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Is Outsourcing Your eCommerce Fulfillment Right For You?

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If you’re running an eCommerce store, you know how crucial it is to receive and deliver orders as quickly and efficiently as possible. However, if your business is expanding, the expense of fulfilling orders in-house would also increase. Many eCommerce sites rely on outsourcing their eCommerce fulfilment services to manage this bulk load of orders. The system also helps reduce expenses and saves time for other important tasks. But outsourcing your eCommerce fulfilment also has its drawbacks. 

In this blog post, we’ll explore the pros and cons of outsourcing your eCommerce fulfilment so you can decide if it’s the right choice for your business. 

The Pros of Outsourcing Your eCommerce Fulfillment 

Cost Savings: 

The major benefit of outsourcing your eCommerce fulfilment is saving you money over time. As you outsource your services, you will worry less about hiring additional staff or purchasing new equipment to manage the fulfilment process. Less staff implies reduced expenses, thus saving you money while increasing productivity.   

Increased Efficiency: 

By outsourcing your eCommerce or apparel fulfilment, you are engaging experts in the field to manage tedious tasks and improve efficiency at work. As orders are processed quickly and more efficiently, you offer better customer satisfaction, thus improving the company’s overall performance.

Storage Space: 

By outsourcing your eCommerce fulfilment in Australia, you will receive better storage space for your order deliveries. As a result, your company will be able to offer more convenient, faster and prompt deliveries to various locations that were undeliverable previously. But how do they achieve this?

Third-party logistic companies offer warehousing services and acquire your inventory. They store it in several eCommerce fulfilment centres and deliver orders from these warehouses after a consumer places an order. Therefore, these companies not only reduce the burden of inventory management but also offer quicker deliveries to clients.

More Delivery Options

With the increase in customer demands for faster deliveries, companies require offering hourly, two-hour, same-day, delivery in minutes, next-day delivery, two-day delivery choices and much more. You can outsource your fulfilment service and offer faster deliveries to customers within minutes or hours, and meet their needs. The faster the customers receive their orders, the happier they are, thus improving your business!

Meet Customer Expectations

Clients appreciate and expect quick, hassle-free deliveries, which makes it easy for them to track orders. They need faster deliveries, customised packaging, prompt order tracking, status updates of orders, and secure deliveries of products, without any damages or breakage! While it may be feasible for companies managing small business orders, for large eCommerce sites, managing bulk orders while keeping the above requirements in check can be tedious. Therefore, you can hire a third-party logistics company to meet your client’s requirements. 

Insurance Benefits

Apart from all the necessary benefits, third-party logistics will also offer insurance services that are much needed to deliver precious items. If your online store offers jewellery, precious gems, expensive watches, or other high-value items, you need to set up a delivery insurance plan or hire a company that offers insurance benefits.

The most significant reason third-party logistics is crucial is that they have insurance provisions covering losses you may incur due to a shipment error. In such events, insurance plans can be life-saving! 

The Cons of Outsourcing Your eCommerce Fulfillment 

Loss of Control: 

When you outsource your eCommerce fulfilment, you give control over a key part of your business to someone else. This can be risky since there’s always a chance that something could go wrong with an order or shipment. There’s also a chance that mistakes could be made with customer data or product information leading to unhappy customers or lost sales.  

Lack of Flexibility: 

Another drawback of outsourcing is that it can limit the flexibility of your operations since most third-party logistics providers only specialize in certain areas, such as warehousing or shipping services. If you need something outside their scope, it won’t be available unless they are willing to accommodate special requests, which may come at an additional cost.  

Hidden Fees: 

Some third-party logistics providers may charge hidden fees, such as storage or cancellation fees, which could add up quickly if not monitored carefully. While hiring third-party logistics can be of great benefit, not monitoring their activities and charges can cost you dearly.  

Different Packaging & Labels

As mentioned earlier, labels and custom packaging are fantastic for enhancing brand loyalty and ensuring customer loyalty. Consistent labels and packaging can reduce the risks of confusion during the delivery of goods. However, some of the best eCommerce fulfilment service providers have their shipping packaging and labels. 

Therefore, when choosing multiple third-party logistics, your customers will receive a different unboxing experience— implying the customers are less likely to identify with your brand.

 

Lack of Standardised Software Platforms

When choosing a third-party logistics service, it’s crucial to be able to track inventory status, view product details, and order delivery status in real-time. However, all companies use a variety of software applications, making it difficult for eCommerce services to receive a single comprehensive report about the delivery status. In such cases, they will require pulling data from multiple sources to create a report. The process is time-consuming and inconvenient.

Conclusion: 

Outsourcing your eCommerce fulfilment can help reduce costs and improve efficiency – but one must consider all aspects of the process before making a decision! They must carefully weigh all the pros and cons before committing and watch out for hidden fees while signing up with a third-party logistics provider. 

If you are looking for cost savings without sacrificing quality control or customer satisfaction, you must choose one of the best Australia-based pick-and-pack services like Efficient Services Group. They provide a perfect solution for outsourcing e-commerce fulfilment services in Australia.

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