Outsourcing Order Management: 12 Signs It's Time to Make the Shift

Introduction

In the ever-evolving world of eCommerce, efficient order management is crucial for business success. As your business grows, you may find yourself at a crossroads, wondering whether to continue managing orders in-house or to outsource this critical function. At FreightAmigo, we understand the challenges that come with scaling your eCommerce operations. In this article, we'll explore 12 key indicators that suggest it might be time to consider outsourcing your order management. We'll also discuss how our Digital Logistics Platform can support you in this transition, ensuring a seamless and efficient order fulfillment process.

1. Declining Delivery Standards

One of the most apparent signs that it's time to outsource your order management is when your delivery standards start to slip. Consider these facts:

• 39% of customers won't return to a store following a poor delivery experience.
• Late or incorrect deliveries can significantly impact customer satisfaction and loyalty.

If you're struggling to maintain timely and accurate deliveries as your order volume grows, it's a clear indicator that outsourcing might be beneficial. Third-party logistics providers have the expertise, space, and staff to handle increased order volumes efficiently, whether it's due to gradual business expansion or seasonal fluctuations.

2. High Cart Abandonment Rates

Logistics plays a crucial role in cart abandonment rates. If you're noticing a high percentage of customers abandoning their carts due to shipping-related issues, it's time to consider outsourcing. A reliable order management service can help by:

• Offering various delivery speed and cost combinations
• Qualifying your products for fast shipping programs like Amazon Prime or Walmart Free 2-Day Shipping
• Generating shipping cost savings that can be used to offset free shipping costs

By addressing these logistical challenges, you can significantly reduce cart abandonment and boost your conversion rates.

3. Low Merchant Ratings

Your merchant ratings are crucial for converting customers, improving organic search result placement, and qualifying for marketplace advertisements. If your inability to meet shipping deadlines and standards is negatively affecting your ratings, it's time to consider outsourcing your order management. A reliable third-party provider can help maintain high shipping standards, protecting your reputation and ensuring customer satisfaction.

4. Low Conversion Rates

With average cart abandonment rates hovering around 70%, many eCommerce businesses struggle with conversion rates. While factors like pricing and marketing play a role, logistics can significantly impact your ability to convert browsers into buyers. Outsourcing your order management can help by:

• Enabling you to offer guaranteed fast shipping times
• Qualifying your products for fast shipping programs, which can boost customer trust
• Improving overall delivery performance, leading to higher customer satisfaction and repeat purchases

5. Poor Visibility in Search Results

If your product listings aren't appearing prominently in search results, it could be due to poor logistics performance. Outsourcing your order management can help improve your visibility by:

• Qualifying you for free and fast shipping badges, which can improve your search ranking
• Enabling you to offer reliable delivery dates, increasing customer trust
• Improving overall shipping performance, which is often factored into marketplace search algorithms

6. Rising Operational Costs

As your eCommerce business grows, so do your operational costs. If you find that your warehousing, staffing, shipping, and packaging costs are eating into your profits, it might be time to outsource. Third-party order management providers can often offer cost savings through:

• Economies of scale in shipping and packaging
• Optimized warehouse locations and efficient processes
• Reduced need for in-house staffing and warehouse space

7. Plans for Expansion

If you're planning to expand your eCommerce business, ensure that your order management processes can keep up. Managing multiple sales channels, increased order numbers, and more marketing activities can be time-consuming. Outsourcing your order management frees up your time and resources to focus on growth strategies while ensuring that your fulfillment processes can scale with your business.

8. Rapid Business Growth

If your business is already experiencing rapid growth, outsourcing order management can help you manage the increased demands effectively. Benefits include:

• More time to focus on strategic business growth
• Increased capacity to handle higher order volumes
• Access to additional warehouse space without the need for capital investment
• Scalable staffing solutions without the need to hire and train new employees

9. Lack of Logistics Expertise

You started your eCommerce business because of your product knowledge and market insight, not because you're an expert in logistics. If you find yourself struggling with the complexities of efficient order management, it's time to consider outsourcing to experts who specialize in this field. They can provide valuable knowledge and experience in storing, picking, and shipping items in the most cost-effective and efficient manner.

10. Difficulty Offering Fast and Free Shipping

In today's competitive eCommerce landscape, customers expect fast and often free shipping. If you're struggling to meet these expectations, outsourcing your order management can help by:

• Leveraging multiple warehouse locations to reduce shipping times
• Negotiating better rates with carriers due to higher shipping volumes
• Optimizing shipping processes to reduce costs and improve speed

11. Fragmented Fulfillment Processes

If your current fulfillment process is a patchwork of in-house operations, marketplace fulfillment services, and partial outsourcing, it might be time to consolidate. A comprehensive order management service can unify your fulfillment processes, leading to:

• Improved efficiency and consistency across all sales channels
• Better inventory management and forecasting
• Simplified reporting and analytics

12. Order Management Consuming Too Much Time

Finally, if you find that managing orders is taking up too much of your day, preventing you from focusing on strategic business activities, it's a clear sign that outsourcing could be beneficial. Delegating order management to experts allows you to reclaim your time and focus on growing your business, improving your product offerings, and enhancing your marketing strategies.

Conclusion: How FreightAmigo Can Help

As we've explored, there are numerous signs that indicate it might be time to outsource your order management. At FreightAmigo, we understand the challenges of growing an eCommerce business and the importance of efficient, reliable order fulfillment. Our Digital Logistics Platform is designed to support businesses like yours in streamlining their order management processes.

With FreightAmigo, you can:

• Compare door-to-door freight quotes for various shipping methods and book online
• Track shipment status in real-time, connecting with over 1000 reputable airlines and shipping lines
• Arrange customs clearance, cargo insurance, and trade finance in one stop
• Automate shipment documents for increased efficiency
• Access 24/7 expert logistics support

By leveraging our Digital Logistics Solution, you can overcome many of the challenges associated with in-house order management, allowing you to focus on what you do best - growing your business and serving your customers.

If you're experiencing any of the signs we've discussed in this article, it might be time to consider outsourcing your order management. We invite you to explore how FreightAmigo can support your eCommerce growth journey and help you deliver an exceptional experience to your customers.