Courier: Shipment by third-party service

Courier: Shipment by third-party service

January 19, 2021 Off By Rob Prosser

If you are looking to start an e-commerce business, you may want to consider partnering with third-party courier and distribution companies.

It’s no secret that insane sales are one of the most exciting parts of an online store. But to generate consistent income, you need to consider warehousing, a flexible courier strategy, and use the right execution company. Regardless of your e-commerce business model, you will likely want to fulfill customer orders in the most convenient and cost-effective way possible.

Take dropship for example. This business model allows the seller to sell items without any inventory. When a customer places an order, the courier contacts the supplier to ship the item and saves the quoted price.

With third party performance, the seller engages third party packaging and courier service providers. The executing company usually has huge volumes to collect, sort, and send orders to customers.

But not all implementing companies have a developed and wide infrastructure. If you plan to sell products all over the world, you want to choose an executing company with a large number of centralized warehouses.

To grow your eCommerce business effectively, you may need to accelerate your expected delivery time. This is the key to building lasting customer relationships. By starting as a small business, you should also cut down on your order fulfillment costs.

Benefits of third-party courier companies

An added benefit of outsourcing the fulfillment process to third-party courier services is that you no longer need to worry about the internal delivery process. Apart from this, there are other related add-ons to look forward to.

So let’s find out.

Faster delivery times

As an e-commerce seller, you take time to optimize your store, run and manage campaigns, and respond to customer challenges multiple times. It’s not easy to micromanage every part of your business (think about packing every single order), especially if it’s at the enterprise level.

This can stop your business from growing. To streamline your shipping process, you may need to engage a third party order fulfillment company. To better navigate the shipping process, you can integrate your online store with a third party. Performing an e-commerce company.

This helps automate the order delivery process and update stock levels in real-time.

No long term warehouse lease

If you run a small online store and do not have the money, you can take a fulfillment center may not be the right approach to the fulfillment of orders. Most courier companies have a workable pricing structure.

This allows you to pay for storage space only when you need it, without the overhead of maintaining a physical warehouse. Some do not limit the seller to the minimum number of orders. Thus, the seller can fulfill one order without any restrictions.

The ability to scale

There are reliable third party companies in the market with a network of warehouses around the world.

That is, the seller has tremendous potential to increase their online store average order value. It has the ability to store your inventory in any of its fulfillment warehouses and ship the order as soon as the customer successfully completes the checkout process.

A third-party courier company is an optimal solution for a merchant who wants to sell and ship products internationally. The service takes overall operations and submits documents to the appropriate authorities on your behalf.

Saves you money

Since companies handle large volumes of shipments, it is much easier to spread operating costs across all orders. You don’t have to pay for recurring costs such as warehouse rent, equipment, labor, utilities, insurance, packaging materials, software, and shipping.

All this is included in the warehouse and fees. For this reason, online businesses have the leverage to increase profits as they can expect lower shipping rates.

You do not need to have a warehouse to ship products worldwide. As long as you have ordered.

You can track customer orders

There is nothing more convincing to customers than order tracking. It offers a significant sense of security and confidence in the running of your store. 

You can share your tracking number with customers to keep them on the same page as soon as orders are in transit.

Tracking your shipment is essential to meet your overall customer expectations. Most retailers are oblivious to the unexpected shortcomings associated with strict adherence to order management rules. To some extent, order tracking helps mitigate any future cost implications.

Since you may have experienced this first hand, customers will quickly file a Chargeback claim if they don’t receive their paid item. Not to mention bad reviews, repeated customer complaints and the loss of returning customers.

And it clearly explains why 97% of online customers want to shop at a store that has top-down order tracking in the shipping process.

In time, handling returns becomes a tedious undertaking for most retailers. With carriers, the seller makes the best use of their return shipping solutions whenever a customer is unhappy with a purchase.