In the competitive world of e-commerce business, there is a golden rule – you have to get it right the first time. Customers can be very rude if they do not receive the product or service that they were expecting. Since it is often the first impression that matter the most, your online business may fail even before it started. Fortunately, you can satisfy your customers without being stressed by outsourcing your order fulfilment requirements to third-party fulfilment companies.
Companies offering order fulfilment services to online retailers are aware of the dynamic nature of the e-commerce platform. They are also sympathetic towards the need of each e-retailer to stand out from the rest. With that in mind, finding a company willing to provide you with a tailored fulfilment solution will not be that difficult.
However, if you are still unsure regarding whether to outsource your fulfilment requirements, take a look below at some of the ways that it can benefit your business.
#1 Reduced operating costs
As a business owner, your aim must always be on finding ways how you can lower the operating expenses of your business. But, when you have to rent a storage or warehouse facility, packing supplies and equipment, as well as, look after the maintenance of it all, your overhead costs automatically shoots up. By joining hands with third-party fulfilment companies, you will be able to save yourself from incurring such expenditures. Fulfilment companies already has the infrastructure and team required to handle the order fulfilment process. Taking advantage of their economies of scale will enable you to cut down on your expenses. Moreover, paying a fixed amount to the fulfilment company will increase your efficiency of cost control efforts.
#2 Access to the latest technology
Tracking stock levels with the help of off-the-shelf solutions is nerve-racking and time-consuming. On the other hand, upgrading your warehouse might be too expensive a project that you are not willing to undertake at the moment. So, what can you do? This is where outsourcing will help save both your time and money. These third-party companies already make use of cutting-edge technology for tracking shipments, monitoring inventory, managing accounting platforms and so on. Collaborating with them will prove fruitful for your e-commerce business because you will gain access to all the groundbreaking technology and software at minimal costs.
#3 Improved focus on core business activities
A common trait amongst small and medium-sized business owners is trying to juggle too many things at once. They source and handle suppliers, craft marketing strategies, communicate with customers and so on. However, in an attempt to handle everything, they usually end up not being able to do any of them well. By outsourcing mundane, but mandatory tasks like, packaging, storage and delivery, you will be able to free up the resources of your company. You will also be able to turn your attention towards core activities of your business, such as running marketing campaigns and expanding your business.
#4 Opportunity to avert market fluctuations
The costs of shipping and trucking fluctuates as per the market conditions. Outsourcing will help to keep your businesses shielded from such variation. You will also be able to protect yourself from increasing rent. The more your overhead is reduced, the more are your chances of surviving tough economic conditions increases.
All of the above-mentioned benefits together will help your business to grow and increase profit margins with great ease. It will also put you at par with the big box online retailers.
However, for the desired results, it is important to partner up with a reliable and reputed third-party fulfilment company. Companies offering custom solutions are highly-preferred as they understand the uniqueness of your business. Do not hesitate from asking as many questions as you feel like before making your decision. It is also a good idea to conduct market research.