By the end of 2024, the ecommerce industry is expected to grow to a whopping $6.3 trillion globally. With so many people and businesses buying and selling online, it comes without surprise that the market has exploded so much in size. The undeniable truth is that the ecommerce industry has evolved at a rapid pace and will not stop for the foreseeable future.
Read More: What is Zendrop?
However, as more competitors flood the market given the increased accessibility of products and services, it’ll become exponentially harder for businesses to differentiate themselves from the masses. Naturally, this will lead to a decrease in revenue and growth.
For that reason, it’s becoming more and more critical for growing business and existing sellers to build a reputable brand in today’s market. Doing so will result in increased customer retention, more repeat sales, and better word-of-mouth organic growth.
In this article, we’ll cover how sellers can leverage the power of US 3PL services to establish globally distinguishable brands.
Let’s first start by explaining what US 3PL is. Third-party logistics (3PL) refers to outsourcing logistics and supply chain management. Basically, hiring someone else to take care of the logistics that come with buying inventory, storing it, processing it, managing it, and delivering it.
Read More: Comprehensive Introduction to 3PL
Generally speaking, most sellers who have contracted a 3PL service will have done so with either a China or US based company. The location determines what sort of services you’ll have access to, but generally speaking, you’ll want a service provider located in the country you get the most business from.
In this case, US 3PL. So how exactly can that help with building your brand? Well, assuming you’re doing most of your business in the US, a 3PL service provider here can confer upon you the following benefits:
These are just some of the benefits, and they all help build your brand. Being reliable, fast, and trustworthy will generate more customer loyalty.
It all comes down to a simple concept in Economics: pricing war.
A pricing war is when competing businesses continuously lower their prices to undercut each other in an attempt to attract more customers. It goes without saying, this ends up reducing everyone’s profits and is unsustainable in the long run. Pricing wars usually happen under several conditions, the main ones being:
One way to avoid a pricing war is via creative pricing strategies.
Read More: Pricing Strategies For Your Ecommerce Store
In this case, one of the best ways to avoid a pricing war is through brand recognition. Humans are pack animals and highly social. They want to be understood and to understand other humans. There are a million other psychological and social reasons why brand recognition is important, but all you really need to know is the end result.
The proof is in the pudding. Look at brands like Nike, Apple, and Samsung for proof of what brand recognition can get you. And it’s not like it only works on giant brands either, there are plenty of smaller brands that customers develop a fierce loyalty for. Just think about the next time you go to a grocery store or buy something online. Are there specific brands you default to for certain products? Boom, brand recognition.
Back in 2011, Steven Yang founded the electronic goods company, Anker. And honestly, there wasn’t really anything special about them. They sold chargers, power banks, and various electronic doodads for phones, tablets, and other mobile devices.
But today, in 2024? Anker is worth $4.54 billion. So how did this no-name company beat the odds and scale to such a massive time? I mean let’s be honest, back then (and still today), Chinese electronics held a fairly significant stigma for poor build quality and ‘chinesium’ materials.
The answer? Brand recognition.
At the time, Amazon as an online marketplace was still a wild west. Steven Yang knew that he could beat the flood of Chinese electronics brands with one simple strategy: gain a reputation for being the only Chinese electronics brand that actually cared about quality.
Boom. Just like that, Anker quickly soared to new heights. When everyone was selling USB 2.0 charger bricks for $5, Anker was selling top of the line USB 3.1 charger bricks for $9.99.
When everyone was selling cheap, flimsy portable chargers for $10, Anker was selling robust, tanky portable charging bricks for $24.99. Just like that, Anker quickly grew a loyal customer base of repeat buyers.
Read More: Brands That Started as Dropshipping Stores
So how exactly does US 3PL enhance your brand reputation?
Consider the following state of the ecommerce industry:
If only there was a silver bullet you could use to tackle all of these objections at once. You guessed it, US 3PL (or really any 3PL service you can trust in the country where you do your business).
3PL provides fast domestic shipping, custom packaging, customized products, unique offerings, high quality goods, and an overall sleek, modern, and reliable shopping experience.
This will immediately associate your brand with reliability and trustworthiness, naturally leading to an increase in customer loyalty.
In fact, being able to provide rapid shipping similar to Amazon is already a MASSIVE game changer that gives you an edge over your competitors. Some competitors will try to circumvent the aforementioned objections by trying to do Fulfillment by Amazon (FBA). This CAN be a good move, but carries with it many risks.
Read More: What is FBA?
One of the biggest brand building examples is of course GymShark. GymShark was founded in 2012 as a dropshipping business for activewear. They quickly distinguished themselves from their competitors by bringing their product line in house.
They may have started as a dropshipping brand, but by leveraging domestic warehousing, they successfully transitioned into a fashion giant.
Now, there are a million different 3PL providers out there, and choosing the right one can be daunting. At the end of the day, you want to pick the one that best fits your business needs. Here are some criteria you can check off to make the best choice for your business.
Zendrop provides US 3PL services to its Select members. The Select Program is completely free to join. Users can apply if they have a consistent sales volume of ten sales over a three day period.
Unlike other US 3PL partners, Zendrop emphasizes affordability, convenience, and reliability. Here are some comparisons.
One of the most significant advantages of using Zendrop’s US-based 3PL provider is faster shipping times. By storing inventory closer to your customers, you can significantly reduce transit times, leading to quicker deliveries. Fast shipping not only enhances customer satisfaction but also gives your business a competitive edge.
Consumers today expect quick and reliable shipping. By partnering with a US 3PL provider, you can meet these expectations by reducing the distance products need to travel. This not only improves delivery speed but also reduces the risk of delays, thus enhancing the overall customer experience. Fast shipping is particularly important for perishable goods, seasonal items, and trending products that customers want immediately.
Zendrop offers Amazon-like fulfillment speeds, with delivery being between 1-3 days on average. Users may also request even faster fulfillment times.
Zendrop’s US 3PL service provides advanced inventory management systems that allow you to track inventory in real-time, making it easier to manage stock levels and avoid common pitfalls like stock outs or overstocking.
These systems can also forecast demand based on historical data, helping you plan for peak times and seasonal fluctuations.
By optimizing inventory levels, you can reduce storage costs and ensure that products are always available for customers.
Running an in-house warehouse requires substantial investment in infrastructure, staff, and technology. By outsourcing to Zendrop, you can convert these fixed costs into variable costs that scale with your business.
And unlike other partners, Zendrop does not charge any fees for storage.
Scalability is a critical advantage for e-commerce businesses, especially those experiencing rapid growth or seasonal peaks.
Zendrop can quickly add warehouse space, increase labor, and enhance shipping capabilities to meet your growing needs. This flexibility allows you to focus on marketing and sales without worrying about logistical bottlenecks.
Managing logistics can be time-consuming and distract from core business activities. By outsourcing these functions to Zendrop, you can free up valuable time and resources to focus on activities that directly impact your bottom line.
This includes developing new products, enhancing marketing efforts, and improving customer relationships. Zendrop can handle the complexities of logistics, allowing you to innovate and grow your business.
Read More: Zendrop’s US 3PL
Building a reputable brand in today’s competitive ecommerce landscape is crucial. Leveraging US 3PL services like those provided by Zendrop can significantly enhance your brand’s reputation by ensuring fast shipping, high-quality products, and exceptional customer service. By partnering with a reliable 3PL provider, you can focus on growing your business and achieving long-term success.
Of course, the biggest benefit is that you’d immediately set yourself apart from your competitors and the masses. It’s not easy to build a successful brand, and this should make that journey easier.
Interested in 3PL? Apply for Zendrop Select to Access Zendrop’s 3PL Services
