Growing Your Small Business? 10 Signs It’s Time to Outsource Your Fulfilment



December 2023 - Fulfilment



When Should a Small Business Outsource Its Fulfilment?

The right time to outsource fulfilment is usually when handling orders starts costing you more time, space or customer goodwill than it’s worth. For many small businesses, that moment arrives during growth, often just before a peak such as Black Friday and Christmas. Use the 10 signs below to check where your business stands.

By outsourcing your fulfilment to a trusted service provider, you can reallocate valuable time and resources to other facets of your business. This strategic decision not only grants you the scalability required for the expansion of your brand, but also fosters an environment for continuous growth.

What Does an Ecommerce Fulfilment Company Do?

An eCommerce fulfilment provider plays a pivotal role in streamlining the logistics and operational processes needed to succeed in the realm of online retail.

From providing warehouse space and picking and packing products to shipping orders and managing customer queries, reliable fulfilment companies will offer complete solutions.

Entrusting these responsibilities to a reputable service provider ensures a seamless end-to-end process. It also allows you to focus your attention elsewhere, whether it be launching new products or perfecting your marketing strategy.

10 Signs It’s Time to Outsource Your Fulfilment

1. Orders Are Growing Faster Than You Can Handle

A rise in orders is good news until parcels start going out late. If you are working evenings to clear a backlog, or dreading the next promotion because you can’t cope with the extra orders, your set-up has reached its limit.

A fulfilment partner can add space and people around demand, so a busy week stays manageable. At JEM, our warehouses are flexible and ready for spikes in sales, such as extra orders at Christmas or during promotional campaigns. Find out more about our 3PL fulfilment services.

2. Shoppers Abandon Their Baskets Over Delivery Cost or Speed

High shipping costs and slow delivery are two of the most common reasons shoppers abandon their basket at the last minute. If your analytics show drop-offs at the delivery step, treat it as a warning sign.

A fulfilment provider can shorten dispatch times and give you access to a wider choice of carriers, so you can offer faster, more competitive delivery. That makes it more likely customers will complete their purchase, come back and leave a positive review.

3. Fulfilment Is Eating Into Your Working Day

If you or your team spend hours each day picking, packing and booking couriers instead of working on products, marketing or customer relationships, fulfilment is holding back your growth.

A simple test: add up the hours you spend on order handling each week and put a value on them. If the figure is higher than you expected, outsourcing frees that time for the work only you can do.

4. You’re Running Out of Space

Whether you are operating from your home, office or rented warehouse space, if a growing amount of inventory is taking over, now is the time to outsource your fulfilment. Stock piled up in a spare room or garage is also harder to count and easier to damage or misplace.

Experienced fulfilment centres can provide extra storage space to accommodate seasonal fluctuations, so you will never have to work around a mound of cardboard boxes again! See how JEM’s secure, flexible storage works.

5. Customer Feedback Is Turning Negative

Late deliveries and wrong items are the reviews that hurt most. Look for patterns: if the same complaint keeps repeating, the cause is usually the process rather than the people.

Negative feedback can damage your reputation and, on marketplaces, your seller standing. Professional fulfilment puts your customers’ orders in the hands of an experienced team dedicated to accurate, on-time delivery.

6. Your Systems Can’t Keep Up

If orders are still copied between spreadsheets, stock counts are rarely right or you can’t see where parcels are, your systems are holding you back.

A fulfilment partner connects to your sales channels and gives you real-time visibility. JEM’s bespoke system provides real-time order fulfilment data, daily, weekly and monthly stock and sales reports, and a 24/7 client portal. Read more about our technology and security.

7. You Want to Reach New Markets or Sales Channels

Selling on new marketplaces or shipping abroad adds complexity: different carriers, customs paperwork and delivery expectations. A fulfilment partner with established processes lets you test new markets without building the operation yourself.

Explore JEM’s marketplace fulfilment and international fulfilment services.

8. Fulfilment Isn’t Your Area of Expertise

You don’t need to become a logistics expert to run a successful business. Choosing couriers and packaging, managing returns and keeping stock accurate each take specialist knowledge, and some products come with extra rules, alcohol being one example. See how JEM handles alcohol fulfilment.

If you lack the knowledge to manage your own orders effectively, outsourcing is the sensible option. New to the idea? Read our guide to outsourced fulfilment.

9. Shipping and Packaging Costs Keep Rising

Making a profit is crucial, and shipping and packaging can quietly erode it. Fulfilment providers handle high parcel volumes, so they can often access carrier rates a small business can’t, and many buy packing materials in bulk at a discount.

Compare your current cost per parcel, including packaging, with a fulfilment quote. Find out how our pick and pack service works.

10. Outsourcing Could Cost Less Than Doing It Yourself

Could professional fulfilment actually save you money? Work it out rather than guess. Add up what fulfilment really costs you today: space or rent, packaging, staff time, software, carrier charges and the cost of mistakes. Then compare the total with a fulfilment quote.

Fixed costs such as space and equipment are hard to scale down in a quiet month, whereas outsourced fulfilment is typically charged by usage. See JEM’s pricing or request a quote.

In-House vs Outsourced Fulfilment: Quick Comparison

Here is how the two approaches compare for a growing small business.

Factor In-house Outsourced
Cost structure Fixed: space, staff, equipment and software Variable: you pay for the storage and orders you use
Scaling for peaks Limited by your space and team Capacity added around demand
Your time Spent picking, packing and shipping Freed up for products, marketing and customers
Systems and reporting Often spreadsheets and basic tools Integrated system with real-time data and stock reports
Carrier choice Usually standard rates and options Wider carrier choice, often at negotiated rates
Control Hands-on, but time-consuming Account manager plus online reporting

As a rule of thumb, if three or more of the signs above sound familiar, it is worth requesting a fulfilment quote and comparing it with what you spend today.

Frequently Asked Questions

When should a small business outsource its fulfilment?

Usually when order handling takes up too much time or space, when peaks such as Black Friday and Christmas overwhelm your team, or when late or incorrect orders start to affect your reviews. If several of the 10 signs above apply, it is worth getting a quote.

How much does outsourcing fulfilment cost?

The total depends on your order volumes, product sizes and the services you need, such as storage, pick and pack and packaging, plus carrier charges. Visit JEM’s pricing page or get in touch for a quote tailored to your business.

Can a fulfilment partner cope with peak season?

Yes. A good partner plans capacity around demand. JEM’s warehouses are flexible and ready for spikes in sales, such as extra orders at Christmas or during promotional campaigns.

Will I still be able to see my stock and orders?

Yes. JEM provides real-time order fulfilment data, daily, weekly and monthly stock and sales reports, and access through a 24/7 client portal.

Grow Your Small Business With JEM Marketing & Fulfilment Services Ltd.

At JEM, we’re pleased to offer industry-leading eCommerce fulfilment services.

Recognising the challenges that small businesses face in matching the efficiency of established brands, we take pride in delivering cost-effective solutions that don’t compromise on quality.

Want to find out more about how we can help you grow your small business? Request a quote. Please give us a call on 01483 204479 and speak to one of our helpful advisors today.

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