How 3PLs Could Save eCommerce Brands from the 2023 Recession

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At the time of writing this, there is a lot of talk of a global recession incoming. As an eCommerce brand owner, you’re probably well aware of this and the struggles your business could potentially face. As consumer spending decreases, so do bottom lines. Typically, at this point businesses begin to lower their spending in anticipation of less revenue coming in. So why then, could it be beneficial for eCommerce brands to partner with a 3PL during this period?

Cost Effective

This is an obvious one, partnering with a 3PL can save you a lot of money on everything from shipping to packaging costs. For shipping, fulfilment centres are able to negotiate prices with various couriers and pass those discounts on to you. They are also in charge of hiring and paying for the labour required to manage and fulfil your orders so that’s another thing you don’t need to worry about.

When it comes to surviving a recession, reducing your business expenses is key but what is more important is which areas you spend less on. Usually businesses will start by slashing their marketing budget but if you’re a small business like us, how can you expect to bring in new customers during a recession without significant ad spend.

This is where a 3PL can be key for eCommerce brands trying to stay afloat as they are able to lower costs for labour intensive work, leaving room for you to maintain your marketing strategies.

Time Saving

Similar to saving you money across certain areas of your business, a 3PL will also save you time in these areas. By taking all of the inventory management and order fulfilment off your hands, you’re free to focus your energy on other parts of your business.

The best third party logistics companies handle a lot of additional services on top of the standard store, pick, pack and ship methodologies that every 3PL covers. Things like returns processing, custom packaging and dealing with order problems are all things that a good 3PL will save you time on.

Efficient Shipping

As part of their services, 3PLs build relationships with a range of courier companies to ensure efficient and cost-effective shipping for their clients. Maintaining these relationships during a recession is much easier for businesses in logistics than it is for small business owners. These relationships between fulfilment centre and courier provide essential savings for eCommerce businesses during uncertain times.

When it comes to keeping your business afloat during a recession, there is no ‘one size fits all’ approach. Every business is different and there are countless factors that come into play. However, if you’re running an eCommerce business and you’re concerned about the upcoming recession, it might be time to consider a how a 3PL can benefit your brand.

To learn more about what a 3PL is and what we do, check out our blog ‘What is a 3PL?’ Or, if you want to get in contact with us directly you can fill out the ‘contact form’ and we will reach out to understand your unique business needs within 24 hours.

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