This year has been strange, but it has made some things about the world very clear. One is that online shopping and eCommerce is not going anywhere. If all you do for your business is eCommerce, you already know how powerful it is for business. If eCommerce is just a part of your business or you’re only getting into it this year, you may find that you’re struggling with the increased demand. One great solution is to outsource your warehouse and fulfillment services. Finding the right warehouse and fulfillment partner offers several great, sometimes surprising benefits.
The biggest benefit to working with a fulfillment service is that it will likely save you money in the long run. While you do need to pay for the service, you will likely only have to pay for what you use since rates are usually activity-based. The fixed overhead costs of managing your own warehouse would probably be much more than the per usage cost of a service, especially in slow periods of the year. Plus, you’re sharing the overhead cost with all the other businesses that use that service as well, and you don’t have to spend time or money hiring and training the staff. You also will have access to better shipping rates, since a third party service will handle a higher volume of shipments for their various clients than you would alone.
Better Inventory Management
A good fulfillment service will have the technology and expertise to integrate their operations with yours so that your inventory levels are always right. They can manage the monitoring of inventory levels and alerting your sales channels to issues promptly. They also should have the industry knowledge and expertise to help you manage carrier selection and negotiate delivery services.
Improved Customer Service
Outsourcing to a third party can also benefit your customer. If you’re handling your own fulfillment, it is likely from your store or warehouse. If this is not in a central location, it could lead to shipping delays. A warehouse and fulfillment contractor would likely have their services running out of somewhere that is centrally located, either to the country or the region. This will improve shipping costs and transit times. This company would also handle all of the customer service and returns relating to your business, saving you time and improving the customer experience.
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