When it comes to e-commerce, one critical detail that should not be taken lightly is shipping. During the start-up stage of a business, shipping out of a kitchen, living room, garage is standard. However, as the company starts to grow, that previous model of shipping becomes ineffective. You need to consider the benefits of outsourcing your shipping.
Logistics Play a Key Role in Business
At some point, every business needs to have its logistics process streamlined. Outsourcing shipping to a third-party provider or two may seem like the next best step. At that stage, affordability will likely be a concern. The whole concept of outsourcing to a third party is just as problematic. Trusting someone with products can be tricky, especially if they’re handmade.
The best way to go about finding an outsourced shipping solution is through careful planning and timing. In addition, checking on the company’s finances with a realistic point of view is necessary at this point. Factors to consider in terms of outsourcing includes:
- Fulfilment procedure intricacy or lack thereof
- Future goals for market expansion
- Most shipped-to area of business
- Returns experience
Advantages of Outsourcing Shipping
When a business chooses to outsource its shipping, several advantages come along with it. Primarily, it affords merchants more time to focus on marketing, product development, and developing a growth strategy for the long term. In addition, customers will benefit since they will likely end up with savings. Fulfilment, packing, and shipping are ideal for outsourcing shipping partners to handle because they’re suited for it.
Ways You Can Outsource Shipping
Read on to learn more about ways to outsource shipping for your business.
Outsource Shipping Through Drop-Shipping
This is a particular favourite for businesses that have budget concerns. That’s because no warehouses are involved in the process. Instead, inventory can be tracked from the drop shipper directly. Needless to say, the drop shipper also takes responsibility for doing the shipping as well. So when a customer makes a purchase, the business will buy the inventory from the drop shipping company. The drop shipper will then be the one to have the products shipped directly to the customer.
Outsource Shipping Through Third-Party Logistics
This term, sometimes known as ‘3PL’, means hiring a business for a supply chain to be streamlined well. It involves the complete shipping process from warehousing to inventory management and more. In short, going with this option is common for businesses on a larger scale.
Outsource Shipping Through Warehouse Rental
Merchants typically rent warehouse space near areas with an exceptionally dense population. They do this to speed up delivery and make things more affordable for the merchant and customers alike. Management of orders and inventory can be done through shipping software.
E-commerce businesses have never been more widespread and vital. More companies have expanded or completely transitioned to the digital space. In short, this means sales and marketing need to be at par with the competition. An essential part of this is shipping, which can be outsourced through third-party logistics providers, warehouse rental, or drop shipping. Looking for a reliable e-commerce delivery partner? Deliver with Flashbox today!