Three Cost Advantages of Product Fulfillment Services

In today’s eCommerce environment, a business needs every competitive advantage it can find. It is for this reason, the product fulfillment service companies have become so popular. Much of the work that you are doing fulfilling orders can be outsourced to one of these companies, and the savings in labor and storage space can be tremendous. The following are three important benefits to using this type of service.

Savings in storage space
One of the biggest costs associated with having any type of eCommerce business involving a physical product is the cost of storing your inventory. This is a monthly expense that never goes away, and if you expand your inventory because of a new product line or simply because your sales are increasing, you may need to move to a larger facility. A product fulfillment service takes care of changes in the quantity of inventory. This makes your business easily scalable, whether your business is expanding or contracting during a slow sales period.

Savings in order processing
From the time you first take an order, the product must be pulled from inventory, and then packed. This is a significant cost of doing business, mostly from the cost of payroll. However, the savings on labor is not just the amount of payroll and the burdened cost of payroll such as payroll taxes and benefits, there is also the cost of managing people. Naturally, there is a turnover with your employees. People come and go over time. This means advertising for new employees, interviewing people and deciding who to hire. This is time consuming and can be expensive. All of this is avoided by subcontracting the work of order processing.

Savings in inventory management
Having an inventory, as you well know, means managing it. When an inventory of a particular item gets low, an order must be placed to replenish it. This must be done in a timely manner. Your inventory must also remain accurate. Any items that are damaged must be removed from inventory. A good inventory system that includes bar coding can help cut down on the maintenance, but it must be done with software and scanning equipment, ant this costs money to implement.

The three benefits above are only a few of the more prominent ones that will help your company save money. To get more information about how your company will specifically benefit, you need to consult with a product fulfillment services company. One example of this type of firm is apostille nyc.

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