Setting up the fulfilment for your new eCommerce business can be a minefield. And one of the biggest questions which entrepreneurs ask when starting an eCommerce business is “Do I outsource my fulfilment, or do I go it alone?” Now of course as an eCommerce fulfilment solution provider, we’re going to say that the answer to the question “Should I use a fulfilment company?” is simply yes! However, it truly isn’t that simple.
When it comes to the decision about whether you’re ready to look into a 3PL or continue to do the work in-house there are so many aspects to consider. A lot of businesses spend time weighing up the financial implications of outsourcing fulfilment, and whilst the cost is a massive element when it comes to outsourcing it isn’t the only aspect which you should consider. Often, we hear people talking about the benefits of taking jobs in-house, things like having more control, it can be more cost-effective, and communication and relationship-building are both easier. However, when it comes to fulfilment it really does help to weigh up the pros and cons of outsourcing.
When looking at what is right for your business you need to look into all of the elements that using a 3PL could impact, this includes returns and retention rates, efficiency, accuracy, delivery times, and so much more.
At SCEND we’ve devised a list of all of the areas and benefits which come from choosing to outsource your fulfilment. And honestly, when it comes to it, hiring a great fulfilment partner who is dedicated to you, your team, your business growth, and your customers really can make all the difference.
What are the benefits to outsourcing your fulfilment?
1. Professional knowledge of key fulfilment practices.
Fulfilment is so much more than just pick, pack, and dispatch. As one of, if not the most important aspects to the entire eCommerce sales journey, fulfilment requires a working industry knowledge to ensure that the entirety of the process runs smoothly. As one of the most complained about aspects of eCommerce, getting your fulfilment right is the difference between your customers loving or loathing your brand. That is why the first benefit of working with professionals is just that: professional knowledge and in-depth experience. Working with a third-party fulfilment company means that you’ll have access to a breadth of knowledge which you otherwise might not have access to.
Whilst the 3PL does all the heavy lifting when it comes to picking and packing, they are also able to use state-of-the-art technology which removes errors from the process and so much more. Something that most businesses won’t have access to in-house.
On that note, when looking to implement a fulfilment process, you need to weigh up both the financial costs and potential implications of taking the fulfilment process in-house or outsourcing. Getting it done in-house would mean hiring professional warehouse operatives and overheads to ensure the process is up to an impeccable standard.
2. Saving you time when it comes to the mundane stuff.
Most eCommerce business owners would agree that fulfilment isn’t fun. Now that can’t be said for our owners, but picking, packing, sending, and tracking can all be seen as quite mundane. So why spend your time doing the stuff you don’t love?
On average businesses spend over 120 hours per week on fulfilment, that’s equivalent to five full days. When you outsource to a fulfilment partner this time can then be spent elsewhere – think marketing, coming up with new business ideas, business trips or even the odd coffee break… ahhhh.
That old saying “time is money” really does ring true when it comes to business. All too often businesses underestimate the true value of their time – so if you’re asking the question “Should I outsource my fulfilment?” remember how much your time is truly worth!
3. Expanding the possibilities when it comes to packaging.
One of the key benefits when it comes to saving time on the manual side of fulfilment, is that you’ve got more time to think about the packaging you want to use. Too many eCommerce businesses use bland brown boxes to send out amazing-looking products. You spend so much time making sure the product is right – now it is time to turn your attention to the unboxing experience.
Take inspiration from successful TikTok brands like P. Louise and subscription boxes like Glossy Box, both of which are challenging conventions when it comes to customers receiving their goods. Choosing the right fulfilment company can help when it comes to custom packaging. Here at SCEND, we helped The Fox Tan to break the beige with their product packaging – using flamingo pink envelopes and custom stickers there’s no way that their customers don’t recognise their orders!
4. Making the right connections for the right reasons.
Still not convinced that a 3rd party fulfilment provider is for you? One of the biggest USPs that we can boast about here at SCEND is our commitment to being green. We are seeing more and more clients on the path to being a greener business – yet when it comes to fulfilment they’re not sure where to start. Partnering with the right fulfilment company, one that shares your vision, and your ethics can help you on the road to being a more environmentally friendly and sustainable business.
Very often 3PL companies will have partnerships with sustainable packaging providers and other connections which can help to solidify your commitment to being green. So make sure IF you choose to outsource you select someone who shares the same commitment to reducing single-use plastics and can help you on your journey to reducing your carbon footprint.
5. Encouraging retention through exceptional experiences.
As the final touchpoint between yourselves and your customer, having a keen eye for fulfilment best practice not only allows you to perform efficiently when it comes to elements such as dispatch and delivery times, but it also allows you to use your fulfilment as yet another feather in your cap when it comes to customer retention.
Working with a knowledgeable fulfilment partner will allow you to pay more attention to the post-purchase journey. Implementing quirky ideas such as QR codes, recommended products based on your journey, and other ideas can keep existing customers interested and engaged with your business. Here at SCEND, we offer an exceptional service which provides our clients both big and small access to hyper-personalised inserts which give you access to marketing material which has a 100% open rate. Going above and beyond for your customers allows you to stand out from the crowd when it comes to fulfilment. And providing our clients with the tools to do this, is what makes SCEND stand out from the crowd too!
When is taking your fulfilment in-house the best option?
Though we’re advocates for outsourcing your fulfilment there are definitely circumstances when using an in-house team is the best option. If you’ve just started up and are in the initial stages of business it might not be the right time for you to take on an external partner, another instance would be if you have lower order volumes which are not taking a vast amount of time or space.
A 3PL is a phenomenal option for businesses that are experiencing growth or are looking to scale in the near future, businesses that are experiencing increased demand, which they are struggling to keep up with or running out of internal warehousing space.
No two business models are the same so looking at your individual reasons for outsourcing your fulfilment is key! Make sure you’re ready to work alongside a third-party company by exploring our blog.
If you’re looking to outsource your fulfilment and are looking for the right partner, we’ve got you covered. Drop us a message and we’d be happy to discuss your fulfilment needs.
