When you are working with an ecommerce business there are a number of factors that you need to consider in order to run the most profitable business possible. One of these factors is the logistics and fulfilment process. When you start off small you don’t tend to worry too much about warehousing and order fulfilment; you simply get it done. But as you grow you need to look for the most cost effective solutions for orders. Could this be warehouse outsourcing? If you are thinking about warehousing outsourcing, take a look at these advantages and disadvantages.
1. Lower Shipping Costs
Using an outsourced fulfilment service usually means you can take advantage of the shipping methods the fulfilment company already has in place. When you are working on your own there is usually no way to get discounts on shipping, but an outsourced solution could give you access to better deals.
2. Greater Flexibility
Ecommerce fulfilment services offer you the chance to be flexible when you need to cut costs and work in a more efficient way. So if you have a slowdown in orders, you can cut your warehousing requirements without having to lay off staff. You can find solutions that allow you to scale up and scale down your requirements without having to stop the service. This is ideal when you have seasonal trends and buying patterns that you need to work with.
3. Efficiency in Order Despatch
If you are packing and sending your own products there are obviously limits to the times you can work. Outsourcing your warehousing and fulfilment allows you to offer a round the clock service to customers and your deliveries are more efficient and cost effective. You don’t have to wait until the Post Office is open before you can despatch parcels. It is more efficient all round, plus you obviously don’t have to do the work yourself.
4. Greater Reporting Abilities
A warehousing and fulfilment service is often integrated with a number of reporting tools so you can more effectively evaluate how well your products are performing and assess customer satisfaction.
5. More Time and Less Stress
When anyone sets up an ecommerce business it is unlikely they will do so because they really enjoy packing orders. When you outsource warehousing and fulfilment you no longer have to work on these tasks. You can focus on the heart of the business and growing your company.
6. Giving Control
One disadvantage of outsourcing any aspect of your business is handing control of a process to someone else. This can cause anxiety when you are used to handling all aspects of the business yourself. But it is perfectly possible to work through this issue and be satisfied with the service.