ADVANTAGES OF ORDER FILLING COMPANIES
Faster than ever, the ecommerce industry is growing. Compared to 2007, ecommerce accounted for only 3.4% of retail sales, but by 2020 it will account for 21.3%. Ecommerce sales increased 44% year over year. More online sales lead to more orders shipped, putting order fulfillment companies in high demand.
The supply chain industry evolves with technology. Small businesses and startups often find it difficult to keep up with these changes. Because of this, so many businesses are beginning to understand the importance of an order fulfillment company.
What are Order Fulfillment Companies?
Using best order fulfillment companies, companies can outsource some or all of their distribution/fulfillment functions. Basically, an order fulfillment company helps you ship your products to customers.
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Order fulfillment companies typically provide the following services:
- Picking & packing
- Cross docking
- International shipping
Why Do You Need an Order Fulfillment Company?
The use of an order fulfillment company depends on your business and whether you need it or would benefit from it. A company of any size can benefit from using an order fulfillment company, especially if your margins are decent.
So if these big brands entrust their business to an order fulfillment company, why shouldn’t you?
Order fulfillment services are particularly useful for startups and small businesses. An order fulfillment company could be a huge asset to your company if you’re ready to grow. The company can provide you with benefits usually reserved for larger organizations. As if you’re banding together with other companies to get the benefits a single big business enjoys.
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Order fulfillment companies offer many benefits
Your company can benefit greatly from order fulfillment companies. You can take your business to the next level with the help of the right fulfillment partner. Here are seven benefits of working with an order fulfillment company.
1. Owning a warehouse isn’t necessary
Turning your fulfillment over to an order fulfillment company has the biggest benefit of eliminating the need to warehouse your goods. It is very costly to manage your own warehouse. You need to pay not only for the space in your warehouse but for everything else that goes in there as well.
Depending on the size of your company and the volume of your orders, this could mean:
- Warehouse racks
- Conveyor belts
- Boxes & packing material
- Order management software
- Warehouse management software
- Printers for packing labels and packing slips
2. Compatible with most e-commerce platforms
You can integrate all of your e-commerce platforms with an order fulfillment company for a hassle-free experience. As opposed to figuring out how to integrate each individual system yourself and having to manage that which might require additional IT resources (more money), you should hire an experienced order fulfillment company that can help with integrating all of your systems.
You’ll not only be able to ensure your system is set up correctly with the help of the pros, but you’ll also be able to focus your time and resources on growing your business.
3. Negotiate better shipping rates
Taking advantage of better shipping rates is a benefit of working with an order fulfillment company. Why? Well, if you are doing self-fulfillment and shipping 50 orders per day, you don’t have as much negotiating power as if you are part of a much larger group shipping hundreds of orders per day.
It is in the interest of the companies that deliver (USPS, FedEx, etc.) to have a full truck, so the more orders you ship, the better the deal they will offer.