Outsourced Order Fulfillment – Finding the Right ROI for Your e-Commerce Business

By | February 24, 2018

“If you count all your profits, you will always show a profit” – Wilson Mizner.

Isn’t it awesome to see online orders lined up? As rewarding as it may seem, trouble begins when you haven’t planned out how you’re going to fulfill them.

According to the annual study of Third-Party Logistics, outsourced logistics has become a trend with 73% of shippers agreeing to use outsourced logistics services for their shipping needs.

Outsourced Order Fulfillment – Importance for Ecommerce Businesses

What is outsourced order fulfillment? Explained in a nutshell – this service is used by retailers and ecommerce businesses for easy storage of inventory in third-party warehouses.

The outsourced fulfillment provider will in turn process order, pack and ship to customers in a way defined by your business.

As a business, you might want to make this part of your operations as cost-effective as possible. You might have to consider certain elements such as geographical optimization of inventory placement for lowered shipping costs and international order fulfillment.

This will also help ensure a healthy ROI which is the sole objective of letting an outsourced order fulfillment service handle product shipping and delivery.

Following are some ways to get a good ROI.

Understand All Outsourced Order Fulfillment Costs

It’s crucial to understand just what goes into your costs. An order fulfillment service offers three types of resources to order fulfillment at the most basic level.

  • Labor
  • Systems
  • Warehouse space

Do you have any idea regarding order fulfillment processes that promote a successful operation?

Simple Automaton Order Fulfillment – Saving Grace for Order Fulfillment

Why is it a good idea to install and integrate automated order fulfillment technology with your business operations? There are many reasons why this is a good idea – improvement in efficiency in order fulfillment operations is the most important.

Installing this software promotes rapid increase in ROI or return on investment through cost reductions.

Some features offered by automated order fulfillment software are:

Fulfillment Integration

Gone are the days when ecommerce businesses relied on only one fulfillment platform. Now businesses have access to multiple warehouses, drop-shippers, in-store fulfillment options, and even 3PLs.

A Single Database

It helps a lot of if a business’s supply chain can easily consolidate order data, as this operation reduces time and resources required for order management and decreasing input redundancy and errors. Order data consolidation also improves overall efficiency!

Make your job easier by saying yes to one of the best order fulfillment software designed by ShipFusion! Partner with us and get started today.