e-commerce startups are each unique. Their client bases are different, their locations are different, their products are different, and their business plans are different. However, almost all e-commerce startups encounter the same issue of outsourcing. There comes a point in the process when entrepreneurs have to ask themselves, “should we do this ourselves, or will it be more cost-effective to outsource it?” If you are stuck in this stage, and you would like to know more about outsourcing, then here are five reasons to convince you:
When it comes to e-commerce, we understand that only you are the expert in marketing and selling your product. You are around it 24/7, and it is what you are passionate about. The same goes for fulfillment and third party logistics companies. By choosing to outsource your fulfillment needs to one of these companies, you are entrusting your prized product to people who have years, even decades, of knowledge on how to get your product to wholesalers and individual customers in the most efficient manner possible. Whereas you are an expert in whatever field you are in, and are equipped to create that product, fulfillment providers are equipped with the resources and processes that will ensure higher order accuracy, more accurate inventory, faster receiving times, and inventory visibility.
By partnering with a fulfillment provider, you no longer have to worry about equipping your warehouse with the latest fulfillment technology, which could be costly. Instead, you can take advantage of the technological benefits that fulfillment companies provide such as e-commerce integration, funds management, freight and shipping management, a team of developers, as well as the latest software.
Constantly scaling your distribution up or down in order to meet your customers’ demands can be detrimental to your business’ progress. It can also quickly overtake focusing solely on your product because of the amount of time that it takes to find workers when demand is high or lay them off when business is slow. It can also be costly to acquire more warehouse space to meet a demand that was once booming. With a fulfillment partnership in place, all those worries will no longer haunt you. Instead, the fulfillment company you choose will carry that burden for you because of its capability to handle all your staffing and storage needs according to the scale that you need it to be.
Once you ship your products to a fulfillment company’s distribution center (DC), it is that company’s responsibility to organize and store your inventory. Once it is in a DC your products can be picked from shelves, packed, and shipped at an extremely fast pace. Disorganization and inefficiency will not be the only problem that you would solve through outsourcing, however, because it will also solve your pricey shipping conundrum. Fulfillment companies ship high volume orders daily, so they are able to negotiate for better rates with parcel and freight carriers.
By opting to utilize a fulfillment company’s benefits, you can now focus on growing your business. Financial worries that having to acquire forklifts, shelving, warehouses, extra workers brings can be avoided. Capital can be spent on creating a mobile application, hiring a larger marketing or sales team, or even recreating your website. You could also be more productive, redirecting your time that you would have otherwise spent on your fulfillment issues towards your business and/or your product.