5 Reasons to Outsource Fulfillment Services – and Save Money

"5 Reasons to Outsource Fulfillment Services" SMiling Businessman in Warehouse Graphic

~by Lizzie Weakley~.

As a subscription business grows, outsourcing becomes a more and more attractive option for fulfilling orders. Although outsourcing may seem unattractive on the surface, it has many benefits. Outsourcing is used by large retailers to make a better profit and obtain revenue with better margins.

Besides, putting too much focus on receiving, packing, shipping, and managing the space needed is not conducive to maximizing profits. Smaller subscription businesses can follow the lead of large retailers and possibly find the same success.

There are several reasons why this outsourcing facilitates so much success.

1. You Can Do More Important Tasks with the Time You Used to Spend Packing Boxes

Order fulfillment is not actually a key component of a subscription business. In reality, it’s simply an expense that takes up a lot of time. This is time that can be spent optimizing client/customer experience, marketing or developing your product(s).

Besides, fulfillment can be more complex than it appears. However, consider that fulfilling orders is actually a key component of fulfillment services. By outsourcing to an expert service, you’ll gain time to focus on other aspects of your business, ensure that orders are fulfilled more accurately, and actually save money.

2. It Saves Money on Supplies

A lot of money is spent on packing and shipping materials, such as bubble wrap, peanuts, shredded kraft, kraft paper, tape, shipping labels, cartons, boxes, and more. However, with a dedicated fulfillment center, all of these items can be purchased in bulk. This will save you a lot of money, thus benefiting other areas of your business.

3. You Don’t Have to Pay for Space

Renting space can be expensive and essentially a waste of money in a couple of ways:

1) It’s possible most of the space won’t be utilized or will be incorrectly utilized.

2) The space will seem to be the right size, then once you fill it with cartons, boxes, products, and even packers, you’ll find that there’s not enough room to work in an organized and efficient manner.

There is one thing wrong in both of these scenarios: The space will only be needed one to one and a half weeks out of the month, so downgrading or upgrading won’t offer any financial benefit. When calculating out the costs of a full month’s rent, finding a new space just won’t make sense.

4. Saves Money on Shipping

Fulfillment outsourcing can give you access to cheaper shipping rates, thus saving money for your business. These small savings on every order can add up to large savings in the long run that are evident in your bottom line. The money saved may even cover the costs of outsourcing. Additionally, outsourcing means you only pay for the space used by your business. So, you’ll be provided with a managed partner and a scalable space.

5. They Have Technology You Don’t Have

What many business owners don’t realize is that it takes expensive technological systems to operate an efficient and accurate fulfillment center. Fulfillment facilities have the technology to capture core data points, like intake quantities and order tracking. This gives you the space to communicate with customers in a more accurate and timely manner. If you don’t outsource, then you may lose a lot of money if certain issues pop up, such as losing track of shipping orders or inventory by using the wrong shipping method.

Outsourcing fulfillment of orders may not be for every company, but for many it certainly should be a consideration. It effectively streamlines your order fulfillment process, saves you money, and gives you extra time to concentrate on other more important areas of your business. Most business can benefit from outsourcing fulfillment of orders. However, if you’re still skeptical, just find someone you trust and do the math for outsourcing your fulfillment needs.


5 Reasons to Outsource Fulfillment Services - and Save Money 1

Meet the Author: Lizzie Weakley

Lizzie is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky, Snowball.


Categories

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Business Blogging 101: How to Create and Sustain a Successful Blog

Business Blogging 101: How to Create and Sustain a Successful Blog

For businesses, business blogging is becoming a powerful tool to not only attract and engage new customers but also to build brand authority and ultimately grow your brand.
This comprehensive guide will equip you with the essential knowledge and strategies you need to start and succeed in the dynamic world of business blogging.

How to Protect Your Merchandise From Theft

How to Protect Your Merchandise From Theft

Protecting your merchandise from theft is a critical aspect of running a successful business. In a world where security threats are ever-present, safeguarding your inventory is essential. Not only does it protect your bottom line, but it also ensures the safety of...

Experts You Need to Have at Your Business

Experts You Need to Have at Your Business

In the dynamic world of business, having the right team of experts is not just beneficial; it is essential for success and growth. For female leaders who are carving out their paths in business, marketing, or HR, knowing which experts to have on board can make a...

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

As a woman in a medical workplace, you have a lot of responsibility, not just to yourself but to other women who will come along after you. Asserting yourself in your workplace and gaining the respect of other employees and leadership is essential to a successful career. You have worked hard to get where you are, you don’t want to lose momentum.

Continue to grow with online leadership training and more. Follow these tips to assert yourself in the medical workplace.