You started your webshop and began your journey into the world of e-commerce. But as you know, you have long since ceased to be the only one peddling merchandise online. The online jungle is teeming with competition. And it's also getting busier and busier. None of this makes it any easier to find your niche. Add to that the fact that the "bigger guys" are already miles ahead and desperately want to continue dominating the market.
Would you like a piece of the cake too?
Then you not only need a good product, but also a strong and reliable logistics system. After all, that's something that many webshop entrepreneurs forget: the importance of streamlined e-fulfilment. Which ensures that your operations run smoothly. They see it as an afterthought and "forget" to invest in it. A burden that keeps them from their work.
But what if your logistics are slick and give you a competitive advantage?
That extra step ahead of your competitors, saving you costs and also making you more reliable. This frees up time that you can invest in your core business. And that's actually what you've wanted since the beginning, right? Or did you dream of packing and shipping thousands of packages with your own hands?
Below are the 5 key signals that show it's urgent time to outsource your logistics.
1. Marketing and customer acquisition are at an all-time low
Reality check: putting an online shop online and hoping the cash boxes land on your doormat the day after is a pipe dream. If you want to get your products to as many people as possible, sooner or later you will have to start putting time, money and energy into the right marketing campaigns. Think about online marketing, for example. But also offline ads, targeted promos, trade shows, and so on.
And if you waste too much time and energy every day on order picking and packing and shipping your products, it inhibits the building of the presence and image of your work.
This is a sign that it is time to see if you are not better off going for e-fulfilment, and outsourcing your logistics.
2. Your order volumes vary greatly from month to month
Many web shops have sales peaks and troughs throughout the year. While you see your income go up and down (often unpredictably), your fixed costs remain the same. Think about warehouse rent and personnel costs. And what is one of the main advantages of logistics outsourcing? Exactly, that you make your fixed costs variable. This also allows you to better estimate the actual cost per order.
If you have to wonder every month if there are enough orders to cover the heating cost of your warehouse, then e-fulfilment may be worth investigating here, too.
3. Your current infrastructure is inhibiting your growth
Take a walk through your warehouse or the current base of operations of your web shop. Is it big enough to keep "housing" your products, staff, etc. as you continue to grow? Or does that mean you have to move?
If you outsource your fulfillment, at least you won't have to worry about this anymore. You have peace of mind knowing that your logistics processes will grow seamlessly with your business - with no headaches.
4. Lack of relevant knowledge and technology costs you money
Technology costs money. And keeping everything up-to-date isn't exactly for free. As a webshop owner, you soon notice that doing your fulfillment yourself often costs more than you first thought. You have to maintain and renew your technology and warehouse supplies. If you outsource your fulfillment, you pass those costs on to your fulfillment partner.
Order processing is also not as simple as it seems. You're often at a loss for words and don't always know where to turn with your questions. Believe us, logistics is a business in itself. And you may quietly wonder if that's really something you want to be part of your core business.
5. You want to cut costs
This seems easy because everyone wants to cut costs, right? By outsourcing your fulfillment, you save on more than just the fixed costs we talked about earlier. You also take full advantage of the economies of scale that your e-fulfilment partner has.
Because because they bundle large volumes, they usually get more competitive shipping rates, which can mean cost savings for you. The same goes for shipping cartons, padding materials and other warehouse supplies.
Of course, it's always wise to take a step back and look at your business from a distance. If any of the above scenarios sound familiar to you, it's helpful that you take a hard look at your operations.
Are you looking for someone to help you with this?
If so, please email: info@bme.be
Or call +32 89 23 86 35
