The Five Pros and Cons of Outsourcing E-commerce Fulfilment

Are you thinking about outsourcing your order fulfilment to a 3PL?

 

For eCommerce businesses, this can be one of the most crucial decisions you’ll make.

Based on our experience, here are the key pros and cons of partnering with a 3PL provider for your order fulfilment:

The Pros: Why Outsourcing Can Work for You

1. Time savings

 

Fulfilling orders yourself can be time-consuming, especially during peak sales periods. By outsourcing, you can hand over tasks like inventory storage, picking, packing, and shipping, allowing you to focus on other activities.

2. Space and Scalability

 

As your business grows, so do your fulfilment needs. The space in your home garage might not be enough. A 3PL provider can scale with you, whether you’re shipping 10 orders a week or 1,000 during a busy holiday season. This flexibility means you’re not limited by warehouse space or staffing constraints.

3. Reduced Shipping Times and Cost

 

Many 3PL providers have strategic warehouse locations near major ports or city centres, enabling faster delivery times and reduced costs. For example, a boutique clothing store might partner with a 3PL in Sydney to ensure quick delivery across Australia.

4. Lifestyle and Flexibility

 

With a 3PL handling your fulfilment, you’re no longer tied to a physical location. This gives you the freedom to travel, go on holidays, or even move to a new city without worrying about order packing or shipping logistics. Delegating these tasks to a 3PL warehouse not only lightens your workload but also opens up the possibility of running your business from anywhere.

5. Access to Expertise and Technology

 

Fulfilment providers often use advanced software to track inventory, manage orders, and streamline operations. This means fewer errors, tracking options and an overall better order fulfilment experience for you and most importantly your customers.

The Cons: Potential Challenges to Consider

1. Less Control Over Operations

 

When you outsource, you’re trusting someone else to manage a critical part of your business. If a mistake occurs—like an order being sent to the wrong address—it can reflect poorly on your brand, even if it wasn’t your fault.

2. Logistics costs

 

While outsourcing saves time, it’s not always cheap. Between storage fees, pick-and-pack charges, and shipping costs, the expenses can quickly pile up. For small businesses with tight margins, this might be a significant drawback.

3. Dependence on External Providers

 

If your 3PL provider experiences delays or operational hiccups, your orders might be affected. For example, a Shopify store selling custom home goods might face customer dissatisfaction if shipments are delayed during the holiday rush.

4. Complex Onboarding Process

 

Transitioning to a 3PL can be a bit overwhelming at first. From syncing your Shopify store to ensuring your products are accurately listed in the 3PL’s system, there’s a learning curve involved.

5. Branding Limitations

 

When you outsource to a 3PL, you may have less control over the unboxing experience. Customised packaging, personalised notes, or other branding touches might not be handled exactly how you’d like, which could impact the customer’s perception of your brand. For example, a Shopify store selling handmade gifts might find it challenging to maintain its personal, crafted feel when fulfilment is outsourced.

Is Outsourcing Right for You?

Outsourcing fulfilment can offer valuable benefits, but it’s not a one-size-fits-all solution. Small businesses just starting might prefer the hands-on approach, while established stores looking to grow might benefit from handing off fulfilment tasks.

To make the best decision, weigh your business needs, budget, and long-term goals.
Whether you choose to outsource or keep fulfilment in-house, the key is to stay focused on what works best for your customers and business.

Contact us to explore how Birch3PL can help with your specific order fulfilment requirements.