The 7 Top Reasons Why E-Commerce Stores Outsource Their Fulfilment To A Logistics Company
E-commerce stores are each unique. Their locations, client bases, business plans and products are all different. But, almost all e-commerce encounter similar issues of outsourcing.
There comes a point then entrepreneurs ask whether they should do it themselves or outsource it. If you are one of those who is stuck in this stage and is debating whether you should outsource to a logistics company, then here are 7 reasons in order to convince you:
- Time Management
Growing the business while managing daily activities usually, do not work out really well. And in terms of fulfillment, it becomes especially true!
The time that it takes to receive orders, oversee the quality control operations and pick packing, and tracking orders leave you little time to work on other important business initiatives.
Additionally, warehouse facility might not be located strategically which can result in a higher shipping cost and a longer transit time that can disappoint customers. Outsourcing fulfillment to a logistics company that is strategic location can ensure better shipping rates and timely delivery.
- Knowledge
Opting to outsource your fulfillment to a logistics company means that you are handing over your products to the people who have several years or even decades of knowledge on how to get those products to individual customers or wholesalers in the most efficient manner possible.
While you are an expert in whatever industry you belong and is fully equipped to develop that product, fulfillment providers are equip-pen with the necessary process and resources which ensures a higher order accuracy, faster receiving times, more accurate inventory and inventory visibility.
- Cost Effectiveness
Creating and building an in-house fulfillment team requires you to hire dedicated staff, irrespective of seasonal volume shifts in the business. Outsourcing, on the other hand, allows you to reduce overhead expenditures and convert such expenses to a variable cost.
Furthermore, outsourcing provides savings on insurance and storage costs. Plus, professional fulfillment companies receive significant volume discounts on the shipping rates which they typically pass on to their clients.
- Technological Benefits
Outsourcing allows you to utilize some of the existing technology for an effective delivery. Fulfilment logistics companies have professional management systems, specialized fund management, tracking infrastructures, shipping management, trained staff, and the latest software.
Rather than spending money and time in order to build your own, it is much efficient to leverage a fulfillment company’s technology to your benefits. You can integrate your company platform with the fulfillment company’s infrastructure and technology. You can invest in creating mobile apps, recreating your website and hiring a marketing team in order to attract more customers.
- Growth Opportunities
By opting to outsource fulfillment to a logistics company, you can now focus on growing your business. Financial worries of having to acquire warehouses, shelving, forklifts and extra workers can be avoided. When you outsource these responsibilities, your partner will now take care of them so you can focus on the growth of your business as well as improving customer service.
You will be more productive and you can now redirect your effort and time that you will otherwise spend on fulfillment issues toward your product or business as a whole.
- Market Penetration
Outsourcing your fulfillment to a professional logistics company can help you expand your business faster by reaching out to a whole new market. E-commerce can reach out to anyone anywhere around the world, however, it is a difficult task to deliver the items and products to reach customers.
And while you might have a limited resource in order to it, a professional fulfillment partner can perform such functions easily. Through this, you can expand your business to various countries beyond yours.
- Ensure Positive Experience For The Customers
Accurate and on-time deliveries are major players in the e-commerce space and having such a seamless experience can result to repeat purchases and customer referrals.
However, avoiding errors while there are numerous pieces in your business can be very difficult if you have in-house fulfillment. Do not test new systems or processes in critical customers and get caught in managing damage control.
Fulfillment providers handle distribution, warehousing, fulfillment, shipping, and returns so that you can prevent any errors that can result from a self-distribution operation.
Outsourcing fulfillment to a logistics company means that you can have an accurate, fast and nearly error-free shipments every time that decreases customer service request, customer dissatisfaction and encourage repeat purchases.