As any good business owner knows, the classic cliché rings true – it takes money to make money. When it comes to outsourcing your fulfilment, investing some capital into a dedicated service provider can often mean great financial savings in the long run. Here are 4 ways that outsourcing your eCommerce fulfilment can help your business save money in the long-term.
1) Cost of Storage
Storage can be expensive. As your business grows, it may be tempting to consider moving to other premises simply because of your lack of storage space. Moving premises for this reason alone can be unnecessarily detrimental to your finances as well as very inconvenient. When you decide to outsource your fulfilment, you eliminate this concern. Your products are stored securely by the fulfilment service provider, meaning they can be easily accessed quickly and, most importantly, you no longer need to house them at your own premises. As fulfilment service providers specialise in storage and fulfilment, they can offer discounted rates on warehousing for your products, which can be much more cost-effective than buying storage space as a business.
2) Cost of Packaging
If you have begun to fulfil large orders as an eCommerce business, you will already recognise the dent that costs of packaging can have on your finances. The price of high-quality bubble-wrap, packaging, paper, boxes and tape adds up very quickly, and this isn’t to mention the time and money spent in the practical act of packing. As with storage, fulfilment service providers can avail of great discounts because they purchase these items in bulk. These are discounts that can ultimately benefit you, as well as removing the burden and inconvenience of spending time packaging products.
3) Cost of Staffing
Fulfilling orders in-house is not only inconvenient and time-consuming, it can also end up costing you more money than necessary. You may need to fulfil orders yourself, ask other staff to assist, or hire staff specifically to fulfil these orders. All of these options have the potential to be time-consuming and lacking in cost-effectiveness. Instead of hiring new staff or delegating these practical duties to staff whose time is better spent elsewhere, you can choose to outsource your fulfilment. Fulfilment service providers are professionals who specialise entirely in fulfilment and, for this reason, their staff are trained to speedily and effectively pick, pack and deliver your products. There is no need to waste money in hiring and training new staff, when you can be assured that all this is taken care of by the fulfilment service provider.
4) Cost of Shipping
Fulfilment service providers often work with large shipping and delivery companies to secure the best deals for their business. As a result, your business benefits from these great deals that are only possible when you choose to outsource your fulfilment. In addition, some fulfilment service providers have storage facilities located in different parts of the country, meaning that your orders can be fulfilled from the facility closest to the customer. This in turn makes for quicker delivery times and cost-effective shipping.
Although making the first step to outsource your fulfilment requires necessary expenditure, it is often a wise investment in your business which can save you money in the long run.