Today’s global marketplace is busier than ever. Online sales are forecast to grow between 8-12% in the next few years, with hundreds of billions of US Dollars being spent worldwide by 2020. With this thriving Ecommerce economy, it’s never been a better time to build an online business.
This doesn’t mean that growing your business is easy. Competition is fierce and modern consumers expect the highest levels of service. Although most customers don’t give a second thought to what happens behind the scenes once they click the ‘buy button,’ for the online retailer it’s absolutely crucial to ensure fulfilment runs smoothly. After all, once you’ve done the hard work of capturing attention in an information-saturated online world, it would be reckless to squander it with poor service.
Unfortunately this is the situation many Ecommerce retailers find themselves in as they begin to grow and have to cope with multi-layered business needs.
You must become proficient in core areas such as:
- Social Media Presence
You will also need to address a variety of other challenges, like time-management and building your business brand. Smart business owners know that at some point they need to optimise their time and skills so they can focus on the bottom line, improving products and ensuring the smooth running of the business.
The challenges of dealing with logistics for a growing business as orders increase has led many managers to streamline their process by choosing Third Party Logistics (3PL) to take care of their fulfilment.
Outsourcing of warehousing has become popular because of its flexibility and ability to add several key benefits to online businesses. If you’re growing an online business, choosing an effective 3PL company to work with could be one of the most cost-effective choices you make as you scale your business.
So, how do you know if 3PL is right for you? Below are some of the top reasons that fulfilment companies have become so popular in the last few years:
Benefits of Fulfilment Centres
Easing Logistical Headaches
When it comes to running your own business logistics can be a huge headache. If you don’t have the space to store items, or the correct processes and technology in place to quickly and easily fulfil and keep track of your orders, you are very likely to cost yourself and your business when you get disappointed customers.
Most customers don’t pay attention to logistical processes around receiving their order or returning an item – unless they find there are issues and problems with the process. With the dominance of Amazon and other large companies that offer quick, easy and cheap delivery, it’s vital that you remain competitive by offering top level service.
3PL companies can ease your logistical nightmares by using their top range technology – both in terms of warehousing facilities and In-house IT systems.
Because fulfilment centres specialise in their role in logistics they can offer you highly competitive rates compared to the cost of going it alone. Because they have greater buying power when it comes to bulk buying packaging and fast and efficient warehousing equipment, they can save you money on these essential aspects of logistics.
Shipping rates are also a huge concern for any online retailer. Did you know that 28% of customers will abandon their shopping cart if the costs of shipping are too high? So, it’s important that you get the best possible deal when it comes to rates with couriers.
As 3PL companies have large contracts with the main courier companies they’re able to demand lower rates for shipping – and can pass these discounts onto you. This means you can maintain an edge over your competitors by charging less for shipping.
Save on Staff Costs
By outsourcing your logistics you’ll be able to free yourself of the costs associated with running a warehouse workforce. This means saving time and money on staff training, sickness, HR services and managing safety for a busy warehouse. This can make a real difference to you in the long run as you free up your resources to spend on growing your core business.
Increase Your Flexibility and Effectiveness
Freeing up the time you and your staff would otherwise spend on picking and packing, handling returns and dealing with tracking processes and couriers could be the gift you need to take your business and professional growth to the next level.
Because many 3PL companies are well-used to customers who are smaller and have fluctuating needs they can offer the kind of flexibility in their fulfilment services that is hard to achieve on your own.
At Meteor Space we can offer all the above benefits, plus a whole host of additional services
. So if you’re interested in taking your business further with outsourcing your fulfilment, get in touch today to find out more!