How do you know when to outsource your outbound fulfilment?

How do you know when to outsource your outbound fulfilment?

When you’re running an e-commerce business, you need to compete effectively in a crowded marketplace. This means getting quality products to your customers quickly and efficiently – And ensuring high levels of customer satisfaction whilst running a productive and profitable business. How you choose to handle your order fulfillment will have a fundamental impact on your success.

Businesses have two options when it comes to order fulfilment, to do it themselves or to outsource the operation to a third-party provider. Most online companies begin by fulfilling orders using their own team under the illusion that they are saving money. But with e-commerce growing at a rate of knots and customer expectations going through the roof, how much money are these businesses really saving?

According to a recent survey, internet retail sales in the United Kingdom increased by 157.2 percent in 2020, reaching a high of 3.2 billion pounds. With this kind of growth, merchants must make sure they’re using the correct fulfilment strategy to keep up with demand. It’s dog-eat-dog out there and if businesses can’t keep up and take the opportunities when they arise, they might find themselves in dire straits.

Here are three indicators that it’s time to outsource your outbound fulfillment:

1.Order processing bottleneck – For many businesses, order processing can dramatically slow down operations – especially for e-commerce businesses that have a high volume of orders.

You don’t want your warehouse team wasting time on administrative tasks including; picking and packing, quality inspections, repairs, and disposals. For some people, it can be a full-time job and that is bad news for your bottom line.

The good news is that, at Velocity Global, we can take care of your returns at every stage. You don’t have to worry about learning new software or integrating new systems. Our 24-hour service empowers us to handle any returned items swiftly and efficiently, freeing up your time and resources to concentrate on growing your core business.

2.Manual Packing Errors – Once the order is confirmed, workers select the appropriate goods from the inventory and then pack and label them with the customer’s information. These are then sorted again by the carrier service. This time-consuming process becomes even more laborious because the items must be packaged in accordance with shipping guidelines.

Velocity uses high-quality packing machinery to streamline the entire process and reduce the need for manual labour. Outsourcing to Velocity will save time, reduce human errors and ensure that all packaging materials follow current packing requirements. Velocity’s Warehouse Management System and Order Management System gives you the peace of mind and visibility of quick and accurate fulfilment.

2.Prohibitive Shipping Costs – Shipping costs have rocketed by 25% since 2019, due to the pandemic, putting cost efficiency in the spotlight for UK businesses. Small businesses are less likely to qualify for reduced shipping rates, putting super-fast delivery out of reach, especially for businesses with low order volumes.

Outsourcing e-commerce fulfilment to Velocity Global could save you anywhere from 15% to 30% on shipping costs. We compare multiple shipping providers to find the most reliable and cost-effective delivery. This will empower you to maintain warehouse efficiency and productivity – and really scale your business.

Partnering with a logistics firm allows you to use scalable technology instead of hiring more employees or equipment. Plus, flexible service agreements allow you to only pay for the services you need when you need them.

Additionally, the faster delivery times achieved by your company’s outsourced fulfillment partner will boost your basket conversion rate and customer satisfaction. These two variables, when combined will lower your customer acquisition costs, will increase your overall revenue, productivity, and profit margin.

At Velocity Global Logistics, we offer warehouse, transportation, and fulfilment services that allow businesses of all sizes to benefit from the same benefits as large enterprises while removing the stress for you.

For more information visit Velocity Global

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