The third-party logistics (3PL) market is projected to grow more than 7.6% over the next ten years, but 74% of 3PL providers say finding or retaining clients is one of the industry’s most significant challenges. Refining and reinforcing sales strategies now prepares 3PL providers for growth at scale as the market expands.
The pandemic cast a shadow on every business sector, but the 3PL industry bounced back — and then some. The market is currently growing, and projections forecast exponential growth over the next 10 years. Consider the following numbers:
- In 2022, the 3PL sector is projected to exceed $1 billion in total market value.
- 3PL sales are estimated to exceed $2.1 billion, at 7.6% CAGR, by 2032.
- In 2021, U.S. 3PL revenues exceeded $347.9 billion, up 50% from 2020.
The U.S. 3PL market already occupies a significant portion of global market share, and it’s projected to continue growing as demand for outsourced solutions increases. E-commerce expansion creates a growing need for efficient inventory management and shipping solutions. Rising demand from other key industries, including manufacturing, technology, and healthcare, is predicted to increase the collective need for warehouse space and logistics optimization in the coming years.
As e-commerce drives 3PL demand, growth-oriented providers are reviewing and revising sales strategies aimed at capturing their share of an expanding market. Start by developing your company’s understanding of the e-commerce market, its increasing logistics needs, and the ways 3PL is perfectly positioned to fulfill them. Consider the following:
- When consumers shop with an online retailer, they want an accurate and quick delivery. Small and midsized enterprises (SMEs) are outsourcing critical shipping processes to meet customer expectations.
- Similarly, SMEs without in-house logistics capability are increasingly reliant on 3PL providers to manage supply chains, inventory, warehousing, and order fulfillment.
- E-commerce brands looking for an omnichannel fulfillment approach need a logistics partner capable of meeting consumers whenever and wherever they expect delivery. 3PL providers create custom logistics solutions for retail companies of every type and size.
As online retailers aim to set themselves apart from the competition, 3PL providers are making moves to capture a share of the market. With experience, expertise, and the right sales talent, your 3PL business can provide retailers the fulfillment solutions they need to scale and meet consumer needs. Smart 3PL sales strategies include:
- Emphasizing convenience and savings. The digital economy never sleeps, and smaller e-commerce brands can’t be “always on.” 3PL providers, on the other hand, can conveniently offer round-the-clock order fulfillment and distribution at a cost-effective rate.
- Establishing your logistics expertise. 89% of brands report more effective operations because of their partnership with a 3PL provider. E-commerce companies know retail operations and consumer markets, but 3PL providers know logistics. By outsourcing to an experienced expert, retailers remain competitive and able to focus on retail objectives.
- Introducing retail services at scale. E-commerce is subject to rapid change and sudden pivots. As brands find and connect with their clientele, product offerings evolve, and the need for scaled logistics can skyrocket on short notice. Custom services and easy adaptivity make 3PL providers indispensable to a growing online retail operation.
It takes skilled sales reps to convey all the benefits of your 3PL services to the expanding e-commerce market. For SME retailers, current and future success relies on fulfilling consumer wants, needs, and expectations. With established logistics expertise, a motivated sales team, and a problem-solving sales approach, 3PL providers are equipped to help e-commerce operations create a quality customer experience and achieve short- and long-term growth.
Keep your 3PL sales team motivated and engaged with a comprehensive commission management solution designed to grow with your business. Schedule your demo today at SalesVista.com.
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