Logistics is one of the most complex pieces of running an ecommerce company. Cost-effective shipping solutions that don’t compromise customer experience are not one-size-fits-all, and keeping up with the expectations set by Amazon Prime is a constant struggle.

Most often, 3PLs (third-party logistics service), are responsible for storing and shipping products for ecommerce. Casey Armstrong is the Chief Marketing Officer of ShipBob, a 3PL that operates a growing network of distribution centers in major U.S. cities. They’re helping ecommerce businesses run a flexible and speedy supply chain. With tools getting more sophisticated, Casey says long term success comes back to actionable customer data.

On this episode, Casey answers fundamental questions businesses should ask when outsourcing their fulfillment. He shares the cost structure of 3PLs and gives insight into best practices around geography and vendor management. Casey talks about deciding what’s important for your business when splitting inventory, kitting, and shipping cold or bulky items (9:36). He gives indicators for when an ecommerce company should outsource fulfillment (23:46). Instead of solely focusing on the top funnel, Casey gives different levers brands can pull from to improve their bottom line (37:32). With companies like Shopify and Instagram reducing barriers to stay close to the wallet, Casey and Stephan talk about the future of the ecommerce stack, navigating new technologies, and improving instant, one-click checkout (42:25).

Also mentioned on the show:

Links and images can be found on the Lumi Blog.

76 Delivering Like Amazon with Casey Armstrong, Chief Marketing Officer at ShipBob