Debunking the Most Common Myths about Outsourced Order Fulfillment
The eCommerce industry has experienced explosive growth over the past two years. This means that it is a highly favorable time to start your own online business.
It’s common for many entrepreneurs to take advantage of outsourced order fulfillment. However, there are myths about working with a fulfillment company that should be debunked.
Let’s take a look at what you need to know.
“Outsourcing Order Fulfillment Is Always Expensive”
This is one of the most common misconceptions about working with a fulfillment partner. In fact, many people choose to forego this option due to believing it is too expensive.
In reality, outsourcing your fulfillment responsibilities is highly affordable.
Although there are numerous fees (such as those related to maintenance, storage, etc.), this doesn’t mean forming a partnership is expensive. Additionally, working with a fulfillment professional can help you save money in other areas.
For instance, it’s not uncommon for a fulfillment company to be able to negotiate lower shipping costs. The same can be said when it comes to saving money on supplies through bulk ordering.
Even with the fees and miscellaneous costs in place, your overhead costs are notably low. This makes outsourcing a superior option in many cases.
“I Lose Control Over My Orders if I Outsource”
Some business owners have an irrational fear of losing complete control over their order fulfillment. They often envision a shady company haphazardly storing and managing their products.
They may even suspect that the performance metrics they receive are intentionally misrepresented. As you might guess, this is simply irrational thinking.
It’s true that order fulfillment companies will have some influence on the way your business operates. After all, they will be in charge of distributing your inventory and handling certain customer issues.
To help avoid any potential obstacles, it’s imperative that you work with a reputable fulfillment partner. This will ensure that you are able to achieve optimal results and protect the reputation of your brand.
“My Business Is Way Too Small to Outsource”
This couldn’t be further from the truth. What you need to keep in mind, however, is that your business should have a certain amount of stability.
This means that you should receive orders on a regular basis, and there is a certain volume threshold that you need to reach. Otherwise, it may not be financially worth it for you to work with a fulfillment partner.
In general, companies that are consistently shipping between 50 and 100 orders per month should consider outsourcing their order fulfillment. The same can be said for companies that are scaling at a rapid pace.
In the latter scenario, you may find yourself in a position overnight where you are no longer able to accommodate your customers.
“This Process Is Too Complicated for Someone Inexperienced Like Me”
It’s in the best interest of the fulfillment company to make the process as easy as possible. If there were a high barrier to entry, they would be much less profitable.
However, the level of complexity that you experience will depend on your business. For instance, shipping certain items require you to follow certain regulations. To elaborate, there’s a difference between shipping clothes and shipping makeup, skincare products, or cleaning products.
In many circumstances, you’ll find that working with a fulfillment provider is much easier than you anticipated. This makes this myth one of the most important to debunk.
“Fulfillment Companies Might Lose or Damage My Products”
As previously mentioned, you should prioritize working with a reputable partner. Otherwise, it’s not guaranteed that you will never encounter issues.
The good news is that working with a company that has a solid reputation should allow you to avoid many problems that you would otherwise encounter. Companies like this will go out of their way to prioritize customer service. This is true for the way they interact with both you and the customers of your business.
So, dedicate some time to researching potential fulfillment partners. To help make your decision, you can take a look at their past reviews. This will provide insight into the type of experience you will have.
A common misconception is that order fulfillment is the same as drop shipping. This statement is untrue, and it’s important to understand the difference. You can check out this guide to learn more.
“Outsourcing Only Leads to a Dip in Customer Service”
Ironically, outsourcing to a fulfillment partner can actually lead to an improvement in overall customer service. This is due to the fact that you will have much more time to focus on other obligations.
Additionally, a high-quality fulfillment partner will handle your basic customer service needs. They can often resolve issues that arise, and they can forward customers to you if they need your involvement.
There’s also something to be said about the speed at which customers receive their products. This is one of the primary factors that influence overall customer satisfaction.
Outsourced Order Fulfillment Is a Powerful Tool
Be sure to keep the above myths in mind so that you have a full understanding of the utility that outsourced order fulfillment can provide. This will allow you to make the decision that is best for you and avoid misinformation in the future.
Want to learn more useful info that can help you out in the future? Be sure to check out the rest of our blog.