Understanding Direct-to-Consumer (DTC) | ASW (2024)

How do ecommerce and 3PL's fit in? Ecommerce is business conducted electronically. Typically we think of web stores, but it can also include other electronic transactions (such as orders taken manually--by phone, for instance--and entered into a computer that then electronically communicates with software to fulfill the order. 3PL's are third-party logistics providers--companies with which a business partners in order to handle all or part of its distribution needs.

With ecommerce fulfillment, a 3PL can be outsourced to handle the warehousing of the product, manage inventory, process all orders and payments, pick and pack orders, kit them if necessary, and ship them to the end customer. The 3PL can either receive the order via integration with the seller's internal platform or by creating a custom online store that it will manage independently but design with input from the seller. The 3PL can also process any returns--the electronic transaction, physical receipt, and re-stocking of the product.

Understanding Direct-to-Consumer (DTC) | ASW (2024)
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