When you operate a growing company, it can, at first, seem like a good idea to keep all your business operations in house in order to maintain a low overhead. While you remain small, this might remain a good business plan. When businesses grow, however, owners find that managing space and storage becomes more and more difficult. Efulfillment, or outsourced warehousing and shipping, is an option many businesses, especially online ones, decide to invest in. Here are three benefits of using efulfillment.
1. Economic specialization.
This is the business theory of individuals or groups concentrating on the tasks they are most skilled on, rather than trying to be efficient at all tasks. When it comes to your business, you need to ask yourself whether spending your time building up and managing a warehouse is what you are best suited to do. Outsourcing is often the most economically viable option because it allows two different groups to focus on their areas of skill, rather than each trying to do half the work of the other. For handling and shipping, you will invest in people who do nothing else and have tailored their performance to be the best possible efulfillment experience possible for their clients.
2. Allow for growth.
If you run your own warehouse, at times you will either have too much space, or not enough, since you need to allow for both the growth of your business as well as fluctuations owing to things like the holidays or media coverage, et cetera. Space and staffing are both two things a fulfillment center will be able to adjust to better than you will. Ecommerce fulfillment services help online stores maintain a lower overhead.
3. Explore new markets.
Fullfillment services make it easier for businesses to ship to consumers all around the country. Going with a fulfillment service that either has multiple warehouses throughout the country, or one located in a central US location, will help lower shipping costs, which gives the merchant a competititve advantage. New markets also open up when it becomes easy to ship from warehouses in any country through fulfillment services. Traditionally, approaching new markets often requires a big hike in infrastructure and employee hiring, but this is mitigated through fulfillment solutions.