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In-house vs Third-party Delivery Service – Which is Better?
Today online business has been widely prevalent. Because people like doing business online as it provides them convenience. They don’t have to visit traditional shops, rather they can order any product while sitting at home without making much effort. It means customers can save their time and money. Furthermore, we often see that some products go out of stock or cannot be easily found in nearby traditional shops. On the contrary, almost every product is available online and people can order them from the comfort of their home. But when people order products online, businesses need to deliver such products at their doorsteps. For this, businesses use third-party or in-house delivery services in Delhi, Mumbai, Bangalore, Kanpur, Noida or any other location from where businesses may be receiving orders. In this blog, we will examine which of these two delivery services are better for business.
What is an In-house Delivery Service?
in-house delivery service helps businesses deliver their products to customers. This approach of delivery services requires businesses to have everything related to delivery service their own. For instance, businesses need to buy vehicles and deliver products to customers on their own. This means businesses need to spend lots of money in order to make their delivery process efficient. Furthermore, businesses hire delivery executives who often charge a fixed monthly salary. And they need to maintain all logistics operations on their own.
What is a Third-party Delivery Service?
Third-party delivery service is a method that helps businesses deliver goods to their customers on time. Once businesses hire third-party delivery partners, they need not deliver products to their customers on their own because third-party delivery service companies will have that responsibility. Moreover, these delivery partners can increase the sales of businesses by delivering products to customers on time, motivating customers to transact more with them.
Benefits of Third-party Delivery Services
There are several benefits of partnering with a third-party delivery service. It helps businesses grow sales, retain old customers and acquire new customers. Let’s see the impact of third-party delivery service.
Sales Growth
Delivery partners help businesses grow at a high rate. These partners are trained to properly deal with customers in a decent manner, which often leads to enhanced customer satisfaction. Furthermore, delivery partners ensure on-time product deliveries. And this helps businesses gain the trust of customers. As a result, customers will transact more and increase sales numbers of shops, restaurants, retail stores or any other business.
Acquiring New Customers
Third-party delivery service helps businesses reach new customers with their effective approach of reaching new people. As we know, many third-party delivery services have apps with a large number of users. And users on these apps find it easy to order products from the same. So, if businesses partner with a third-party delivery service provider, these users can easily see their business offerings, which could help grow their business substantially. Furthermore, these delivery apps enable businesses to launch campaigns. And as a business owner, if you launch ad campaigns on these apps, it will make your business more visible to users.
Boosting Customer Satisfaction and Retention
Third-party delivery service helps businesses retain their customers with its efficient delivery service operations. Third-party delivery partners try to ensure that customers must receive their orders according to their convenience. It will result in enhanced customer satisfaction. These customers will likely rely on such services later too.
Benefits of In-house Delivery Services
No Need to Pay to the Delivery Partner
In-house delivery service helps businesses avoid paying to the delivery partner. As we know in-house delivery service operates fully in the supervision of business owners, having their own vehicles fleet and hired delivery executives on a fixed monthly salary. But this is good only when businesses constantly receive orders. However, there can be a fall in order volumes. So, when orders come less, having a delivery fleet on a fixed monthly salary can be a direct loss to businesses.
Good Option for Deliveries to a Nearby Location
If businesses manage their own logistics operations, it means they might have hired delivery executives directly. These executives will likely be good at delivering products to nearby locations. However, delivering to far distant locations may not be possible if they have many orders to take care of.
Which is Better for an Online Delivery Service?
Both methods of delivery services have their own advantages. But most likely, only big businesses will be able to afford in-house delivery expenses. These include a huge investment in logistics management. Small businesses may not be able to afford such expenses. On the contrary, both big and small businesses can easily partner with a third-party delivery service company that helps them deliver products to their customers. If businesses choose to partner with a third-party delivery service provider, they don’t have to make a huge investment in logistics management. Because third-party delivery service ensures seamless logistics management.
If you are looking to partner with a third-party delivery service company, contact handover, a pioneer delivery service provider that operates in major cities such as Noida, Delhi, Mumbai and Bangalore, etc.