Most companies begin to fulfill their own orders, while some eventually use a third-party logistics solution as they grow. Thing is, sometimes it’s difficult to know when to switch, especially when you build your own company from the ground up with nothing but personal savings.
Businesses with various sizes can get benefit by using warehousing and fulfillment services. There are variety of companies that offer warehousing and fulfillment services, some of which specialize in smaller or larger-scale operations
However, there are clear signs that it’s time to switch to outsourced fulfillment.
Cyclical or uneven sales
If the number of orders you process fluctuates throughout the year, it’s probably difficult for you to handle to running and staffing your own warehouse. A logistics company will be able to adapt to your needs.
Besides, unexpected spikes in sales can interfere your delivery promise. An expert can handle times when your daily order volume peaks so you can focus on your delivery consistency and make efficient experience every time.
You’re too busy
Source: Freepik
If you’re too busy dealing with order fulfillment and thus distract your growth focus, it’s probably time to outsourcing it. As a business owner, you need to be able to devote time to sales and marketing, expanding to other e-commerce platforms, sourcing new products and ideas, and improving your business for the long term.
Lack of infrastructure
Source: Kit8
If you’re expanding your business geographically, you may outgrow your current infrastructure before you can adapt. Shipping to locations across the country or even the world comes with logistical challenges that increase expenses and shipping times. This can inhibit large-scale growth.
When you outsource to a global fulfillment partner, they’ll be better equipped to serve a growing customer base, leveraging multiple locations, and optimizing fulfillment accordingly.
Third-party warehousing and fulfillment isn’t right for everyone, but if you find yourself in one of these situations, it might be time to start calling around and chatting with logistics companies.
Warehousing, shipping, and fulfillment can’t be separated when you begin to establish an e-commerce business or selling products.
Even though making sells is always the exciting part, you need to make sure your products end up in customers’ hands.
There are three options you can choose to make this happen:
Sell your product through a drop-shipper who will place orders for you
Place your order independently
Collaborate with a logistics company that will handle your warehousing and fulfillment
There are certain advantages from packing and shipping your own orders: it’s cheap and flexible. Often times, businesses that are just starting out, and businesses that have extra packaging needs, usually handle their own logistics.
And regardless of age or industry, any business struggling with cash flow will be better off handling things in-house. Sometimes you have more time to spend than money.
But if your business has expanded and growing quickly so you have the cash on hand to outsourced, you may consider for using third-party warehousing and fulfillment.
There are many logistics companies that will store your product and take care of packing and shipping your orders, but not all logistics companies provide fulfillment services such as AsiaCommerce.
But What is fulfillment service?
A fulfillment service is a third-party warehouse that prepares and ships your orders for you. It does this from its fulfillment center. E-commerce fulfillment services are ideal for businesses that don’t want to deal with shipping or have outgrown existing warehousing capabilities to a point where they’re unable to ship orders themselves anymore.
If you’re scaling fast and looking to optimize your fulfillment strategy, working with a provider that offers a central view of your data and smart inventory allocation across multiple warehouses will give you the most flexibility. To learn more about the AsiaCommerce fulfillment services, visit us here
What does a fulfillment center do?
Source: All Things Supply Chain
While each fulfillment center operates slightly differently, they all accomplish the same thing: they act as a command center for all your order prepping and shipping needs. Fulfillment centers also double as warehouse spaces for inventory storage, allowing you to hold onto product.
Some fulfillment service providers have multiple fulfillment centers, allowing them to serve different geographic locations more quickly than if they were to have just one. This allows e-commerce companies to deliver fast and affordable shipping to a diverse customer base.
What do fulfillment services cost?
Source: Shipware
Fulfillment services typically charge by the hour or per unit/pallet. Providers add up costs for receiving, storage, pick and pack, shipping, kitting or bundling, returns, custom packaging, gift services, and setup. They then apply transactional (e.g., receiving, shipping) and recurring (e.g., storage) fees.
If your business has big goals, fluctuating sales, but not enough time to take care of things in-house, AsiaCommerce will help you! Just fill the form here
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok
