Why Using Third-Party Logistics Is A Good Idea

By | May 2, 2018

Without an efficient and streamlined order fulfillment process, no e-commerce business can thrive.

Order fulfillment refers to keeping track of orders, processing and shipping them to the customers. In simple terms, an efficient order fulfillment process delivers products to the customers as fast as possible, while also providing adequate information about the status of the delivery process. Due to lack of resources, managing an order fulfillment process is generally not possible for small businesses, which is why hiring a third-party logistics company makes more sense. In fact, many large businesses also prefer to hire third-parties to take care of their order fulfillment process.

Here are certain advantages of hiring third-party logistics for order fulfillment:

Lower Shipping Rates

Whether dealing with bulk or small quantities, businesses that are managing international clients often face problems with shipping. Shipping charges spiral out of control, and businesses find themselves paying exorbitant hidden fees in customs and unforeseen taxes.

Hiring third-party logistics always proves to be less costly; they have access to lower carrier rates. Logistics companies do this every day, and providing competitive carrier rates is more of their core competency. They usually have a network of carriers, and are able to find the lowest freight rates whenever they have to fulfill an order.

More Storage Space

Small businesses cannot afford to have big warehouses where they can store all their products to fulfill orders. Less storage also means that they can take less order from the customers.

However, by using a third-party logistics company, they do not need to have their own warehouses for inventory management. This will not only save costs of warehousing, but will also save staffing and utility expenses.

Focusing on Sales

Not having a warehouse to manage also allows businesses to focus on marketing of their business and gathering more orders, thereby increasing sales. There are times where businesses need to hire additional staff in order to meet the seasonal increase in demand. However, by hiring a third-party logistics company, this need is eliminated. This provides more flexibility in the operation of the small business, and allows them to match their demand with supply without any problems.

We are one of the leading order ecommerce fulfillment services available in the market today. We have designed an integration system that allows tracking of orders from multiple e-commerce platforms and helps in finding the best carriers in order to deliver to the customer.

Visit our website to learn more about our services.