A proper order fulfillment process is very significant in running a product-based business, and whether you will make or break the customer experience depends directly on the fulfillment method you decide to use. What best suits your course of action depends on whether you are outsourcing fulfillment with a third-party logistics (3PL) company or have control of it in-house. And that is how you can decide on the fulfillment plan that is going to work for your business.

1. Consider Your Order Volume: For a small business, that receives fewer orders, in-house fulfillment could be cheaper and easier to manage. In this case, if the volume of orders is high, it may shoot up the cost of warehouse space and technology labor. In that sense, outsourcing will make sense using a 3PL supplier for order fulfillment.
2. Think About Your Growth Plans:  Do you plan on entering other markets? Scalability would come first if true. That is because they can easily adjust to changes in order quantities and geographic development. Third-party logistics providers are an excellent choice for businesses that expand rapidly.
3. Customer Experience Matters: How important is customization for your brand? With in-house fulfillment, you control exactly how your products are presented and packed. Consumer experience can be enhanced through unique touches. Though, this’s worth exploring your options because some 3PL providers also offer customized packaging options.
4. Weigh the Costs: In-house fulfillment requires heavy investment in technology, personnel, and warehouse space. Although 3PL providers have their fees, these can be offset by the often lower shipping rates with which they are equipped. Compare the options side by side using a cost-benefit analysis to determine which one is more feasible for your organization.
5. Assess Your Operational Needs: If the company itself is large in terms of having more SKUs and varying order sizes, large enterprises will have more control over the management of their inventory. For firms that need to save time or optimize their operations, using outsourced fulfillment can be a less hands-on approach.

The ideal fulfillment approach in a company would depend on its size, volume of orders, and expansion goals. You can determine the best method by balancing those factors that suit your operating needs and consumer expectations.