Is it time to outsource your ecommerce fulfilment to a 3PL?

8 Signs you are r

eady -

1 - Fulfilment is your largest cost centre

eCommerce fulfilment is costly, especially if you’re trying to keep up with Amazon. Warehousing, wages, packaging, equipment and shipping carriers all cost money and eat away at your bottom line.

If fulfilment has become your largest cost centre, it’s time to start calculating the different options.

3PL providers have the benefit of breadth. They can spread overhead costs across multiple clients and leverage substantial buying power to give you lower rates on packaging, storage and shipping.

2 - You’re reaching capacity

One of the best things about eCommerce is that you can significantly grow your customer numbers without the cost of additional retail space. However, the same can’t be said for your logistics.

More customers generate more orders, increasing your storage space requirement, packaging materials, and warehouse staff. Before investing in doubling or tripling your fulfilment function, determine whether a 3PL can increase your capacity at a lower rate.

An outsourced logistics provider has immediate access to space, staff, and materials to help you manage business growth without the pains.

3 - Your orders fluctuate

Closely related to capacity is the fluctuation of orders. Busy retail periods such as Christmas or summer result in more orders and demand faster shipping. Those last-minute swimming trunks or that forgotten Christmas present all require delivery yesterday, and your customers don’t care what date it is or how busy you are.

Outsourcing your fulfilment powers you to provide consistent, reliable and fast delivery, regardless of the time of year. You don’t have to lease additional warehouse space that you only use two months out of 12, and you don’t have to enter the realms of seasonal staffing either.

4 - You want to try out the new tech

The emerging technology in eCommerce logistics is exciting. Drones, robots, blockchain and digital twinning – it’s the stuff of dreams (and nightmares).

By partnering with a forward-thinking 3PL, you benefit from the technology that matters. This means that you won’t waste money on a robot that only saves a few minutes a day, but you can still benefit from technology that enhances your customers’ experience.

5 - Your customers want orders quicker

Amazon is still raising customer expectations when it comes to delivery speeds. And, while most customers don’t need same-day delivery, they do expect delivery within a few days at least. However, fast deliveries are still challenging for many, especially during busy periods.

A third-party logistics provider takes the worry of fast shipping out of your hands and provides you with reliable and feasible fast shipping options that you can pass on to customers.

6 - You’re spinning multiple plates

Working in a growing eCommerce business can sometimes feel like working in a circus. You could be in charge of fulfilment, supply chains, product sourcing, eCommerce platforms, finances, procurement and more. And fulfilment takes up a lot of time.

Outsourcing fulfilment doesn’t mean that you’re failing in your position; it simply allows you more time to spend on strategic tasks that will make a significant business impact and less time managing a warehouse.

7 - You’re operating a disjointed fulfilment process

While running a hybrid logistics model isn’t a bad strategy, if you’re using FBA, it may be a costly one.

Amazon FBA can be expensive when handling certain product types or fulfilling multi-channel orders. If this is the direction your business is going, an established multi- channel fulfilment partner such as Evolve can work out cheaper and more straightforward.

8 - Enterprise logistics isn’t your expertise

Running the fulfilment operation of a start-up store is vastly different from managing an enterprise brand’s logistics. If your business is aiming big, it’s best to consider outsourcing early.

Using a third party enables you to benefit from established experience in implementing and running a first-class enterprise logistics operation – delivering products of all shapes and sizes quickly and affordably.

If you do you think your business is ready for a 3PL then why not get it touch today - info@evolvefulfilment.co.uk