Fulfillment has lots of advantages. Order execution and goods distribution are not basic activity of business. Thanks to outsourcing, the seller saves more time to principle business activities, as are the sales, purchases and innovations. Another advantage is radical decrease of expenses made on logistics, which provider can reach by his specialization and big range of provided services. Last but not least, it is priceless for seller to integrate a system and getting a know-how from the provider. These advantages allow the seller to reach faster growth of his business.

What paid off for us was to determine pros and cons according to size of the client´s business – these three groups have different priorities and face different challenges that we are able to solve. There is nothing to hide, fulfilment is not suitable for everyone. That´s why you can find below pros and cons from the client´s point of view – an eshop.

Small e-shop

Pros:

Saving your time – the most essential advantage, no need to visit post office daily with small amount of parcels or no need to wait for a courier
Really big savings – cheaper shipping, cheaper solution of warehousing, no employees or part-time workers
Flexibility – you can send your orders from any place, you need only laptop and internet, you do not have to physically deal with anything and be in warehouse
Setting up a system – overview over warehouse, parcels, claims, …
Cashflow – you pay for services (storage, parcels, transport) once a month
Insured products all the way – warehouse, transport
Regularity and quality – everyday shipping with no errors

Cons:

You have to adapt to system of work and some processes
You do not have your products near you in your office/home, meaning you can´t customize it
You can be afraid of outsourcing and letting things out of your hands – but that is irrational

Middle size e-shop

Pros:

Warehousing and shipping can be made in a far better way than the way you are doing it
You will get much better shipping prices, especially concerning parcels sent abroad
From the viewpoint of owner and key people big saving of time and energy – you can dedicate your time to business development, marketing and customer support
No problems with warehouse workers´ vacations, seasonal peaks like Christmas, illnesses
No problems concerning searching suitable warehouse workers and warehouse spaces
Cashflow – you pay for services (storage, parcels, shipping) once a month
Insured products all the way – warehouse, transport
Much more transport options, optimization, all from one company, without any worries, choices for customer – courier, personal pick up, post service, express delivery, …
TCO – you can save up to 30% of your expenses every year
Have you ever dreamt of a Ferrari? Thanks to outsourcing you can have it.

Cons:

There is not a lot that can be done in short time – regularity and process oriented commerce is needed
If your headquarters is located out of Bratislava in cheap warehouse and the work is done by cheap part-time workers, than we will probably not offer you cheaper solutions
If you have your own store connected with warehouse, there is need to calculate setting up a new warehouse

Big e-shop

Pros:

Complete system integration, process optimization, supply chain management
Open opportunity to sell on global market
Logistics in big shop is difficult to hand and there is need to dedicate it a lot of time with adequate know-how and professionals who are hard to find and pay
Seasonal peaks covering like Christmas is difficult and is being planned for 3 – 6 months

Cons:

Once you have everything up and running in your own way without errors, outsourcing may not be best option
Price saving with big retailer isn’t that phenomenal
You have to rely on the third party

 

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