Gone are the days when it was fine if a shipment got delayed. In a market full of competition, even your loyal customer won’t return if they face bad or shipments. Don’t believe us? Here is the stat; in a survey of 1500 online shoppers, 84% responded that they are less likely to make a purchase after a negative shipping experience. So, it is best to get it done from experts and outsource order fulfillment services. Let’s discuss the benefits of outsourcing order fulfillment.
Advantages Of Outsourcing Order Fulfillment Process
Following are the benefits of outsourcing order fulfillment process:
#1 Tap New Markets
Currently, you may be accepting orders within your home state/country only. However, with outsourcing fulfillment there will be no such boundaries. Normally, when people ship orders internationally customers have to pay hefty shipping charges and shipment takes longer to deliver.
That is not the case with outsourcing fulfillment. Wanna how? Let’s understand with an example. Suppose you are based in India and now you want to tap markets of the USA. All you have to do is hire a fulfillment center in the USA. When you receive an order, the shipment will be dispatched from the fulfillment center (located in the USA) thereby ensuring quick delivery and no hefty shipping charges.
In the case of self-managed shipping for international/national orders, it can be hectic. Every time you have to check the price and shipping time also varies. Delivering orders lately can hamper your brand reputation and your customer may choose your competitor next time.
Talking about outsourcing logistics, customers can see live shipping rates and expected delivery date, day-wise, providing the utmost convenience to you and your customers as well.
#2 Cut-Down Overhead Costs
When you fulfill orders internally you must be having the following expenses:
In reality, the above list goes on and on. There are over a dozen expenses to look for. As the number of expenses increases, it gets difficult to manage. The more complex its management, the more time you’ll end up spending. And we know, your time is immensely valuable.
See, if you would be getting satisfactory rewards then it’s okay. But you know that the story is exactly the opposite, it is redundant. You are burning cash and your time as well.
Furthermore, internal fulfillment is not easy to scale. Suppose your business grows exponentially you’ll need a larger warehouse however, you cannot shut down smaller warehouses because you might have signed an agreement with the landlord.
On the other hand, when you collaborate with fulfillment centers you pay only for what you use. Moreover, at every month’s end, you will get an invoice with which you know what you are paying.
One of the major differences between both order fulfillment strategy is that there are too many overhead expenses which would be difficult to track and cut down while there is no such thing with the latter one.
#3 Faster Shipping Speed
You may be promoting your ecommerce business online in the best possible way, and your products are good, but you can lose a loyal customer due to delayed delivery. Or you can convert unhappy customers into loyal customers or maybe brand advocates with faster shopping. Let’s understand with visuals.
Brand advocates are the ones who can’t stop discussing their favorite brands, for any brand, they are gem-like customers. They spend more and often promote your products voluntarily while talking to a friend.
Imagine, one of your brand advocates’ shipment gets delayed, what would be their reaction? They will become unhappy customers, most probably.
And, one of the easiest ways to convert ‘unhappy customers’ into ‘brand advocates’ is delivering orders before the expected delivery date (or within 24 hours, if it is feasible).
Fulfillment centers can help you deliver shipments at a great speed for domestic as well as international orders.
#4 Focus On Growing Your Online Business
Generally, entrepreneurs get stuck after hitting the saturation point. The stagnation could be the result of doing things that do not deliver returns, if you feel the same then now is the time to declutter your daily schedule, while doing so you will realize that picking and packing orders are one of the activities that do not contribute to the growth of your business.
Outsourcing the picking and packing exercise can help you free up some time so that you can focus on growing your business and gaining more orders.
#5 Transparent Shipping Information
Online shoppers prefer to know point-to-point information especially when it comes to shipping. Being informed of all the information/terms and conditions gives them the confidence to place an order.
Order fulfillment company aids in providing accurate delivery information. You should install Order Delivery Date – a Shopify app that allows customers to choose delivery dates and times. This facility will deliver a better customer experience as a result, you will gain loyal customers.
#6 Easier To Scale
In the e-commerce industry, a sudden order spike is occasional. As an entrepreneur, your Shopify store should be prepared for such spikes, especially during festive seasons like Halloween, Cyber Monday, and Thanksgiving and aggressive marketing campaigns, you never when it goes viral.
Your existing resources may not be able to cater to these scenarios. Hence, it is recommended to turn towards outsourcing fulfillment services. It would be best if you sign up for it beforehand so that you can deliver orders on the expected delivery dates because even a slight delay can cause a bad customer experience.
Now you must be pondering, “Will fulfillment centers deliver products timely in the festive season or sudden spike? The simple answer is yes. They are equipped with hundreds of delivery executives who can pick, pack and deliver shipments in large quantities.
Take A Moment And Think
So these are the benefits of outsourcing order fulfillment for your Shopify store. When you think on the surface level you may find that it is a costly option comparatively but we will request you to give it a deeper thought you will surely realize that this option is not only profitable but also gives relief from a headache.