Logistics is one of the most important and sometimes the most complicated parts of a business. And the complexity increases along with consumer pressure and expectations that the eCommerce platforms they are purchasing from will manage the logistics process more significantly and efficiently. For a small company or a startup, it is just difficult to manage order fulfillment by themselves. That’s why, as the business grows, the demand for outsourcing shipping and supply chain management arises.
This article aims to help you by explaining order fulfillment and why companies choose to outsource to a third-party logistics provider instead of managing it themselves. At the end of this article, you will know whether or not to outsource order fulfillment for your business.
What Is Outsourcing an Order Fulfillment?
Outsourcing an order fulfillment means hiring a third-party service to manage some part or the entire order fulfillment process. Third-party order fulfillment providers help you warehousing inventory, packaging items, or shipping your products to your customers. Depending on your business needs, you can choose a 3PL to work with and select the services that make sense to your business.
A third-party logistics provider manages the fulfillment services typically through software that helps them streamline the entire fulfillment process. Once they receive an order, they pack and prepare the product for shipment. The company can also manage a pickup from your location and send it to the customer if need be.
A third-party logistics provider typically charges a flat monthly or yearly fee, and the price is determined by the facilities you are seeking for your business.
What Are The Benefits Of Outsourcing An Order Fulfillment?
Your success does not really depend upon the quality of the product you are selling. But it highly relies on the quality of order fulfillment. Order fulfillment plays a vital role in whether or not your business will excel. If your customers face delayed or missing products, they will stop trusting your business, and to deal with such issues, outsourcing order fulfillment is essential.
We Have Listed Top 4 Benefits Of Outsourcing Order Fulfillment.
- It Lowers Your Shipping Cost
Many order fulfillment providers serve over the country and overseas. And it helps you to lower your shipping rates and also provides you a bulk delivery discount. While it highly depends upon the company, you are choosing to outsource your order fulfillment. Still, on average, you can save around 15% to 30% on shipping rates when you outsource order fulfillment versus when you manage it in-house.
- It Reduces Your Operating Costs
The warehousing and fulfillment industry is enormous. And it is valued at billions. Businesses from different industry verticals are partially or entirely dependent upon the industry for saving costs on shipping and operations. With a third-party fulfillment service, you can save a lot of money as you only pay for what you use. Third-party service providers generally charge a flat amount for your products that are being warehoused, and you are only charged for the picked, packed, and shipped orders. If your business faces a seasonal increase or decrease in sales, it won’t impact your fulfillment costs.
- It Extends Your Reach
If you want to go global with your business from your state to another country, you must choose the right third-party order fulfillment provider. With a third-party logistics provider, you can take your business to a new level. Many fulfillment companies have warehousing facilities in different parts of the world, and they can help you extend your reach and grow your business into new markets.
- It Enhances Your Customer’s Experience
A third-party order fulfillment service provider offers 24/7 supports through email or phone. If your customers face any issues regarding returns or exchange and even refunds, the fulfillment services help them solve the problems. Some order fulfillment service provider also offers same-day delivery options to enhance your customer’s experience.
Now that you are well aware of the benefits of outsourcing order fulfillment, it’s a great idea to start with outsourcing your order fulfillment. Visit https://redstagfulfillment.com/order-fulfillment/ for more information about outsourcing order fulfillment.
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