Running an e-commerce business requires you to wear a lot of hats. One of those hats is often operations manager. It’s up to you to make sure your business is running smoothly and everything is getting to where it needs to be when it needs to be there. With the help of a third party logistics provider you don’t have to worry about fulfilling this role all by yourself.
There are many logistics services that can make your job easier if you understand them correctly. Let’s discuss common e-commerce logistics services that could help your business grow.
Parcel Shipping
Parcel shipping is basically the type of shipping you think of when you think of order fulfillment. It refers to light, smaller boxed items. Think of an individual order instead of an entire pallet or truck of products. It’s an economic way of sending small parcels.
Most e-commerce companies use parcel shipping on a day to day basis to get their customers orders to their doorstep. Unless you’re shipping oversized loads you’ll be using parcel shipping.
With this in mind, it’s important to use sturdy and durable packaging in order to ensure that your products get to their destination in one piece!
Using a third-party order fulfillment company for parcel shipping can help you gain access to lower shipping rates.
That’s because carriers like FedEx, UPS and the USPS would rather go to one location to pick up more parcels then having to go to many locations to pick up those same parcels. A centralized pick-up location is more efficient and cheaper for them. This allows third-party order fulfillment companies to negotiate better parcel shipping rates and pass those on to you.
Why Use Parcel Shipping
- Perfect for shipping small individual packages
- Many shipping options – companies & timelines
- Delivery to residential addresses
Less Than Load (LTL) Shipping
Less-than-truckload shipping or less than load is the transportation of relatively small freight. This is used when you need to ship more than just an individual order. This type of shipping could apply if you are shipping a pallet of products from one location to another. For example if you’re shipping a pallet of product from one warehouse to another or from your manufacturer directly to your third-party order fulfillment company.
Essentially, like the name suggests, LTL shipping is for when you have a significant amount of product to ship but you can’t fill a whole truck all by yourself. It’s like ridesharing or taking a bus but for your products. You don’t need a whole truck and so you share the space with other products making it more affordable for everyone.
Speaking of cost, the cost tends to be based on space used, class of items being shipped, and pickup and destination locations. LTL freight can be shipped standard, expedited, or guaranteed. LTL freight can also be shipped with special services, such as lift gate pickup/delivery, inside pickup/delivery, residential pickup/delivery, and reweighing or reclassification. Obviously all of these factors can affect the price.
Luckily when you work with a logistics partner, like Ship Central, we can help broker your shipping. We’ll help you work out what you need and what will be the best deal for you. This results in saving a lot of money as well as avoiding a lot of headaches!
Why Use LTL Shipping
- Helps you save money
- Environmentally friendly
- Perfect for small businesses
Full-Truckload (FTL) Shipping
Full-Truckload shipping is just what it sounds like! When you have enough freight to fill an entire truck FTL is the right option for you. Unlike LTL shipments which might ride alongside other shipments, FTL freight is contracted to one carrier and rides alone, meaning there don’t need to be extra stops along the way.
While LTL is like ride sharing or taking the bus, FTL is like taking a taxi all by yourself. There aren’t as many stops to drop everybody else off which means you get to where you’re going faster. That’s one of the biggest benefits of FTL. Not only does your shipment arrive faster there is also less risk of damages along the way.
So the question is which type of shipping do you use? If you have enough product to fill a whole truck it’s cheaper to choose FTL shipping. On the other hand if you don’t have enough for a full truckload then it’s cheaper to use LTL because you’re only paying for the space you need.
FTL shipping is most often used by larger companies with a high volume of orders. Small businesses aren’t likely to need this type of shipping but it’s something to keep in mind for the future as they grow and expand.
Why Use FTL Shipping
- Ship product faster
- Shipping enough product to fill a truck
- Lower risk of damage
The Takeaway
Shipping and logistics can be confusing and stressful. You want to make sure you’re getting the best deal possible for your needs which can be difficult if you’re not experienced.
When you’re running an e-commerce business you’re wearing enough hats as it is. Here at Ship Central we can help you broker shipping that works for your budget, your needs and your timeline. Let us help you grow your business!