In the world of e-commerce, setting up and running a successful online shop can be a challenging undertaking. One of the crucial aspects of the success of an online store is efficient logistics management. Outsourcing fulfillment from the outset can be a smart strategy for novice webshops. In this blog, we will discuss why this is so and how outsourcing fulfillment can promote the growth and success of your webshop.
In-house logistics
Imagine this: you have just launched your own web shop and you receive your first shipment of products from your supplier. You have found a storage facility, whatever it may be – a garage box, part of a warehouse – to store your inventory. You start organizing your inventory, and soon you notice that orders are pouring in thanks to your (online) marketing campaigns.
But then it begins, the “leverage effect”: inventory management goes haywire, unexpected stock discrepancies and back orders pile up, customers return products and they end up in a corner of the warehouse somewhere, waiting to be processed. What began as a promising adventure soon turns into a logistical nightmare. And no one wants that.
Managing logistics efficiently is an art
This scenario illustrates the importance of efficient logistics management in e-commerce. Running a web shop goes beyond just having an attractive website and promoting products. It also includes accurately managing inventory, efficiently processing orders and handling returns in a timely and organized manner. In addition, outsourcing logistics offers many advantages:
- Focus on core business: The time you don’t have to spend on logistics handling can be used integrally to focus on core activities and competencies such as purchasing, marketing and customer service.
- Scalability: fulfilment companies have the infrastructure and geographical spread to respond quickly in case of growth. This eliminates the need to invest in warehouses and staff, and to worry about peak periods such as sales or black Friday. In addition, it also allows you to grow geographically and build a customer base across national borders.
- Efficiency and professionalism: fulfillment companies specialize in logistics management and have sophisticated systems and processes to process orders accurately and efficiently. This ensures a professional and reliable fulfillment experience for you and your customers.
Outsourcing fulfillment from the start can be a smart move for (novice) Web shop owners. Not only does it offer operational efficiency and scalability, it also allows entrepreneurs to focus on growing and developing their business without being distracted by logistical concerns. In short, logistics is a financial cost but a time and efficiency gain.
However, as your business grows and you explore new sales channels, such as physical stores, marketplaces or social media platforms, your logistics and fulfillment will have to adapt to the complexity of managing sales across multiple channels. This is where strategies such as multichannel, cross-channel and omnichannel come into play. Read more about these different sales strategies here.