Welcome to another episode of Selling on Giants! As we step into Q1, many eCommerce brands are looking at ways to optimize their logistics and set up for success in 2025. If you’re considering switching to a new 3PL, today’s episode is a must-listen.
Joining me is Rachel Go, the Marketing Director at MyFBAPrep, one of the largest eCommerce warehouse networks trusted by top Amazon sellers and enterprise brands. Rachel brings a wealth of knowledge on logistics and fulfillment, and she’s here to help you navigate the challenges of transitioning to a new 3PL without losing momentum.
Here are 5 key takeaways you don’t want to miss:
- Q1 is the perfect time to switch: Evaluate your logistics after Q4 and start fresh for the new year.
- Communication is everything: Choose a 3PL that’s transparent about costs and proactive in keeping you informed.
- Redundancy matters: Mix FBA, FBM, and even multiple 3PLs to safeguard your supply chain.
- Prep doesn’t have to be perfect: Look for partners who handle “messy prep” like a pro.
- Future-proof your logistics: Flexibility, strong partnerships, and tech-driven solutions will keep you ahead.
Key takeaways:
First – Q1 is Prime Time for Switching 3PLs.
- The stress test of Q4 exposes weaknesses in your supply chain. Rachel explained why Q1 is the ideal time to evaluate your logistics partners, make a switch, and ensure your systems are ready to handle the rest of the year.
Next – Transparency and Communication are Non-Negotiable.
- One of the most common frustrations Rachel hears from brands is unclear invoicing and a lack of communication. If you don’t know exactly what you’re being billed for or who to contact when things go wrong, that’s a major red flag. A good 3PL makes pricing easy to understand and keeps you in the loop – sometimes even at the co-founder level, like MyFBAPrep does.
One of the biggest takeaways – Redundancy is Key.
- Rachel stressed the importance of creating redundancy in your supply chain – whether that means using multiple 3PLs, mixing FBA and FBM, or running your own warehouse alongside a partner. If one channel goes down, the other can keep you running.
Lastly – Let’s Talk About Messy Prep.
- Rachel shared a fun story about MyFBAPrep’s willingness to handle “ugly prep” – those chaotic shipments with mixed SKUs or last-minute bundles. Many 3PLs shy away from this kind of work, but for MyFBAPrep, it’s part of the job.
Considerations for Evaluating and Choosing a 3PL
- Expertise in specialized services, such as FBA (Fulfillment by Amazon), is vital when selecting a 3PL, as not all providers are equipped to handle specific fulfillment requirements.
- Evaluating services provided by potential 3PLs based on future growth plans is key; brands should consider if the 3PL can support anticipated changes in product offerings.
- Clear cost structures and transparent invoicing are significant factors that can impact a brand’s decision to switch logistics partners; ambiguity can lead to mistrust.
- Geographic location of a 3PL’s warehouses can influence delivery speed and shipping costs; proximity to major markets can be beneficial.
- Scalability and customer service qualities in a 3PL partner are crucial, as brands want assurances that their logistics provider can adapt as their businesses expand.
- Essential KPIs to consider when working with a 3PL include speed of delivery, quality of handling, and transparency in costs, alongside good communication practices.
- Cost management is crucial; brands expect invoices to clearly outline charges to avoid confusion and ensure services provided are worth the investment.
- Brands should anticipate common shortcomings in 3PL partnerships, such as missed deadlines or incorrect shipments, and select a provider that emphasizes accountability.
- Building lasting partnerships with 3PLs involves evaluating their willingness to meet the specific logistics needs of a business as it grows.
Transition Process from One 3PL to Another
- Brands looking to transition should first establish what they specifically need from their new 3PL to resolve any existing frustrations.
- A ‘sell down’ strategy is useful when transitioning, where brands offload their inventory with their current 3PL while gradually introducing stock to the new partner.
- A typical timeline for a smooth transition is about two to three months but varies based on the specific circumstances of the brand and the products involved.
- Running tests with the new 3PL during the transition phase is advisable to ensure reliability before fully committing to the switch.
- Open communication with both the old and new 3PL during the transition process can help mitigate risks associated with switching, maintaining customer satisfaction, and operational continuity.
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Links:
- LinkedIn – Personal: https://www.linkedin.com/in/rachelgo/
- Branded – Linkedin: https://www.linkedin.com/company/myfbaprep/posts/?feedView=