3 Myths About Outsourced Order Fulfillment, Explained!

Posted January 15, 2021

In eCommerce, Fulfillment, Inventory Management

Outsourced order fulfillment is being widely accepted as a necessity to gain an edge for many eCommerce Businesses. More so now that COVID-19 has disrupted supply chains and caused worldwide procurement issues.

There are a few myths that cause some online retailers to believe that there is more to lose than gain in outsourcing order fulfillment. These myths keep them from enjoying benefits that accrue directly from outsourcing order fulfillment. Not only that, they lag behind their competition that has been smart enough and have outsourced order fulfillment and reaped its significant rewards.

Then there are those who believe that outsourcing can make them lose control and will ultimately destroy their business. Outsourced order fulfillment is not about giving up control of your business. You don’t lose control over how your business brand looks to customers. Rather, an outsourced partner can deliver the same exact customer experience every single time. They have policies in place that mean your fulfillment work is done in the same steps as you would have done in your own office.

No one knows your business more than you and no one knows order fulfillment better than a full time order fulfillment company like Elite OPS. Together both parties help each other excel in what they do.

Myth 1: Outsourced order fulfillment works best with thousands of products – NOT TRUE!

You don’t have to be a million dollar business with a super long list of products to use a fulfillment partner. As a small company, you can benefit from outsourced order fulfillment too. The success in the right fit! You must talk to and also visit a few order fulfillment warehouses. Explain your product and your customers to them and make sure that they clearly understand and meet your (unique) needs. With the right third-party company, everything will just work and feel like it’s on auto-pilot.

Almost all fulfillment companies charge on a per order and per item basis. They also charge a fee to store your inventory at their warehouse either depending on how many pallets you need or by pick location. They charge extra for handling returns. Yes, it sounds like they charge for every little thing, but that’s how you ONLY GET BILLED FOR WHAT YOU USE. If you have a large store and only occupy 50% of the floor space, then you are also paying (and wasting) rent on the 50% that you aren’t using. In the order fulfillment world, you wouldn’t be paying for that unused 50% floor space. Charges are also easy to track as you get an itemized bill every month.

Myth 2: Customers won’t be happy that we outsourced – NOT TRUE!

There is a taboo associated with outsourcing. The word “outsource” generally has a negative vibe. Most online merchants think that their customers may stop doing business with them if they come to know of their outsourced order fulfillment partner. But in this context, you really are hiring an expert for doing your order fulfillment so that you can give your customers the best shipping and handling experience at a reduced rate done by a professional. You hire a plumber for your plumbing and a mechanic to fix your car. This is no different!

You order fulfillment partner seamlessly and successfully processes orders just like you do. So, there would be no problems at the customers’ end. Your customers will never realize that you are outsourcing order fulfillment! You need to make sure your order fulfillment partner is trained and equipped with all the information to give your customers your true brand experience.

For example, your outsourced partner will customize package inserts and packing slips (and even return labels) to create an impression that their box was shipped from your address. That is their job and they do it every single day for all of their clients!

Myth 3: Outsourced order fulfillment won’t grow my business – NOT TRUE!

When you are enjoying a successful fulfillment partnership, the last thing your partner will do is take steps to restrict your business growth! What if you are handling everything yourself and you need to expand? You may need to move into a new office because you don’t have enough space for added inventory. That would be a big disruption to your daily business. You will have to break your office lease and move out. That is a painful process that could incur extra charges. There will be moving expenses. Then you have to hire a store manager, more customer service reps and so on. It all adds up!

If you have outsourced order fulfillment, you won’t have to worry about any of the above. The fact is that a third party provider can share your burden of expanding. It can easily help with increased inventory, staffing, and customer support while scaling along with you. They just need to increase your floor space in their warehouse and put additional employees onto your account. No disruption to your day to day business activities at all.

Your outsourced order fulfillment provider should envision your growth and adopt your core values while also providing other services that will facilitate your tasks and help you get there.

Bottom Line

An Outsourced Order Fulfillment partner does no harm and helps you grow your business. It can deliver your product to your customers more efficiently and at a reduced rate while maintain your brand practices. Most importantly it can help you scale up as needed.

Click here to Read about the Steps We Are Taking to ensure Business Continuity for Our Customers and Our Team.

Elite OPS has been a leader in Shipping and Logistics for over 25 years. Contact Us to find out how we can help you Save Time and Money on Procurement as a Service, eCommerce Order Fulfillment, and Kitting and Assembly.