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Why It Makes Sense to Use a 3PL When Scaling Your Amazon Business

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Feb 22, 2024
A clack at 12:20
5
min
Why It Makes Sense to Use a 3PL When Scaling Your Amazon Business

Table of contents

The old adage of ‘spend more to make more’ is one that most Amazon sellers are likely well accustomed to. If you're reading this and all your profits are going straight back into inventory, then you probably feel the pain. However, in the case of logistics, the right 3PL partnership can be a great way to make cost savings that trickle down to the rest of your business. In order to scale and exit your business, it is vital to have a robust order fulfilment process that can keep up with your current rate of order and cope with sudden spikes in demand and eventually, exponential growth.

For clients coming to Sitruna Logistics, we generally find that they make their most significant savings in three core areas: 

Streamlining Businesses Operations and Mitigating Risk

Many sellers find themselves in a Catch-22: in order to scale further on Amazon (and beyond) they need to build a robust logistics operation to support growth. And yet, investing in anything other than stock often feels like a detriment to business trajectory. A good 3PL affords you a flexible, secure and cost-effective solution with clear rates charts for storage and postage. Through effectively renting the infrastructure, you can stay cash flow positive and never have to consider leaky roofs, ground leases or packing orders. Starting and scaling our own brand Beechmore Books to seven figures, we quickly realised that reducing overheads allowed us the ability to experiment and strategise without those sleepless nights!

Insider information says that running out of stock is one of the surest ways to be pushed down the listings by Amazon’s secretive A10 Algorithm. Indeed, it has the potential to dramatically reduce and even permanently affect your Amazon business. And yet, you’d be hard pressed to find such a specific policy to cover it. We keep reserve stock for many of our clients so that when orders outstrip supply in Amazon’s warehouses, we can meet the demand and ensure that the Amazon gods are sated. 

For growing Amazon businesses, effectively managing inventory is key to avoiding unnecessary costs. A 3PL offers scalable warehouse solutions, eliminating hefty investments in storage facilities and equipment. You gain access to flexible, secure, and cost-effective storage options, adaptable to your business’s evolving needs.

Labour and Operational Cost Efficiency

Scaling up often means scaling your workforce, a challenge efficiently managed by a 3PL provider. Outsourcing to Sitruna Logistics means your staffing and warehouse management are taken care of, allowing you to save on labour costs and refocus resources on your core business activities.

Enhanced Shipping and Handling Savings 

Effective shipping is a cornerstone of e-commerce success. A 3PL can streamline this aspect, ensuring timely and cost-effective delivery of your products. This optimisation of shipping and handling processes not only enhances customer satisfaction but also contributes to your bottom line.

For a brief overview of our competitive pricing structure, please see below:

  • No Inbound Fees: Send inventory to our warehouse without additional charges.
  • Storage Costs: Benefit from our storage rates at £0.68 per CBF per month and £0.79 per CBM per day.
  • Order Fulfillment: Starting from £2.99 for large letters and £4.99 for 48-hour tracked parcels up to 5kg.
  • B2B or FBA Fulfillment: Flat rate of £4.00 per outer carton
  • Returns Management: Efficient and cost-effective at £0.30 per unit.

These rates reflect our commitment to providing value while maintaining premium service standards. 

Conclusion

Employing a 3PL in your Amazon business’s growth strategy isn’t just a choice for logistical ease; it’s a decision for cashflow management. Our competitive rates, combined with our expertise in managing logistical complexities, make us an ideal partner for scaling your Amazon store without the burdensome overheads. Embracing the advantages of a 3PL can shift your focus to expanding your business, knowing your logistics are taken care of. If you’d be interested in partnering with Sitruna Logistics, please reach out and we can discuss the needs of your business.

Our Amazon team is ready to help you succeed.

Book a discovery call with us today!

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