Why the Autumn Budget Makes Outsourcing Fulfilment a Smart Move for 2026

The 2025 Autumn Budget has delivered a sharp wake-up call for brands managing their own fulfilment operations. With business rates rising, energy costs remaining volatile, and another increase to the National Living Wage on the horizon, the financial pressure on in-house logistics is set to intensify in 2026.

For brands scaling through ecommerce, especially those navigating limited drops, high SKU counts, or seasonal peaks—this raises a timely question: is running your own warehouse still commercially viable?

The implications of this budget are more than hypothetical. Higher payroll demands, unpredictable energy bills, and inflated supplier costs will land hard, particularly for those operating their own warehouse.

The increase to the National Living Wage doesn’t just affect entry-level roles. Supervisors, managers, and senior staff expect proportional adjustments, often triggering a full salary band review. Meanwhile, suppliers facing their own rising wage bills, couriers, packaging providers, and manufacturers are likely to pass costs downstream. For in-house teams, that means higher outgoings across the board, with no economies of scale to absorb the impact.

Unlike shared logistics networks, in-house fulfilment means absorbing 100% of your operational cost base. When business rates rise, or overtime becomes unavoidable during peak, the financial hit is yours alone. From agency staffing to compliance and insurance, every additional cost erodes your margin.

And while some brands may be prepared for isolated increases, the compounding effect of wage inflation, supply chain volatility, and energy uncertainty is harder to absorb, especially without the flexibility to scale costs up or down in line with demand.

Outsourcing to a third-party logistics provider (3PL) transforms fixed costs into scalable ones. Instead of maintaining permanent space, staff, and equipment, you align spending with activity, paying for what you use, when you need it.

Crucially, 3PLs like Rioz Global spread operational costs across multiple clients. That means better rates from carriers, shared infrastructure, and access to advanced tech and processes, without the overheads. When the market tightens, outsourced fulfilment absorbs the shock more evenly, helping protect your margin and maintain service standards.

The coming year will split the field. Brands that continue to manage fulfilment internally may find themselves overextended, struggling to maintain speed, quality, and profitability amid rising costs. By contrast, those who outsource will benefit from:

• Cost predictability and budgeting control
• Operational resilience during peak periods
• Faster scaling without added complexity
• More time to focus on product, brand, and customer experience

With financial pressures building, this is no longer just a tactical decision; it’s a strategic imperative.