Five Reasons to Outsource E-commerce Fulfillment

What is E-commerce fulfillment?

The process of receiving orders from a web store, packing those items and shipping them to the customers around the world is referred to as e-commerce fulfillment. Professional e-commerce fulfillment providers have warehouse management systems to handle the unique fulfillment needs of their customers. They help companies by meeting their performance requirements and allowing them to focus on their core business.

Outsourcing e-commerce fulfillment can offer many advantages. Among them:

Time Management

Growing your business while managing day-to-day activities typically doesn’t work out very well – and when it comes to fulfillment, that is especially true. The time spent receiving orders, overseeing pick-pack and quality control operations, and tracking orders leaves little time to work on other core business initiatives. In addition, your warehouse facility may not be strategically located which can result in higher shipping costs and longer transit times (which in turn can lead to dissatisfied customer). Outsourcing fulfillment with a strategically located partner can ensure timely delivery and better shipping rates.

Cost Effectiveness

Building an in-house fulfillment team requires hiring dedicated staff, irrespective of the seasonal volume shifts in your business. Outsourcing allows you to reduce overhead expenditures and converting these expenses to variable costs. Moreover, outsourcing deliver savings on storage and insurance costs – plus, most professional fulfillment companies receive significant volume discounts on shipping rates that they typically pass on to their clients.

Technological Benefits

Outsourcing would allow you to utilize existing technologies for effective delivery. Fulfillment partners have professional management systems, tracking infrastructure, specialized fund management, shipping management, the latest software and trained staff. Instead of spending time and money to build your own, it is wiser to leverage your partner’s technology to your benefit. It would be useful to integrate your company platform with the fulfillment partner’s technology and infrastructure. You can invest the capital on creating cellular applications, hiring a marketing team and recreating your website to attract more customers.

Growth Opportunities

Most e-commerce businesses are concerned about their warehouse location, space to hold the inventory, on time shipment, effective order tracking, staff efficiency etc. Once you outsource these responsibilities, your fulfillment partner will take care of them. This will allow you to focus on the growth of your business and improving customer service.

Market Penetration

Outsourcing to a professional fulfillment partner can help you expand your business by reaching out to new markets. E-commerce by definition can reach out to anyone around the globe, but it is a task to deliver the products to each individual. While you might have limited resources to do so, your fulfillment partner will be able to perform the function with ease. This way you can expand your business to countries beyond your current horizon.

Outsourcing e-commerce fulfillment can be extremely beneficial to your company in business expansion and in driving higher levels of customer satisfaction. There are several web fulfillment agencies that cater to different products and geographical locations. Choose your partner wisely!

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