EP #373] [ENG] - Importance of using a 3PL partner - Krushna Patel

EP #373] [ENG] - Importance of using a 3PL partner - Krushna Patel Speaker 2: Welcome to The Ecommerce Lab By Ecomcy. This is the place for everything related to Amazon private label and e-commerce. Learn exactly what you need to start or scale your business. Get insights from the top industry experts who will discuss the latest trends and best practices in the world of Amazon. From choosing products and sourcing from a supplier to setting up your Amazon account and marketing your business, you will hear it here. Let's get started. Here is your host, Vincenzo Toscano. Speaker 1: Hello, guys. Speaker 3: Welcome to another episode of The Ecommerce Lab By Ecomcy, the place related to Amazon FBA, Private Label and Ecommerce. My name is Vincenzo Toscano, founder and CEO of Ecomcy, and today we bring another special guest. His name is Krushna Patel, and he's the founder and CEO of Awesome Solutions, where they specialize on everything that has to do with 3PL, fulfillment and logistics overall. The reason why I wanted to bring Krushna today is especially with everything that's been going on in the Amazon space and ecommerce in general, we've been seeing a lot of fluctuation on the cost of operations. Everything happening when it comes to international fair forwarding, and more importantly, how to deal with all the rising costs of having a business on platforms such as Amazon. And I just wanted to bring Krushna to just understand more about, you know, the importance of having a 3PL on your partnership, how they can help you mitigate the whole operation so much easier, and what are some of the things that they can help you to ensure that you can scale your business faster when it comes to ecommerce. So Krushna, welcome to the show. Speaker 1: How are you doing? Hell yeah. Thank you, brother, for having me. I'm excited. Thank you, man. A pleasure. Speaker 3: So I guess for those that might not know you, let's start with a brief introduction about yourself and what you do and we go from there. Absolutely. So my name is Krushna. Speaker 1: I run Awesome Solutions, which is a full service 3PL and FBA prep center. So we provide DTC fulfillment. So brands that are selling on Shopify, BigCommerce, all those DTC channels, everything wholesale related. So all the fairs and Walmarts, etc. And then on the other side, we provide the FBA fulfillment. Speaker 3: So. Speaker 1: Brands that work with us have a great advantage because we have direct carrier shipping rates, so it gives discounted rates. We have 24-hour dock-to-stop time, so they're able to ship faster. And then we're a partner with Amazon, so we're able to have a priority lane and same-day shipping for FBA. Speaker 3: Cool. Awesome, man. I appreciate that. So I guess let's start first with, I guess, a backup. Everything that's been happening, like, you know, the story of what we've been seeing the last couple of months when it comes to the logistics of things, warehousing, shipping and everything. You deal with a lot of Amazon sellers, and I'm sure you have been seeing how the market has been shifting. So I guess from your perspective and the conversation you're having, like, how do you see the, you know, the involvement of having a 3PL partner being more important, I guess, in 2026? So we can start with that intro. Speaker 1: Absolutely. So there's several reasons why having a 3PL and a FBA prep center is so important. So a lot of the sellers we work with, they get their products internationally and they don't have a touch point here in the U.S. So they used to send their stuff directly to Amazon until in January they removed the FN-SKU process. So anybody that needs that process and Amazon no longer provides, they have to send it to a prep center like ours. And there's several benefits and the biggest ones is honestly for Transparency purposes and quality assurance. So stuff comes to our warehouse, we would do the quality check for it to make sure that your end customer is getting the product that they're paying for. So we do the inspection, we would sticker it, poly bag it, all the standard processes that need to be followed for that product and for Amazon, and then we would send it to the FBA center. So brands that use our PrepCenter are able to have more transparency, a better customer experience, a better experience with Amazon because Amazon can contact us if there was anything related to the shipment since we have physically seen that product and did a quality inspection on it. Speaker 3: Awesome. So I guess on that initial pointer, I want to start with quality control. That's a big one. Especially when it comes to selling online, I think, you know, not having the right quality is targeting those negative reviews. It's what kills most brands these days. So tell us more about how you guys add value on that front because I know some people might argue that, you know, sometimes you can have an inspection done after production and not necessarily you might have a a quality control in place