When things start picking up for your e-commerce business, it might be time to consider outsourcing some of your operations. In this case, it might benefit you to think about hiring a third-party logistics (3PL) provider to handle your order fulfillment process. Some business owners may choose to redistribute only part of their operations to a logistics provider while others prefer to contract out the whole process.
Whichever option you prefer, the purpose of doing so is to be able to focus less on completing orders and dedicate your time to doing other things. Aside from that, there are other reasons why outsourced order fulfillment services will be highly beneficial to your business.
You’ll have more flexibility during sales fluctuations.
As with any e-commerce business, it’s normal to expect surges and decreases in sales from time to time. This is one way that outsourcing order fulfillment services is a great move. When hiring order fulfillment services USA residents rely on, always consider the best logistics companies to help you get your orders packed and shipped out to your customers consistently.
If you do it all by yourself, it can be more challenging. You might have to hire and train new personnel and purchase more equipment or warehouse storage to respond to high volumes of orders. This is well and good until the surge passes, and you have all these unutilized assets at your disposal. Save yourself the effort and additional expenses by letting a 3PL provider handle your order fulfillment services!
You can expand your business further.
If you want to grow your business even more, but find that your resources are limited for reaching new customers, outsourcing helps with that. After all, shipping to customers outside your state or internationally can be costly. You might even discover that certain markets aren’t worth expanding to after you’ve spent a lot already.
When you decide to outsource your order fulfillment resources, the service provider already has the infrastructure needed to help you expand to these markets. It’s a win-win situation. This setup means that you don’t need to spend as much for expansion, and you have someone else handling your order fulfillment needs too.
You’ll save more money.
Elaborating further on the cost-effectiveness of redistributing your order fulfillment services, you pay less for shipping costs and get rid of fixed costs. Many order fulfillment providers offer bulk delivery discounts because of their facilities around the country and the world.
Many of them also have the technology to help give you the most affordable shipping rates. These lower fees can even make it possible for you to offer free shipping to your customers if you haven’t before, potentially bringing in more sales for your business. Moreover, a lot of 3PL providers will only charge you a variable fee for rent and utilities on warehouse space depending on the bulk of orders you have. This means that you pay less during the off-peak season of your business.
You can improve your customer service.
Additionally, you won’t have to hire any additional employees on your dime to do it! Many order fulfillment service providers offer 24/7 customer service for concerns like returns, exchanges, tracking, and refunds. They can act as a middleman between you and your customers, especially when you and your team are too busy to address their concerns.
Moreover, many order fulfillment providers can also help you keep up-to-date with changing customer demands. Many customers will likely shop from you again if they know they can get orders delivered to them within the same day or have the option to pick their order up somewhere nearby. Many 3PL providers do offer these services to potentially attract more customers to buy from your business.
You can streamline your process with technology.
Many order fulfillment service providers have the software to help make it easier to ship and process your orders. These systems can seamlessly integrate into your e-commerce store and can make your order fulfillment process simpler and faster. This also helps lower your cart abandonment rate. Services like inventory management, tracking, shipping and handling, and payment processing are some of the inclusions in the software.
As your business grows, you might find more and more orders coming in from different channels, and it can be harder to keep up with them. As you’re scaling up your business, order fulfillment can take up much of your work hours, which could be spent on more important things.
When you decide to outsource your order fulfillment services to a 3PL provider, you let them take care of it while you can focus on what you’re best at – improving your business and more. Perhaps, this is the biggest benefit of doing so.