E-commerce fulfilment is the process of delivering products to shoppers. It is an essential part of your business that you cannot ignore. You can read this article to know more about it.
If there is one thing that all e-commerce businesses have in common, it’s outstanding e-commerce fulfilment services. It is an essential component that can make or break your online venture, no matter how great your product or website is designed. According to a study, 83% of online shoppers consider free shipping to be the number one feature that an e-commerce business can offer. Also, you should know that the primary reason why people abandon their shopping carts is because of the high shipping costs.
There is no denying that accurate and predictable fulfilment makes customers happy. And they might even post reviews about your services. Therefore, you can build a robust e-commerce fulfilment process that will help you save time and money. Also, as many brands are now taking their business online, agencies like the Staffing Agency Denver are always looking for talented individuals who can help other companies with their e-commerce needs.
E-Commerce Fulfillment: What Is It?
E-commerce fulfilment can be defined as the process of delivering products to buyers. This is the most vital part of your business that you cannot ignore. When you started, you might have become accustomed to packing boxes in your garage. Hence back then, you were your fulfilment provider. But now, if you have grown your businesses, you can outsource this task to a 3PL.
Regarding picking and packing orders, e-commerce fulfilment is much more than that. If you are partnered with a decent e-commerce fulfilment provider, you can expect them to help you run your business smoothly. You can also consider them an extension to your online retail venture that will allow you to reduce your risk and expense.
Fulfilment refers to preparing and delivering a customer’s order. While catalogue companies and larger companies are often equipped to process customer orders independently, e-commerce companies and smaller businesses usually provide this aspect of a business to companies specializing in compliance.
How Does It Work?
There are different steps involved in the e-commerce fulfilment process. Once you understand them, you can easily manage your outsourced e-commerce fulfilment provider. Let’s take a look at how this process is done.
- Orders are made to the manufacturer.
- Products are shipped to the fulfilment warehouse.
- Once they arrive, the products are checked into stock.
- These products are then placed on shelves.
- Orders start to pour in from your sales channel.
- Money is transferred into your business bank account.
- Order is carefully picked and packed at the warehouse.
- It is now prepared for shipping.
- A delivery company is hired to deliver the product safely to the customer.
- The order finally reaches the doorstep of the customer.
How Is Dropshipping Different from 3PL?
People tend to confuse drop shipping with traditional e-commerce fulfilment. You should know that both are very different from each other. As you now know about standard e-commerce fulfilment, let’s shed some light on dropshipping. So, what is it? Well, dropshipping enables you to sell products with little investment. However, the trade-off for this reduced risk is that you will have little control over the fulfilment process. Also, remember that your profit for every sale you make will be much less.
Here’s how it works:
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You don’t purchase inventory. Instead, you place the manufacturer’s items in your online store.
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When an order comes through, you forward it to the manufacturer.
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The manufacturer is then responsible for delivering the product to the customer.
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Once the sale is made, you will split the profits with the manufacturer. Keep in mind that your cat will be less.
How are Fulfillment Houses Paid?
Each fulfilment centre has a different fee structure and capabilities. Some can print and assemble folders, books, and packages or burn CDs and DVDs, while others can store finished products and ship them as requested. Many fulfilment houses charge up to a fixed amount per unit, so you can confirm beforehand that any order remains profitable even after shipping. The higher the quantity, the lower the cost per piece.
Is It a Good Idea to Outsource Your E-commerce Fulfillment?
Outsourcing this task is unnecessary if you have a flawless in-house order fulfilment process. But do remember, as your business starts to grow, your in-house solution might not be able to meet the demands and may hinder the expansion of your venture. In that case, you can consider outsourcing your e-commerce fulfilment.
There are various advantages that you can expect to receive when you outsource your e-commerce fulfilment. They are as follows:
- You will gain access to flexible shelf space.
- Professionals will handle your orders.
- Allows you to choose a centrally-located warehouse that will be able to ship the product to customers more quickly.
- Your resources can focus their time and efforts on business development.
Questions to Ask When Selecting a 3PL Fulfillment Provider
When choosing a 3PL fulfilment provider, asking as many questions as possible is okay. This will help you select the best one from the lot that can quickly meet the needs of your business. However, you might not be sure about which questions to ask. Well, there is nothing to worry about. This section is going to list down some important questions that you should never forget to ask.
- What types of products do you ship?
- Do you offer any value-added services?
- How do you track the shipment?
- Do you offer shipping discounts?
- How much time will it take for you to deliver the orders?
- Can you define your security procedures?
- Does your warehouse have backup power?
Conclusion
If your e-commerce fulfilment process is not up to the mark, it will become difficult for you to thrive in a competitive market. Also, shipment errors, poorly packed boxes, and delays will dissatisfy your customers to a point where they will not hesitate to post a negative review about your service. And nobody wants that! Therefore, plea search for a fulfilment business that can perform this task for you is better. However, you must ensure that your chosen provider is one of the best in the industry. This is because their performance can either make your customers highly satisfied or extremely disappointed.