Why Outsourced Fulfillment Is the Key to Success

Streamline your order management through optimized delivery routes and faster delivery times with Circuit for Teams.
When your eCommerce business takes off, keeping up with the spike in demand can be a struggle.
Outsourcing fulfillment can help level up your business, keep up with the pace, and elevate your customer experience.
Your fulfillment strategy can define your business. Imagine Amazon as a brick-and-mortar department store and not the super fast delivery business we all know and love today. Or think about how Zara's streamlined supply chain has made it a global leader in fast fashion, setting it apart from competitors still struggling with longer lead times.
Not sure if outsourcing order fulfillment services is right for you? Consider this your ultimate guide. In this article, we'll cover what outsourced fulfillment is and why it may be the game-changer your eCommerce business needs. We'll weigh the pros and cons, discuss the role of third-party logistics (3PL) providers, and even give you tips on selecting the right partner for your outsourced fulfillment needs.
Let’s do it!
Key takeaways

Understanding fulfillment
Fulfillment is the backbone of retail operations. It’s the process that geta your product from the warehouse shelf to your customer's front door.
When someone buys something from you, that item has to be picked from your storage, packed up, and shipped out.
Sounds simple, right?
Well, not always.
If you're doing all these tasks yourself — known as in-house or self-fulfillment — you've got a lot on your plate. You've got to keep track of what's in stock, figure out the cheapest and fastest way to ship it, and even find a place to store it all.
In-house fulfillment operations like the example above often face challenges like managing inventory, fluctuating shipping rates, and finding adequate warehouse space.
But here's the good news: there are different ways to tackle these challenges, known as fulfillment solutions.
Here are some of the options:
This covers the basics of retail fulfillment, but we need to dive deeper to understand more about how these different approaches can affect your business and customers.

Outsourced fulfillment explained
Outsourced fulfillment is when you hand over the job of storing, packing, and shipping your products to another company. This other company is often called a third-party logistics provider, or 3PL for short. They specialize in doing all the heavy lifting so you can focus on other parts of your business, like finding new customers or developing new products.
Here's a breakdown of what outsourced fulfillment involves:
Outsourced fulfillment vs. in-house fulfillment
Deciding between outsourced fulfillment and handling everything in-house?
Both have their perks and drawbacks.
Here's a simple list to help you compare.
Inventory management
Fulfillment costs
Control
Scalability
Time commitment
Benefits of outsourced fulfillment
Let’s explore the benefits of outsourced order fulfillment:
Cost savings and efficiency
Outsourced fulfillment can actually save money. With bulk shipping rates and efficient warehouse management, fulfillment companies offer more bang for your buck. Shipping costs are the second highest expense for eCommerce businesses after the cost of products. So shipping options and savings can be a big deal, and the cut costs can make outsourcing fulfillment a cost-effective solution.
Scalability
Order volume going up? With a 3PL provider, you can easily handle more volume without breaking a sweat or hiring extra staff. Flexibility in sales channels means you can scale your eCommerce order fulfillment up or down as needed.
Improved customer experience
Two-day shipping has become the norm in the eCommerce world thanks to giants like Amazon. A third-party logistics company can help you meet these high expectations, directly impacting your customer base's satisfaction and business growth.
Focus on core competencies
With the hassle of order management off your plate, you can focus on what truly matters: product development and growing your core competencies.
Automation in fulfillment
Doing your own fulfillment can be time-consuming. Many 3PL companies have automations in place to streamline the order fulfillment process. Some even have automated picking robots and conveyor belts moving packages throughout their space.

Selecting the right fulfillment partner
Finding the right logistics provider needs careful consideration of pricing, services, and specialization. Make sure your fulfillment service provider aligns with your business values and long-term goals — and your budget!
Making the transition
Switching from self-fulfillment to outsourcing doesn't have to be a headache. Proper planning, especially in storing inventory and managing shipping labels, can help you create a smooth transition. Talk with your fulfillment provider about how to ease the transition, any common start up issues to be aware of, and what you can do to make the process easier.
Unleash your business’s potential with outsourced fulfillment
Looking to upgrade how you're handling fulfillment? Outsourced fulfillment can be the strategic move for your business.
Not only does it help maintain optimal inventory levels, but it also streamlines the complex task of shipping orders.
When you outsource, you get the twin benefits of cost savings and scalability, making it easier to adapt as your eCommerce venture grows.
If you decide that handling your own fulfillment makes more sense for your business, then you need to know about Circuit for Teams.
Our platform specializes in route optimization and real-time tracking, elements that can cut your delivery costs by up to 20%.
Our platform offers a suite of features designed to streamline your operations:
So, if you're a business owner, startup, or knee-deep in eCommerce, don't miss the chance to optimize your fulfillment operations.
Ready to make the switch or enhance your existing setup? Start your free 14-day trial with Circuit for Teams today and unleash the full potential of your business.