When you are selling products over the Internet, paying for another company for order fulfilment services can be quite tempting. Before you head out there and start looking for viable options, you should understand all of the pros and cons.
Pro – You Will Save Money
Even though this may seem like an added expense, the reality is that using order fulfilment services is a wise financial decision. Since you will not have to pay for all kinds of equipment and a physical location to store all of your inventory, you will end up with an increased profit margin.
Con – The Company May Be Unreliable
Imagine paying someone to handle your orders and they have a habit of being less than reliable. If customers receive the wrong orders and/or their items arrive much later than expected, there is a chance that your reputation will take a hit. No one will be looking for you to explain why someone else is actually the responsible party.
Pro – More Time On Your Hands
Being a business owner is rough and many wish they had more hours in the day to take care of everything. If you allow someone else to handle this part of your business, it means that you can place all of your energy elsewhere. Worrying about things like proper shipping containers will no longer take up so much of your day; more important things, like lead generation will fill your days.
Con – Everything Is Out Of Sight
Every company owner is not keen on the idea of products being sold without being seen first. The company you hire to fulfill your orders will not worry about things like quality control, which means that you will be selling things blindly. Considering the fact that your business success will ultimately depend on offering customers the very best products out there, this can be quite frightening.
Pro – Save Space
Those who run a business from home or other small office locations can rejoice at the thought of not having to worry about storage. All of the products you buy will be sent directly to the fulfillment service and they will be in charge of finding a place for it.
There are various advantages and disadvantages associated with outsourcing fulfillment services. Keep this in mind when trying to decide whether this would be a good decision for your company.