What is a 3PL Company and how do you find the right fit?
3PL Company vs. Broker: How do you choose? No one likes a middle man. Right? But what if that middle man could save you the stress of having to worry about the shipping and logistics side of your business. What is that worth to you?
This video series describes the unique differences and benefits of using a 3PL vs. Broker for your shipping needs.
Let’s start off by talking about what the reseller model is. From the surface, it most certainly looks like you are dealing with that middle man we mentioned before. But, that middle man affords you special pricing benefits and better customer service. You have the same amount of customers with a reseller model and a direct model. The biggest difference between the two is that the carrier only has to deal with one customer…the reseller. The carriers will negotiate very low pricing with the reseller because they are not only bringing you, the customer, to the table but many more just like you. Thus bringing way more shipments and business to the carrier. The carrier also only deals with one customer service contact, one collections contact, shipping issues, and everything in between all of that through the reseller.
By going with the reseller model, you are freeing yourself up with lots of shipping red tape so you can spend more time with your customers and improving your business. You will also get better pricing because the carrier sees all of these customers as one instead of 50, thus allowing for bulk buying power.
Now let’s talk about having a direct relationship or the direct model of shipping. With this model, the carrier has to spend all the time and money negotiating the pricing with not one but possibly hundreds of customers. They also have customer service issues because there is not one dedicated point of contact to handle any issues or concerns that might arise. It also does not give the customer like you the negotiating power that your middle man or reseller can because you cannot bundle your business with other small to medium-sized businesses like yours. Your alone on that raft in the middle of the ocean.
So forget what you thought you knew about resellers and take these things we have discussed here into consideration. What is holding you back from exploring shipping with a reseller? What other questions do you have with a reseller type of model? Contact us today to find out how we can save you time, money, and stress!