Why You Should Hire a Third Party Fulfillment Center

Written By kurt

Do you ever find yourself doing one or all of the following?

 

  • Scrambling to get orders out the door?
  • Running out of storage space? 
  • Stressing because the warehouse person didn’t show up again?

 

If so, then it may be time to find the right fulfillment company to help. Employing a third-party fulfillment provider can help grow your business and save you money in the long run. 

 

The greatest advantage of working with a fulfillment center

Fulfillment centers allow you to shift your focus back to what you do best: running your business. You started your business because you’re passionate about what you do. Having a fulfillment company manage your logistics frees you up for focusing on the rest of your business’ needs – and leaves fulfillment to professionals who are happy to help.

 

How fulfillment centers can lower cost

Every online retailer has different needs, but using a fulfillment center can help you reduce operating expenses. Here are some ways they can help:

– Eliminate the cost of leasing a warehouse or storage unit. 

– Lower price of packing supplies due to higher volume buying power. 

– Reduce risk, cost, and taxes associated with fulfillment labor. 

– Ship your orders faster. 

 

How volume-based shipping and warehouse location lower shipping rates

The more you ship, the lower your rates. Simple as that.

A fulfillment center with top-tier shipping rates could save you thousands of dollars per year depending on your company’s shipping volume. Great fulfillment centers are constantly negotiating shipping rates with carriers and passing most or all savings to their clients. Many e-commerce companies find that their savings on shipping alone make switching to a fulfillment center a smart move. 

The closer your customers are to your warehouse, the less it will cost to ship. For example, if most of your clients are in California, you probably don’t want to warehouse your product in Boston. Doing so would only increase shipping cost and prolong arrival time for your customer. In a world that expects the quickest delivery times, finding a fulfillment center located along major shipping routes is highly advantageous. 

States such as Michigan, Illinois, and Tennessee are close to all the major trucking routes, enabling delivery to a large percentage of the nation within 24-48 hours. Faster delivery times make for happier clients – and repeat orders. 

Sherpack would love the chance to set up a meeting for you with our ‘trail guides’ to answer any questions you may have.