Choosing the Right Cosmetics 3PL for Your Company

The global cosmetics industry was worth a whopping $438B in 2020 and is expected to hit $511B in 2021. The industry has been resilient to economic changes and is predicted to continue growing at 4.75% annually. With the industry being stronger than ever, global cosmetics sales are expected to hit $716B by 2025.

Brick and Mortar stores are traditionally where consumers would shop for cosmetics. It gives consumers the ability to see, test, and smell products before they purchase. However, with the rise of e-commerce, online cosmetic sales are predicted to rise to 48% in the US by 2023.

Since consumers can place orders online 24/7, selling online will require your company to develop a streamlined order fulfillment process. Many cosmetic companies will partner with a third-party logistics provider (3PL)/ fulfillment company to simplify and streamline their operations. Below, we will look at what you should look for in a cosmetics 3PL.

A good cosmetics 3PL provider will support your company in the following ways:

1. Seamlessly integrate with your sales channels
As your cosmetic brand grows, you’ll be more likely to sell on more than one sales channel. Your cosmetics brand might be selling on a variety of platforms like Shopify, Facebook Marketplace, Amazon, Etsy etc. Your 3PL provider needs to have the right technology to pull orders from all sales channels to minimize the work for you.

2. Manage your inventory
A good 3PL provider will be able to help you manage your inventory by warehousing and fulfilling orders as they come through. It’s important for your fulfillment provider to connect inventory management systems and have a two way push of data so both sides are in the know of daily operations.

4. Allow custom packaging
As online shopping grows, it’s important for your brand to enhance the customer’s experience and to connect with the brand on a more personal level. One way to do this is by providing custom insert cards and providing custom packaging.

Not all 3PLs will allow for custom packaging options. ShipTop provides clients the ability to send us their custom packaging, or we can order it for you.

5. Fast shipping to your customers
Once a customer places an order, your 3PL provider should process and ship that order as soon as they can. The best 3PL providers will provide a 1-2 day processing time. Shipping times with 3PL providers will vary depending on the courier they use.

At ShipTop, we provide our customers a 1-2 day processing time while providing fast worldwide shipping. ShipTop Logistics works closely with third-party couriers and can help you negotiate shipping rates. To find out more on how ShipTop can help you reduce shipping costs, please fill out this form and a member of our team will be in touch with you.