If you own an online business, outsourcing order fulfilment is a decision you'll need to make eventually. Your customers expect to receive their orders on time and without errors, so when picking and packing orders start taking up too much of your time, it's time to consider outsourcing the storage and order fulfilment service.
In this article, we will discuss the benefits and drawbacks of outsourcing order fulfilment. If you're considering outsourcing your order fulfilment for the first time, read our blog post, What Is Ecommerce Order Fulfilment?
Customers Expect Great Products AND Service
Online shopping has become increasingly popular over the years, and with it, customers have developed certain expectations when it comes to their online buying experiences. According to a recent study, the second most influential factor affecting online buyers is free shipping.
Customers are often deterred by additional costs, and offering free shipping can make a significant difference in their decision to purchase from a particular website. Additionally, the speed of service and a positive previous buying experience also ranked high in the top ten influences for online buyers. This indicates that order fulfilment, including the speed and accuracy of delivery, is a critical factor in customer decision-making.
Businesses that can offer free shipping, fast delivery, and a positive customer experience can gain a significant advantage over their competitors in the online marketplace.
Amazon: The Familiar Fulfilment
Amazon's success can be attributed, in part, to its affordable and efficient fulfilment service. This has made consumers accustomed to speedy and error-free delivery, which has become an expectation when shopping online. As a result, many customers have come to rely on Amazon as a go-to shopping destination due to their positive experiences with the company's fulfilment service.
The influence of Amazon has created a standard for online retailers, making it increasingly important for them to provide competitive delivery options and reliable fulfilment services to keep up with consumer expectations. It is clear that a positive and efficient buying experience is a key factor in retaining customers and driving repeat business.
So, Outsource Or Not?
Outsourcing fulfilment can be a tough decision for online sellers with low order volumes. While handling fulfilment in-house may keep costs low and help them understand their business needs better, outsourcing can provide several benefits. However, outsourcing is a decision that must be based on two critical factors: cost and time.
If your business can afford the costs of outsourcing, and the time saved by outsourcing allows you to grow sales, then it may be time to start searching for a suitable fulfilment company that can provide affordable and scalable service. On the other hand, if you prefer to handle fulfilment in-house, you need to invest in staff, lease a warehouse, and capital assets like lifting equipment and heavy-duty racking. Therefore, deciding whether to outsource or not requires a careful consideration of the pros and cons of each option, depending on your business's specific needs and goals.
Where Should You Find Your Fulfilment Company?
Order fulfilment can make or break a business, and finding the right fulfilment company can be the key to success. To ensure that your customers have a positive experience, it's important to find a company that provides excellent service at an affordable rate. When choosing a fulfilment company, it's essential to do your research.
Consider a company located in the country where most of your customers live to keep delivery costs low. You should also choose a company that specializes in businesses of your size and check their reviews on reputable sites like Google to ensure their service is reliable. By selecting the right fulfilment partner, you can provide your customers with a seamless shopping experience and focus on growing your business.
What About My Order Volume?
It's true that most fulfilment companies won't work with small or start-up businesses due to the perceived risks involved. They tend to prefer working with larger companies and processing high order volumes to make their operation more efficient. However, some companies, including VBS Logistics, recognize the potential of small businesses and offer excellent fulfilment services tailored to their needs.
Outsourcing your order fulfilment can free up your time to focus on growing your business. It's crucial to choose the right fulfilment partner to ensure happy customers and long-term business success. When selecting a fulfilment company, consider their location, focus on businesses of your size, and check their reputation through reputable review sites such as Google.
Alternatively, you could scale up your own fulfilment operation, but this requires investment in staff, warehouse space, and specialized software. It's important to make sure you have access to the right technology and equipment to handle your orders efficiently. Regardless of your decision, it's essential to prioritize customer satisfaction to ensure your business thrives.
In conclusion, order fulfilment is a critical factor in customer decision-making, and it can make or break an online business. Whether you decide to handle your fulfilment in-house or outsource it to a fulfilment company, it's essential to choose a reliable and efficient partner.
At VBS Logistics, we understand the importance of providing excellent fulfillment services for businesses of all sizes, including start-ups and low-volume sellers. We offer affordable and scalable solutions to help you grow your business while keeping your customers happy. Get in touch with us today to discuss how we can help you streamline your order fulfillment process.
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