Why would a seller consider the pros of In-House Order Fulfilment? They offer a high a upside if the sellers up for the challenge. Let’s look a short list of benefits to scaling up in-house operations.
In-House Order Fulfilment – Managing Pick & Pack
Considering the Pros of scaling up an in-house order fulfilment operation? In this scenario you are the master of your domain. You control every decision. The buck stops with you as the owner. Which is great, right? Right? You will effectively be living and breathing your business as its growth consumes your time. Some sellers thrive on that level of responsibility.
For example, when doing pick and pack, you will dictate how much staff or software is needed to match your product’s needs. You can control the pace or quality of work your orders receive. You effectively learn the in’s and out’s of what your products absolutely need in order deliver a 5-star product and scale responsibly. This experience is valuable once you begin to outsource these tasks in the future. Because now you know the worth of each part of your business and a fair market price for any vendors trying to help automate that area.
In-House Order Fulfilment – Control Material Costs
You know your products needs the best. Perhaps it needs alittle prep. Maybe it needs some assembly, not possible by the factory. Perhaps you sell in bundles and need a kitting service with polybags. Or maybe you just want a product insert stuffed in. Let’s be clear – a 3PL warehouse can provide these. But you’ll need to evaluate the cost of materials. Indeed, one of the pros to in-house order fulfilment is controlling the cost materials. Otherwise, you might get upcharged on materials, compounded by the cost of labor from a 3PL. Remaining in control of materials and prep allows you to deliver the exact unboxing experience you desire for your clients.
In-House Order Fulfilment – Control Overall Costs
One of the pros to in-house order fulfilment is saving on the cost of services charge by a 3PL warehouse. For example, a 3PL warehouse can charge for receiving cartons, pallets or unloading containers. In addition, each time you want products shipped out, you’re paying for that as well. Naturally, these logistics partners are professionals and get the job done well. However, you’ll need to ask yourself, do I need that level of service yet? Do my products quickly enough and with large enough margins to merit a 3PL service?
Earning E-Commerce Experience
As mentioned above, a major pro for in-house order fulfilment, is the experience you develop. Experience is the lifeblood of your success. Understanding where value exists in your in-house order fulfilment operation, can yield profitable results. For example, you may find that a prep center can complete pick and pack orders more efficiently. Meanwhile, you can still store and replenish inventory directly to FBA. This allows you more free time to grow your business, rather than working on the business everyday with in-house order fulfilment.