When Is the Time to Opt For Outsourced Fulfillment Services?

There are a lot of ecommerce owners that are struggling to manage their fulfillment. In this journey, some people think to do everything in-house so that they can have better controls on each and every step of their business procedure. Well, it is good, but managing the fulfillment process is a bit tricky and time-consuming. If you are planning to do this on your own, then you may need to do some huge investment in terms of both time and money. Therefore, outsourcing third-party logistics is often considered as a smart decision to take the business to new heights.

One thing that is perfect for your business might not be good for another. So, what could be the criteria for deciding which way to go? We are here to help you. We will provide you a complete overview of the fulfillment journey for your brand. Read the complete blog to explore the ways for selecting and identifying accurate fulfillment center pricing. Along with this, it is crucial for you to know when to shift from in-house to an outsourced fulfillment provider.

What is order fulfillment?

Order fulfillment is the process of operating the inventory of a business. With this, companies sell their products to their customers on time. This process includes several steps such as receiving items, picking up the orders, labeling, packaging, shipping, and return of orders. Depending on the work and size of the company, this order fulfillment process is either outsourced or managed in-house. In this article, below we are sharing the actual difference between both of these.

The major difference between in-house and outsourced fulfillment

• In-house fulfillment

In-house fulfillment is exactly the same as it implies from the name – this means the company itself is responsible for the complete fulfillment process. All the orders from your customers are received, processed, picked up, labeled, packaged, and shipped under your business building. Your team will be responsible for tracking and resolving the issue, sorting out any damaged or missing deliveries. If you are at the beginning stage of your ecommerce business, then you have a small yet sufficient space for storing your products and managing the inventory. With this, you can gain complete control and deep insight into your business. But with the development of your business, in-house fulfillment can be a bit tough and becomes highly expensive. Also, you may need to devote most of your precious time to the tasks related to the fulfillment.

• Outsourced Fulfillment

This is where you hire a team of professionals for managing your fulfillment-related tasks. In simple words, you will be outsourcing your work to fulfillment providers. They will be responsible for managing and assembling your products in their warehouses. Not only this, Ensuring accurate deliveries for each and every order is the work of their process. You will be paying fulfillment center pricing for accurate and on-time work only. Outsourcing fulfillment services often helps to supplement your business growth and allow you to work with industry experts of this field. The major benefits are your work is done at an affordable cost, larger space, and on-time delivery. If your startup is growing at a fast pace, then it is time to think about outsourcing the fulfillment services. It could be one of your important decisions towards your business for significant profit boosts.

When you need to outsource your fulfillment

Now you know the exact difference between in-house and outsourced fulfillment. In the beginning stage, in-house fulfillment will work, but with the scaling-up of your business, you will need outsourced fulfillment services. But it is important to know about the tipping point, that is when you need to do the switch. Here is when –

●     Your delivery standards are falling

This is the most important time when you need to make an immediate shift towards outsourcing your fulfillment requirements. At the growing stage of your business, you can’t afford to take a risk of slipping delivery standards. According to the latest surveys, one in every five customers says that they won’t think of buying products again from a company that has a poor delivery experience. If your company is making late or incorrect deliveries most of the time, outsourcing fulfillment is the only option that you should opt for.

Outsourced fulfillment service providers have the expertise and sufficient staff to manage and deal with thousands of orders. They can even easily handle a sudden increase in your orders. With one of the best-outsourced fulfillment centers, you will receive perfection in your deliveries for each and every order.

●     High rates of cart evacuation

Organizing, planning, and shipping are the major reasons for cart abandonment. If you are a small business owner and facing the problem of high cart abandonment rates, then your business might be working with slow delivery speeds and mostly shipping. To overcome this, hire a team of professionals in fulfillment services. They will provide your customers with different cost options and delivery speeds. These professionals satisfy and convince your customers for fast shipping rates by qualifying your business for certain well-planned programs such as Amazon Prime, Flipkart Plus, etc.

●     Low conversion rate

With the reduction in your conversion rates and abandonment rates, you might have started applying a lot of marketing techniques. This may include lowering prices, free delivery service, email marketing. But have you ever thought about the impact of logistics on your reduced conversion rates?

Outsourcing fulfillment services allow your business to offer fast shipping service to your customers and make them happy enough with the delivery experience. The guaranteed shipping costs qualify you for different shipping programs, including Amazon Prime and Walmart’s free 2-day shipping programs. According to research, it has been shown that fast shipping programs are one of the most effective methods to increase your conversion rates. With this, you will be recognized as a trustable brand for lots of customers who are provided with the guaranteed fast shipping service. Best outsourced fulfillment centers ensure to set better delivery rates for staying on these programs.