after that. But I know especially when it comes to shipping, handling the product from this case China to the US, many things can happen in between. Or maybe you have to do something to the packaging or some kind of final insert. That's also something to consider. So tell us what are some of the dynamics you're seeing with your clients and why this is so important, you know? Speaker 1: Of course. Yeah, just to just to give like some surface level context there. Product itself, when the manufacturers make it, obviously there could be defects or things that could affect it. Obviously they're biased because they're the ones that are making it. So then they send it over to a third party like us. We would physically review it, make sure the end customer is getting that positive experience. Because the FBA centers are just taking the inventory and sending it out, right? They're not inspecting or looking at anything. So if anything, they're making the product worse because they don't know what the product is and they don't box it properly, things like that, so it could get damaged, right? So we want to make sure that we see the product, we put it in a packaging that would keep it safe. So sometimes it's like a insert flap box. It could be a bubble mailer with an FNC on it. It could just be anything that helps make sure the product is safe and the end consumer gets something that looks good and feels like what they're buying. So yeah, I think that's that's huge. And then also in terms of the actual FBA process is just sometimes when you do it yourself, or if you don't know all the entire process and how it works, you're not going to be able to optimize the shipment, you're not going to be able to do things like if you if you're able to switch it to manufacturer barcode, instead of putting FNC's right there, you could save money. So there's this entire process that we know as Amazon experts in the fulfillment space that we're able to provide and that helps our clients a ton. So especially the private label brands, they see that being an insane benefit when they could store the inventory with us and then just drip it into the FBA centers as soon as they need that replenishment instead of just having to hold everything there. Speaker 3: Yeah, which brings me to my next thing, which is what I said at the beginning of the episode, like one of the reasons you want to have a triple partner is also the efficiency of how to navigate all the complexes people have experienced with increasing fees and everything, especially with Amazon. If you have overstock, that can be very, very kind of negative, I guess, on the impact you're going to have on your expenses. So from the experience you're having with Amazon sellers, like how this can completely change the game, because I guess A lot of Amazon servers are used to keep everything on Amazon and we know that's very bad, especially if you have a lot of stock. So do you have like an overview, how level, how much more efficient and more cost effective now people are being by having a 3PL in between and only using a 3PL to fulfill Amazon where required, but more importantly, use that as a hub to expand to other marketplace such as Walmart, TikTok, your own website, things like that, you know. Speaker 1: Yeah, so the flexibility is a huge part. So I'll give you an example. We have a client that sends us a container. And that container, he used to send that directly to Amazon, and then they would just store it. And it was a it was a pack of six for his product. And the thing is, now that we store the product, He now wants to do a six-pack, 12-pack, and a 24-pack. And if it was at the Amazon FBA Center, that's not possible to do because they don't do any kitting, bundling, repackaging. So since it's with us, he sends us a simple Slack message and says, hey, make five cases of six-packs, 12-packs, 24-packs. We're gonna start testing new SKUs. We're able to do that immediately. And we have another client that does a similar thing. It's a laundry detergent company, and they wanna have bundles and kits With different accessories inside with that laundry detergent, and they're able to do that and just make a SKU right away on the fly, and then just have us process that for the new FBA. So they're able to test things much faster, and we're able to ship things same day. So if there's an FBA shipment where you wanna test things and you wanna get to the market quick, and you have one of these enterprise level 3PLs, a lot of them would take, I've heard of stories, they take like two weeks, three weeks to get it shipped. Yeah, so it's gonna take some time. Yeah, that's where a lot of the money's lost. So in us being able to receive it quickly and then also being able to send it out quickly, you know, cash flow is the most important thing in these ecommerce businesses. Speaker 3: Yeah. And also the Amazon game, you know this as well, that if you go out of stock for so long, it's not only the revenue, it's about the organic ranking and other things that's so important. It's important to