in 2024 can be challenging. However, we narrowed down the key factors you must check to ensure your requirements are met.
But do you want an easy way to find a 3PL partner who fits your needs? Try out our 3PeeL as your 3PL matchmaker. Many happy customers have found their flexible 3PL at their fingertips by using 3PeeL as their matchmaker.
