The choice to use a fulfillment company usually occurs when your company grows beyond its current capacity to fulfill outgoing orders in-house. For around a decade, online shopping has been carving out a larger part of the market share as consumers prefer to shop online. As most e-commerce retailers don’t have a large physical presence, when e-commerce companies began to grow, they were faced with the decision to buy or lease a space for their inventory, along with developing the infrastructure necessary to perform their fulfillment processes in-house. Along with a fulfillment facility, online retailers need trained staff to perform their fulfillment operations, in addition to purchasing packaging materials and hiring someone with in-depth shipping knowledge to get their orders to customers in a timely fashion.
When e-commerce companies compare the cost of labor and materials needed to perform their fulfillment operations in-house, they find that the costs and benefits associated with partnering with a 3PL service provider, saves them money and that they have more time to focus on their growing business. Using a fulfillment company, e-retailers gain access to deep discounts in packaging supplies and shipping rates as well as leveraging the expertise of a trained 3PL service provider to pick, pack, and ship orders to customers, streamlining their fulfillment operations.
With drastic increases in online shopping, outsourcing to fulfillment companies has become a necessity to keep up with increasing demands for faster delivery times. E-commerce companies realize that to keep up with this growing demand for their products and shorter delivery times, outsourcing to a fulfillment company allowed them the opportunity to scale without experiencing the growing pains that can so often blind-side expanding businesses, disrupting their upward motion.
Call us today to discuss the services that Phase V Fulfillment can offer your e-commerce business.