Starting a subscription box company is a big undertaking. Acquiring the products, procuring shipping materials, finding storage space, and hiring employees to fulfill the orders make a startup very difficult. If you’re able to overcome these challenges and you create a successful subscription box business, you will face the question, when is the right time to outsource services to a fulfillment center?
By utilizing a fulfillment center, you can lower shipping costs, make box assembly more efficient, and ensure more on-time orders. Even though fulfillment centers offer all these benefits, you may still be unsure if it is the right move for your business. This article reviews a few signs of when you should outsource services to a fulfillment center.
Storage Limitations
There are subscription boxes for almost anything you can think of including clothes, toys, food, and pet supplies. Some of these subscription boxes include unique items based on a certain theme. Depending on the products included in your subscription box and if they change month-over-month, storage space can fill up quickly. As your subscriber base grows so will your need for additional storage.
A fulfillment center can help you meet the demand for your product. This flexibility reduces delays caused by an inventory shortage. See if the fulfillment center’s minimum storage requirement is less than your needed storage space. If it is, then it may be a good time to outsource fulfillment services.
Order Processing Challenges
Another struggle for growing subscription box companies is how fast they can ship orders. With Amazon Prime’s free two-day shipping, consumers have become accustomed to faster shipping speeds. The longer your customers wait for their orders, the worse experience they have. In fact, 68% of consumers said that fast shipping would encourage them to make a purchase.
If you are receiving more orders than you can handle, then a fulfillment center may be the solution. A fulfillment center or 3PL can manage the entire process which includes order processing, warehouse integrations, and training new employees so your orders ship out on time. You can also utilize the 3PL’s discounted small parcel shipping rates that you wouldn’t have access to on your own.
More Focus on Growth Marketing
The business model for subscription box companies requires you to continuously attract new subscribers. This makes marketing a crucial part of the business. Owners cannot afford to dedicate too much of their time to order processing. This can cause your business to plateau, without any new subscribers signing up.
Have you reached the point where most of your time is spent on order management? That is a sign that you should contact a fulfillment center like Evans Distribution Systems. A full-service 3PL solution covers a wide range of supply chain activities such as inventory management, returns management, order processing, payment processing, kitting, labeling, and much more. A fulfillment center can manage all these services allowing you to focus on growing and marketing your business.
Taking the next step to expand your business can be difficult, but it doesn’t have to be. If you’re interested in utilizing Evans Distribution Systems for your subscription box fulfillment, you can Request a Quote or email us at sales@evansdist.com.