Outsourcing has become increasingly popular in many areas of business as a way to reduce costs and strain on various businesses in the E-commerce space. But is it the right move for you?

What Are the Pros and Cons of Outsourcing E-commerce Fulfillment?

Before you dive into third-party fulfillment for your business, there are some advantages and disadvantages to consider. But while there are always a few concessions to be made, IDS Fulfillment’s process ensures that you will enhance your level of service while lowering your overall costs. In short, we turn the pros and cons of outsourcing E-commerce fulfillment into all pros.

Pros

• You’ll be able to deliver products faster and at a higher level of quality.
• You can lower your operating costs by saving on labor, rent, equipment, and more.
• You won’t have to worry about managing dedicated fulfillment employees.

Cons

• You won’t have as much control over your fulfillment process, though you will have a dedicated team optimizing and prioritizing on your behalf.
• Personalized packaging can sometimes be more difficult. However, IDS Fulfillment offers personalized packaging and branding options without a hitch.
• Third-party services add costs to your business. However, you will save more by removing your in-house pressure and moving fulfillment processes off-site.

What Are the Benefits of Outsourcing E-commerce Fulfillment?

The benefits of outsourcing E-commerce fulfillment are vast, and altering the way that you manage orders, inventory management, and returns can greatly improve your bottom line.

• Save money on shipping. Shipping costs account for a large expense, but outsourcing means that you can access lower rates and collective shipping volumes.
• Achieve faster delivery times. Third-party fulfillment centers are typically located strategically to provide fast shipping. IDS Fulfillment has centers near both the east and west coast in order to provide 2-day shipping to most of the continental United States.
• Lower operating costs. When you outsource, you won’t have to invest in the labor, equipment, or additional utilities that are required for fulfillment — that will all be handled by your outsourcing partner.
• Pay on a per-order basis. Instead of paying monthly expenses, outsourcing enables you to pay only when an order is received. This takes away the cost burden when you encounter slower months.
• Access better technology. Third-party fulfillment providers typically have the latest technologies at hand and can better manage your inventory without adding new costs to your business.
• Improve customer service quality. When shipping and returns are faster, customers are happier. Reverse logistics are a big part of E-commerce, and optimizing this area can greatly improve your customer satisfaction and trust within your brand.

How to Outsource E-commerce Fulfillment

If you trying to determine how to outsource E-commerce fulfillment within your business, you’ll want to first do some research on reputable companies. Third-party providers should have multiple fulfillment centers in order to serve you and your customers quickly, and offer advanced integration options for simplified ordering and inventory management. In addition, you may want to seek out companies that can offer customized services that meet the needs of your specific enterprise, including complete operational visibility and top-notch reverse logistics strategies.

Why Choose IDS Fulfillment for Your E-commerce Needs?

At IDS Fulfillment, we specialize in providing reliable and strategic fulfillment services to our customers and partners across the country. We’ve done our research, and set up our operations so that they complement and benefit yours, as this ensures consistency and cost savings for all. Using the latest technology for picking/pulling, inventory management, and returns, we’re able to act as an extension of your business that adapts to your processes and enables you to provide a better overall experience for your customers. Contact us today to learn more and discuss your needs with our team.