A big factor to consider while choosing a third party logistics provider is the location of their warehouse. While partnering is an effective way to manage fulfilment, why settle for one warehouse when you can have more?
Spreading inventory across multiple fulfilment centres and geographic locations means you can be as competitive as companies with their own locations across Australia, without the hassle of building up your own infrastructure.
There are three advantages for fulfilling orders out of multiple warehouses.
1. Faster shipping
How fast (or slow) is your standard delivery options? According to Deloitte’s 31st annual holiday survey, 83% of shoppers consider fast shipping to mean delivery within two days or less.
26% of online shoppers cited slow shipping as the main reason behind shopping cart abandonment in 2017 (up 4% from 2016).
Today’s shoppers are spoilt for choices. There is nothing stopping them from leaving your site to find competitive online sellers who can deliver within their expected shipping times. If you can’t deliver the goods in less than 48 hours, you can most likely expect to see a drop in sales.
Ultimately, the faster a customer gets their order, the happier they will be. If your customers don’t all reside in one geographical region, having a large network of warehouses is really going to help you with this.
Having a fulfilment partner with a national network of warehouses guarantees that every time a customer places an order online, it will automatically be fulfilled from the warehouse closest to that customer. This significantly reduces delivery times which will help in retaining repeat customers and ensure growing sales.
2. Split shipping
Split shipping refers to any shipment with multiple items that have been broken down and split into two or more shipments.
This allows orders to be distributed through shipments from multiple warehouses in the event a single warehouse is unable to fulfil the complete order.
A fulfilment provider that has a split shipping product feature will benefit you if you run out of stock in a particular warehouse.
Customers come to a particular business to buy a product. To discover, in the middle of a shopping experience, that this business doesn’t have the desired item can disappoint customers. This leads them to look for an alternative competitor for the product.
A lack of inventory means longer waiting times for stock to be replenished. 53% of consumers said that speed of delivery is an important factor when it comes to evaluating their online orders, so stock-outs can almost always guarantee a loss in sales.
Split shipping protects you from potential out of stock mishaps. Even when inventory is low in certain warehouses, this feature ensures that orders are immediately fulfilled and delivered to customers as quickly as possible.
3. Lower shipping costs
When you only have one warehouse to ship out of, it can take a long time to physically reach your farthest customers. This means higher shipping rates.
It’s like flying from Melbourne to Sydney when compared to Melbourne to Bali. Which ticket is going to cost more?
It’s the same principle with your orders. The closer the stock is to your customers, the less it’ll cost you to get your products to them, which is efficient for both the seller and shopper.
With today’s expectations, high shipping prices will be all it takes for a customer to consider your brand a bad experience. Fulfilling out of multiple warehouses means you can place and store inventory closer to customers, which can significantly drive down your shipping costs.
Partnering and having access to a fulfilment providers national footprint lets you leverage their reach without having to pay for the extra infrastructure. Meaning outsourcing fulfilment can help you get your products to your customers in a fast and affordable manner.
If you’re interested in a finding out how much it would cost you to expand your network with Fulfilio, get a free quote today.