Running your own business is very rewarding as you get to experience several benefits, but this endeavor isn’t a walk in the park. For starters, you’ll have to balance your time and energy in overseeing different areas of your business to ensure that your company continues to operate efficiently through the years.

If you’re planning to start a business soon or is currently managing one, consider working with a fulfillment company, such as Red Stag Fulfillment. Hiring one is a cost-effective investment as you’ll be able to save money and experience several other benefits.

What Is A Fulfillment Company?


A fulfillment company makes it easier for businesses to outsource shipping and warehousing services. Fulfillment companies offer end-to-end solutions for businesses that sell products. They take products from warehouses and store them in their own facilities, pack them, and then hand them to shippers to have the products delivered to customers’ doorsteps.

Some fulfillment companies also send notifications to your customers to let them know that their orders are in-transit, offer call center services, and supply inventory updates to your website. Most fulfillment companies also handle returns and exchanges.

How Can A Fulfillment Company Help You Save Money?

It’s common for business owners to be frugal with their finances. During the first year of operations, businesses usually have limited financial resources, which is why they are always careful with their expenses.

If you’re in the same situation, you should definitely hire a fulfillment company as this can help you save money in the long run. Sure, you’ll be paying for this service, but using this for your business outweighs the cost because of these reasons:

You Don’t Have To Hire Someone To Fulfill Your Orders

Making sure that the product bought by a customer online arrives at their doorstep in the best condition requires a lot of resources. For one, the person handling the orders should know how to properly pack products and send them immediately to shippers. Hiring someone to do the job might be an option, but not an assurance to get the best results as recruitment requires a lot of resources from your business.

If you don’t want to halt your operations and spend more money on flyers and online job ads, hiring a fulfillment company is a better option. Fulfillment companies have been in the industry for years, which means that they have the necessary experience and equipment to fulfill orders in the most efficient way possible.

Moreover, hiring a fulfillment company will save you more money as you don’t have to pay for any training or workshop just so they can get the job done right. This is something that you can’t experience when you choose to hire an employee to help you fulfill your orders.

You Won’t Need Warehouse Space

Selling products will usually require entrepreneurs to lease warehouses to ensure that their products remain safe. The more products a company sells, the bigger warehouse they should lease. Leasing a warehouse can take a toll on a business’s expense as you have to pay at least USD$2000 a month just to make sure that they have enough space to store their inventories.

When you hire a fulfillment company, you no longer have to look for and rent any warehouse because inventory is part of their services. A fulfillment company will be in charge of storing and managing your inventory on your behalf, allowing you to save money from renting additional facilities.

You Won’t Get Stuck In A Contract


Contracts are very common in the business industry. In fact, your business can’t operate properly without giving out contracts to employees and shareholders. And, while contracts can help different parties determine what their responsibilities in an agreement are, some contracts can also lead to stress and penalties.

When your business needs to use a warehouse, for example, you’ll likely have to sign a five-year lease, which you’ll have to continue paying regardless if you’ll need more or less space in the future. Aside from being expensive, being tied to these kinds of contracts can adversely affect the condition of your products and the speed of your operations.

You won’t have to worry about being stuck in a contract when you hire a fulfillment company as their services are available on an as-needed basis. This means that with a fulfillment company, you’re only going to pay for what you use because they will charge a flat storage fee for the products to be warehoused.

The flexibility that fulfillment companies offer will allow you to save money in the long run as you won’t have to continue paying for services just because a contract requires you to do so.

You’ll Pay Less For Shipping

As a business owner, expect that you’ll have to pay for several services to ensure that your customers receive their orders fast. If you’re going to offer worldwide shipping, for example, expect that you’ll have to pay expensive shipping costs just to cater to customers living in different parts of the globe.

Paying for shipping costs can be very painful, especially to small or startup businesses, which is why it’s better to hire a fulfillment company. They can actually help you save money from paying expensive shipping costs because they have established relationships with shipping partners because of greater shipping volumes, allowing them to utilize their service at a cheaper rate.

On top of all that, your business will save money once you hire a fulfillment company as they employ experts who will handle your shipping contracts and bill of ladings. They can help in reducing the number of risks your business will be exposed to when shipping orders to different locations. Instead of paying different services just to ship orders, fulfillment companies will cover everything—from the shipping materials down to finding reasonably priced shipping partners.

Choose Carefully

If you’re convinced that a fulfillment company can become your business’s greatest tool for success, start looking for service providers right away. Make sure that the fulfillment company you’ll work with offers competitive rates, 24/7 customer support, and services that your business needs. All of these factors are essential for you to end up working with a fulfillment company that can expedite your business’s success!