have somebody that's very responsive when it comes to that, which I guess brings me into my next question when it comes to the importance of a TPL. I'm keen to hear your take on this. How about maybe being more optimal when it comes to packaging and things like that? Do you actively engage or recommend some way or another? Optimizing their packaging because I see this so often, especially if Amazon says don't touch the product. It just goes from China to Amazon. Sometimes they don't realize how inefficient the packaging might be or things like that, which could be a few pennies here and there and could be a hefty amount of money on FBA fees. So how do you guys add value when it comes to that as well? Speaker 1: Yeah, absolutely. So there's a ton of stuff there. First is it's crazy the inventory that we receive sometimes. I'll tell you like we get a container and the client was expecting this, send them a picture and they're like shocked because it's not what they're expecting, right? There's very little transparency in just getting stuff internationally in terms of what you're going to be able to receive because you don't really know the manufacturers of the factory sometimes. So that's a huge thing. And then in terms of value add, so One is optimizing shipments. So we have a special software that we use. Inventory comes to us. Then when we are planning a shipment, we're able to choose which locations, whether it's a single location, whether it's multi locations, because people don't understand that calculation sometimes. And you just have to look at the total sum value. So when you add the placement fee plus the shipping costs, you're able to get the exact, then you divide that by how many units. So then you know exactly how much per unit you're paying for your shipping and placement. So people just assume if you're paying a placement fee, you're losing money. But a lot of times we've seen large shipments go right here to Pennsylvania, but you're saving so much on shipping that when you pay a placement fee, you end up still saving money. So there's a lot of things that go into it. And our team has over 25 years of Amazon experience. So they know what's going on. They've labeled millions of units, right? Like our team knows the process. So we're able to just provide value. And then even things like Like poly bags and specific mailers, anything material related. So sometimes we have to put like a little styrofoam insert in a client's package that we have. So we're able to work with our packaging partners, get that for them, and then we're able to just punch it in their box and then send it out. Speaker 3: Cool. So I guess in terms of now jumping to more actionable tips or things that maybe you have seen that shouldn't been done, like what are some of the things that you actively see Amazon sellers or your clients doing that are a mistake that you spot on the warehouse or on the floor? Like you mentioned a couple of them already, but is there something that keeps happening beyond that that you say, wow, if they didn't have me in between, they would be wasting so much money. Is there something that keeps happening across multiple clients? Speaker 1: First thing I think is just having clear communication. I think a lot of, yeah, even beyond Amazon, just like a lot of sellers that we see working with even other 3PLs and even their manufacturer, I think they're just not setting the right expectation for when the product will arrive at their warehouse. So sometimes we get a surprise where a container just comes and then we have to send it out, right? Which is not a problem for us, but it can be for other 3PLs and it also can be for your manufacturer if you just don't set the clear expectations. So I think that's huge. And then also just doing research on the actual product type because I know we have Some brands that start off with a certain type of product, but they don't do enough research in the market to see how much the PPC adds, contacting somebody like yourself to get the actual background of a product and then what it'll sell for and all that good stuff before going all in on it. So those are some things that we see. And then also just being able to have The proper 3PL in line before because a lot of people do say like, hey, my shipments coming tomorrow. Are you able to take it? And they're not a client of ours, right? Of course, we have an onboarding process that just like everybody else that that needs to be verified before signing somebody on. So yeah, just being being ahead of it, I think is one of the biggest things. Speaker 3: Cool. So now into the communications side of things and handling everything in terms of the logistics and so on, AI is something that keeps coming to the conversation as well. And I'm keen to know what is your take on that, especially with what you're doing internally. Like I feel a lot of times what people is really missing when it comes to, you know, handling the inventory is two things. First of all, is the lead times. They don't really know how long it takes them to