The best Value Added Services (VAS) can boost your sales and get more customers. Here is a comprehensive list of the top five VAS services 3PL companies offer.
Your third-party logistics provider provides a wealth of value-add services. These services can be implemented at your warehouse. The more information you keep about each item, the easier it will be to locate things later.
Most retailers use 3PL providers to provide critical metrics for their service packages. Things like order reports and shipping updates are crucial factors. They play a pivotal role when evaluating fulfillment issues. Or if there’s some sort of error with inventory management (or both). Without tracking information, it isn’t easy to effect an order processing. So there’s no way to tell what went wrong.
Storage planning does not mean piling boxes into disorganized stacks. This is because you’re running out of room. Inventory management requires a keen sense of spatial awareness. It allows you to know exactly where everything is supposed to go. Hence, there are no bottlenecks when it comes time for fulfilling orders. 3PLs lend their expertise in storage planning. This is to ensure your products can fit into designated areas.
Product Returns Processing
The return process is a critical part of the customer experience. The right 3PL partner can help you improve your return rates. Plus, it can also reduce expenses by streamlining this process.
Most e-commerce companies use a 3PL company to handle product returns processing. This is an essential part of the supply chain management process. According to eMarketer, the average online order value in 2018 was $124. This means that most online shoppers are purchasing more than one item at a time. That’s why retailers need to have an efficient process for processing returns. — both for their own sake and for their customers’ sake!
The first step in any successful return process is managing inventory. A good 3PL partner will understand how best to utilize your list to maximize its value. This should happen without wasting money on unnecessary items or overstock. That way, a customer will find it easier to return items. They don’t have to wait weeks or months before getting their money back (or replacement). Quick read: Logistics Outsourcing Secrets: How To Navigate It
Kitting and Assembly
Kitting and assembly is a service offered by 3PL companies. It’s the opposite of distribution. A kitted or assembled product is shipped to the customer. The product does not have to go through the warehouse and shipping processes. Kits can be made up of different items sold for a single price. They may include commodities such as oils and containers. Assembled products come in pieces. But they go together when you receive them.
Here are some benefits a kitting or assembly service can offer your company:
- You don’t have to warehouse those extra items on-site or make sure there’s enough room in stock at all times.
- Your logistics costs will decrease. You’re only sending one shipment instead of more shipments later.
- You can charge more for kits because they offer convenience. So, people will pay more if they don’t have to do anything except unbox their purchase.
Making kits work is finding ones that suit what your business sells. If you sell plants, add some fertilizer along with pots and soil? If it’s notebooks and pencils, include some pens? The possibilities are endless!
Packaging and Labelling
Shipping packaging is so much more than shipping boxes. The idea that shipping packaging is a box you stick your products in, and mail out was done long ago. Nowadays, the world of shipping has become a lot more competitive. Customers expect much more from their 3PL (third-party logistics) providers. So, it is up to each company to find ways to stand out among their competitors. Shipping shouldn’t be seen as a necessary evil but as a way for brands to promote themselves.
Companies should be utilizing every opportunity they are given. Because customers do not see it right away, whether outside their packages or inside. Therefore, promoting your business through packaging can give you an edge over the competition. This can provide you with many other benefits:
- It helps in building a stronger brand. When you ship your product, your customer will remember the shipping company. This will be based on how professional, unique, or beautiful the box looks. This impression will make customers think of you.
- It can increase Click-Through Rates And Conversions. Packaging with an eye-catching design will likely enhance the click-through rate. People are likely to buy from you instead of another competitor.
- It Shows That You Care About The Environment. Incorporating features into your packaging will help increase sales. This is because customers are looking for responsible companies.
To achieve all these goals with a specific product may seem impossible. There are some services offered by 3PL companies that can help make this process easier. Value-Added Services (VAS) allows shippers to add custom design elements to pre-packaged products. They do this without any extra.
Negotiating Shipping Rates
3PL companies are a great way to negotiate shipping rates for eCommerce sites. The reason is simple: 3PL companies are experts at negotiating shipping rates. This means that they know how to get the best deals. ECommerce sites can use 3PL companies to negotiate better shipping deals.
This is especially true when negotiating with large shipping providers. These large companies have the best rates in the industry. But they also have strict requirements for working with new customers. They need a certain volume level before signing off on any deal. This means that you may pay more than necessary if you don’t have someone who knows how to negotiate for you.
A 3PL company can help you avoid this problem by negotiating your rate with large companies. So, you won’t sign any contracts or agreements. You will not wait until your business reaches a specific volume to get the best rate.
If you want your eCommerce business to grow, you will want to do what you can to accommodate those needs. For example, having a reliable Fulfillment company in place can help you a great deal. It will be invaluable. Your chosen 3PLpartner should provide you with the support and flexibility you need. Contact sales support for more details.