Are you making and selling your product only to find yourself spending most of your time doing order fulfillment, packing and shipping product to customers? With $322 billion e-commerce sales* in 2016, many e-tailers are discovering that outsourcing fulfillment of orders to third party groups has several benefits.
Increased production time.
When you first begin, you may only have a handful of shipments to make each week for online orders. However, as you continue to grow, this process may become overwhelming, reducing time and concentration on the production of goods. These types of issues can lead to bottlenecking of production lines and ultimately leading to longer wait times for your consumers to receive their product. By outsourcing fulfillment duties to a third party, you can get back to what really makes you money, production and sales.
Decrease in customer complaints and returns due to more accuracy of order delivery.
One of the most common mistakes made when packing and shipping product orders is inaccuracy of the fulfillment of what was ordered. Wrong shipments, incomplete orders and late delivery all lead to a loss of trust by the consumer. A loss in trust can not only lead to the loss of a customer, but also does damage to the brand long term if not addressed in a timely and professional manner. A third party fulfillment group can insulate a company from customer complaints as well as provide a high level of quality control to reduce, if not eliminate, the chances that an order is not completed as expected.
More time to focus on sales and growing the business.
Depending on the nature of your business, you may be pulling away precious time from business development, vendor relations, employee acquisition and marketing by fulfilling your own online orders. We are willing to guess that you went into business to create sales and happy customers, not ship boxes. Through outsourcing packing and shipping of orders, you can return to the business at hand.
Reduced overhead costs.
By outsourcing fulfillment of online ordering, you can reduce overhead and labor costs. You no longer need to have warehouse storage space to store inventory. You also save money on staffing, training and management as you no longer need employees to manage the delivery and shipping of packages. The removal of a physical warehouse and the need for employees will also reduce liability, which can have a direct impact on your profits.
Reduced inventory management issues.
Working with a reputable fulfillment company will help you manage the demand of your product through more accurate tracking. When the fulfillment company acts like your partner rather than a vendor, they will also most likely keep an eye out for any damaged or less satisfactory product, increasing your credibility and leading to happy customers.
As your e-commerce organization continues to grow, consider the benefits of an outsourced fulfillment department to package and ship your orders. The cost savings and reputation management will directly lead to a better bottom line result.
If your organization is ready to consider a valuable fulfillment relationship with a third party, Plumb Marketing offers a fulfillment assessment to determine if your organization can benefit.
*Sources
https://www.statista.com/topics/2443/us-ecommerce/
https://subscriptionschool.com/guide/fulfillment-outsourcing-vs-in-house/
https://shipfusion.com/blog/common-order-fulfillment-issues-and-how-to-solve-them/
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