As your business is first starting out, you might choose to pack and ship your own orders. It can save you a bit of money, and the task might not be that big in the early days. However, with some luck, you’ll reach a point where the job becomes too big to take on yourself, and that’s when a third-party logistics provider can prove useful. Here are some of the benefits waiting for you when you choose to take this approach.
You won’t need to hire extra staff
As order volumes grow, you’ll need to hire people for fulfilment and shipping and then manage them. This is a lot of work, and if business slows down, you’ll still need to pay that person. When you outsource this work to a logistics company, however, they’ll be in charge of finding workers, hiring them, and taking care of all the details.
On the surface, it might not sound like a money-saving move to hire someone to do tasks you can technically do yourself. However, logistics companies can use their combined shipping volume to their advantage and negotiate cheaper rates on packaging and even the shipping itself.
Business might be booming right now, but there are no guarantees that will always be the case. Entering into a long-term fixed lease on a warehouse can be a scary proposition. With third-party logistics providers, however, you’ll often be able to pay month to month just for the amount of space you need. This means it won’t be difficult to scale up when things go well, nor will you have to shell out for a bunch of unnecessary space when you hit a lull in business.
Enlisting the help of a third-party logistics provider places experts right at your fingertips who can devote themselves to getting your products out to customers efficiently while you focus on growing your business.
This IntelliTrack blog post was based off of an article from Shopify. View the original here.