Episode 518: Finding Your Perfect 3PL Partner with Matt Hertz
The New Warehouse Podcast welcomes Matt Hertz, the co-founder of Third Person and Second Marathon. Matt’s journey through the e-commerce landscape, from selling sports cards online in the late ’90s to becoming a pivotal figure in the logistics and fulfillment sectors, provides valuable insights. His experience working with major e-commerce brands laid the groundwork for his current ventures, which focus on helping emerging e-commerce brands navigate the complex world of third-party logistics. This conversation delves into the challenges of rapid growth, the importance of finding the right 3PL partners, and the evolving landscape of e-commerce fulfillment.
From Sports Cards to E-Commerce Giant
Matt’s entrepreneurial journey began in Toronto, Canada, where he started buying and selling sports cards online in 1999. This early exposure to e-commerce and logistics provided invaluable lessons. “I started selling on Yahoo auctions, and it was all about fulfilling orders out of my home,” Matt recalls. His passion for e-commerce continued as he moved on to larger ventures, such as being an early employee at Rent the Runway and Birchbox. At Birchbox, Matt played a crucial role in scaling operations from 500 monthly orders to over a million. “We knocked down a lot of walls,” Matt says, reflecting on how their efforts helped pave the way for other subscription-based businesses.
The Perfect 3PL Partner Can Scale
As e-commerce brands scale, finding the right 3PL partner becomes critical. Matt shares how Birchbox’s rapid growth posed challenges not only for the internal team but also for their 3PL partners. “They didn’t believe us when we said we were going to grow 200% month over month,” he explains. This disbelief was common among partners who were unprepared for such explosive growth. The lesson here? Choose a 3PL capable of handling your current needs but also rapid scaling. Matt emphasizes that this relationship is “like a marriage,” where both parties must be aligned in their goals and expectations.
Building a Better 3PL Experience with Third Person
Matt’s 3PL matchmaking experience led to the launch of Third Person, a platform designed to help e-commerce brands find the right 3PL partners. He realized that many brands struggled with this process, often relying on Google searches or referrals. Matt notes, likening it to a haphazard approach to dating. Third Person aims to streamline this process by understanding each brand’s unique needs and matching them with the most suitable 3PLs. This service is precious for brands that may not have the resources to engage in a full consultancy but still need expert guidance.
Key Takeaways
- Early e-commerce experience can lay the foundation for success in logistics and fulfillment.
- Rapid growth requires 3PL partners who can adapt quickly and scale with the business.
- The relationship between a brand and its 3PL is crucial and should be treated with the same care as a long-term partnership.
- Third Person offers a tailored solution to help e-commerce brands find the right 3PL, moving beyond simple Google searches to a more informed matching process.
