A key part of running a business is learning to delegate. Let’s face it that we’re not able to accomplish everything, even trying. This is particularly true for order fulfilment that is among the most time-consuming, difficult aspects of e-commerce.
But delegating certain tasks is crucial. It frees up valuable time, and lets you concentrate on building the retail company you want to run.
It might be challenging to trust that other people will help you with you and your “baby” in the exact same dedication as you. It is possible that you are confined by the budget you have set.
Outsourcing fulfilment may assist in growing your business and can even reduce your costs in the long term. In this article, we’ll go over 8 benefits that can be transformative to outsourcing fulfilment of orders for retail businesses.
Third-party logistics companies Your partner in the fulfilment of your orders
Before we get in to benefits of outsourcing, it’s essential to understand what outsourcing fulfilment is all about.
If you decide to delegate fulfilment and distribution, you’ll have to search for an outside logistics firm, also known as a 3PL. The third-party fulfilment providers will keep your goods at their facilities. When you have received an online purchase and the 3PL will pick up your items from the shelves then pack it and then prepare the product for shipping using a company such as FedEx, UPS, or USPS.
This is typically enabled by a solid connection between the inventory software you use and the online store. This link speeds up the fulfilment process and allows customers to track the progress with your fulfilment partner as it sends out your orders.
Not all 3PLs are created all equal. It is important to choose the right fulfilment partner for your requirements.
It’s all about the cost or the location of warehouses to your customers, their capacity to handle returning customers, or their effectiveness in their integration with software selecting an appropriate partner can be most important factor in unlocking the advantages outsourced fulfilment.
8 advantages outsourcing order fulfilment
Outsourcing fulfilment of orders has numerous advantages that go beyond not doing that work any more.
For a business to be successful you must be able to meet the needs and demands of your clients. When it comes down to fulfilment these expectations are very extremely high. Late, lost or wrong delivery methods are certain to disappoint your customersthis is why it’s essential to do the order fulfilment process right.
To help you comprehend the benefits, here’s a an overview of the eight advantages of outsourcing fulfilment of orders.
- You can concentrate your efforts on the sale (and more)
Let’s get to the point most significant benefit of outsourcing fulfilment services is that it means you will not need to anymore. The time you spend creating labels and taping boxes can be put back into your business.
Although order fulfilment is than manageable for smaller companies but this job becomes more demanding and time-consuming when you grow. Since orders are sourced from various sales channels (in-store or online, sales events) You may be unable to devote the time to complete other tasks.
However, you can delegate the burden of logistics to your logistics provider of choice and concentrate on crucial tasks such as design marketing, sales, or marketing.
Maintain inventory from one back office
A lot of online content management platforms come with tools that aid you in managing your orders, fulfilment partners as well as inventory all in all one location. Forecast demand, create low stock alerts, design purchase orders, identify what items are in demand or on shelves, track inventory and much more.
- Lower shipping costs
Many people are reluctant to outsource fulfilment due to the perception that it is as a cost. Third-party logistics companies could actually save money in a variety of areas, like shipping.
The first thing to note is that an fulfilment partner could have warehouses throughout the country , and sometimes even overseas. In balancing your inventory through these warehouses They ensure that your products are more accessible to buyers. The distribution of inventory this way will cut shipping costs by 25 percent.
Additionally, since they are large volume shippers, third-party logistics firms typically receive better prices from carriers. However, depending on the business however, typically you will save between 15 and 35% off quoted shipping costs. Fulfillment firms additionally have software available that permits their customers to look up shipping costs from different carriers and choose the most affordable price for each order.
These are savings you can transfer to your customer giving them lower prices or free shipping to make the deal more appealing and bring in more sales.
- Speed up shipping
The effect that comes from having several warehouses spread across the country is evident in speed of delivery. By putting inventory nearer to customers, outsourcing fulfilment enables you to speed up delivery.
This is an incredible advantage for retailers. An astounding 67% of US customers want their products to arrive within just two or fewer days. A reliable fulfilment partner could be the only option for you to meet those demand and compete against the biggest chain retailers in the country.
- Give accurate shipping information to buyers.
Transparency and consistency are crucial for buyers on the internet since it gives them confidence to press that buy button.
According to one study about 60% of shoppers tend to buy when they can see time of delivery in the shopping cart. This is because transparency can work in reverse. Around 47% of buyers are hesitant to purchase from a company if there’s no transparency regarding delivery.
By outsourcing your fulfilment, you can ensure that you have accurate delivery information at the time of checkout. If you self-fulfill, a hectic day at the shop, a storm, or your vehicle breaking down can have a negative impact on your ability to fulfill the delivery commitment. Your fulfilment partner needs to be a rock-solid partner. They’ve got the experience and the resources and the necessary contingencies to supply accurate shipping data and provide on time throughout the year.
- Reduce operating expenses
Although outsourcing fulfilment comes with an expense, so self-fulfilling. The hours of packaging and shipping are just one aspect of the cost. Retailers are often oblivious to include inventory storage into their fulfilment expense calculations however this is a significant portion of the logistics expenses. If you’re required to lease warehouse space, the cost could skyrocket.
When you outsource fulfilment, you cut down on costs and only pay for what you actually use. Third-party logistics companies typically charge for the picking, packing and shipping, as and storage of your items.
- Expand your reach
Go nationally. Expand internationally. When you receive an order from a different state or a different nation With the right fulfilment service will be in a position to take your company to the next stage.
If you are managing your own shipping it can be daunting to determine shipping costs and anticipate the delivery times (how much will it cost for Hawaii for Hawaii?). International shipping costs are more complex because they require different laws in terms of currencies, regulations, and the best methods. This is why most retailers limit their shipping choices largely local or even regional.
However, outsourcing fulfilment can help increase your reach and access an even larger market. Many fulfilment firms have the infrastructure in place to deliver and ship orders to all parts of the globe.
- Create and improve the efficiency of your back office
Third-party logistics companies are typically in the forefront of technology in e-commerce. Their systems not only integrate with your online store, but they also improve your access to key aspects of your back office such as:
Management of inventory
Tracking of items
Security
Shipping and handling
Carrier selection
Payment processing
Being able to access all the information you need in one place can help you become more organized. You can identify inventory shortages as well as patterns that you can observe about your customers and keep track of your money.
- Happy customers
It could appear obvious from a distance however it is important to be brought into focus. Speedier, less expensive shipping, precise delivery information worldwide reach, and more time to spend on sales and marketing results in more satisfied customers. This is the main objective of your business outsourcing fulfilment could have huge difference in helping you accomplish it.
Moving forward by outsourcing order fulfilment UK
Many benefits comes from outsourcing the fulfilment of orders to an external service provider. From a better-organized back office, to an increased flow of clients, delegating this essential aspect of your job to a professional can allow you to effectively increase the efficiency of the ecommerce part of your company.
If you choose to go ahead with outsourcing fulfilment to a third party logistics company be patient and conduct your research.
This is a huge decision , and you need to take a look at all choices before choosing which one is the best fit for your company.