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 were struggling 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 the unique needs of each brand and matching them with the most suitable 3PLs. This service is particularly valuable 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.

Listen to the episode below and leave your thoughts in the comments.

Guest Information

For more information on Third Person, click here.

For more information on Second Marathon, click here.

To connect with Matt on LinkedIn, click here.

Check out Matt’s newsletter, which covers valuable topics in e-commerce logistics. 

Check out the podcasts below for more information about finding the perfect 3PL partner. 

479: Insights into the 3PL Industry with Aaron Hodes

478: Exploring Cold Chain Logistics with the Team from Cold Chain 3PL

477: 3PL Insights with Bulu CEO, Paul Jarrett