Time to outsource your e-commerce logistics?

Why some e-shops prefer to keep their logistics in-house and why we think they can change their mind.

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First of all, we are not fully independent on the matter. Prime Penguin is made for logistics outsourcing and our vision and goal is to make it as easy and as naturally as possible for e-shops to outsource their logistics. But, on the other side, we also talk to many e-shops about the topic and therefore hear a lot of arguments for why they sometimes prefer an in-house solution, which is interesting.

In this short article, we will present those “arguments” and share our thought about why they are worth a second thought.

Typical arguments for in-house logistics (as heard from the e-shops themselves):

“We are three hardworking founders of this e-shop, who all put more than 12 hours per day into the business, so there is time for us to handle the logistics in-house, also at a free cost.”

“We believe in the quality of service, provided by 3PL companies, but we can’t really buy into the price tag of its services, which is higher than the hourly paid salary to our employees.”

“Efficient and well-working logistics is super important for our overall success and should, therefore, be considered as one of our core operations. Therefore, we need full control which we probably would lose if we outsource it.”

Our view

Okay, let’s start with the fact that there obviously is a cost involved for external logistics. That is of course perfectly true and this total amount should honestly be compared with the total cost of an in-house solution.

What is important though, is to be totally honest to yourself and involve all costs in this comparison. One concrete example is that you (as a business owner) should set a relevant price on your own time which you are putting into the logistics handling, as you actually work for your company. This price should be in line with your salary, or set to the same price as if it was done by an hourly paid employee or consultant.

Regarding the price tag: There is a very positive factor involved in the 3PL pricing which simply expressed is that “you pay for what you get”. Mainly not in the sense that you pay more for a high-end solution but more that you only pay for work that actually has been done. The reversed example can be found in an in-house logistics set up with a cost of employees, even if there are no logistics operations ATM.

The fear of losing control of physical orders and warehousing activities is of course also understandable. This is a classic outsourcing dilemma, where you basically have the feeling of losing control when not handling operations in-house. This is fully understandable and it is also one of the big reasons why we developed the Prime Penguin cloud-based platform, for a total overview of your outsourced e-commerce logistics.

Interested in outsourcing your e-commerce logistics? Simply start with Prime Penguin today!

E-commerce growth and change

E-commerce sales world wide is expected to more than double it’s size in four years time. This eminent growth will off course serve the industry well. But, as always in times of rapid growth and change, some will thrive more than others.



E-commerce growth and change

The rapid growth of e-commerce will lead to tougher times for traditional, physical stores, which is expected to lose ground they say. But – how about the competition within the specific growing industry of e-commerce then? This topic is much less discussed and is therefore interesting to think about.

Growth will serve the industry well

The expected growth will, of course, serve the e-commerce industry very good as a whole. Many new e-shops will appear, do well and some of them will do it really well. Naturally, many established e-shops also will thrive under those circumstances.

Who will succeed best?

Some e-shops will for sure gain a lot more from this opportunity than others. So, which will be the biggest winners during these hay days and why? Here we will very shortly try to explain how we see it:

Times of expansion will naturally probably also lead to a lot of change. A booming industry will, like a magnet, attract not only capital but also new ideas, habits and new ways of solving things.

Methods are (and will) constantly be changing. Maybe also in an accelerating pace. Take a look at today’s many different methods of end-client delivery for example, which has increased sharply only in a short period of time. Some of the most frequently used and efficient methods today did not exist five years ago. Furthermore, some of today’s established marketing and payment tools barley existed not too long ago eighter.

This quickly brings us to the point of what we think that e-shop owners should be aware of and keep an eye on, in order to gain the most of a growing industry. Namely: technology and innovation.

There is no need to be first, but it is important to always be innovative and technically competitive at the right time. More exactly, that right time is when your clients start to demand such services and that can sometimes happen more or less over a night. So, one big key to success would probably be to have the technical knowledge, follow its trends and be ready when the right time comes.

Based on data from:
https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/

Swaggin Tails

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A waggin tail is a happy tail. That’s the idea of the Natural and organic dog toys company Swaggin Tails.

A waggin tail is a happy tail. That’s the idea of Swaggin Tails, the natural and organic dog toys company.

The humans best friend ( 🐶), is beloved all over the world, but logistics can be complicated… We are therefore especially happy that Swaggin tails chose Prime Penguin as the professional partner for their entire logistics outsourcing.

Dogs love to play and their teeth are sharp. Therefore, Swaggin tails only use materials that are recycled, lasts longer, requires less water and irrigation and above all, with no pesticides or toxins.

Would you like to make your dog happy? You will for sure find something for your best friende here:

http://swaggintails.com/

IG: @swaggin_tails

The most common e-commerce platforms right now

Thinking about starting an e-shop? Or maybe to expand, your existing one, and update your platform technology?

