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Costs are tight in fulfillment, meaning you have to save money wherever you can. If it’s difficult to pinpoint where to cut costs, consider outsourcing your warehousing and distribution as a catch-all solution to save money. Here are some reasons why outsourcing can be the cost-efficient answer.

1. Reduced Capital Investment

You might have the desire to do your own warehousing or own your own warehouse/storage unit, but with the fees for warehouse and fleet management, security, temperature controls, and other related costs, you may want to think twice. Having a third party handle it for you can save you money on all these charges.

You know what you want and so do your clients. The trouble is performing customer order fulfillment successfully on a regular basis, as is expected of any credible product fulfillment business.

That’s why many people turn to pick-and-pack fulfillment or order picking, outsourced solutions that ensure clients receive what they ordered. If you feel these could benefit your business, there are some things you should consider first, as not every service is the same.

When you have fulfillment overstock, there’s no need to get rid of it; with the right outlet, you can profit from it. Here are a couple ways:

1. Offer a Promotion

This is the easiest method of clearing overstock. If you operate an e-fulfillment service, offer discounts online based on spending a certain amount for a limited time. This method is easy and can help clear space quickly, but be sure to price appropriately.