get a product from A to Z. And the second thing is how they make sure they keep that momentum accurate enough to voice talk out some of that. So are you guys internally using any kind of AI or things like that or software or how you guys make sure that it's also taken care of? Yeah. Speaker 1: Yeah, so we use some AI, but not to the degree where we lose that human touch with our customers and our clients. So we have a process for project management, of course, that we do internally when a client messages us in Slack, we're able to follow that shipment along the entire process with the PO process that we have. So we do use AI to some degree in terms of tracking and processing, but it's just the right balance of making sure that we do that. Plus, our actual team is handling what customers want them to handle. Speaker 3: And on that note, talking about handling inventory and everything, something that keeps coming back after that is also returns. I see a lot of Sellers losing a lot of money with inventory getting disposed. So they don't have an option of what to do with returns. So do you have any advice when it comes to that? Like how to handle returns and especially units that become unsellable. Like what is your advice when it comes to that? Speaker 1: Of course. So a lot of time the Amazon will mark them as unsellable even though they're very sellable. So having a proper 3PL obviously makes a lot of sense. You could just set your default address if something was disposable, unsellable, send it to that 3PL. So obviously, there's a few costs associated with it. But if your product is over the value of like, let's say $30, it would be worth it because then you could possibly fix it. Yeah, you could possibly sell that product. So we have a customer trickles in returns. That process for us, we inspect, we do everything. If it's good, it goes into that next FBA batch, which is what they want, turning the product over again. And if it's not good, then we're able to dispose of it. So it gives a second layer of quality check because a lot of what they claim is unsellable is very sellable. Nice. Speaker 3: And on that note, when it comes to returns and all of that, what is your take as well when it comes to handling this form? I guess secondary markets like because I also hearing that some people that maybe they cannot sell on Amazon as you mentioned, they might use it for the influencer. So they might use a TPL to send it to the website or just to actually reimburse or get a replacement unit to some of the clients, which is something you cannot really do through the Amazon. You need somebody as your TPL to do it. So is that something you also advise and you see a lot of people doing lately when it comes to the returns? Speaker 1: So with returns that we do see that happening and we do have a process for it. So we follow an SAP if the returns are good enough, then they're able to do whatever they want with it. Most of them trickle it back to the FBA, but they do sell it to, we're partnered with Everything in the industry for this type of thing. So then we have a liquidation partner where some of our customers don't want to deal with it. Whole pallets of stuff could go to them and then they're able to give clients, usually they're able to give clients close to their like product cost, sometimes more than their product cost. So at least they get reimbursed in full without having to deal with it at all. And then some of them just send it back to the FBA center. So then they're able to do that. But yeah, DTC orders as well, we're able to handle. So if there was things that like, Hey, send this out to somebody because we want them to publicize it or or an influencer, then we're able to send that and then hopefully that gets some traffic. Awesome. Speaker 3: And I guess another question I have is regarding eligibility when it comes to 3-person warehousing partners, right? Because a lot of people that might be watching and hearing this, they might not know if you are the right partner at the right time, because maybe you're just getting started, right? So what is your advice when it comes to that? Like from what you're seeing, who could benefit more from having somebody like you, especially to take over all the different tasks that we have been highlighting so far? Of course. Speaker 1: So usually it starts to make sense to work with a 3PL once you're doing above 1,000 to 2,000 units a month. So before that, you're able to either self-fulfill or work with a very startup-friendly 3PL. So that usually is the best benefit to get started. Like a 3PL, like ours, we have a minimum commitment of 2,500 units a month. So once you hit that, it makes much more sense to work with somebody Like us, just because of the expertise and value we're able to provide in FBA, so your products would go out faster, your cash would turn around faster. We just have industry experience that you would be able to pick our brains on in terms of the actual process, product packaging, all those types of things. So yeah, we see $2,500 is really