Why more and more online shops are outsourcing their logistics

Anyone who runs an online shop knows how quickly the warehouse can become a problem. At first, you pack orders yourself, in the shed or a small storage room. But as sales pick up, an ever-increasing proportion of your time is taken up with boxes, shipping labels and returns. That’s time you’d actually prefer to spend on your product, your marketing or your customers.

Many online retailers therefore choose to outsource their logistics to a fulfilment provider. That may sound like a big step, but it’s often precisely the way to keep a firm grip on a rapidly growing business.

What fulfilment actually involves

With fulfilment, an external party takes over the entire process once an order has been placed. Your stock is held in their warehouse. When an order comes in, it is picked, packed and dispatched. Returns are also sent back there and processed there. Companies such as Monta link their systems directly to online shop platforms, marketplaces and carriers, so that an order is transferred from the online shop to the warehouse without any manual intervention.

For the business owner, this mainly means there are fewer links in the chain to keep an eye on. You don’t need to organise warehouse staff, rent extra storage space when things get busier, or enter into contracts with all sorts of different carriers.

Growing without your own warehouse

Perhaps the biggest advantage lies in the flexibility. Having your own warehouse is a fixed cost, even during quiet months. And during busy periods, such as around Black Friday or the festive season, you’ll actually reach your limits. A fulfilment partner is better able to cope with these peaks, as capacity is spread across many different customers.

Furthermore, running your own warehouse requires investments that you’ll only recoup if growth continues. Think of a multi-year lease, shelving, packaging materials, software and the staff to do the work. If your online shop grows faster than expected, you’ll soon find yourself short of space and the search for a larger premises will start all over again. If growth falls short of expectations, you’ll be paying for space you’re not using. If you outsource your logistics, capacity simply scales up in line with the number of orders. This also gives you the flexibility to try something new, such as a new product line, without having to completely overhaul your entire storage system first.

What to look for when choosing a partner

Outsourcing doesn’t mean you no longer have any responsibility. Ultimately, your customer sees your brand on the box, not the warehouse’s. It’s therefore worth looking into a few points carefully in advance.

First, check the integrations. Does the provider work with the platform your online shop runs on, and with the marketplaces where you sell? The less manual work involved, the lower the risk of errors.

Also, check the cut-off time for same-day dispatch. This may seem like a minor detail, but it largely determines how quickly you can deliver compared to your competitors.

Also ask how returns are handled. Particularly in fashion and other categories with high return rates, this accounts for a significant proportion of the workload. The sooner a returned item is back in stock and ready for sale, the less capital is tied up.

And don’t forget the overview. A good partner will show you at any time how much stock is available, which orders are in transit and where things might be going wrong. Without these figures, you’re essentially groping in the dark.

A choice that grows with you

For a small online shop with just a few orders a day, handling dispatch yourself is often still perfectly manageable. However, there comes a point when the logistical workload starts to hold back growth. Those who recognise that moment in good time and make the switch will free up time for the work that really benefits the business.