6 reasons outsourcing logistics is beneficial for small eCommerce business in 2023

6 reasons outsourcing logistics is beneficial for small eCommerce business in 2023

6 reasons outsourcing logistics is beneficial for small eCommerce business in 2023
Noya Zwebner
Mar 20
8 min

Running an online store as a small to medium-sized business is a complex and time-intensive task that can often drain time and resources from your core business. Balancing the demands of storing inventory, processing orders, and shipping products can consume both your time and money. Outsourcing logistics to a third-party logistics (3PL) provider can significantly alleviate this burden and reduce costs. By entrusting shipping, warehousing, and order fulfillment to a 3PL provider, not only are you potentially reducing shipping costs, but you are also refocusing your energy back on what truly matters - growing and nurturing your business. This shift towards utilizing expert logistics services ultimately allows for more efficient use of your resources and a streamlined approach to achieving your business objectives.

1. A cost-effective solution:

ECommerce fulfillment can take up valuable time and resources to the point where all your revenue goes towards hiring extra staff, buying more equipment, and paying more for warehouse space and packaging materials. Why is this so? When you are a small-medium business, you may not yet require services and resources in large commercial quantities and, consequently, don't receive the advantageous rates that large companies, dealing in high volumes, enjoy. Outsourcing logistics to a 3PL provider like ehouse can offer economies of scale that help reduce your costs for storage, shipping, and other fulfillment services. By utilizing their warehouses and carriers, such providers can negotiate better rates and pass these savings onto you. This can prove particularly beneficial for small businesses that need more resources or volume to negotiate these rates independently.

2. Knowledge and expertise 

3PL providers, such as ehouse, are eCommerce experts with industry knowledge that would take most businesses years to figure out. Fulfillment centers are familiar with a range of platforms and systems, are up to date with international regulations, have networked with various courier companies, and have experience picking and packing items in all shapes and sizes. To make a long story short - they know their stuff. This expertise leverage is one of the main reasons many eCommerce businesses outsource logistics. When running an eCommerce business, relying on a 3PL’s experience and knowledge will save you unnecessary expenses and allow you to run your business a lot more efficiently. 

3. Order management efficiency 

Until you find the right order and inventory management process that works for your business, things can get pretty chaotic. When working with a 3PL provider, you're avoiding this problem entirely as they use comprehensive warehousing technology and have trained all staff to par. By outsourcing your logistics, you can streamline your operations and improve efficiency. 3PL providers implement necessary processes to ensure your orders are fulfilled accurately and on time. This can help you reduce errors and improve customer satisfaction while being provided with valuable insights required for decision-making and effective business strategy. 

4. Increased business flexibility and scalability

When running an online business, you are exposed to many external factors, some in your control and others that are not, resulting in sales fluctuations. Whether you are selling a seasonal product, or subject to external influences such as political or environmental limitations, customer demand is constantly changing. Outsourcing your logistics gives you the flexibility to adjust your operations as needed. You can easily change your shipping methods, adjust your inventory levels, and expand into new markets without having to worry about logistics. An experienced 3PL provider, such as ehouse, has the expertise and industry knowledge to adjust your business operations based on changes in the market or industry. This allows you to fully customize the solutions you need on a monthly basis and tailor your own plan based on your specific and current needs.

5. Improved customer satisfaction

Customer satisfaction is one of, if not the most critical factors contributing to the success and future of your eCommerce store. When you outsource logistics to a 3PL provider, they have the industry knowledge and access to data that will help improve your business operations across the entire supply chain process. Not only will your customer's orders be received and handled quicker, but they will be provided with faster and more accurate shipping, order tracking, and returns management. Logistics providers like ehouse also have strong networks with various carriers and suppliers. As a result, they can provide an ideal shipping solution for your clients, helping you build a loyal customer base and encourage future business. 

6. Focus on your core business

As your business expands, naturally, so does the length of your to-do list. When outsourcing logistics, you can save yourself some precious time instead of being weighed down and burnt out by endless amounts of tasks. Outsourcing logistics allows you to focus on other aspects of your business that are no less essential to its growth. You can spend more time developing new products, improving your marketing strategy, and building relationships with customers rather than worrying about logistics. Although the short-term benefits may be obvious, in the long term, this ease of mind will free time and energy to accelerate your business to the next level. 

To wrap it up, outsourcing your eCommerce logistics might be one of the smartest business decisions you will make in 2023. By entrusting your shipping, warehousing, and order fulfillment to a 3PL provider, the benefits are endless, but above all, your peace of mind is priceless. When you outsource logistics, you can rest assured that your orders are being fulfilled efficiently and accurately, allowing you to focus on growing your business and achieving your goals. With that being said, if and when you consider outsourcing your eCommerce logistics, research your options carefully and choose a provider that aligns with your business goals and values.

Outsource logistics with ehouse

ehouse provides a one-stop-logistics-shop for any eCommerce business interested in streamlining their fulfillment process. ehouse offers all-in-one eCommerce working spaces and a comprehensive range of services, including warehousing, order processing, picking, packing, labeling, and shipping, all tailored to your eCommerce store's needs. ehouse gives businesses the opportunity to participate in eCommerce workshops and community events, become part of a global network for local brands, and connect with merchants and partners from around the world. ehouse's comprehensive technology platform and expert team of logistics professionals make it the perfect partner for businesses looking to outsource their logistics to reliable and expert hands. Get in touch with ehouse today to learn more about how you can streamline your logistics operation and maximize your business growth.

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