the sweet spot. Above that is where we start to take on Pathoma. Speaker 3: Okay, and in terms of timelines, Because this is something that also creates a lot of friction. We work in 3PL. Like sometimes people might think that it takes months to set up. It's very lengthy process and everything. Even from my experience, I know that's not the case. But can you just, I guess, highlight a picture of how having an engagement with 3PL and our warehousing will usually look like from your point of view? Speaker 1: Absolutely. So you contact the 3PL. First, absolutely verify their reviews. So us, for example, you would You would email us, right? So you just shoot us an email, or you go to our website, awesomesolutionsnj.com. The email is ship at awesomesolutionsnj.com. So you shoot us an email. We get the conversation started. We send you an inquiry form, or you could fill it out on our website, which asks for just simple things like how many SKUs you have, what industry you're fulfilling in, or what product type you have, and then how many orders you're doing a month. And then you get a pricing sheet. Once that's agreed upon, there's a contract process, which all of this just takes one day. And then onboarding stage, which connects to your Amazon account. And then you're able to start sending inventory and fulfilling right from there. Yeah, straightforward. Very, very fast. Speaker 3: No, no, no, not too much friction. That's why I wanted you to go very quickly over that because I feel sometimes, especially people who have never done it, they might feel a bit on the fence. So it's good that you highlight that. Cool. And I guess to start bringing final remarks, something I also would like to get from you is like, I guess also high level comparison of how potentially you add so much more value to something very generic, such as, you know, what Amazon can offer from a warehousing perspective, AWD, things along those lines. So what do you see, especially your clients, I'm sure tell you this all the time, like they see an extra layer of Of support or service that you will never get from Amazon. Yeah, that's a huge thing for our customers. Speaker 1: It could be one of the biggest things because they could come to us with things that are like, hey, my physical product needs this. Or can you verify like the label looks like that? Or if I put it in a bubble wrap box and drop it down the stairs, will it break? They want to verify things. We're there. We're on the floor. We can also send to AWD, but even with AWD, a lot of the clients, they can't get that support. There's nobody to talk to. So if they wanted to do anything beyond just sending the inventory out, like if they want to bundle things, it's just going to be a long process for them. So in terms of those things, we're able to provide that support. And I think that having somebody to actually speak to that's on the floor with your inventory is one of the biggest things. Cool. Speaker 3: Awesome, Krushna. I mean, I think we, you know, highlighted a lot of things across the board, but just to conclude, is there any final remarks or I guess also tips you feel we didn't cover that you'd like to bring forward in terms of all these subjects that we have touched on? Speaker 1: Yeah, definitely stay updated with everything that Amazon does. They make a bunch of changes. They could either destroy your business or help you scale it a lot because they have things that they change for their own sake. That could affect everything you do. So definitely stay updated with them. Work with the 3PL once you hit that 2500 fulfillment unit range for sure because then you're able to take logistics off your plate. Most of the founders we see, once they take logistics, fulfillment, returns, once they take that entire thing off their plate, they're able to just scale much faster because then they're able to focus on what really matters. Love it, man. Speaker 3: So thank you so much and tell us how people can find and work with you. Speaker 1: Absolutely. They can catch me on LinkedIn, just my name Krushna Patel or just go to AwesomeSolutionsNJ.com. There's a form there to work with us. Fill that out and our team will contact you. Speaker 3: Cool, man. So it was a pleasure. I know we had to briefly touch a lot of these points, but this is a universe of so many more things. So that's why I invite everybody to reach out to you to go more in depth. And other than that, it's been a pleasure, man. Thank you so much. Speaker 1: Hell yes. Speaker 3: Great time. Thank you, man. Have a good one. Bye-bye. Speaker 2: Thanks for listening to The Ecommerce Lab by Ecomcy. Be sure to subscribe so you don't miss an episode. While you are at it, we would appreciate it if you could leave an honest rating and review on Apple Podcasts, Spotify, or wherever you listen. That will make it easier for others to find out about the show and benefit from it. Want more? Visit our website at www.ecomcy.com where you can get your first consultation for free or find us on Instagram, Facebook and LinkedIn at Ecomcy.