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As we stepped into the second decade of the 21st century, e-commerce services have become widely popular among business owners and customers. Since its introduction, e-commerce has proven itself to be a pleasantly convenient medium of commerce for both sellers and buyers. E-commerce fulfillment services are all the more essential parts of e-commerce.
Assisting brands by providing value-added services for their customers to make their shopping experience seamless is what e-commerce fulfillment services do. It is also crucial that you know how important e-commerce fulfillment services are for business owners. Businesses like Simple Global and its e-commerce fulfillment services are the most important complementary business partners for business owners.
Not only do they serve the customers but also act as an element that makes the products of a business such a success. For example, it was found out in 2018 that about 83% of shoppers were influenced to make online purchases as free shipping was offered with the purchase.
Such is the impact of e-commerce fulfillment services. However, it is not as simple as it seems. This article will explain everything about what an e-commerce fulfillment service is, its ins and outs, and why you need to carefully choose an appropriate one for your online business.
What are Order Fulfillment Services?
The element of your e-commerce operation that delivers your products to clients is called e-commerce order fulfillment. Several things go into your e-fulfillment procedures but let’s take a look at its definition. E-commerce fulfillment is the process of getting products onto fulfillment center shelves until they get dispatched to reach the consumer, the final destination. Order fulfillment includes picking and packing orders. your third-party logistics operations include shipping timings and techniques.
In reality, e-commerce fulfillment has always been an important component of your company. You were your own fulfillment provider when you were packaging boxes in your garage. This process does not stop until the ordered items have been successfully delivered to the recipient by the order fulfillment center.
There are many renowned fulfillment services out there for business owners. Each fulfillment service has its own unique features. A few of the most beneficial, convenient order fulfillment services to know are:
- Fulfillment by Amazon (FBA): their unique features are best suited for multi-channel sales, vast warehouse facility around the glove, well-grounded return policy, and Amazon handles every post order detail.
- FedEx Fulfillment: they have worldwide customer reach, service customized according to the requirement of the retailer, exceptional tracking service for the shipped products.
- Whiplash: has expandable services, automated structured activity, and serves a different range of businesses.
- Shopify Fulfillment: offers early access for U.S. customers, swift shipping services for U.S. businesses and customers, and affordable fulfillment services.
- Simple Global: offers an integrated solution where retailers can connect with these fulfillment services along with 40 others under one cloud-based platform.
What does an Order Fulfillment Company do?
The central element of your e-commerce operations is fulfillment. As a result, you’ll be able to effectively manage your outsourced e-commerce fulfillment supplier if you understand each step in the process. There are different types of fulfillment services like:
- Order fulfillment
- Subscription box fulfillment
- Books fulfillment
- Accessories fulfillment
- Health and Fitness fulfillment
- Baby products fulfillment
- Beauty products fulfillment
How Much do Fulfillment Services Cost?
If you’re considering hiring an order fulfillment company to handle your shipping, you’ll need to figure out how much it’ll cost to ship each box to see if it’s worth it. Regrettably, no industry standard exists. You may, however, utilize a few simple rules of thumb to figure out these rates on your own. You’ll know what to look for when looking for the right service once you’ve received an estimate.
There are a few ways fulfillment services calculate their cost for services. Some rate their services on an hourly basis; some calculate the cost based on the number of orders. For example, Simple Global’s pricing structure varies according to the type of business, the number of monthly orders, and extra services required. Along with that, Simple Global offers many additional privileges free of cost.
The Benefits of Using a Fulfillment Company
For a variety of reasons, businesses prefer to outsource their client orders to a fulfillment company. Let’s take a look a few of them.
Better Inventory Management
Advanced order fulfillment software provides businesses with important insights through high-quality data, and fulfillment companies can manage orders and inventories accurately and effectively. Easy inventory access via cloud-based technology, accurate real-time stock visibility, batch tracking and optimization, custom reporting, and more are just a few of the advantages.
Enhance the Customer Experience
To provide optimal customer experiences, a fulfillment company can offer improved shipping alternatives, branded packaging options, and built-in order tracking and returns. Customers will benefit from quick and cost-effective dispatch, real-time updates, and simple returns, among other things.
Allow for Fast Growth
A fulfillment company allows businesses the time and confidence to focus on expansion by providing order fulfillment services that can quickly scale to demand, ship to new regions, and delight customers. Meeting seasonal, promotional, or new product order demand, international shipping, and less time spent in-house on fulfillment operations are just a few of the advantages.
Flexible Shelf Space
E-commerce fulfillment service providers have flexible and plenty of shelf space so you wouldn’t need to worry about storage space for your products as your online business grows at any rate.
