How can you differentiate between fulfillment companies and 3rd party logistics services?

In the era of digitization where even shopping of all sorts occurs on the internet, the successful delivery of an ordered item to the customer plays a huge role in either making a brand or in breaking it. Ecommerce fulfillment companies and 3rd party logistics companies can be the seller's best friends in such situations. Though the two terms — fulfillment services and 3PL or third-party logistics might seem similar, actually there is quite the difference. That being the case, their perfunctory functions and basic utilities are quite similar in nature. If you are interested in selling your products on the internet, read on to find out the differences between the two.

What are the main points on which eCommerce fulfillment services and 3rd party logistics companies can be distinguished?

Though fundamentally similar, the cost incurred, the dynamicity, and the role of the services can be clearly distinct. There are several points of difference between them and it is suggested that before you make a choice, you understand what sort of services you ultimately need.

The nature of services: Order fulfillment centers in India as well as across the world, make delivering the right order at the correct address their sole priority, and therefore they take care of all the necessities to do the same. 3rd party logistics are more about providing the additional help required by providing logistical aid like storage space, warehousing, and even transportation.

The Cost Incurred: 3PLs and fulfillment centers both require a substantial amount of investment at first and both are quite cost-effective in the long run. That being said, 3PLs are seen to be a little more pocket-friendly than full-time fulfillment services. This is probably due to the nature of the facilities offered by them to their clients.

The extent of their services: A fulfillment center can easily provoke the benefits of a 3rd party logistics unit. However, the 3PLs cannot offer all the services similar to the order fulfillment services as their extent is more localized and less widespread than the latter.