{"id":9670,"date":"2020-06-10T12:05:01","date_gmt":"2020-06-10T04:05:01","guid":{"rendered":"https:\/\/www.zhenhub.com\/?p=9670"},"modified":"2022-10-07T18:24:33","modified_gmt":"2022-10-07T10:24:33","slug":"benefits-outsourcing-order-fulfillment-3pls","status":"publish","type":"post","link":"https:\/\/zhenhub.com\/blog\/benefits-outsourcing-order-fulfillment-3pls\/","title":{"rendered":"5 Benefits of Outsourcing Order Fulfillment to 3PLs"},"content":{"rendered":"

One of the decisions retailers face when business is growing is whether <\/span>outsourcing order fulfillment<\/span> is the way to go. It is a big step for any merchant, especially since tapping the help of a fulfillment center means spending money. <\/span><\/p>\n

This article aims to answer the only question sellers have when it comes to third party logistics company- <\/span>is it worth the additional cost? <\/span><\/i><\/p>\n

Our answer- Yes. <\/span><\/p>\n

As businesses scale and customer expectations shift, the complexity and stress of running an online store increase. By <\/span>outsourcing order fulfillment<\/span>, retailers can focus on increasing their conversion rate while the 3PL takes care of the grunt work, from inventory management to <\/span>shipping<\/span><\/a>. <\/span><\/p>\n

But before we enumerate the five main reasons why <\/span>outsourcing order fulfillment<\/span> is beneficial for eCommerce, retailers must know and understand their options. <\/span><\/p>\n

Types of Order Fulfillment<\/strong><\/h1>\n

Order fulfillment is the process that involves every single step that happens from the moment a customer places an order online to the minute it gets delivered to their doorstep. There are three standard methods retailers can choose from to carry out their order fulfillment requirements: <\/span><\/p>\n

Self Order Fulfillment<\/span><\/h2>\n

Self Order Fulfillment<\/span><\/a> is the go-to method for eCommerce entrepreneurs who are just starting their business. This type of order fulfillment requires the merchant to handle every step that makes order processing. As the name suggests, it involves doing inventory management, storage, packing, and shipping in-house. It is cost-efficient and best for start-ups who have yet to encounter an unmanageable volume of orders. <\/span><\/p>\n

Third-Party Fulfillment<\/span><\/h2>\n

For retailers, <\/span>outsourcing order fulfillment<\/span> to a third-party logistics company simply means letting the experts take care of everything. With this method, merchants can focus all their energies on selling as their key involvement is only on making sure inventory is ready to be picked up by the 3PL. Once a customer places an order online, the 3PL will execute order processing from start to finish. <\/span>
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Dropshipping<\/span><\/h2>\n

This model only concerns warehouses that act as suppliers. With dropshipping, business owners do not own or stock inventory; instead, they purchase the products from a third-party source and get them shipped directly to the buyer. <\/span><\/p>\n

Benefits of Outsourcing Order Fulfillment to 3PLs<\/strong><\/h2>\n

Outsourcing order fulfillment<\/span> has many benefits. It can help merchants focus on the core of the business, marketing, and sales. This will also help entrepreneurs offer a better customer service experience while they scale their business. <\/span> <\/span><\/p>\n

To help business owners better understand the advantages of fulfillment services, here are five benefits of <\/span>outsourcing order fulfillment<\/span>:<\/span><\/p>\n

Scalability<\/span><\/h2>\n

Focusing time on fulfillment-related tasks more than generating sales and building the customer community can prevent a business owner from scaling his business. Yes, fulfillment tasks are essential, but they will only eat up the time that would be better used on branding, product development, and other initiatives that only a business owner can lead. <\/span> <\/span><\/p>\n

Outsourcing order fulfillment<\/span> helps free up an entrepreneur\u2019s time. Focus more on growing the core business and leaving inventory, packaging, and shipment of orders to 3PLs. <\/span><\/p>\n

Speed<\/span><\/h2>\n

In-house fulfillment of orders will limit the location of shipment of orders. Not only that, but it will also be more expensive and would prompt for a longer transit time for customers who are farther away from the site location. Customers usually expect around two days for delivery or even same-day shipping. Using this type of method won\u2019t cut it. <\/span> <\/span><\/p>\n

Doing in-house fulfillment is time-intensive and costly. <\/span>Outsourcing order fulfillment<\/span> will open businesses to more opportunities. A partner 3PL will let business owners use their fulfillment centers in different regions. This means retailers will have more opportunities to take their business to another level. <\/span> <\/span><\/p>\n

3PL extends the reach of businesses and makes them grow into new markets. Having the smoothness and efficiency of a fulfillment warehouse, the shipping process reduces the cost of time and transit of items. It will surely meet the 2-day shipping expectations of the customers. <\/span><\/p>\n

Accuracy<\/span><\/h2>\n

When business owners decide to outsource order fulfillment, they get the services and plenty of tools, distribution metrics, and inventory reporting, which are essential when making business decisions. <\/span><\/p>\n

3PLs are more than just a cost center. They are also revenue generators as 3PLs help <\/span>lower cart abandonment<\/span><\/a> and <\/span>increase conversions<\/span><\/a>. With 3PLs, businesses can meet customers\u2019 expectations.<\/span>
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The recent fulfillment solutions enable entrepreneurs to seamlessly integrate and connect the entire supply chain to the sales channel. This allows the ability to:  <\/span> <\/span><\/p>\n