Home Business 6 Benefits of Outsourcing Order Fulfillment for Your Retail Business

6 Benefits of Outsourcing Order Fulfillment for Your Retail Business

by MoralStory Editorial Team
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Fulfillment for Your Retail Business

Learning the process of delegation is a crucial aspect of running a business. This is because one person can not achieve it all, regardless of how much they try. This is the case with order fulfillment, being one of the most challenging, time-taking aspects of e-commerce.

However, it is essential to let go of some tasks, as it will free up your precious time and allow you to focus fully on growing your retail business.

Admittedly, it may be difficult to entrust other people to care for your “love” with the same level of passion you have. But, outsourcing fulfillment could assist you in building your business and as well save you money eventually. Hence, let us examine the benefits of outsourcing order fulfillment for your retail business.

6 Benefits of Outsourcing Order Fulfillment for Your Retail Business

Reduced Shipping Costs

A lot of people often avoid outsourcing fulfillment because they regard it to be another expense on its own. However, third-party logistics companies are capable of helping you save money in various areas, with shipping inclusive.

To start with, a fulfillment partner may have various full-service warehouses all over the nation, including overseas. But through inventory balancing across this network of warehouses, they will make sure that your goods are in closer proximity to your buyers. By distributing inventory this way, shipping costs can be reduced by about 25%.

Furthermore, getting favorable rates from carriers is characteristic of third-party logistics companies, being high-volume shippers.

Moreover, fulfillment providers also possess software that enables them to browse shipping rates from several carriers, and then they choose the most cost-friendly rate for every order.

Organization and Streamlining Back Office

Regarding e-commerce, third-party logistics companies are usually found at the forefront of technology. Their systems will not only integrate with your store of e-commerce, but they will also frequently expand your visibility into significant areas of your back office, which include:

  • Security
  • Carrier Selection
  • Management of Inventory
  • Payment Processing
  • Tracking of Goods
  • Shipping and Handling

When you have access to all of these pieces of information in one place, you will be able to remain more organized. For example, you will be able to notice shortages in inventory and simultaneously spot patterns concerning your buyers while effectively keeping better track of money.

Provision of Correct Information on Shipping to Customers

Transparency with consistency is highly essential for virtual buyers. This is due to the fact that it provides them the courage to hit the button “buy”.

For example, according to statista, about 41% of buyers said they hope to get their deliveries with 24 hours, while 24% would rather receive their online purchases in less than two hours. Outsourcing your fulfillment will assist you in providing the correct delivery information at checkout.

On the other hand, when you self-fulfill, anything can easily affect your ability to meet up with a delivery promise. For example, it could be your car breaking down, a tasking day at the store, etc.

However, your fulfillment partner should be solid. They already have the experience, and human resources, including the contingencies settled, in order to give the correct shipping information and deliver at the right time all year round.

Focus on Selling

A massive advantage of outsourcing fulfillment is that you wouldn’t want to do it yourself anymore. The hours that could have been spent taping boxes and printing labels can be reinvested into your business.

Although order fulfillment can be well managed in small businesses, as you scale higher, the task becomes specifically complex and intensive in terms of resources. As the orders troop in from various channels of sales (such as online, in-store, and sales events), you may consequently find yourself without the period you require for the other aspects of your job.

Nevertheless, you may surrender the heavy lifting to your third-party logistics partner and spend more time on significant work such as marketing, design, and sales.

Enhanced Shipping Speeds

Enhanced Shipping Speeds
Image Source: Pexels

The effect of having several warehouses across the nation extends to the speed of shipping. Through inventory placement in close proximity to your buyers, outsourcing fulfillment gives room for you to provide faster delivery.

This is a great advantage for all retail businesses. Interestingly, a strong fulfillment partner may be the only means by which you can meet the high demands of customers to get goods delivered within two days or less. A strong fulfillment partner may also be the only means to compete successfully with the nation’s biggest chain retailers.

Reach Expansion

This means going global, going national. Once you have a good order fulfillment provider, you will be all set to take your business to a higher level, whether you get an order from another state or another country.

But when you choose to manage your shipping by yourself, it can be daunting to figure out shipping rates and predict times for shipping.

Moreover, international shipping rates are more complex since they involve various currencies and regulations, including best practices. Consequently, a lot of retailers maintain their shipping options being reasonably local or regional.

On the flip side, outsourcing fulfillment can help you expand your reach and unlock a broader market. A good number of fulfillment companies possess the network and capability to ship and deliver orders to all parts of the world

Outsourcing Order Fulfillment

Outsourcing Order Fulfillment
Image Source: Pexels

Once you choose to surrender to outsourcing order fulfillment, you will find a third-party logistics company or a 3PL. They will store your products in their warehouses, and the moment you get an online order, they will pick up your inventory from the shelf, pack it, and get the product ready for shipment with a carrier such as UPS, USPS, DHL, and FedEx.

The process can only be made possible by a strong integration between the warehouse software and your e-commerce store. The strong integration will contribute to offering optimum satisfaction to customers, which is the goal of your business

However, finding the right partner is the step to unlocking the numerous advantages of outsourcing fulfillment.

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