When you run an online business, you face many important questions. They often involve fundamental and exciting decisions, such as:
One question you might ask yourself later in your business cycle is whether or not to outsource your logistics to an external third-party logistics (3PL) service provider.
Very often, we see founders investing a lot of intense thought into the smallest aspects of their branding and products, while giving little consideration to the operational issues of product logistics.
Strategic planning is crucial. The following questions are hardly relevant for most self-employed people in the initial planning process, as they may not seem particularly important or interesting:
E-commerce fulfillment starts when a customer's order comes into your online shop and ends when your package arrives at the doorstep of your customer. Every e-commerce founder eventually must choose whether to rely on in-house logistics (self-fulfillment) in the long term or to outsource to an external logistics service provider.
Outsourcing logistic services to an external 3PL service provider, such as MOODJA, can include the following services:
Whether you run a large company or a startup, MOODJA understands the problems and needs of companies that want to grow in the fashion and lifestyle industry.
What are the reasons for outsourcing logistics to a 3PL service provider?
1. First, you no longer need your own warehouse, which means that goods are no longer stored on your company's premises. This saves costs for packaging materials, forklifts, or logistics staff. In case of short-term order peaks, a fulfillment provider can help manage the additional workload and handle market dynamics.
2. Second, you don't have to become an expert in packaging and postage. What sounds simple at first quickly turns out to be complex and difficult in day-to-day operations. If you or your team fail to determine the right packaging choices quickly and inexpensively, a 3PL service provider is exactly what you need. With all the intricate administrative aspects of your own fulfillment and shipping operations, processes that were initially thought to be simple can quickly become overwhelming.
3. Third, outsourcing to a 3PL service provider can save valuable time for tasks that really drive your business and are fun. Your personal time is your company's most valuable resource, and if you spend most of it worrying about fulfillment, you're wasting time that you should be investing in growing your customer base, producing new products, or marketing your existing products. As experts in the field of fulfillment, trust us to help you get back to the essentials of your business.
4. Fourth, outsourcing to a logistics provider can lower your costs. Fulfilling purchase orders yourself may seem like a cheap – and often free – alternative to a 3PL service provider, but once you start looking at your opportunity costs, you'll quickly realize that fulfilling orders is not the best-value use of your time. As a business leader, you should focus only on tasks that provide you with the highest value per hour.
5. Finally, rapid company growth is not a problem anymore. As your business grows, it can become difficult to keep up with an unprecedented volume of orders. A 3PL service provider is prepared to seamlessly grow with you in the most efficient way possible. We'll help you overcome any growing pains and scale faster than you ever could on your own. We eliminate manual steps by automating the entire fulfillment workflow and provide real-time insights into what's happening, driving sustainable revenue growth and turning previous guesswork into intelligent forecasting. Ultimately, this translates into faster modernization of your operations.
When might it be worthwhile to keep fulfillment in-house?
Whether you're preparing to launch a promising product or are on the path to e-commerce growth, at some point, you'll have to ask yourself how you want to handle your order fulfillment.
The best solution for your business will always depend on several factors. In-house fulfillment, which was worthwhile early on, can quickly reach its limits due to growth. By thoroughly weighing the pros and cons of logistics outsourcing, you will ultimately be able to make an informed decision.
If you are unsure whether fulfillment makes sense for your business, don't hesitate to contact us!