Most online businesses start by packing orders themselves, from a spare room, a garage or a small unit. That makes sense at the beginning, but as sales grow there comes a point where doing it yourself holds the business back. These are the signs that point is close, and the situations where it is better to wait.
Packing is taking over your week
If you or your team are spending hours every day picking, packing and queuing at the post office, that time is not going into sales, product development or customer service. Add up the hours spent on fulfilment each week and put a value on them. For many growing businesses, that figure alone makes the case for outsourcing.
You are running out of space
Stock spreading into every available corner is a clear sign. Taking on a bigger unit means a lease, fit-out and running costs that stay the same whether sales are up or down. With a 3PL, the space you pay for rises and falls with your stock.
Mistakes are creeping in
As order numbers rise, wrong items, missed orders and late dispatches tend to follow. Each mistake costs a replacement, return postage and often a poor review. Warehouse systems that scan every item at picking and packing are designed to stop these errors.
Your sales peak sharply
Seasonal businesses and brands that run big promotions face the same problem every year: a few weeks of very high volume that is hard to staff for. A 3PL is set up to absorb peaks across many clients, so you do not need to recruit and train temporary staff yourself.
You are selling on more channels
Once you sell on your own website, marketplaces and to wholesale customers, keeping stock accurate across every channel by hand becomes difficult. A 3PL connected to all your channels fulfils every order from one stock pool and keeps stock levels in step.
You want to offer better delivery options
Customers expect tracked delivery and a choice of speeds. A 3PL already works with several carriers and services, which can make it easier to offer next day and international delivery without setting up and managing each carrier account yourself.
When it may be better to wait
Outsourcing is not right for every business at every stage. If you send only a handful of orders a week, the cost per order may be higher than doing it yourself. If every order is personalised or made to order, or your range is still changing every few weeks, it may be simpler to keep fulfilment close for now. And if your product data is incomplete, with missing barcodes or inconsistent SKUs, it is worth sorting that out first, as it will make any move smoother.
Making the move
Start by working out what fulfilment costs you today per order, including your own time, then compare it with quotes; our guide to how much ecommerce fulfilment costs explains what to compare. Plan the switch for a quieter period rather than just before a peak, and allow time to connect your sales channels and test orders before your first delivery arrives. Our guide to preparing your first delivery to a fulfilment warehouse covers that step.
TDW Logistics has no setup fee and no minimum order or storage volume, so businesses can move to us at any stage. Get in touch to talk it through.