When you started your business you most likely handled all fulfillment in-house. As a start-up it likely made the most financial sense. But that may not be the case anymore. There are a few reasons why you should consider outsourcing fulfillment for your business as you grow and flourish.
One of the first reasons you should consider outsourcing is that you can drastically improve & reduce your your shipping costs. Since fulfillment companies are able to purchase shipping materials in bulk and send out shipments in large quantities, they can get bulk delivery discounts which ultimately assist all of the companies that they work for & their bottom line. While these discounts may only be 10% or 15%, when you are shipping a lot of orders, reducing the shipping costs on each one by 10 to 15 cents per dollar really begins to add up. Secondly, most fulfillment companies have locations all over the country, and possibly even overseas, and this allows them to ship to different regions of the country and around the world at a lower cost. If you are looking to lower your shipping costs, outsourcing fulfillment can be a valuable step to take.
Similar to how outsourcing can lower your shipping costs due to the ability to complete tasks in bulk, a business focused on fulfillment is able to upgrade technology and systems more often. It might be cost prohibitive for you to update to the latest shipping technology because you are shipping a limited number of orders. However, for a company whose sole job is to ship products it makes sense to invest in the latest technology and systems. The result is that you are able to save money with these streamlined and updated systems.
Another reason to consider making the shift to outsourcing fulfillment is if you want to expand or are already expanding your business. As your business grows you likely won’t be able to keep up with shipping demands while maintaining high levels of quality marketing, customer service, product design, and more. Outsourcing fulfillment will allow you to focus more on those areas and scale up your business.
Outsourcing fulfillment also allows you to meet the shipping expectations of your customers. More and more, people expect quick delivery and that can be a difficult expectation to meet. However, fulfillment centers are designed to move product quickly so outsourcing fulfillment can help increase customer satisfaction.
If you find these reasons to be applicable to your business, it may be time to consider outsourcing fulfillment for your business. Outsourcing fulfillment can lower operating costs, increase capacity, increase customer satisfaction and more.