What You Get From Order Fulfillment Services

Outsourcing all or part of the order fulfillment process has several advantages. This outsourcing option is especially appealing for merchants who only have an online store and no warehouse or distribution facilities. Even established “brick-and-mortar” businesses will use product fulfillment services to cut infrastructure costs and improve operational efficiency. Here are the benefits of using order fulfillment services.

Reduce Operating Costs.

Working with order fulfillment companies can help you save money on infrastructure and logistics. Seasonal fluctuations are common in most businesses, and this is particularly true in order fulfillment. During peak seasons, more workers may be required, and rent and storage prices tend to rise. A lot of businesses are unable to employ temporary employees or purchase new warehouses, which are required for order fulfillment operations. Using product fulfillment services eliminates the need for new infrastructure, resulting in lower operating costs.

Lower Shipping Costs.

Because of contracts with regional, national, and international shipping companies, most fulfillment service companies can offer lower shipping costs. It is beneficial to take advantage of the discounts that an order fulfillment service can provide. Furthermore, many order fulfillment companies have locations across the country, allowing for lower shipping costs due to location and delivery times. Make sure to select a fulfillment service that is complementary to your sales markets.

Expand Your Market.

Small or new retailers frequently struggle to expand their business nationally or globally. Tariffs and compliance issues in global trade can be complicated and daunting. Due to its distribution networks and global expertise, an order fulfillment service should give your company the ability to ship anywhere in the world. By utilizing the platform of fulfillment service companies, you can take your business to the next level and boost sales in new locations and markets, even selling on Amazon.

Eliminate Fixed Costs.

When sales are flat or declining, the cost of carrying inventory rises, but you continue to pay the same rent and utilities for warehouse space. Your fixed cost becomes a variable cost by contracting with a product fulfillment services company. Your order fulfillment costs decrease when business is slow. Of course, they rise when business improves, but that’s a price well worth paying and one you shouldn’t have to pay if it’s not necessary.

Scalability.

One of the major reasons for hiring a fulfillment company is the ability to be flexible. It will allow you to choose where your inventory is stored while only charging you for the amount of space you use. It will also give you room for expansion and will not cost you anything extra if the business picks up and you need to hire another employee.

Order fulfillment companies like OctoChem can give you the flexibility you need to run your business efficiently.