• Explore. Learn. Thrive. Fastlane Media Network

  • ecommerceFastlane
  • PODFastlane
  • SEOfastlane
  • AdvisorFastlane
  • LifeFastlane

The Role Of 3PL In Influencer-Driven Sales

The world of influencer marketing is constantly growing. We’re seeing them in various niches, and many companies are leveraging their popularity.

While they often promote products from other companies, some have started their brands. 

From YouTubers with millions of followers to small influencers specializing in a particular field, all saw the potential in starting their merchandise. However, not all of them can store and ship their products.

This is the step where third-party logistics step up. Companies that help influencers with fulfillment have an essential place in this industry. This article will break down the importance of 3PL in influencer-driven sales. 

What is 3PL?


Third-party logistics is a company that provides logistics operations for individuals and companies alike. They receive shipments, and they’re responsible for adequately storing them as well. The storing often includes inventory management integrations, allowing you to track your products.

The majority of 3Pl companies have multiple clients, adequately providing services to each. Besides storing and inventory management, they often include picking and packing and shipping and receiving services. 

Depending on the type of products you’re looking to ship, you will have to do good research on your options. For example, selling food products will likely require finding a logistics company that has refrigerators and adequate licenses. 

Some 3Pl companies have the capacity to deliver the products to customer’s doors, while others are collaborating with delivery companies. 

Influencers and Sales

Influencer marketing is a type of marketing where influencers create content that aims to promote a product of a certain company. They either get commissions or have a fixed amount per month or per piece of content. 

This marketing isn’t limited by the platform. Influencers can create short-form content, blogs, YouTube videos or podcasts. However, some platforms function better than others, depending on the demographic of the influencer’s audience. 

Some influencers decide that instead of promoting products for others, they create their own brands. This way, they can earn additional money while delivering high-quality products to their customers. 

We’ve seen both micro and macro influencers starting their brands successfully and having thousands of customers. For example, American media personality Kylie Jenner launched her own cosmetics brand that’s been quite successful. 

For many, the evolution from an influencer to an entrepreneur is natural. Innovative solutions such as 3PL enable influencers and other individuals to make the most out of their business. 

However, a disadvantage of collaboration with 3PL providers is that you will likely suffer blows to your reputation if their part goes wrong. This isn’t a common occurrence, but it’s another reason why you should choose your 3PL provider carefully. 

How can 3PL Help Influencers?

Like other methods of outsourcing, 3PL saves you time and money. The goal of 3PL is to take care of all the logistics-related processes for influencers, starting from the warehouse. 

By outsourcing logistics, influencers are able to focus on product development and marketing. However, there are some considerations when it comes to outsourcing logistics. 

You can’t find just any company. 

Before you even start thinking about making a deal, you need to calculate your finances and see how large your logistics budget is. Then, you need to define what your products are and find reputable companies that have experience with such products. 

While the majority of 3Pl companies provide services such as storing and shipping, you should explore useful, additional services they provide. If you’re running an eCommerce store, finding a partner that offers a Shopify 3PL integration can significantly make your processes easier. 

Furthermore, you should pay the extra price for a company that offers reverse logistics. This means the 3PL provider will complete processes such as returning the product on your behalf. This does wonders for brand loyalty and customer satisfaction. 

Another advantage of 3PL is that it allows you to scale. As your audience grows, you’ll be able to keep up with increased demand. 

Difference Between 3PL and Other Methods

The traditional method of logistics is called in-house or 1PL. When it comes to in-house logistics, companies have complete control over the process, allowing them to observe and change processes directly.

An advantage of in-house logistics is that the company has full confidentiality and responsibility for the process. They can take immediate action if a customer isn’t satisfied or if there’s an unexpected event preventing the process from continuing. 

However, in-house logistics require a lot of investment. A single influencer can hardly afford to establish their own logistics operation. Furthermore, it restricts scalability compared to 3PL. In case of an increase in demand, you will have to gradually increase your operations, which can lead to bottlenecks and more expenses. 

Another common logistics option is fourth-party logistics. These are the companies that overlook multiple logistics providers to optimize the entire supply chain. This is similar to the 3PL, except one entity collaborates with multiple 3PL providers. 

Because this is a large system, it can lead to various setbacks. While it allows greater capabilities for scaling, it’s usually unnecessary for influencer-driven sales. 

4PL is more costly than 3PL, and because of the multiple technologies and operators involved, it has integration issues. While 3PL providers can have the ability to integrate eCommerce platforms in their services, this is more complicated for 4PL companies.

Conclusion

While 3PL takes on a massive workload for influencers, they still have to be involved, at least partially. Ensuring that orders are fulfilled, that customers are happy, and that your marketing campaigns are successful are all important processes you have to maintain. 

The amount of work that 3Pl takes off an influencer’s back is incredible. Whether you’re interested in focusing the time that 3PL saves you on improving your business or simply taking a break, it’s quite helpful. 

Implementing 3PL to boost your business can inspire you to take a more detailed look at other business aspects that can be outsourced as well. However, be prepared to take immediate action in case the 3PL provider isn’t providing their services adequately. 

Author Bio

Veljko is a student of information technology who paired his passion for technology with his writing skills. He enjoys researching topics such as robotics and programming and cultivates his knowledge in philosophy, classical literature, and fitness. Veljko’s favorite writers are Borislav Pekić, Miloš Crnjanski, and Ernest Hemingway. 

LinkedInWebsite

Prev
How To A/B Test Email Campaigns: Ideas & Best Practices
how-to-a/b-test-email-campaigns:-ideas-&-best-practices

How To A/B Test Email Campaigns: Ideas & Best Practices

Next
What Makes A Perfect Mobile Ecommerce App
A woman is holding a smartphone with a plethora of icons on it, showcasing the perfect mobile ecommerce app experience.

What Makes A Perfect Mobile Ecommerce App

You May Also Like