The usage of the different open source platforms has differed over time, with a rise and decline of different technologies. So, when having a look at what platform to build on (or update to) it can be good to take the present overall usage into consideration as one factor.

Size matters?

We are really not saying that only the big players should be considered as alternatives. There is really many niche solution out there and you can never say that one solution suit all e-shops. And, in fact, some of the most satisfied e-shops are using a local partner, often with great support and customization possibilities.

Diligently used technologies

But of course, there are also upsides of building your e-shop on diligently used technologies. For example, as many e-shops use a specific service, there will naturally also be a considerable community gathering around support and development queries.

The big platforms, in many cases also have an app marketplace, where you can add specific technology to your e-shop (both for free and at a cost). Therefore, a big number of fresh possibilities are often most common for the trending technologies.

Most used platforms right now

Okay, we guess you now would like to know what e-commerce platforms which are the most common ATM, so we won’t hold you anymore.

This list (gathered with https://www.similartech.com), summarize the most popular e-commerce platforms, worldwide, right now (Nov 2018). 📈

Updating your platform technology?

Are you looking for a technology shift for your e-shop? Please let s know and we will tell how we could help you together with our suggested parters and experts within e-commerce platform technology.

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Prime Penguin supports this entire list of e-commerce platforms, for plug and play connectivity ⚡

hello@primepenguin.com

Our contribution to the climate

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Current situation

More than 40 billion e-commerce transactions (and returns) are being made each year globally. This amount is expected to grow at a steady pace in the upcoming years and is obviously contributing to its fair share of greenhouse gas emissions globally. For e-commerce, most of the pollution comes from the delivery of goods.

How is that?

For e-shops, it’s common that they produce their products far from its main country. A typical Swedish e-shop, who produce their products in China, got their products shipped from a supplier in China to a warehouse in Sweden. Then when a customer in Asia is placing an order from the e-shop, the product is shipped back to Asia.

This inefficient way of transporting products back and forward is affecting not only the environment but also affects the entire shopping experience, where the customer must wait an unreasonably long time to receive their products (sometimes up to several weeks).

So it is not only a costly and time-consuming way of handling logistics, but it also has a huge negative impact on the environment, due to all emissions caused by the shipping.

This can be seen all over the world by millions of e-shops who are selling products in multiple countries.

Prime Penguin solution

The plug and play technology and partner network of Prime Penguin has the potential of cutting down on the emissions occurred by transportation without causing any delay in the order delivery time. The long distance and the direct deliveries can be changed into shorter and more environmentally friendly deliveries, thanks to the network and smartness of Prime Penguin.

How does it work?

For example: instead of shipping a product back to Asia, Prime Penguin enable the e-shop to set up a satellite warehouse and get full-service logistics close to its customers. This way of using satellite warehouses will have a tremendous impact on the environment, since the products can be sent directly from the factory into the selected warehouse in Asia.

The high logistic quality is maintained due to a solid and careful selection process when Prime Penguin is adding new partners to the network. Prime Penguin is always working with the best, most reliable 3PL out there who consider the environment as important.

Our unique and user-friendly platform gives the e-shop full transparency and control over all warehouse activities, regardless of where the warehouses are located.

Also, based on where the customer and suppliers are located, the platform can calculate and suggest where to set up the next satellite warehouse. All beneficial for the climate.

This is just the start… and we won’t stop improving.

More ideas

Please share your ideas, for a better climate, with us and stay tuned at: primepenguin.com/environment 🌱

Sharing is caring

Oh yeah, some of the code and technology of Prime Penguin can be found on GitHub, as we surely believe opens source code benefits the community.
What does that mean?
GitHub is a platform, globally used by software developers for sharing and collaboration on projects. The idea is to bring software developers together to write code and manage projects in an efficient way. As all users have their own profile, this makes GitHub one of the most powerful networks out there for software developers.
Thanks to the idea and usage of GitHub, a mass of professionals can contribute to and advance a project forward. And yes, this is a much more efficient way to bring and get each other valuable feedback, compared to how it was done back in the days.

Photo from: https://education.github.com
Are you a developer, using GitHub? Hope to see you at: https://github.com/PrimePenguin

Prime Penguin now available for Tictail stores

Congratulations all Tictail stores out there!

Prime Penguin is now also one of the few selected partners at Tictail apps.

And of course, it’s 100% free.

Sounds interesting?

Get started by adding the app to your store and you are all set to start exploring the logistics network and smartness of Prime Penguin.

Find it here: https://tictail.com/apps/

Integration support: support@primepenguin.com

Tictail Apps

Prime Penguin App