Differentiator 5

Companies outsourcing fulfillment are significantly more profitable

Focus on what you’re great at. Outsource, don’t staff for fulfillment.

Product sellers that haven’t started using 3PLs are falling behind. They’re spending their most scarce resource—management team time—on running their own fulfillment operations, which are low-margin commodity functions.

Companies outsourcing fulfillment are significantly more profitable

Actionable insights

Tips for running your business smoothly with fewer fuflillment headaches:

1. Warehouse and fulfill orders as little as you can

Product selling businesses that are truly thriving focused on designing, making, and selling superior products—not tedious activities like fulfillment, product routing, and fulfillment. These tasks should either be automated or handed off to specialized third parties. Amazon and 3PLs have turned fulfillment into a commodity. Very few product sellers are experts at warehousing and logistics.

2. Leverage the wide variety of 3PLs across diverse markets to find and open new channels

As we explored in Principle #1, opening new sales channels is a major opportunity for product sellers. Using a 3PL, combined with a modern multichannel inventory and order management software, it’s easier than ever to reach more customers and grow exponentially.

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