This will depend on the fee structure, shipping rates, your products (weight, dimensions, and value), and more. It’s possible to save money by outsourcing fulfilment, but it’s also a service you’re paying someone else to do for you. Some brands reduce shipping costs by outsourcing fulfilment since they are able to optimise their shipping zones to save money.
However, there are also many hidden costs of self-fulfilling orders rather than outsourcing fulfilment, including:
The cost of packing materials and supplies (packing tape, bubble wrap, dunnage, air pillows, boxes, poly mailers, labels and paper, printers and ink, and mail bins)
The cost of transportation (driving to and from the post office)
The cost of inefficiencies (the lack of bulk discounts and better rates negotiated with couriers, integration with other systems and automated processes, and data to drive decisions)
The costs of making your customers wait from slow delivery, non-competitive shipping rates, and a poor experience
The opportunity cost of completing higher-dollar tasks (the loss of potential gain from other alternatives when one option is chosen, as every hour you spend checking for new orders, packing your items, driving to the post office, waiting in line, and shipping your products, you’re missing the opportunity to grow your customer base, develop new products, market your business, and much more)
Similarly, if you’re considering leasing a warehouse and investing in fulfilment infrastructure, consider the pros and cons.