5 clues that it is time to outsource your order fulfillment

Shipping fulfillment is one of the most important and yet complex aspects of a successful ecommerce business. With the consumers’ expectation continuing shifting, both the complexity and the pressure of keeping up with meeting their demands is also increasing. Although you can manage all the things yourself when your business is still small or just started up, to some extent it makes sense to outsource the shipping and other related business.

Read on to learn what clues hint the necessity of outsourcing your order fulfillment to a 3PL fulfillment company.

1.Marketing and other business growth works are taking a back seat to fulfillment

As it is known to any seller, you can’t just establish a website and start make a fortune. In order to extend your business, you need to find excellent products and promote them effectively that differentiate your brand from others among the market which already have vast competitiveness. But if you have spent a lot of time in picking, packing and shipping your products, it might be at the expense of building an effective presence and perception of your brand. It means it is time to let others to manage your orders.

2.Your order volume has significant off and peak seasons throughout the year

Many sellers experience a seasonal sales peaks and lulls throughout the year, when this occur, certain costs, like storage space rent and labor often keep the same.

One of the benefits of outsourcing order fulfillment is that, through doing so, you can transform the fixed costs to a variable mode which allow you to maintain a more constant and predictable cost per order.

If you have been fed up with worried about how you are going to pay the utility corporation because your have to turn on the light and air conditioner on summer even though you don’t have many orders, then outsourcing order fulfillment is a good alternative for you.

3.Your current infrastructure can’t keep up with your business growth

Look around your warehouse. Is it big enough to storage all of your inventory as your business grows? How about your staff? Will they be able to handle the growths or will you need to hire more warehouse workers.

There is no need to worry about these things. When you outsource your order fulfillment, you can be rest assured that your operation will effortlessly scale as your business grows, no matter the increase is fast-paced or more gradual.

4.You are lacking the expertise and techniques internally

Technology is not cheap, nor is maintaining it. Many online sellers find that when they keep their fulfillment in-house, a large portion of their annual total budget will be used to continuously maintain and upgrade technology and warehouse equipment. By outsourcing your order fulfillment, you pass the burden on to your provider, because the fulfillment company’s technical costs are spread over many customers, which is usually more cost-effective.

Many businesses also find order fulfillment quite complicated. They often ask themselves the question: What is the best way to deliver this type of package to this location? How many orders can my staff handle in an hour? What is good accuracy and how to eliminate errors?

Before outsourcing order fulfillment, sellers usually need to admit that they don’t know what they don’t know and that fulfillment is not one of their core competencies.

5.You want to cut costs

Everyone wants to cut costs, right? By outsourcing order fulfillment, sellers can not only predict costs more accurately by eliminating fixed costs, but also take advantage of the discounts offered by the fulfillment company, which many sellers can’t get themselves.

Although some sellers do have products and orders that require a lot of labor and customization, in-house fulfillment is more meaningful for these sellers, but many sellers will find outsourcing order fulfillment a better and more cost-effective choice.

Consumers’ expectations are high and rising. Competition is fierce and increasingly fierce. In this era, you can’t just be satisfied with your order fulfillment… This needs to be extraordinary.

If you need a mature and reliable fulfillment partner, let us know, we would like to talk about it.

Leave a Reply

Your email address will not be published. Required fields are marked *