Can Outsourcing Fulfillment Increase Sales?
As your ecommerce business grows, managing your fulfillment operations in-house may become more than your business is equipped to handle. Fulfilling more orders requires additional warehouse space, hiring more employees, and possibly upgrading your order processing system. Once business volume warrants it, many businesses seek to partner with a 3PL (third party logistics) company. The benefits provided by 3PL’s may contribute to higher sales as you concentrate on growing your business.
Today’s ecommerce customers expect efficient order fulfillment and even faster shipping. Consumers also want more flexibility with their orders, such as the ability to check inventory for a product, better decision-making tools, and shipping options like next day delivery. When your business grows to the point that you are no longer able to offer your customers best-in-class service, it is time to explore other fulfillment options.
Lower Shipping Costs
Due to economies of scale, many fulfillment companies are able to offer lower prices for shipping. A 3PL knows all of the shipping options and will be able to recommend what will be best for your business’s needs. This can directly impact your bottom line, as many companies spend a large percentage of their budget on shipping.
A greater assortment of shipping options, such as same-day delivery, has accelerated the pace of order processing. Fulfilling orders in a timely manner means that customers receive their order when expected. If your business cannot fulfill orders quickly and accurately, customers may be unhappy. The right 3PL can provide you with solutions for all of your supply chain needs from order fulfillment to freight management. Streamlining these processes will save you money in the long run.
Match Fulfillment to Your Growth
One of the challenges of order fulfillment is fluctuations in sales volume. Fulfillment companies have the resources to handle it. For example, if your business’s sales increase dramatically during the holidays, it might be difficult to meet that added demand in-house.
A fulfillment partner will enable you to grow your business without worrying about fulfilling the added orders. And, if your business decides to expand internationally, your fulfillment partner will be able to guide you through that fulfillment process as well.
Partnering with a fulfillment company gives you access to the latest technology and warehouse equipment, as well as being able to track all shipments. 3PL’s are able to spread technology update costs over multiple customers so your business does not have the burden of capital investments alone. This is a cost-effective way to keep up with the advances in the industry.
Focus on Your Business
Many business owners have too many tasks that need their attention and fulfilling orders can take a lot of valuable time. Outsourcing your fulfillment allows you (and your team) to focus on other areas of your business, such as growing sales, strategic planning, marketing, and customer service.
These advantages enable you to grow your business and increase sales without worrying about the fulfillment side of the business. The order processing experience that 3PL’s offer ecommerce companies will give your business the best results to improve profits. If you are considering outsourcing your fulfillment operations, contact Kable at http://www.kablefulfillment.com/.