If you are currently handling your own fulfillment for your subscription box service, you are already aware of what a huge task this is. Depending on the size of your business, this means you have some sort of storage facility, and at least several part-time or full-time employees managing the facility and packaging orders.
If overseeing your order fulfillment process is starting to feel like a full-time job in itself and pulling you away from other parts of your business, like marketing, product development, etc., it may be time to consider seeking out the help of an order fulfillment partner for your subscription box business.
There are many benefits to outsourcing your subscription box order fulfillment.
One is the cost savings. Outsourcing will save you money on labor and overhead costs, in addition to giving you access to a larger pool of potential employees with different skill sets than what might be available at your company.
Outsourcing also offers flexibility if you have varying needs throughout the year or want more time for other projects and tasks outside of work. Another benefit is that it can help streamline your operations so you don’t need to hire someone internally for shipping and receiving packages, assembling orders, picking products off shelves, stocking items in inventory as well as packing boxes up with customer’s orders. This can free up your staff members who were being tasked with these duties to do other jobs or use their time to pursue other areas of the business.
Who Should Outsource Their Subscription Box Order Fulfillment
If you’re currently hand-packing and shipping your subscription boxes on a regular basis, this is the ideal time to consider outsourcing. While it can cost more upfront, it will save you money in the long run. Surprisingly, many companies wait until they are out of room in their warehouse before deciding to outsource because they just don’t have the space to expand.
Oftentimes, they can’t afford more storage at that time either, or are overwhelmed by the thought of pursuing new storage space.
Outsourcing may not be for you if your business is still in the startup phase or if you don’t have a steady and regular volume of traffic to your site. In this case, it might make sense to simply hire someone part-time or full-time to do the order fulfillment for you.
One of the main things to consider is does your subscription box business have a steady volume of orders over the course of several months? If there’s plenty of activity during this time period, then you should be able to find an outsourcer with enough volume and capacity in their warehouse to meet your needs at a competitive price.
The Benefits of Outsourcing Your Subscription Box Order Fulfillment
With so many different things to focus on as an owner, entrepreneur or manager of a subscription box business, it can be easy to overlook the importance of order fulfillment. And while having your own in-house team is ideal for some companies, others don’t have the time or budget to dedicate to it. In addition, while you may have employees who are perfectly capable of fulfilling orders, there are other tasks they can be working on instead.
From the customer’s perspective, it’s important to keep costs low and have a flawless process in place, even if you’re a small operation or just getting your foot in the door with subscription boxes. Consumer loyalty is something that needs to be built slowly but surely, and part of that is showing that you’re reliable.
Here are 4 Benefits to Outsourcing Your Subscription Box Order Fulfillment:
1. Control Costs
Outsourcing can help you save on overhead costs by not having to pay for the space needed for storing products or hiring employees who process orders. You can save on overhead costs like labor, storage and equipment by hiring people to take care of these tasks for you. Reducing your overhead will allow you to offer lower prices to customers without sacrificing relationships or service.
Whether you’re a small operation with a few products or a large company that offers hundreds of different items, outsourcing allows you the flexibility to offer a wide range of items or choose to scale back your products over time. If you’re launching a new product line, outsource so you can focus on getting those initial products out there and reviewing feedback from consumers.
3. Customer Service
One of the most important aspects of running any business is customer service, but when you aren’t fulfilling orders yourself that can be tough to do. Outsourcing gives you an opportunity to focus on customer service and building your brand in other ways while allowing someone else to fulfill the orders for you.
4. Your Time is Valuable
The benefit of outsourcing isn’t just reduced costs, it’s also freeing up your time so you can focus on other aspects of your business. Whether you’d like to spend more time traveling, working on marketing and advertising campaigns, or just focusing on other tasks, outsourcing order fulfillment will allow you to do that.
Ready to Get Started?
Want to learn more about how ShipBuddies can help support your subscription box business as your order fulfillment partner? You can request a quote here based on your shipping needs or contact us to discuss what options are best for you.