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7 Amazing Benefits of Outsourcing Your Order Fulfillment

Hussain Ali

Are you looking to make order fulfillment easier?

Outsourcing this part of the process is a great way to boost productivity. It will also save you money on the cost of shipping too. But if you’ve never taken this step before it can seem daunting. You might not know how much of a benefit it can be.

That’s where we come in! Keep reading for these 7 benefits of outsourcing order fulfillment you won’t want to miss out on.

What Is An Order Fulfillment Provider?

Order fulfillment providers store products and will ship them for you. To do this, they’ll integrate their software and ecommerce tools into your online store. This lets them know when to pick items, pack them and get them ready for delivery once an order comes in.

For an ecommerce business, fulfillment is a struggle because of its specific needs. There needs to be a huge range of expertise, commitment, and skills to get it working like a well-oiled machine.

Likely, this isn’t a core strength of your business, so you’re better focusing on what you do best. Keep making great products and let the experts handle the shipping. If you want to find out more about what fulfillment providers do, read this article.

The Benefits of Outsourcing Your Order Fulfillment

We mentioned in brief how outsourcing order fulfillment can save you money. But now we’ll take a deeper look into the benefits you could have in more detail.

1. Lowers Shipping Costs

A big benefit of outsourcing order fulfillment is the money it saves on shipping costs. For example, say you ship around 400 orders a month, for $5. That comes in at $2,000 for the month. For the year, you’re looking at $24,000.

Shipping outsourcing services often offer discounts for bulk deliveries. Say they offer a 20% discount, that’s a saving of $400 a month and $4,800 a year! Those savings soon add up and that’s money that you could use to keep growing your business.

2. Lowers Any Operational Expenses

The average cost for a business to fulfill an order in-house is around 70% of the order’s value. By using order outsourcing services you can cut that average right down.

For one thing, you won’t have to rent out and fit any warehousing facilities. You also won’t have to worry about logistical software, trucks, or delivery staff. Nor do you deal with the hassle of preparing shipping labels and getting the right amount of postage.

Not only do you get bulk discounts, but you’ll only pay for the services you use. This means you can scale up and down when you need to with ease. You can also tailor a service to suit your unique needs.

3. Improves the Whole Customer Experience

An outsourced shipping provider takes care of fulfillment issues you could encounter. They’re also in the business of shipping and care about the customer service they provide.

As such, they’re motivated to do what they say and deliver an efficient, prompt service. Most have tracking options for customers to check where their parcel is. They’ll also have options to specify a place to deliver, or redelivery options if the date doesn’t work.

They’re about to provide these logistical features because this is what they focus on. It’s what their business does, and your clients will benefit. In turn, so will your profits and customer retention rates over the long term.

4. Offers Faster Delivery Times

Businesses today must compete to create positive experiences for customers. After all, this is one of the biggest factors that keep customers coming back for more.

One of the biggest things that turn customers off and makes them abandon a cart is bad shipping terms. From the cost of shipping to how long it will take, if it’s too high or too long they will go somewhere else.

Order fulfillment providers have the equipment, skill, and staff to provide fast delivery. To top it off, it’ll be at an affordable price too. It could remove the chance of customers going to a competitor for this reason.

5. More Time & Resources to Focus on Your Business

It’s surprising how much time and resources need to go into order fulfillment. Juggling this alongside your daily business operations can get overwhelming.

You may find vital resources or staff taken away from what you need them to do. In the end, you won’t be able to do anything to the best standard as you’re stretched too thin.

Outsourcing this huge task will give you your resources and staff back. You can then put them back where they need to be, and focus on what you do best – making great products and growing.

Your core business tasks won’t suffer, productivity will increase and so will efficiency. This is vital if you want to continue to grow and see real, meaningful long-term success.

6. Makes Use of the Latest Tech For Streamlined, Efficient Fulfillment

Great order fulfillment services will be using the latest technology and will keep up to date with it. Their staff will have the right expertise and experience, with ongoing training.

These include areas like:

  • Carrier selection
  • Payment processing
  • Inventory management
  • Security
  • Item tracking & delivery options

This all comes together to benefit your business and help it run better. With automated systems, shipping is fast, efficient, and easy for customers to use.

7. Broadens Your Customer Reach

For small and medium-sized businesses, it can be hard to branch into new markets. Especially geographical ones. There aren’t the resources to offer low-cost, fast, cross-country, or international shipping.

Outsourced shipping providers have changed the game and made the impossible and reality. Most have the software, systems, and resources to handle long-distance postage. At the same time, it doesn’t cost the Earth.

Whether it’s across the state or to a different country, it’s not possible to reach new markets early on. As such, this can speed up the growth of your business, taking you to new heights you hadn’t imagined.

Outsourced Order Fulfillment: Make Sure You Don’t Miss Out

So, there you have it! Now you know these top 7 benefits of outsourced order fulfillment, what are you waiting for?

Not only will it save you money, but it takes the stress away and frees up time and resources for other key tasks. All the while, you can provide competitive, low-cost, efficient shipping to customers. This provides a great user experience and goes a long way to building a loyal customer base. Both local and further abroad.

If you found this article helpful, be sure to check out our other blog posts for more.

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