The eCommerce market is expanding dramatically. While some businesses extend their storefront sales through eCommerce, others sell only online. These two business concepts are significantly different, but they both stand to benefit from a fulfillment center. Now, storing products can be challenging for small enterprises that do not have enough storage space. In this case, the concept of a third-party fulfillment center nashville tn comes into play. It is a warehousing facility that stores, packs, and ships products on the behalf of the seller/company. Here are the top reasons to rent these facilities-
Spend Less on Shipping
Online retailers spend a lot of money on shipping. Partnering with a third-party eCommerce fulfillment supplier gives businesses access to better shipping prices since delivery costs depend on the number of orders. Many suppliers will let businesses impose limitations on their rates, which means there’s a cost-benefit for the warehouse’s total shipping volume. Again, whenever it comes to packing and delivering products, outsourcing fulfillment offers extra negotiating power.
When handling fulfillment operations in-house, companies mostly perform the job from a place that’s convenient for them. But, there’s a significant chance that the facility is not at a place where shipping prices are high, or it takes more time to complete the delivery. A smart option here is working with a fulfillment service provider with multiple facilities across the US. This will not only save shipping costs but also speed up order delivery to the customers.
Less Operating Expenses
When a business runs its warehouse, the owner is responsible for all expenses. But when a business hires a third-party fulfillment center nashville tn, several expenses, such as labor, rent, equipment, utilities, and other overhead, are split among all the facility users. Companies also skip the need to recruit, train, and manage warehouse staff. Again, Pricing from an eCommerce fulfillment partner is usually activity-based. This means that users only have to pay for delivery costs when they receive a sales order. Furthermore, users are not bound to sign up for long-term financial commitments like building leases.
Better technology and inventory management
A quality third-party order fulfillment center will be equipped with the knowledge, expertise, and technology to improve the efficiency of the operation. This includes seamless connection with all sales channels and other management solutions that enhance operations like inventory optimization.
Safety and Security
Small businesses use fulfillment centers for a variety of reasons, including safety. The inventory could be damaged or stolen if kept in personal storage. However, large fulfillment centers have the manpower and equipment necessary to ensure the safety of the goods. They also have strict security measures in place to prevent break-ins and robberies. There will be complete peace of mind regarding the condition and safety of the goods.
Businesses have to spend much time on returns and customer service. On the other hand, collaborating with a third-party fulfillment center nashville tn offers optimal customer service and a quick returns procedure. This simply makes reverse logistics operations more efficient, leading to better customer service.