A Korean ecommerce seller shares his 3-year experience using 3PL services, highlighting four major issues: inconvenient proprietary messenger systems, unsuitability for low-margin products, inventory discrepancies and lack of compensation, and problematic deposit and exit fee policies. He also discusses his own approach to creating a transparent fulfillment service.
A short editorial from the VEONIB team on why this content matters.
The video exposes four critical flaws in 3PL services from a dual perspective of seller and 3PL operator, urging sellers to scrutinize contracts, fees, and communication methods.
Unlike typical reviews, this creator has both used and operated 3PL, revealing insider issues like inventory theft and exit penalties. SEONIB adds that transparency should be a key criterion when choosing fulfillment partners.
Ecommerce sellers considering 3PL should watch this video to avoid costly mistakes; then audit potential 3PL contracts for loss clauses and fee simplicity.
Third-party logistics, outsourcing fulfillment and shipping to a specialized provider.
Per-unit charge for receiving, counting, and inspecting inventory at a 3PL warehouse.
The fee charged by a 3PL for picking, packing, and shipping each order to the customer.
Discrepancy between recorded stock and actual physical count, often due to errors or theft.
Upfront security deposit required by some 3PLs to cover potential unpaid fees or damages.
Penalty and notice period required when terminating a 3PL contract, including shipping suspension.
Items with very small profit margins, typically low-cost goods, which are not suitable for 3PL due to high fees.
Why do 3PLs use proprietary messenger apps instead of KakaoTalk?
The speaker criticizes proprietary messengers for poor mobile accessibility and inconvenience. Some 3PLs use them for logging and management, but it hinders real-time communication.
Are low-cost items suitable for 3PL?
No, items priced under 1,000 won (like 500 won cat toys) are not cost-effective due to inbound fees (~100 won per unit) and higher shipping costs (3,250 won vs standard 3,000 won), eroding profit margins.
How do inbound fees work in 3PL?
Inbound fees are charged per unit, typically around 100 won, to cover counting and inspection when goods arrive at the warehouse.
What happens if inventory goes missing in a 3PL warehouse?
Discrepancies are common; many 3PLs do not compensate unless a contract clause explicitly covers loss. It's crucial to check the agreement.
Why do 3PLs require a deposit?
Deposits are meant to protect the 3PL against non-payment, especially from large shippers. However, small shippers are often required to pay one, which the speaker finds unfair.
What are the exit fees and notice period for leaving a 3PL?
Typically, a 3-month notice is required, and shipping is suspended for 1-2 weeks before the exit date, causing sales disruption.
How can you avoid inventory problems with a 3PL?
Choose a 3PL with transparent contracts, including liability clauses for lost goods. Use barcode scanning and regular audits.
What is the best pricing model for a 3PL?
The speaker advocates for simple, transparent pricing without hidden fees, as he implemented in his own fulfillment service.
Should new sellers use 3PL for low-volume products?
Not recommended for low-margin items; better to use self-fulfillment for small volumes to maintain control and avoid high fees.
What alternative to 3PL exists for small sellers?
Setting up a small warehouse (e.g., 10 pyeong) can work if product variety is low, but it becomes chaotic with many SKUs. The speaker suggests careful evaluation.