07/11/2020

How to handle e-shop logistics? Own warehouse or outsourcing?

How to handle e-shop logistics? Own warehouse or outsourcing?

Do you have an e-shop that's starting to grow out of control? Starting a business is great news, but now you're faced with the question: Can I still handle logistics myself, or should I outsource it to someone else?

E-shop logistics require daily attention

Warehousing, order fulfillment, packing, shipping, and so on and so forth. Most of the approximately 40,000 Slovak e-shops handle warehousing and logistics in-house. These are often the smallest e-shops that can fit their goods into a few shelves in the garage. Another type of e-shop with its own logistics is a brick-and-mortar store operator. They complete orders and ship goods from their own store. And then there are the biggest e-commerce players like Alza or Mall. They invest hundreds of millions in warehouses, logistics processes, and equipment. Entire teams of experts are dedicated to optimizing the delivery of goods to customers.

Comparison of own logistics and outsourcing/fulfillment
  Own Logistics Outsourcing/Fulfillment
Warehouse rental I pay for the entire rented warehouse area I only pay for the area I currently use
Warehousing and goods control I handle everything in my own warehouse Based on the notification, the logistics partner ensures control and warehousing
Employee wages I pay monthly wages regardless of the number of orders, sick leave, vacations, etc. I only pay for work on shipments
Packaging material I buy in advance myself I pay back only for what was used
Transport I have separate contracts with carriers I use the bulk purchase of the logistics partner
During peak season I have to temporarily hire more people, provide equipment, space, etc. everything is provided by the logistics partner
Cash on delivery and complaint processing I have to handle it myself handled by the logistics partner
Handling equipment I have to buy or rent expensive handling equipment, racks, scanners, printers, etc. provided by the logistics partner
Information technology I need to have and maintain my own warehouse system provided by the logistics partner
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