The nuances and intricacies of owning an e-commerce business are significant and varied. The type of products sold can be any tangible goods: car parts, cosmetics, medical supplies, clothing, furniture, luggage, food – the list goes on and on. Each product has its own set of characteristics to consider, size, weight, storage requirements, shipping needs, and lead times for production are just a few. When starting out, it makes sense to try to manage all aspects of a business. As demand grows, business owners have to regularly decide which functions are best managed internally and where a third-party may be the better option.
Order fulfillment is a significant component of the sales and delivery process and is frequently outsourced to a partnering company. Here are the top four reasons why entrepreneurs consider outsourcing.
- Experience and Knowledge
No one knows a product line better than the founder or creator. Many businesses are started by identifying a need and then work to offer a complementary solution or product to solve problems. The research and development process to create products typically includes a great deal of learning, research, and refinement. Your brand and your products are your passion. An experienced third-party order fulfillment partner can enhance your operations by using its experience and expertise to focus specifically on processing, warehousing, picking, packing, and shipping your orders. Outsourcing fulfillment services can result in cost savings, faster order processing, and improved order accuracy.
- Better Utilization of Resources
There are many costs associated with packing and shipping orders. Warehouse space is often needed. Additional staffing is required with skill sets that can be quite different from most other departments in a business. Warehouse management software and integrations to receive and process orders are required. Equipment to move, pack, store, and ship products is needed. When outsourcing fulfillment services, business owners can benefit from having access to all of these components without the financial burden associated with large capital investments.
- Focus and Growth
Managing order processing has a number of complications. Resolving issues with damaged packages and incorrect orders can be time consuming. Hiring and retaining employees is an ongoing process. Managing daily activities and operations to ensure timely and consistent delivery of orders is imperative. These tasks can be distracting and involved. A trusted fulfillment partner can manage these activities so that you have more time to focus on building your brand and developing new products.
Does your business have seasonal fluctuations in sales? Do you plan to expand your product line? Is the demand for your existing product line increasing? Each of these scenarios requires additional space and incremental staffing. The cost to secure more space can be expensive. It becomes even more costly when adding space requires a move to a different facility. The ability to hire and make staffing adjustments can also be challenging. Order fulfillment companies frequently adjust operations to address variations in demand for storage space, staffing needs, and increased order activity. The best fulfillment centers stay in touch with clients to anticipate changes in activity to ensure flawless management of order processing.
During the onboarding process, the staff at Product Fulfillment Solutions will get to know your business. products, operations, and your plans for growth and development. PFS isn’t just a vendor. We care about your business as if it was our own. We will serve as a seamless, trusted, and reliable partner for your business. We can quickly integrate our operations with your business and begin shipping your orders within a couple of days of receiving your products. Contact us to get started.