A Brand’s Guide to 3PL Solutions in China for SMEs

Last updated on March 20, 2024

For small and medium-sized enterprises (SMEs) aiming to enter China’s trillion-dollar e-commerce market, third-party logistics (3PL) solutions offer valuable support and address operations gaps that larger companies typically resolve through vertical integration.

It is essential to be proactive and find the right 3PL partner in advance, rather than scrambling to find one when it’s already too late.

What can third-party logistics (3PL) in China do?

The ideal 3PL partner in China takes care of all these tasks in a way that saves time, money, and reduces headaches for a global brand venturing into the Chinese e-commerce market.

3 reasons why SMEs should leverage 3PL in China:

1. Warehouse and logistics expertise

Order fulfilment in a warehouse involves much more than simply picking items off shelves and packing them into boxes for shipping.

Managing a warehouse and handling logistics requires a specialized and dedicated team that pays meticulous attention to detail. To put it simply, any organization that believes it can handle warehouse management on top of the already demanding task of growing a brand and expanding into a new market is in for a costly and unpleasant surprise in the future.

Fortunately, 3PL partners excel in optimising warehouse management and operations.

By partnering with them, organizations can concentrate on driving market growth while leaving the intricacies of warehousing to the professionals. 3PL warehouses are staffed by experts who can determine the most efficient and effective shipping methods for products.

2. Capitalise on the local expertise

Expanding your business in China presents unique challenges compared to other parts of the world.

While businesses adhering to the traditional Western model of business law are accustomed to similar legal requirements and practices, the expectations of Chinese consumers differ significantly from those in the US, Europe, or Australia.

Working with the right 3PL partner in China can help you navigate logistics and operations smoothly, saving you from unnecessary headaches and expenses.

A reliable 3PL partner understands crucial aspects such as proper border registration, duty facilitation, and selecting the most suitable ports for shipments. These factors are what set exceptional 3PL partners apart from average ones.

3. Limiting your brand's overhead expenses

Large companies have significant financial resources, which is a luxury that most small and medium-sized enterprises can only dream of. This is why it becomes especially crucial for smaller businesses to limit their costs.

By utilising third-party logistics in China, a brand can save a substantial amount on one major expense: leasing warehouse space. Finding the right property, hiring staff, and maintaining the warehouse all require significant costs for an organisation that aims to own its warehouse.