What is the unique selling proposition of your business? Is it the variety of goods you provide, the uniqueness of your brand, the low pricing you offer, or is it your fulfillment?
Consumers now expect nothing less than a perfect transaction every time they reach for their phones or log on to their computers to search for and buy goods. But, if you’re just getting started with an online store or if you sell products online, your success will rely on more than just the quality.
The capacity to handle more orders, provide better customer service, reduce expenses, and free up time may be a game-changer for your online store, but this surprises many business owners.
Successful businesses understand the importance of knowing when to switch from an in-house to an outsourced fulfillment service. And for those who would rather not deal with inventory management or shipping operations, there is the option of using a fulfillment service. Some of the most important aspects of a fulfillment service are:
- Provides several distribution centers for stocking and delivering products.
- Reasonable prices that include warehousing and transport.
- Streamline the ordering process by integrating various sales channels.
- Access to fast shipping programs.
When Is It Time To Outsource Fulfillment?
1. The quality of your deliveries has decreased
First and foremost, you should consider outsourcing your fulfillment if you see a decline in your delivery rates. Likewise, when an increase in order volume causes shipping delays or mistakes, it may be time to look into outsourcing your fulfillment needs.
2. Your shopping cart abandonment rates are pretty high
Cart abandonment often occurs because of logistical issues. A fulfillment service may fix the problems of delayed shipment speeds and high shipping costs by letting you provide a selection of shipping times and rates, allowing you to participate in subscription-based rapid delivery services like Amazon Prime and Walmart’s Free Two-Day Shipping, and saving money on shipping; which may be used to cover the expenses of offering free delivery.
3. Your costs are too high
Of course, you’re constantly on the lookout for methods to lower expenses in your online store to turn a profit. You should expect your storage, personnel, transport, and packaging costs to rise in tandem with your customer base, inventory, and advertising expenditures.
If you outsource your fulfillment needs, you’ll have extra cash to put toward things like free shipping and advertising. How? With the help of an outsourced fulfillment service, you can get your products delivered quickly and affordably. The costs of storage, labor, and packing will also decrease.
Use this fulfillment calculator to see whether outsourcing fulfillment is an excellent financial move for your company.
4. You’re looking to grow
Make sure your fulfillment procedures are ready to go and your online shop if you plan on growing. In-house fulfillment might take time away from critical jobs, such as managing numerous sales channels, increasing order amounts, and additional marketing activities.
By enlisting the help of a third-party fulfillment service, you can focus on growing your company without having to worry about the logistics of fulfilling orders. Another benefit of using an external fulfillment service is that you won’t have to stress whether your current infrastructure can match the demands of a rapidly expanding firm.
5. You don’t have enough experience
So you aren’t an expert in fulfillment, and that’s okay. However, it didn’t stop you from opening an online store since you spotted a need in the market, know how to sell, or have intimate knowledge of your items. Business fulfillment services provide the expertise necessary to store, choose, and ship things in the most efficient and cost-effective manner, which is invaluable to your company but challenging to acquire in-house.
6. You want your fulfillment all in one place
By consolidating your fulfillment with a third-party provider, your company may save money, work more efficiently, and maintain brand consistency across all sales channels, reaping the benefits of multi-channel selling with no effort.
Why You Should Outsource Order Fulfillment
Unfortunately, many new e-commerce business owners don’t give much attention to shipping and fulfillment. So, how can you guarantee that your clients will have a fantastic shopping experience while being competitive? Engage the services of a third-party logistics and distribution company!
But you may ask if you already have an in-house fulfillment system in place, why switch to outsourcing order fulfillment?
1. Efficiency
If you have to use several companies for package processing, labeling, and delivery, just think of how much time you’ll lose. Inconsistencies in the fulfillment process might cause unnecessary work, low output, and lost time. In addition, sending orders and inventory to storage facilities and signing in and out of numerous systems may be tedious.
2. Inventory Management
If several departments are fulfilling your inventory, it will be tough to keep track of everything. Stock levels for each sales channel must be monitored in addition to checking in with various inventory management systems to ensure accuracy.
This may be readily avoided, yet it severely restricts your sales potential on each channel. Instead, you may maximize stock availability and minimize overselling or selling out by outsourcing an order fulfillment service that instantly updates inventory across all online marketplaces when a unit is sold.
3. Consistency
Humans value consistency. It’s why we constantly purchase the same brand of washing powder, follow the same holiday customs, and visit the same Chinese takeout establishment. Your online shop is no different.
Customers demand the same delivery service from your brand, regardless of where they purchase from you, and outsourcing order fulfillment enables you to accomplish this.
4. Customer Service
Managing different fulfillment avenues makes monitoring, overseeing, and enhancing the services is challenging. Missing parcels, late delivery, and damaged items may become frequent without you recognizing them – impacting your ratings, customer pleasure, and profitability. One of the best ways to improve your online reviews and customer lifetime value (CLV) is to outsource a single fulfillment supplier.
5. Speed
When you consolidate your online store’s shipping methods through outsourced fulfillment, you can take advantage of expedited delivery options for all of your sales channels. This makes your present customers happy and makes you eligible for rapid delivery programs, which may boost your brand recognition, decrease shopping cart abandonment, and bring in more revenue.
6. Costs
When you first start, handling order fulfillment in-house may seem like a good idea to save money. However, an outsourced fulfillment service may help you save money in three main ways:
- No more long-term warehouse leases.
- Fulfillment centers often get a better rate from shippers.
- Avoid the hassle of securing warehouse space, hiring qualified fulfillment workers, and obtaining competitive shipping rates.
7. Enter Other Markets
Unifying your e-commerce through outsourcing order fulfillment allows you to freely enter other markets and participate in fast delivery programs.
It’s time to take your online store to the next level.
You probably didn’t decide to launch an online store because you like shipping boxes. But, even though you have a natural talent for packing and wrapping products, your other talents will set you apart from the competition. Even more so, as the number of purchases made through your webshop increases, your personal time becomes more valuable.
If you want more time to concentrate on expanding your company, Zip Ship is a great option. When you outsource, you free up resources that may be used toward growing the business in more strategic areas, such as marketing, product development, and customer acquisition.
The process of outsourcing order fulfillment is easier than ever before. With Zip Ship’s streamlined integration and your many sales channels, you can worry less and thrive more. If you have any inquiries or want a price quotation contact us today!