The Benefits of In-House Fulfillment For DTC Brands

Self Fulfillment For DTC Brands

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In recent years, there has been a significant shift in the way consumers shop, with more people turning to online shopping and Direct-to-Consumer (DTC) brands. With this shift, businesses have also adapted to the changing landscape by implementing different order fulfillment strategies. While outsourcing fulfillment to a third-party logistics provider (3PL) was once the norm, more and more businesses are now turning to in-house fulfillment. In this article, we'll explore the benefits of doing in-house fulfillment for a DTC brand, when it makes sense, and what you need to get started. We'll also look at how Luminous, an inventory management software, can help brands that do their own fulfillment.

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What is In-House Fulfillment?

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First, let's define what we mean by in-house fulfillment. In-house fulfillment means that the DTC brand manages its own order fulfillment process, from receiving orders, picking and packing products, to shipping them out to customers. This is in contrast to outsourcing fulfillment to a third-party logistics provider, where the provider manages the entire fulfillment process on behalf of the brand.

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Benefits

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One of the most significant benefits of in-house fulfillment is greater control and flexibility over the entire fulfillment process. When a DTC brand manages its own fulfillment process, it has greater control over the quality of the fulfillment process, ensuring that it meets the brand's standards. The brand can also make changes to the fulfillment process quickly and easily, without needing to go through a third-party logistics provider.

In addition to greater control and flexibility, in-house fulfillment can also lead to cost savings for DTC brands. By managing their own fulfillment process, brands can eliminate the middleman and avoid paying fees to a third-party logistics provider. This can result in significant cost savings in the long run, especially for brands with high order volumes.

Another benefit of in-house fulfillment is greater transparency and visibility over the entire fulfillment process. With in-house fulfillment, DTC brands have full visibility over their inventory levels, order processing times, and shipping times. This level of transparency can help brands identify bottlenecks in the fulfillment process and make improvements to streamline the process.

Finally, in-house fulfillment gives you full control of the unboxing experience. Custom packaging, handwritten notes, samples, and inserts are much easier to manage when your own team packs every order.

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When does in-house fulfillment make sense?

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In-house fulfillment isn't the right fit for every brand. It tends to work best when:

• Your products need special handling: Fragile, oversized, custom, or kitted products are often easier to pack well yourself.
• The customer experience is part of your brand: If packaging and presentation matter, keeping fulfillment in-house protects that.
• Your 3PL fees keep climbing: Storage, pick, pack, and minimum fees can add up. Compare your total 3PL bill to the cost of space, staff, and supplies.
• You sell through several channels: Fulfilling DTC, wholesale, and marketplace orders from one building can be simpler than splitting stock across partners.

Many brands also use a hybrid model, fulfilling some orders in-house and sending others to a 3PL for faster delivery to certain regions.

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What you need to get started

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• Space: Enough room for shelving, a receiving area, and a packing station.
• A clear layout: Labeled bin locations so anyone on your team can find any product.
• Packing and shipping supplies: Boxes, mailers, scales, and a label printer.
• Shipping software: A tool like ShipStation to compare carrier rates and print labels.
• Inventory software: A system that syncs orders from every channel, tracks stock by location, and guides your team through picking and packing.

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Perks of Luminous

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Implementing in-house fulfillment can seem like a daunting task for many DTC brands. However, with the right tools and resources, it can be a smooth and seamless process. This is where inventory management software like Luminous comes in. Luminous offers a hands-on implementation where our team aids you in the setting up of warehouse operations. The software then perpetually keeps track of inventory, locations, and so much more to keep your operations running smoothly. Learn more about warehouse management and the ShipStation integration.