Handshake between a businessperson and a warehouse worker holding a shipping carton in a fulfillment center

Top Five Reasons To Outsource Product Fulfillment

Author: Jason Martin
Reviewed by: Ecommerce Operations Lead
Last updated: October 14, 2025

Executive TLDR

  • Outsourcing cuts fixed costs and turns them into predictable per order fees.

  • A central Midwest hub reaches most customers in 1 to 3 days by ground without adding your own buildings or staff.

  • Accuracy rises with scan at pick and pack, clean ASNs, and a simple pack matrix that stops mispicks and returns.

  • Better shipping rates and smart packaging lower DIM weight and protect margin.

  • You gain real time visibility and painless scale for peak, launches, and promos.

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Table of contents

  • Why outsource fulfillment

  • Reason 1, cost control without the overhead

  • Reason 2, speed and coverage from a central hub

  • Reason 3, accuracy and compliance built in

  • Reason 4, shipping rates and packaging that protect margin

  • Reason 5, visibility, flexibility, and painless scale

  • A 30 day path to outsource cleanly

  • Why Product Fulfillment Solutions

  • FAQ


Why outsource fulfillment

Running your own warehouse ties up cash and attention. Buildings, labor, systems, and supplies get expensive fast. A strong 3PL spreads those costs across many brands and gives you proven processes on day one. You focus on product and growth while orders ship fast and accurately.


Reason 1, cost control without the overhead

Trade fixed costs for variable
With in house fulfillment you carry rent, racking, scanners, packing stations, WMS, and full time labor. Outsourcing converts most of that to a per order model so spend follows revenue.

Pay only for what you use
Seasonal spikes and promotions stop breaking the budget. Your partner flexes labor and dock hours so you do not hire and lay off every quarter. See 3PL fulfillment and warehousing and storage solutions.


Reason 2, speed and coverage from a central hub

Midwest advantage
A Cincinnati location reaches a large share of U.S. households in 1 to 3 days by ground. That means fast delivery without paying air.

Same day handling
Clear one daily cut off. Batch single line orders and cluster pick multi line so lines stay moving. For channel breadth, tap ecommerce fulfillment services and b2b retail fulfillment where needed.


Reason 3, accuracy and compliance built in

Barcode first operations
Every unit scans at pick and scans again at pack. Look alike SKUs are separated and bins are labeled in large, high contrast IDs.

Clean receiving
Advance ship notices match carton contents, dock appointments are booked, and the target is 1 to 3 day dock to stock so inventory is sellable fast. See real time information.

Regulated and dated products
For supplements, vitamins, and cosmetics, the flow captures lot and expiry at receiving and enforces FEFO at pick. Review health and wellness fulfillment services and kitting assembly services.

Retail and marketplace compliance
Carton and pallet labels, case packs, and pack rules follow retailer and marketplace standards with edi solutions and connections and fba prep services.


Reason 4, shipping rates and packaging that protect margin

Discounted parcel rates
Blend national and regional carriers and rate shop every label. Match promise day to the least expensive service. See discounted shipping rates.

Right size every order
A posted packaging matrix picks the smallest safe mailer or carton by product family. You pay less DIM weight and see fewer damages. Learn how the last scan gates the label under pick and pack services.


Reason 5, visibility, flexibility, and painless scale

Real time operations view
You see orders, inventory, exceptions, and SLAs in one place. That builds trust with your team and your customers.

Kitting and subscription ready
Build sets and variety packs without clogging your main line. Subscription box fulfillment and kitting assembly services keep builds clean and repeatable.

Add channels without chaos
Ship DTC, marketplaces, and retail from one inventory pool. The rules stay the same across channels.


A 30 day path to outsource cleanly

Week 1, data and labeling

  • Product master with barcode, dimensions, weights, case packs, hazard flags.

  • Unit, inner, carton, and pallet label templates and placement rules.

  • Packaging matrix by product family.

Week 2, inbound setup

  • ASN format locked and dock schedule posted.

  • Receiving checklist and exception lane defined.

  • Aim for 1 to 3 day dock to stock from the start.

Week 3, floor and picking

  • Slot fast movers near pack and separate look alikes.

  • Turn on scan at pick and a second scan at pack.

  • Post cut off time and measure on time ship rate.

Week 4, go live and tune

  • Pilot with top movers for one week.

  • Track order accuracy, handling time, billable vs actual weight, and cost per order.

  • Fix outliers and roll to the rest of the catalog.


Why Product Fulfillment Solutions

  • Central U.S. hub for fast and affordable ground coverage.

  • Barcode first receiving aligned to your ASN.

  • FEFO and lot or expiry control built for consumables.

  • Pick and pack standards with a simple packaging matrix and scan at pack.

  • Small parcel optimization that rate shops every label.

  • Retail and marketplace readiness with edi solutions and connections.

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FAQ

Will outsourcing cost more than my warehouse
Not when you include rent, systems, supplies, and management time. With per order pricing you pay for output, not idle capacity.

How fast can we transition
Plan four weeks. Clean the product master in week one, lock ASN and dock process in week two, train and slot in week three, pilot and tune in week four.

Can one 3PL handle retail and DTC
Yes. Standards for labeling and packing apply to both. You route by promise and cost from one inventory pool.

What accuracy should we expect
Target 99.7 percent or better with scan at pick and a second scan at pack.

How do we keep control of data and status
Use shared dashboards so your team and operations see the same facts. Start with real time information.


Talk to an Expert