In the United States, e-commerce sales increased from $762.68 billion in 2020 to $870.78 billion in 2021, a 14.2% increase in a single year. In 2021, ecommerce sales accounted for 13.2 percent of total sales – which may seem relatively low but just 10 years before the figure stood at 8.3 percent. The truth is, ecommerce is and will continue to grow. Any new business that doesn’t have an online sales element likely won’t last long. And, you don’t have to be Nostradamus to predict that shopping trends are likely to continue in this vein.
The benefits to setting up an e-commerce business
If you’re a new startup then the benefits for creating an e-commerce business are many and varied. Startup costs will be considerably lower, running costs too, the business can be operated from anywhere and the business’ carbon footprint will likely be lower. But, you know all this, you’re already operating an ecommerce business. So, can a 3PL provider, help you to grow. We say yes. Here’s how…
The benefits of using 3PL for your small e-commerce business:
One sizeable hurdle that often prevents e-commerce businesses from being successful is a lack of storage space. If you’re working from home and a big order comes in, you may struggle to store the materials you need to supply your consumers and, you’re not alone, most successful e-commerce startups eventually lack the space to warehouse the product they are selling. As the orders come in, they may also lack the manpower to receive, handle, and ship their products when orders come pouring in. This is when 3PL should be explored as an option to solve the puzzle of where to warehouse product.
Your e-commerce business is growing fast. You’ve hit a niche market and the orders are pouring in. A 3PL service can receive a single product shipment and store it in their warehouse until that product is needed so it can grow as you do. Once orders start rolling in, your 3PL provider can break that shipment down into individual orders, pack the items, and ship them to customers, eliminating the need to employ additional staff and invest in warehouse space even as your business grows. What’s more, you can increase or decrease the amount of storage space you rent with a 3PL provider, this simply isn’t an option with your own storage facilities.
To begin with, most e-commerce business will ship goods themselves but as the business grows, it becomes increasingly difficult to keep up with demand. There may come a time when your business is so globally successful that buying huge warehouse facilities is a no brainer (we see you Amazon!) but in the meantime, keep overheads and staffing costs low by outsourcing your inventory, storage, packaging, shipping and returns requirements to a 3PL company.
At Red River Freight we’ll help your growing e-commerce business to run faster, smoother and more reliably. We have a vast storage facility and our Pembina, ND location means we can easily assist with cross-border shipping.
Want to know more? Get in touch with a member of the team today.