July 13, 2024

Oliver Pikus

Progressive Solutions

Managing The Logistics of E-Commerce


E-commerce has changed the way that businesses operate. It’s no longer enough to simply be able to produce products, but now you need to be able to store and distribute them as well. This is where 3PLs come in: they assist with the logistics of e-commerce by providing a third party service for shipping, storage and fulfillment. In this article we’ll explore what these services are, why they’re beneficial and how they can help improve your business’ efficiency while saving on costs!

Managing The Logistics of E-Commerce

The importance of inventory management

Inventory management is a critical part of e-commerce. Without it, you run the risk of stockouts and overstocking, which can hurt sales and your bottom line. Inventory management helps you avoid these problems by keeping track of what’s in stock at all times.

  • Stockouts are caused when demand outpaces supply–the result is unhappy customers who can’t buy what they want because it’s out of stock!
  • Overstocking occurs when there’s more product than can be sold within a given timeframe (whether that timeframe is days or weeks). This means lost money on spoiled inventory as well as wasted space in your warehouse or storage unit(s).

The benefits of using a 3PL

You’d be hard-pressed to find a more efficient way to manage the logistics of e-commerce than by working with a third party logistics (3PL) provider. 3PLs can help you manage your inventory, take the burden of order fulfillment off your shoulders and even help you manage warehouse space. In this article, we’ll look at some of these benefits in greater detail so that you can decide if outsourcing is right for your business.

The value that inventory management provides to your business

As an e-commerce business owner, you want to ensure that your products are always available and ready to ship. This is especially important when it comes to large purchases like furniture or appliances where customers expect their items quickly and efficiently. Inventory management software helps you do just that by helping you:

  • Reduce costs – By reducing the amount of time employees spend on inventory tasks, you can save money on labor costs. Additionally, if the software automatically updates inventory levels as they change (for example, through a scan), then there will be fewer mistakes made when entering data into the system manually or via spreadsheets–which again saves time and money!
  • Improve efficiency – The more efficient your company becomes at managing its inventory levels across multiple warehouses or stores means less waste overall–and therefore greater profitability for everyone involved in this process including customers who benefit from quicker shipping times too!
  • Improve customer satisfaction – When people shop online for products like computers or cars because they don’t want any surprises once they receive them at home; companies need their systems set up properly so no surprise costs arise unexpectedly down road either due poor planning ahead beforehand.”

How to optimize your order fulfillment center

Order fulfillment is the process of receiving an order, processing it and shipping it to your customer. You need to have a system in place that will allow you to manage this process efficiently and effectively.

A third-party logistics (3PL) provider can help you with order fulfillment by providing warehousing services, shipping management, warehouse lighting systems and picking & packing systems. They also offer a wide range of other services including:

  • Warehouse management software – which allows the inventory levels at each location to be monitored remotely so that they can be replenished quickly when needed;
  • Shipping management software – which allows for real-time tracking information about each package being shipped;
  • Warehouse lighting systems – these ensure that all areas are well lit during working hours without being too bright so as not disrupt employees from their tasks;
  • Picking/packing systems – these allow employees pick items from shelves without having them walk around manually looking for items on shelves;

The benefits of using a 3PL are numerous.

The benefits of using a 3PL are numerous. The first is cost savings. A 3PL can help you reduce the costs associated with warehousing and fulfillment operations by providing high-quality, inexpensive facilities and equipment that are tailored to your business’ needs. This allows you to spend less time managing logistics and more time focusing on growing your core business offerings.

Another benefit is increased customer service for both B2B and B2C companies as well as increased sales conversions due to improved order accuracy rates (OARs). By outsourcing some or all of their warehousing needs, many companies have seen an increase in revenue while maintaining low OARs because they no longer have employees spending time picking orders from shelves or packing boxes at home in between shifts at work–they simply send everything out once it’s been processed through software like ShipStation!


The benefits of using a 3PL are numerous. From increased efficiency, to greater customer satisfaction, there is no doubt in my mind that your business will benefit from this type of service. If you have any questions or would like more information on how we can help you with your eCommerce needs please don’t hesitate to reach out!