In-House vs Outsourced Order Fulfilment: What’s Right for UK Ecommerce?

Introduction

Setting up a successful online business is great. Your idea has come to life, people are loving your products and orders are flying out the door. You've survived the shaky start that all budding e-commerce business experience in their first couple of years (you're actually one of the 30% who made it!). Nows the time to double down on your promotional and marketing efforts, right? Well, there's one more key decision to make before you take things to the next level .

As online sales grow, many store owners hit the same crossroads: Do you keep picking and packing orders yourself, or hand it over to a professional fulfilment company?

It's a big decision, and it's one that affects everything from delivery speed and customer reviews to how quickly your business can grow. In-house fulfilment gives you hands on control, but it also eats up your time, space, and energy. Outsourced order fulfilment services in the UK, on the other hand, take logistics off your plate and help you scale, but they’re not always the right fit at every stage.

In this guide, we’ll break it all down in simple terms, covering:

• What in-house and outsourced fulfilment actually involve
• The pros and cons of each option
• UK cost comparisons
• Key things to consider before deciding
• Real-life UK ecommerce examples
• Practical tips to avoid costly mistakes

By the end, you’ll have a clear idea of which fulfilment setup suits your business, no matter where you're selling. Let's jump in. 

What Is In-House Fulfilment?

Simply put: In-house fulfilment means you do everything yourself.

You store your stock, pick the orders, pack the boxes, book the couriers, and deal with returns, all using your own space and your own team (even if that team is just you). Many e-commerce businesses start out in a bedroom or garage, with constant back-and -forth trips to the post office. This approach is common for small UK ecommerce businesses, startups, and handmade brands.

So what does in-house fulfilment looks like day-to-day?

A typical in-house fulfilment setup involves:

• Receiving stock deliveries from suppliers.
  
  
• Storing products at home, in an office, or in a small unit.
  
  
• Organising items by SKU or product type.
  
  
• Picking orders as they come in.
  
  
• Packing orders with boxes, mailers, and inserts.
  
  
• Booking UK or international couriers.
  
  
• Handling returns, refunds, and restocking.

At low order volumes, this can work well. But things change fast as sales increase, and before you know it you're buried under a pile of orders that's growing faster than you can get them out the door. 

The pros of in-house Fulfilment

In-house fulfilment has some clear benefits, especially early on. 

• You’re in full control: Packaging, branding, couriers — it’s all down to you.
  
  
• Strong brand touchpoints: Handwritten notes, custom wrapping, and personalised extras are easy to include.
  
  
• You spot problems instantly: If something goes wrong, you see it straight away.
  
  
• No reliance on third parties: You’re not tied to a fulfilment company’s systems or processes.Cons of In-House Fulfilment

The cons of in-house fulfilment

As your business grows, the downsides start to show:

• It’s time-consuming: Packing orders eats into time better spent on marketing, product development, or customer service.
  
  
• You run out of space: Stock quickly takes over spare rooms, garages, or offices.
  
  
• Scaling is hard: Sales spikes during Black Friday or viral TikTok moments can overwhelm you.
  
  
• Mistakes happen: Manual packing increases the risk of wrong items, late deliveries, and unhappy customers.

What Is Outsourced Order Fulfilment?

Outsourcing your order fulfilment means paying a UK fulfilment company (also called a 3PL) to handle your logistics for you. They store your stock, pick and pack orders, ship them out, and often deal with returns too. This is the backbone of most professional Order fulfilment services UK businesses use to scale.

So what do UK fulfilment companies actually do?

A typical UK 3PL will offer:

• Secure warehouse storage in one or more UK fulfilment centres .
  
  
• Automatic order syncing from Shopify, Amazon, eBay, TikTok Shop, and more.
  
  
• Pick and pack services, with branded packaging options.
  
  
• Access to fast UK and international couriers.
  
  
• Returns handling and stock reconciliation.
  
  
• Real-time inventory tracking.

In short, they take fulfilment off your to-do list.

Pros of Outsourced Fulfilment

For growing ecommerce brands, outsourcing brings big advantages:

• Easy to scale: Whether you get 50 orders or 5,000, the system can cope. This is particularly handy for navigating seasonal highs and lows.
  
  
• Faster UK delivery: Fulfilment centres are set up for next-day and tracked shipping, so you don't have to worry about racing down to the courier drop off point on time. 
  
  
• Multi-channel made simple: Orders from all platforms flow into one system, keeping things simple. 
  
  
• Professional returns handling: Faster refunds and fewer customer complaints mean you'll build up a bank of positive reviews and improve your brand reputation. 
  
  
• You get your time back: Less packing means more time to focus on (and resources dedicated) to growing the business - which after all, is every entrepenures dream. 

Cons of Outsourced Fulfilment

Outsourcing isn’t perfect for everyone, and it's important know the right time to make the leap. 

• Less hands-on control: You’re trusting another company to represent your brand, your reputation is largely in their hands. 
  
  
• Costs at low volumes: If you only ship a handful of orders, fees can feel high. 
  
  

UK Cost Comparison: In-House vs Outsourced Fulfilment

Let’s look at a realistic example for a small UK Shopify store shipping around 200 orders per month.

Here's a rough monthly Cost Breakdown

What This Really Means

In-house looks cheaper on paper, but it costs time, energy, and growth opportunities. All that time organising stock and planning deliveries is time you could be spending scaling your business. Outsourced fulfilment costs more upfront, especially when you're shipping low order volumes (in the region of 200 orders per month). At 500+ orders per month, 3PLs often work out cheaper overall, and this is why many brands switch to order fulfilment services UK as they scale.

How to Decide What’s Right for Your Business

Here are the main things UK ecommerce sellers should think about.

1) Order Volume

• Under 200 orders a month? In-house may still work.
  
  
• Growing fast? Outsourcing gives breathing room.
  

2) Product Type

• Fragile, bulky, or expensive items need expert handling.
  
  
• Subscription boxes and branded products suit 3PL packing lines.

3) Sales Channels

• Selling on more than one platform adds complexity.
  
  
• 3PLs simplify multi-channel fulfilment.

4) Space and Staff

• No room for stock? Outsourcing solves that.
  
  
• Seasonal hiring adds stress and cost.

5) Customer Expectations

• UK shoppers expect fast delivery.
  
  
• Fulfilment companies are built to meet those expectations. 

Best Practice Tips for UK Sellers

No matter which route you choose, make sure you:

• Track delivery speed, accuracy, and returns.
  
  
• Plan early for peak seasons.
  
  
• Automate where possible.
  
  
• Review fulfilment costs regularly.
  
  
• Consider a hybrid approach if needed.

Common Mistakes to Avoid

To give your business the best chance to thrive, make sure you're avoiding these common mistakes:

• Jumping the gun and choosing a 3PL before you ship your first order (this happens far more often than you'd think!). 
  
  
• Leaving fulfilment changes too late and falling behind. 
  
  
• Picking a 3PL without proper integrations (yes, this really does happen). 
  
  
• Underestimating peak demand. 

Conclusion

There’s no “right” answer for every business.

If you’re small and steady, in-house fulfilment can (and should) work well. But if you’re growing, selling across multiple channels, or dealing with unpredictable demand, outsourced Order fulfilment services UK can remove serious pressure and help you scale properly. The key is choosing a setup that supports your growth, not one that holds it back.

For a full breakdown of providers, pricing, and solutions, visit our main guide on Order fulfilment services UK.