In-House vs. Outsourced Fulfillment Services: Benefits and Negatives

If you own a business that delivers products to customers, you’ve probably been presented with the option of doing your fulfillment in-house or outsourcing so someone else can do it at a lower cost. It's important that your customers get their packages on time and efficiently, but it's also important that you keep your shipping costs low, so choosing the right type of fulfillment can really make all the difference.

If you've just started out in the business world, there's a chance you don't know much about the differences between in-house and outsourcing for fulfillment services. Here's a brief overview to help you make the right choice.

In-House FulfillmentIf you choose to do your fulfillment in-house, meaning you or one of your employees would be responsible for packing, labeling, tracking, and shipping inventory, there are a few benefits, but also some negatives. First, you'd be responsible for all of the shipping and returns that come into your business. Along with handling everything else that a business owner needs to handle, you'd be the one that has to figure out how you're going to get your product to the customer, but you'll also have to sort out any problems and inevitable return issues.

If you plan on having one of your other employees take care of any fulfillment tasks, you're going to be paying the employee to do so, but you're also going to have to pay to have them trained. Fulfillment isn't as simple as heading to the post office and dropping off a package. It requires you to stay up-to-date with your customer, make sure the package gets to them in a timely fashion, and handle any problems that may arise. Because of this, training is expensive and also very necessary.

The final thing to know about in-house fulfillment is that you're going to struggle with organization. Staying organized is key for a business owner, so if your mind is all over the place trying to deal with fulfillment issues like Amazon shipping needs, you're not going to be able to focus on other crucial matters.

Remember: As your business scales, your problems will as well.

Outsourced FulfillmentIf you plan to outsource your fulfillment services, know that you're going to be saving some money. And outsourced service requires you to pay for the service as a whole, not a single employee. As a business owner, you may be looking for ways to cut costs here and there. This is a great way to do so.

Outsourcing and order fulfillment is also extremely efficient for the company head. You're not going to have to spend your days worrying about shipping needs and potential issues, so you're going to be able to spend more of your time, and your sanity, on things that really matter.

Finally, fulfillment services are properly trained and may even be experts in the field. They have more experience in the fulfillment industry than you do, so you’re not going to have to worry about training someone on something you’re not too focused on. Choosing a fulfillment service is a wise move.

Amazon Shipping NeedsBetween the two options, outsourcing is the clear winner in this competition. If you’re looking for the perfect ecommerce fulfillment service, you can trust Elevate Fulfillment with all of your Amazon shipping needs. By listing products directly on Amazon and entrusting shipping to an Amazon order fulfillment service, you can lower overhead costs dramatically.

The top three most influential factors in determining where Americans shop online are price (87%), shipping cost and speed (80%), and discount offers (71%). Of course, if their order doesn't arrive on time, then you can lose a customer forever. Elevate Fulfillment can help turn you into the place people want to shop!