How Fulfillment Centers Can Benefit Your Ecommerce Business
Common misconceptions about e commerce fulfillment services Fact: You do not need to have a near geographically connected office with a fulfillment centre in order to take advantage of these services. Instead of choosing a fulfillment centre location or an ecommerce fulfillment business solely on the proximity to you, instead it is a best practice to use analytical data and ultimately let the analytical work lead your choice. For example, if the business is shipping products out of state, they will not be happy with a service provider who does not offer nationwide shipping options. Similarly, if you have a small office with many different products being purchased, you may not need the services of a nationwide vendor. Use the data available to you to help you make an informed decision.
Common Misconception: Clients using a fulfillment services will not have control over their orders and will not know the status of their orders until it is too late. Fact: Most ecommerce fulfillment services offer live chat and phone support for your orders and shipments. Additionally, they will notify you as orders are being shipped. This information will help you understand which of your orders are in process and which are complete. Additionally, most will send you an e-mail when a product has been shipped.
Common Misconception: Clients will not be able to track the status of their orders using an ecommerce fulfillment partner. Fact: You will be able to track your orders using a number of methods including online tracking. Additionally, you can track the status of your inventory using the tools available at the inventory management system that fulfillment services provide you. You will also be able to obtain additional information such as how many of each product is in inventory and total square footage of space taken up by your ecommerce business. This data will help you plan your product inventory.
Disadvantages of Using Fulfillment Services Instead of Ecommerce Fulfillment: One disadvantage of using fulfillment services is the expense that is involved in maintaining your in-house packing supplies. While this cost may seem minimal in comparison to the amount of money you save by not having to purchase packing supplies in addition to the labor cost of hiring and training employees, in-house packing supplies can quickly add up. This expense can quickly offset any savings from using an ecommerce fulfillment in-house.
Cost Effective Options: For businesses that do not have a significant amount of square footage to spare, they can often find a fulfillment company that offers the service of a packing service and shipping. By using these services, they can eliminate the cost of purchasing and storing excess stock. In addition, many companies can save significantly on the cost of shipping. Shipping and handling costs for a full sized product can quickly add up. If you choose a fulfillment company that offers a packing and shipping service, you will only pay a fraction of what it would cost to store such a product on your own premises.
Popular Fulfillment Options: There are several different fulfillment options that are available to ecommerce businesses. These options include a full line and specialty services. Depending on your customer base and the volume of orders you receive, you may want to consider one of these options. Each of these services has their pros and cons, and you should research each method to determine which will best suit your particular needs.
Long-Term Benefits: One of the long-term benefits of utilizing a fulfillment services is that it will allow you to better serve your customers and provide them with a quality product experience. When your quality products and services are delivered on time and within budget, you build customer expectation for future transactions with you. Fulfillment centers offer your customers products that meet quality standards and that are designed to satisfy their individual needs. By meeting these customers' expectations, you are also meeting their needs for repeat business in the future.
Long-Term Costs: The other major benefit of using a fulfillment service is the overall long-term costs of running the business. Since the company you hire specializes in fulfilling orders, you do not need to worry about hiring additional employees to handle shipping, stocking and inventory management. You eliminate the need for costly rent or space on your leased premises. This means you do not have to invest additional capital to create a warehouse and employees to manage your b2b orders. The savings you incur from not having to hire employees can help you offset the high cost of hiring these employees.