In conjunction with Amazon Multi-Channel Fulfillment (MCF) and Base.com
Expanding your e-commerce business across multiple sales channels is an exciting step toward growth, but it also brings new challenges, especially in order fulfillment. Managing storage, picking, packing, and shipping in-house may work initially, but as order volumes increase and customers expect faster deliveries, maintaining efficiency can become overwhelming. This is where outsourcing to a third-party logistics (3PL) provider, such as Amazon Multi-Channel Fulfillment (MCF), can help streamline operations. When used alongside a channel management platform like Base.com, businesses can integrate fulfillment solutions seamlessly without the operational complexity of managing logistics in-house.
A recent Forrester Consulting study, commissioned by Amazon, found that nearly two-thirds of e-commerce businesses currently handling fulfillment in-house plan to outsource in the future. If your business is struggling with order fulfillment, here are four key indicators that it may be time to consider a 3PL solution.
#1: You’re Struggling to Meet Customer Expectations for Fast Delivery
One of the biggest challenges e-commerce businesses face is keeping up with rising expectations for fast shipping. According to the Forrester study:
- Five years ago, customers expected an average click-to-delivery time of 5.7 days.
- Today, that expectation has dropped to just 2.5 days.
- In five years, customers are projected to expect delivery within just 1.5 days.
Failing to meet these expectations can have serious consequences:
- 63% of e-commerce businesses report that at least 10% of their orders arrive late.
- 64% struggle to meet customer expectations during peak shopping periods.
- 78% of businesses say poor fulfillment performance directly results in lost sales revenue.
Outsourcing fulfillment to a provider like Amazon MCF gives businesses access to an advanced logistics network with strategically located warehouses and optimised delivery services. This ensures that customers receive their orders quickly and reliably, even during peak demand periods.
#2: You Can’t Provide a Consistent Order Fulfillment Experience Across Sales Channels
Modern shoppers expect a seamless, reliable experience whether they’re buying from your website, a marketplace like Amazon, or a social media shop. However, managing inventory and fulfillment across multiple channels can be complex.
The Forrester study found:
- Five years ago, businesses sold through an average of 4.3 channels.
- Today, that number has increased to 5.4 channels and is expected to grow to 6.5 within the next five years.
- 41% of e-commerce businesses managing fulfillment in-house struggle to provide a consistent experience across multiple channels.
- 48% say in-house fulfillment challenges have prevented them from expanding to new channels.
Using a channel management platform like Base.com can help synchronise inventory and automate fulfillment processes across all sales channels, ensuring a smooth and consistent customer experience. Combined with a reliable 3PL like Amazon MCF, businesses can expand to new platforms without worrying about logistical hurdles.
For more information, and details on a special promotional offer, read on.
#3: Your Logistics Costs Are Growing Out of Control
Rising fulfillment costs, including warehouse space, labour, and shipping, can quickly erode profit margins. According to Forrester:
- 43% of e-commerce businesses managing fulfillment in-house report struggling to control logistics costs.
- 77% of businesses that outsource fulfillment experience a major reduction in costs.
- E-commerce businesses that switch to a 3PL see an average 28% decrease in fulfillment costs per order.
By working with a 3PL like MCF, which integrates with Base.com, you can significantly reduce costs by:
- Consolidating inventory across multiple sales channels, reducing storage expenses.
- Leveraging Amazon’s powerful logistics network, eliminating the need for costly in-house fulfillment centers.
- Accessing Amazon’s competitive carrier rates, allowing you to benefit from lower shipping costs.
Instead of investing in expensive infrastructure, you can take advantage of Amazon MCF’s fulfillment tools and Base’s automations and pay as you go rates, to keep costs under control while delivering a top-tier experience to your customers.
#4: Managing Order Fulfillment Is Taking Up Too Much of Your Time
As an e-commerce business owner, your time is best spent on product development, marketing, and growth not picking, packing, and shipping orders.
The Forrester study found that 41% of e-commerce leaders handling fulfillment in-house feel that it consumes too much of their time.
By outsourcing fulfillment, businesses can free up valuable resources and gain access to expert logistics management. In fact, 79% of business leaders who have outsourced fulfillment say they now have more time to focus on scaling their business. Partnering with a 3PL provider and using platforms like Base.com for automation can allow businesses to focus on what matters most—growth and customer engagement.
Conclusion: Is It Time to Outsource Your Order Fulfillment?
If you’re facing any of these challenges, outsourcing fulfillment could be the key to scaling your business efficiently.
Businesses that switch to a 3PL solution like MCF report:
- A 29% boost in on-time delivery rates.
- A 28% reduction in fulfillment costs per order.
- A 24% improvement in delivery speed.
By leveraging Base’s channel management platform and Amazon MCF’s extensive logistics network, e-commerce businesses in the UK and the US can streamline operations, cut costs, and expand across new sales channels with ease.
If you’re ready to take your business to the next level, consider making the shift to outsourced fulfillment today.
