So you want to grow your eCommerce business. You've heard of this thing called "3PL", but you're not sure exactly what it is or how it can help.

Even the acronym is confusing. "Three past lunchtime"? "Three pulchritudinous llamas"?

Here's the thing. While there are many 3PL guides out there, most of them are written by old hands who have forgotten what it's like for newcomers.

Before long, they're throwing out jargon like "BPO" and "WMS". If you haven't got a logistics dictionary to hand, you're back at square one.

That's why we've put together this simple guide for total beginners.

No jargon. No industry waffle. Just the key facts you need to know.

What is 3PL?

3PL stands for "third-party logistics".

In this context, "logistics" means the stuff that needs to happen to get goods from point A to point B. This includes storing the goods (warehousing), working with couriers to transport the goods, and making sure this all happens without a hitch.

When you choose a 3PL provider, you outsource all these complexities to them. This means you can forget about handling your stock and focus on the day-to-day management of your business.

People sometimes refer to 3PL as "third-party fulfilment" or simply "fulfilment". While these terms mean slightly different things, they're often used interchangeably.

Why do companies outsource logistics?

For the same reason you'd outsource anything else – to save time and get more done.

Logistics is a little different to most outsource-able services though, because logistics is uniquely resource intensive.

It demands:

• Time: no doubt about it – picking, packing and shipping products is laborious and time-consuming. 
  
  
• Brainpower: there's a reason big brands have armies of supply chain managers – logistics can feel as complicated as a 12-sided Rubik's Cube.
  
  
• Space: this is a big one, especially for small-scale sellers. You can only fit so much stock in your garage or spare room, after all.

Handling logistics yourself is an option, up to a point. But there'll come a time when the resources it demands will outweigh your capacity. It's more or less inevitable.

When this happens, you have two options. You can scale up your DIY approach by investing in your own warehouse space and fulfilment staff, or you can partner with a 3PL provider.

The latter option is almost always cheaper and easier. A good 3PL firm will handle everything so smoothly that you can all but forget about your stock.

This means you can focus on the important stuff – like managing, marketing and growing your business.

(And, of course, enjoying a much-deserved break.)

How 3PL works, step by step

1. Stock is stored

When you work with a 3PL provider, you'll offload some – or all – of your stock to its warehouse.

(Yes, you'll finally be able to get to your desk without tripping over stray boxes and half-full cartons.)

A few things to check when you're choosing a 3PL partner: is their warehouse clean? Is it secure? Is it suitable for the kinds of products you offer? Do you get your own dedicated space, so there's no risk of mix-ups with other retailers' products?

(In case you're wondering, our answers are "yes", "yes", "yes" and "yes".)

2. Products are picked

If your 3PL is efficient, they'll start picking the items as soon as an order comes through.

The exact picking process varies between providers. Some keep it simple, while others use sophisticated technologies to determine the fastest route through the warehouse.

Anyhow, this is when your products leave the shelves and are prepared for packing.

3. Orders are packed

You might think this part is simple. You just grab some products and stick them in a box, right?

Well, sort of. But it's a little more complicated than that.

For a start, you have to ensure the right products go in the right box. Picking and packing errors can cause all manner of headaches, so if your provider has a low error rate, that's a big boon.

Then you have to make sure suitable packaging and materials are used (fragile items are adequately protected, etc.), the right label goes on the box, and so on.

Now, forgive the self-promotional spiel, but this is one stage where we can really add value.

At Stowsafe, we pride ourselves on our flexibility – and this truly comes to the fore at the packing stage.

Our experts can pack your products to your exact specifications. For instance, we can include flyers or leaflets (and even print them for you). And we can attach specific labels for specific customers, which is important if you're shipping to big-brand distribution centres.

We also offer a kitting service. This involves taking multiple items and packing them into one, saleable bundle.

Let's say you want to offer a gift pack that's made up of several existing SKUs. Take advantage of our kitting service, and all the complexities are dealt with at our end. This means there's no need to send pre-packed bundles to our warehouse.

4. Orders are shipped

With picking and packing complete, your products are ready to be sent to their destination. This could be the end consumer or the next link in an intricate supply chain.

Typically, 3PL providers work with trusted third-party couriers to make this happen. Common brands include Royal Mail, DPD and UPS.

How do 3PLs make sure they pick the right courier for the job? Again, we can't speak for everyone here, but we use a unique piece of software that chooses the best-value service on an order-by-order basis.

5. It doesn't stop there

Using a 3PL service should mean outsourcing any or all aspects of your outgoing supply chain. So any provider worth its salt should deal with returns, as well as fulfilling orders.

The process of receiving and handling returns is often referred to as "reverse logistics".

Check that your chosen 3PL can offer a dependable and efficient returns management service. If you work in a sector – like fashion – where returns are expected, then poor handling of returns could cause more harm than good.

As for us, we're flexible. Like all our services, our returns handling procedure is designed to your exact specifications. We'll receive returns, inspect them, and deal with them according to your returns policy.

Thanks for reading! Hopefully, you've got the knowledge you need to decide whether third-party logistics is right for you.

Of course, we'd be delighted if you chose us as your partner. Feel free to get in touch or explore our eCommerce fulfilment services for more information.