In the world of eCommerce, one critical element can make or break your business success: order...
10 Signs Your eCommerce Business is Ready to Outsource Fulfilment
As your eCommerce brand grows, fulfilling orders in-house can become increasingly complex and time-consuming.
While handling your own fulfilment might work for a startup with low order volume, scaling your business often means reconsidering your fulfilment strategy.
For many eCommerce founders, partnering with a third-party logistics (3PL) provider can be the perfect solution to manage higher order volumes, optimise operational efficiency, and free up time to focus on growth.
But how do you know if it’s the right time to make the shift?
This guide will outline ten signs that indicate your eCommerce business is ready to outsource fulfilment.
1. Order Volume is Growing Rapidly
One of the clearest signs that it’s time to consider a 3PL partner is when your order volume is consistently growing beyond what you can manage in-house.
Processing, packing, and shipping hundreds or even thousands of orders manually can strain your resources and increase the likelihood of delays and errors.
What to Consider:
- If you’re struggling to keep up with peak season orders or see continuous monthly growth, it may be time to outsource fulfilment.
- A 3PL can help you scale seamlessly, allowing you to handle higher volumes without sacrificing quality.
2. Storage Space is Becoming an Issue
As your business grows, so does your need for storage. Limited warehouse or storage space can make it challenging to manage inventory efficiently, especially if your product range is expanding.
Signs You Need More Storage:
- Your storage area is overflowing, and products are difficult to organise or access.
- Limited space is preventing you from stocking up on high-demand items or preparing for peak seasons.
Solution: Outsourcing to a 3PL provides access to larger, professional-grade warehousing facilities, often at a lower cost than renting or expanding your own space.
3. Fulfilment Tasks are Distracting You from Core Business Activities
As a business owner, your time is best spent on strategic initiatives, like product development, marketing, and customer acquisition—not managing fulfilment logistics.
If you’re spending too much time on order processing and inventory management, it could be stalling your brand’s growth.
What to Look For:
- If you or your team are spending more time on fulfilment than on growth-focused activities, outsourcing can help free up valuable time.
Solution: A 3PL partner takes care of logistics, allowing you to focus on the core aspects of your business.
4. Fulfilment Costs are Escalating
With increased order volume, fulfilment costs can quickly add up, from labour and packaging to storage and shipping expenses. As your business grows, you may find it more cost-effective to partner with a 3PL than to continue managing fulfilment in-house.
Consider This:
- Compare your current fulfilment costs to the rates offered by 3PL providers. Many 3PLs have established partnerships with shipping carriers and can offer discounted rates.
- Evaluate the opportunity cost—what could you achieve by reallocating fulfilment funds toward marketing, new products, or customer experience improvements?
Solution: Outsourcing to a 3PL can often reduce fulfilment costs, allowing you to reinvest in other areas of your business.
5. Customer Expectations are Rising
In today’s competitive eCommerce landscape, customers expect fast and reliable shipping. If your current fulfilment process can’t meet these expectations, it could lead to dissatisfaction, negative reviews, and a damaged brand reputation.
Indicators:
- Increased customer complaints about delayed shipments or packaging quality.
- Difficulty in meeting next-day or two-day shipping expectations.
Solution: A 3PL partner can improve shipping speed and accuracy, helping you meet or exceed customer expectations.
6. Returns Management is Becoming a Burden
Returns are a natural part of eCommerce, especially with fashion and electronics. Managing returns in-house can be time-consuming and disrupt regular fulfilment operations, particularly when return rates spike after peak shopping periods.
Signs You Need Support:
- A rising return rate that’s taking time away from regular fulfilment.
- Difficulty processing, inspecting, and restocking returned products efficiently.
Solution: Many 3PLs offer returns management services, handling everything from return inspections to restocking, so you can focus on moving forward.
7. You Want to Offer More Shipping Options
Offering flexible shipping options, such as same-day or international delivery, can enhance your customer experience and boost conversions. However, managing multiple shipping methods in-house can complicate fulfilment and increase costs.
What to Look For:
- If you’re seeing demand for faster or international shipping options but lack the resources to handle it in-house, it may be time to outsource.
Solution: A 3PL partner can provide access to a variety of shipping carriers and methods, allowing you to offer customers more choices without added complexity.
8. You’re Planning to Expand Internationally
Entering new international markets can increase brand visibility and sales, but international fulfilment comes with added complexity, including customs paperwork, currency conversions, and international shipping logistics.
Challenges of International Fulfilment:
- Increased shipping times and costs.
- Navigating customs regulations and import duties.
Solution: Partnering with a 3PL experienced in international shipping can simplify the process, handle customs documentation, and reduce shipping times.
9. You Struggle with Inventory Management
Efficient inventory management is key to avoiding stockouts and excess inventory. If your current system can’t keep up with demand, it could lead to lost sales or increased storage costs.
Signs of Inventory Challenges:
- Difficulty tracking stock levels in real time, leading to stockouts or overstocking.
- Inconsistent inventory counts that affect order accuracy.
Solution: A 3PL with advanced inventory management systems can provide real-time inventory visibility, helping you optimise stock levels and prevent costly errors.
10. You Need Flexibility for Seasonal Peaks
If your sales volume fluctuates due to seasonal peaks, managing fulfilment in-house can be a challenge. Scaling up to meet seasonal demand often requires temporary storage, additional staff, and increased shipping capacity.
Consider This:
- Are you struggling to hire and train temporary staff for peak seasons?
- Are storage limitations or processing delays affecting your ability to meet seasonal demand?
Solution: A 3PL can scale resources up or down as needed, allowing you to handle high-volume periods seamlessly without the hassle of hiring temporary staff or renting additional storage.
Conclusion
Recognising the signs that it’s time to outsource fulfilment is the first step toward building a more efficient and scalable eCommerce business.
By partnering with a reliable 3PL provider, you can streamline operations, reduce costs, and improve customer satisfaction—empowering you to focus on growth and brand development.
If you’re seeing any of these signs in your business, it might be time to explore the benefits of working with a 3PL.
Contact E-PickPack today to learn more about our comprehensive, scalable fulfilment solutions tailored to meet the needs of growing eCommerce brands.