The Benefits of Outsourcing eCommerce Fulfilment Services
Last update: 23 August 2023 at 10:40 am
3.00/5Picture this: You’re running a successful online store and business is booming. Customers are happy and sales are rolling in…but wait, now you’re faced with the challenge of packing and shipping all those orders. It’s time-consuming, it’s stressful, and it’s just plain old exhausting.
Enter the hero of the day – outsourcing eCommerce fulfilment services to a third-party provider. With this, you’ll be able to enjoy all the benefits that come with outsourcing, like reducing costs and freeing up your precious time and resources.
In this article, we’ll dive into the key reasons why outsourcing fulfilment is the way to go for online businesses. Trust us, you won’t want to miss out on these game-changing benefits.
Cost Savings: A Game Changer for Your Business
One of the biggest benefits of outsourcing eCommerce fulfilment is cost savings. In-house fulfilment can be expensive, requiring businesses to invest in equipment, space, and staffing.
By outsourcing fulfilment to a third-party provider, businesses can save money on overhead costs, as the provider will handle all the costs associated with fulfilling orders. This includes the cost of packing materials, shipping, and storage.
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Find an agency!According to a study by Forrester Research, businesses that outsourced their eCommerce fulfilment operations saved an average of 20% on their fulfilment costs.
This is because third-party providers have economies of scale, allowing them to negotiate lower shipping rates and pass these savings on to their customers.
In addition to reducing costs, outsourcing also provides businesses with greater flexibility, allowing them to adjust their fulfillment services as their needs change.
For example, businesses can choose to use the provider’s eCommerce fulfilment services only during peak periods, when demand for their products is high. This can help businesses reduce their costs during slow periods, as they won’t have to pay for in-house eCommerce fulfilment services that aren’t being used.
Accuracy & Speed: The Key to Customer Satisfaction
Outsourcing eCommerce fulfilment to a third-party provider can also help businesses improve their accuracy and speed. Third-party providers have the experience, technology, and manpower to accurately fulfil orders quickly and efficiently.
This is especially important for businesses that have a high volume of orders, as in-house fulfilment can quickly become overwhelmed and lead to errors.
A survey conducted by MetaPack found that outsourcing eCommerce fulfilment services can lead to a 99.5% accuracy rate in order fulfilment, compared to an in-house rate of just 97%.
In addition, third-party providers often use advanced technology and processes to improve speed and efficiency, resulting in faster order processing times.
For example, Amazon’s third-party fulfilment service, Fulfilment by Amazon (FBA), boasts a same-day shipping rate of 68% and a two-day shipping rate of 90%.
Third-party providers use advanced technology, such as warehouse management systems and automated picking and packing processes, to streamline their operations and improve accuracy. This can help businesses reduce the risk of shipping errors and improve their customer satisfaction, as orders will be delivered on time and in good condition.
Scaling Your eCommerce Business with Ease
Another benefit of outsourcing eCommerce fulfilment is increased scalability. As businesses grow, their fulfilment needs will change, and they may need to increase their resources to meet the demands of their customers. This can be difficult for in-house fulfilment operations, as businesses may not have the resources to keep up with the growth of their operations.
A report by Invesp found that outsourcing fulfilment process allows businesses to scale their operations more easily, as third-party providers can handle increased demand without requiring additional investment in personnel or technology.
According to the report, businesses that outsourced fulfilment were able to scale their operations an average of 20% faster than businesses that did not.
Businesses that outsourced fulfilment were able to scale their operations an average of 20% faster than businesses that did not
Invesp
By outsourcing fulfilment to a third-party provider, businesses can scale their fulfilment operations as needed, without having to worry about the cost and resources required to keep up with the growth of their operations.
Third-party providers have the resources, technology, and manpower to handle large volumes of orders, allowing businesses to expand their operations without having to invest in additional resources.
Improved customer satisfaction
Improving customer satisfaction is crucial for any business, and outsourcing eCommerce fulfilment can help businesses achieve this goal. Third-party logistics providers have the experience and resources to fulfil orders quickly and accurately, ensuring that customers receive their orders on time and in good condition.
A survey by the National Retail Federation found that customers are more likely to return to a website that offers fast and reliable shipping, with 84% of customers saying that shipping speed is a top consideration when making a purchase online.
By outsourcing fulfilment, eCommerce businesses can improve their shipping times and ensure that their customers receive their orders quickly, leading to higher levels of customer satisfaction.
In addition, many third-party providers offer a range of value-added services, such as gift wrapping, order tracking, and returns management, to help businesses improve their customer satisfaction.
By outsourcing fulfilment, businesses can focus on their core operations, such as marketing and product development, while their fulfilment partner handles the day-to-day operations of fulfilling orders.
The Ultimate Solution to Reduce Shipping Risks
Outsourcing eCommerce fulfilment also reduces the risk for businesses. Third-party providers are experts in their field and are equipped to handle the challenges of eCommerce fulfilment, such as shipping errors and lost or damaged packages.
By outsourcing fulfilment, businesses can transfer these risks to the provider, allowing them to focus on their core operations without having to worry about the challenges of fulfilment.
A study by Logistics Management found that businesses that outsourced their eCommerce fulfilment operations experienced a 50% reduction in shipping errors and lost or damaged packages.
Third-party providers handle the challenges of eCommerce fulfilment, such as shipping errors and lost or damaged packages, because they are experts in their field and equipped to do so.
In addition, third-party providers often have contingency plans in place to deal with unexpected events, such as natural disasters, which can disrupt in-house fulfilment operations.
By outsourcing fulfilment, businesses can ensure that their operations will continue smoothly, even in the face of unexpected events.
Accessing the Best Technology & Expertise in the Industry
Finally, outsourcing eCommerce fulfilment provides businesses with improved access to technology and expertise. Third-party providers heavily invest in technology and dedicate a team of experts to ensure the success of their operations.
By outsourcing fulfilment, businesses can leverage these resources and take advantage of the latest technology and best practices in eCommerce fulfilment.
According to a report by Accenture, businesses that outsourced their eCommerce fulfilment operations saw an average of 20% improvement in their operations, due to improved access to technology and expertise.
Third-party providers invest heavily in technology and have dedicated teams of experts to ensure their success. By outsourcing fulfilment, businesses can leverage these resources and improve their operations.
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Discover the most relevant agencies for your project based on your own specific requirements.
Find an agency!This can help businesses improve their operations and achieve their goals, as they will have access to the latest technology, such as advanced warehouse management systems, and the expertise of fulfilment experts.
In addition, outsourcing fulfilment can provide businesses with access to a network of resources, such as shipping carriers and suppliers, that can help them achieve their goals more effectively.
Conclusion
Outsourcing eCommerce fulfilment to a third-party provider can offer many benefits to businesses, including cost savings, improved accuracy and speed, increased scalability, positive customer experience, reduced risk, and improved access to technology and expertise.
If they order fulfilment services, businesses can focus on their core operations, reduce costs, and ensure that their customers receive their orders on time and in good condition.
Whether you’re a small business just starting out or a large enterprise looking to improve your operations, outsourcing eCommerce fulfilment can help you achieve your goals and grow your business.
So, if you’re looking to improve your eCommerce operations, consider outsourcing fulfilment to a third-party provider today.
