Online shoppers stay loyal to businesses that give them fast and hassle-free deliveries. That’s why online sellers must provide a seamless delivery experience to keep their customers happy.
While many ecommerce businesses automatically outsource their deliveries to a courier service, there are still some that prefer to do it in-house so they can control the quality and delivery time.
But which option is more cost-effective for your small business, you might be wondering. Should you outsource to third party delivery services or do it in-house?
Also read: Who are the Pinoy E-Shopaholics and How to Win Them Over
In-house delivery vs third-party delivery service: Which is better for your business?
In-house delivery and third-party delivery services are two different approaches to handling the delivery of goods to customers.
Each has its own set of advantages and disadvantages, so the best choice will depend on your individual needs and circumstances.
Pros and cons of in-house delivery
In-house delivery involves the business itself managing all aspects of the delivery process, from hiring and training delivery drivers to buying and maintaining a fleet of vehicles.
Here are the pros and cons of this option:
Pros:
Control over quality. With in-house delivery, you have direct control over the entire process, ensuring the quality of service provided to your customers.
Brand representation. Your delivery personnel are representatives of your brand, allowing you to maintain consistency and provide a personalized experience to customers.
Customer interaction. Direct delivery enables more direct customer interaction, allowing for potential upselling, addressing concerns promptly, and gathering feedback firsthand.
Adaptability. You have the flexibility to make quick adjustments or changes in delivery processes based on immediate feedback or operational needs.
Check out these Upselling Techniques for Your Online Business
Cons:
Investment. Setting up an in-house delivery service requires significant investments in vehicles, logistics and technology.
Operational complexity. Managing delivery operations involves a range of complexities, including hiring, training, scheduling and managing the logistics efficiently.
Limited reach. In-house delivery can limit your geographical reach compared to third-party delivery services that have a broader network
Scalability challenges. Scaling an in-house delivery service to accommodate fluctuations in demand can be challenging without incurring additional costs for hiring and logistics.
Liability and risks. You assume the liability for any accidents, theft, or issues that occur during the delivery process, potentially leading to legal and financial implications.
to keep up as your business and customers grow.
Pros and cons of third-party delivery service
Third-party delivery services, which are essentially logistics companies, have the experience and expertise to handle all aspects of the delivery process, from picking up goods to delivering them to customers.
This can save your business a lot of time and money, and also help you reach more customers.
Here are the pros and cons of this option:
Pros:
Quick setup. Working with a courier service allows for rapid deployment without the need for extensive setup or infrastructure investment.
Broader reach. Logistics services often have a wide network and reach, allowing businesses to cater to a larger customer base without geographical limitations.
Cost-efficiency. Using a third-party service is more cost-effective as you don’t have to invest in hiring and managing a delivery team, vehicles, or logistics infrastructure.
Scalability. Third-party services can easily handle fluctuations in demand, scaling up or down without the need for additional resources on your end.
Technological integration. Many third-party services offer advanced technological tools and platforms for order management, tracking, and analytics, streamlining the delivery process.
Cons:
Minimal control. You have limited control over the delivery process, which is why working with a logistics partner that gives you real-time parcel tracking is important.
Dependency. Relying on a third-party service means your business is dependent on their reliability, so partner with a reliable courier service that cares about your bottom line.
Data access. Your access to customer data and analytics might be limited when using third-party services. Find a logistics partner that will provide full reports and data so you can understand your customer base fully.
Deliver fast to your customers with Ninja Van
If you’re looking for a cost-effective and efficient way to deliver to more customers around the country, a third-party delivery service is the better choice for your ecommerce business.
But make sure to partner with the right courier service that will give you hassle-free deliveries and provide customized solutions to optimize your business for growth.
so you can sell to customers nationwide!
Ninja Van is a reliable partner in sustaining and growing your ecommerce business. We provide customized and end to end logistics solutions for businesses of all sizes. Plus, as a VIP shipper, you get to enjoy many perks that will help cut your operational costs:
- Exclusive shipping rates
- Fast COD remittances & Low COD fees
- Rebates and discounts
- Monthly rewards (redeem gadgets, shopping vouchers, travel vouchers, and more!)
Learn how you can be a VIP Shipper today!
Or discover Ninja Van’s end-to-end logistics solutions.
More reasons to choose Ninja Van:
Ninja Van’s Exciting Shipper Rewards Program
From Storage to Shipping: How Ninja Van Can Boost Your ECommerce Fulfillment
Shipping from China to the Philippines: An Easy Guide
