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The Forgotten 30% Of Ecommerce Brands

Written by Luminous Team | Apr 22, 2024 5:37:30 PM

The e-commerce landscape is booming, and 3rd party logistics providers (3PLs) are at the forefront, servicing a whopping 70% of online brands. But what about the remaining 30%? This blog post dives into the forgotten segment – e-commerce businesses that struggle to find the right fulfillment solution.

 

The Rise of 3PLs and Their Limits

The past decade has witnessed a surge in 3PL companies like ShipMonk and Deliverr. These companies handle warehousing, inventory management, and order fulfillment for e-commerce businesses, allowing brands to focus on marketing and sales.

However, 3PLs aren't a one-size-fits-all solution. While convenient for many, they often struggle to meet the needs of specific industries.

 

The Forgotten 30% - Industries Left Behind

So, who are these underserved e-commerce businesses? Here's a glimpse:

  1. New Entrants in Perishables & Animal Products: The COVID-19 pandemic forced traditionally brick-and-mortar brands in perishable and animal product categories to adopt direct-to-consumer (D2C) models just to survive. These businesses, experiencing rapid growth, now face complex fulfillment challenges.
  2. D2C & Wholesale: Many of these companies juggle both D2C and wholesale channels, adding another layer of complexity to their fulfillment needs.

 

The Perfect Storm: Complexity for Small Teams

These businesses face a unique challenge. They can't outsource to a 3PL due to the specific nature of their products or their multi-channel sales strategies. This results in:

  • Complex Sourcing & Inventory Management: Managing raw materials, components, finished goods, and D2C/wholesale fulfillment simultaneously requires robust systems.
  • Scaling Challenges for Small Teams: With less than 10 people, handling this complexity becomes overwhelming. Existing enterprise software solutions like NetSuite are powerful but too expensive and cumbersome for their needs.

Feeling overwhelmed by complex fulfillment challenges like multi-channel sales and perishable goods? Watch Jared Ward's full video on YouTube for more e-commerce fulfillment tips and discover strategies for scaling your business without the limitations of a 3PL.

 

The Luminous Solution: A More Approachable Option

Luminous emerges as a game-changer, offering a user-friendly and scalable alternative to complex enterprise software. Here's why Luminous is the perfect fit for the underserved 30%:

  1. Disruptive Inventory & Supply Chain Software: Luminous takes on giants like NetSuite, providing a more accessible and affordable solution.
  2. HubSpot for E-commerce Fulfillment: Similar to how HubSpot simplified CRM for smaller businesses, Luminous simplifies inventory and supply chain management.
  3. Easy Onboarding & Scalable Growth: Luminous offers a smooth onboarding process, budget-friendly implementation packages, and continuous support.

Ready to join the ranks of fast-growing e-commerce businesses? Book a demo with Luminous today and experience our user-friendly platform that scales seamlessly alongside your success.