Whether you have been in the business for years or are just starting out in the e-commerce industry, warehousing and shipping is something you need to seriously consider. As business owners, we understand that in your eyes, making the sale is at the forefront of your priorities. However, ensuring your customers are happy and the time between ordering and the product reaching your customer’s hands is essential to customer satisfaction in your business.
There are three avenues you can take to get your products to your customers.
- You implement a drop shipping service to fulfil your orders for you.
- You fulfil your orders in-house, with your own team of staff and using your own storage space.
- You develop a relationship with a logistics company like Graylaw Freight to handle your warehousing and fulfilment for you.
Drop shipping is a method where a business only orders the product from a third-party once it has been sold. The product is then shipped directly to the intended customer. In this form of storage and delivery the merchant never actually sees the product and drop shipping can often come with its disadvantages. As the stock is never in your possession, if an item of stock is ever in high demand, stock shortages are out of your control. The price of goods also has the potential to fluctuate without your input.
Drop shipping also tends to carry higher fulfilment costs, as you pay for the start to finish service with a hefty mark up attached. Aside from these problems, drop shipping takes a large part of the customer experience out of your hands and there is no way to guarantee that your product will arrive with the customer on-time. Also, if a customer would like an explanation regarding your service, the resolution process can often pose difficulty as you may not be aware of the reasons yourself.
Fulfilling your orders in-house rids of all the issues that drop shipping provides but have some significant disadvantages of its own. As a business owner, employing a team of staff to warehouse, pick and pack and dispatch your products can be costly. You will need to employ an experienced team who can deal with the number of orders you are bringing in. If your orders increase, the number of staff you employ will have to as well, meaning you will incur further costs.
Why Use a Third-Party Warehousing Company?
The clear and obvious benefit to using a third-party logistics company is that you don’t have to do your warehousing yourself. Outsourcing your warehousing can have a substantial impact on the growth of your business for the following reasons.
Avoid Long-Term Leases
Logistics companies like Graylaw offer flexible pricing which can be crucial to your business, particularly if you are just starting out. Depending on the speed your business is growing at, the storage needs and warehouse space you require will be easily adapted and the price can be adjusted accordingly. Whereas renting your own space will likely require more of a commitment to the amount of warehouse space you use.
No Extra Staff Required
When taking the responsibility of warehousing your own goods in-house you will need to hire your own staff and hire more as you scale up. Managing these staff will take time particularly during recruitment stages. If choosing a company like Graylaw to take care of your fulfilment for you, they are responsible for finding and hiring staff with the necessary expertise.
Efficiency is Key When it comes to Warehousing
In reality, the important part of your business doesn’t come down to packing boxes and there are several other aspects of your business that you will need to control and are much more difficult to outsource. Allowing a trusted company like Graylaw to take care of your warehousing and fulfilment services allows you to focus on the more important things, with the knowledge that experts in the industry are dealing with your warehousing.
Outsourcing Warehousing is Cost-Efficient
The likelihood is that dealing with a logistics company will save you money, particularly as you grow. They will work more efficiently than your own warehousing efforts and are operating at a much larger scale than you will be. Therefore, you can greatly benefit from their efficiencies and reduced shipping costs thanks to the volume they operate at.
When Should I begin Outsourcing to a Logistics Company?
When companies start out, they tend to begin by fulfilling their own orders and dealing with a third-party company as they grow but starting out is probably the best time to begin your relationship with a third-party warehousing service. if you work with a company like Graylaw form the outset, you will not have spent any outgoings on attempting your own in-house warehousing. If you did give it a go, there are three clear signals that suggest you should outsource your warehousing.
if the number of products that you sell fluctuates throughout the year, committing to running an in-house warehouse is probably not cost effective and can ill likely cause staffing issues. Differently, Graylaw Freight will be able to adapt to your needs and provide you with the space and time that your business requires.
Business is Busy
The truth of the matter is that if you want your business to survive long-term, sales and marketing is an essential aspect to continually developing and growing. if you’re too busy dealing with the constant needs of the fulfilment side of your process, you will neglect the growth of your business.
If your business is growing then the possibility of outgrowing the current space you house all your products is an ever-increasing possibility. Graylaw Freight will be much better equipped to deal with this growth, importantly, much quicker than you will be able to.
Are you a business owner that is just starting out or if you have been warehousing your products yourself? Contact Graylaw Freight on 01695 729101 to discuss the options available to you and your growing business.