E-Commerce Trends: Benefits of Logistics Outsourcing for China Order Fulfillment
Owning an e-commerce shop is one of the most popular ways to start a business, especially since the pandemic showed that customers are more than willing to buy products online that they used to only buy in stores. But, unless you partner with a third-party logistics provider that offers logistics outsourcing services, your profit will be razor thin, if you make a profit at all. Outsourcing supply chain management for fulfillment services from China not only increases your profits but also offers these awesome benefits.
This is easily the best benefit of outsourcing order fulfillment is that you don’t have to keep any inventory on hand. The third-party fulfillment company does this for you. This means no rent to pay on warehouse space or trying to cram your inventory into the extra bedroom in your house. Your customer simply places their order and you send it to the fulfillment company to package and ship. With real estate prices sky high right now, it’s much more economical to drop ship your products instead of keeping stock on hand.
When a company keeps inventory in a warehouse, they don’t really know if it’s going to sell or not. You have to buy it in advance at wholesale prices and hope you have buyers that will purchase it at retail prices. This can put a lot of pressure on company owners like yourself who probably don’t have a huge budget for inventory in the first place. You’re basically gambling that you’ve ordered the right amount of a product that will sell.
But, with outsourcing your order fulfillment, you don’t have to worry about purchasing the right amount of product and hoping you’ll sell it all. Again, the fulfillment company takes care of this for you. They keep products in stock and you order exactly the number you need to fill an order when you need it. You don’t purchase anything in advance so you’re not gambling with your investment.
Many e-commerce companies that use order fulfillment services from China can operate with just one or two people. There’s no need to hire warehouse workers or shippers whose job it is to find the right products and ensure they’re packaged and shipped on time. When you partner with a fulfillment company, you’re basically hiring their employees to handle your products, but they’re experts at doing just that. You don’t need to worry about your products not getting to your customers as described and in the timeframe, you advertise.
Packaging and shipping is never the primary function of a business, even one that operates online. When you outsource these secondary functions, you’re free to focus on the main part of your business, which is acquiring customers and making sales. By partnering with a fulfillment service in China, you can stop worrying about the shipping and delivery aspect of your company.
These days, shipping can make or break an e-commerce company because customers have come to expect it to be fast and cheap. Using a fulfillment company to take care of these services on your behalf, you can meet or exceed these expectations.