Let Someone Else Ship Your Stuff

Why Outsourcing Shipping Can Save Your Business

Published: November 08, 2011

Avoid frustration from your customers waiting to receive their orders. Here’s why you should outsource your shipping.

From Shipping Nightmares to Customer Praise

Today, clients rave about Andrew Simmons’s customer service—but that wasn’t always the case.

“Five years ago, my customers hated me—some even threatened to hunt me down,” said Simmons, owner of Seattle-based holding company Six Shooting Stars. While the quality of his software for the arts-and-crafts business wasn’t an issue, shipping was.

“In addition to the U.S., I ship overseas, and 50 percent of my packages were vanishing,” he said.

Running a Warehouse Didn’t Help

In an attempt to fix the problem, Simmons opened his own warehouse from 2004 to 2007. However, the solution became a burden:

  • High overhead costs
  • Increased operational complexity
  • Wasted time and resources

“The happiest day of my life was when I shut the warehouse down and started outsourcing my shipping,” he said.

Off-Site Warehousing: A Modern Solution

Thanks to companies like eBay and Amazon, small business owners now have access to large-scale order fulfillment services. These services allow you to:

  • Store inventory off-site
  • Automate the ordering and shipping process
  • Focus on growing your brand

According to Nate Gilmore, VP of marketing at Shipwire:

“Business owners reach customers more quickly and build a global platform for growth. They’re able to invest money previously spent on warehousing into inventory and product development.”

Unleashing Creativity Through Outsourcing

“Having the ordering and shipping running on autopilot frees me up to tap into my creativity,” said Simmons. More time means more opportunities to innovate and market new products.

Faster Fulfillment, Happier Customers

Dan Provost and Tom Gerhardt of Studio Neat discovered the value of outsourcing when their Kickstarter campaign for the Glif went viral:

  • Expected to ship 500 units
  • Received over 5,000 pre-orders
  • Eventually had 7,000 orders to fulfill

After partnering with Shipwire, all orders were shipped within 24 hours, preserving their reputation and customer satisfaction.

Reducing Stress for Business Owners

Daniel Galhardo, founder of Tenkara USA, learned firsthand how manual shipping can hinder business:

“I was stressed about shipping the whole trip,” he said, recalling a filming expedition where he had to drive 30 miles for Wi-Fi to fulfill orders.

Once he switched to order fulfillment, Galhardo could travel stress-free and run his business remotely—even during a two-month trip to Japan.

Is Outsourcing Right for You?

Outsourcing shipping isn’t ideal for every product. Consider it if you have:

  • Sufficient inventory that can be stored off-site
  • Profit margins that support third-party services

Test the Waters First

If you’re unsure, try a small batch and inspect packaging quality. Some fulfillment providers even offer free trials.

Once you experience the ease of remote fulfillment, growth becomes simpler. Happy customers lead to repeat business—and repeat customers spread the word.

Julie Bawden-Davis has been a journalist since 1985. She’s written for Entrepreneur, Better Homes & Gardens, and Family Circle.

Julie Bawden-Davis

Julie Bawden-Davis is a bestselling journalist, novelist, blogger, and YouTuber. A prolific author, Julie writes in several genres. She enjoys creating page-turning suspense served up with a dose of romance, garden books that turn any brown thumb green, and spiritual books meant to enlighten and inspire. Widely published, Julie has written 45 books and more than 4,000 articles for a wide variety of national and international publications. She lives in Southern California, where she enjoys sunny, blue skies most days and year-round gardening. Julie gains inspiration from being surrounded by plants when she writes.