Reliable Package Professionals
Order fulfillment service providers have trained pick and pack professionals on board. Therefore, depending on the size of your online business, hiring an e-commerce fulfillment company can save you from worrying about any logistical matter as well as ensuring the quality of your customers’ packages before they’re sent off.
More Available Resources
Upon hiring an e-commerce fulfillment service provider, your excess utilization of resources will decrease and the fulfillment service will optimize all your post order costs by effectively managing the orders and shipping them. It also saves you the money you would have to spend by leasing additional space.
Convenient Refunding
Refunds and returns of products are bound to happen in online business. E-commerce fulfillment service provider will take over the responsibility of handling the return of products and refunding the money to your customer without extra hassle. The experience becomes smooth for both of you and your customers.
When do you Need to Hire a Fulfillment Company?
If you’re facing issues mentioned below in your online business, it is high time that you make a contract with a fulfillment company.
- Your inventory is running out of room. Alternatively, inventory may have been destroyed or lost due to insufficient storage facilities.
- Customers are requesting tracking information from you.
- Your orders are arriving later than expected.
- You want to hire fulfillment workers, but the notion of employing (and dismissing) them, as well as dealing with all the red tape, is intimidating.
- Order returns are on the rise, and orders are coming damaged.
- You are worried that you’re overpaying for shipping because you don’t have the proper packaging.
What does the Fulfillment Process Look Like?
Fulfillment processes have 4 steps. When a customer places an order to the online business, then the online business owner accepts and redirects the rest of the work to a fulfillment service provider. Then the products enter the fulfillment process.
Multi-Channel Fulfillment Integration
You might visualize rows of shelves stocked with merchandise when you think of a fulfillment warehouse. Every good order fulfillment center, on the other hand, is a technology company at its core.
Your e-commerce business and fulfillment center should work together effortlessly. Your orders should go straight to the individuals who are going to pack and ship them. The following are three key characteristics of a good e-commerce fulfillment center.
- Your fulfillment business should be able to work with any platform you sell on. Your fulfillment center should design a bespoke platform to link incoming orders to any sales channels it doesn’t already support.
- The personnel who pack and ship your orders are equally as vital as the IT team. Check to see if your fulfillment company has a strong IT department.
- Make sure your fulfillment company has minimal but effective operation time. In addition to that, they must have a responsive backup system to make up for any mishaps.
Inventory Control and Receiving Orders
Pallets of your products are delivered to your fulfillment center. The pallets are then added to inventory and placed on shelves, ready to fulfill your orders. Many fulfillment warehouses struggle with receiving. When your products are loaded into a dock, they are not in inventory. And without inventory, there will be no sales, which is a horrible thing.
Another issue is shrinking. Shrinkage is a slang term for “loss, theft, and breakage.” Most e-fulfillment centers include a shrinkage allowance in their contracts. That is, up to a specific level, you will eat the cost of the lost item. Shrinkage allowances typically vary from 2 to 10% of your warehoused inventory.
Pick, Pack, and Ship
When an order arrives, your fulfillment center will select the appropriate goods for the box. They’ll be packed in the perfect box by a floor worker. Pick, pack, and ship is how your fulfillment firm will ship the box to the customer. Shipping to your consumers is quick thanks to centrally situated fulfillment centers.
The importance of accuracy cannot be overstated. Picking and packing orders incorrectly might cost you, clients. Here are three ways your e-commerce fulfillment center can assist you in meeting your customers’ demands for quick and low-cost shipment.
- Look for logistics that can deliver your goods the next day or perhaps the same day.
- Choose a centrally situated fulfillment facility or warehouse. Most of your clients should receive their orders in two days or less from the fulfillment center.
- Inquire about fulfillment center error rates.
Returns Processing (reverse logistics)
Returns are unavoidable in the e-commerce world. Returns are vital to e-commerce customers. This might be a significant component in increasing your sales. Return tracking is a key aspect of e-commerce fulfillment. Here are three ways your e-commerce fulfillment partner can help you and your customers with returns:
- Look for a warehouse that can restock returns within one to two days. Receiving dock returns is a drain on your business and consumer confidence.
- Allow your outsourced supplier to manage return customer service so you can focus on growing your business.
- Make a procedure for dealing with damaged items. Consider launching a second website to resell returned items at a reduced price. Ascertain that your e-commerce fulfillment supplier can assist in the evaluation of returns and the processing of orders for discounted items.
How to Choose a Fulfillment Service Provider
When selecting the best fulfillment service provider for your organization, there are several variables to consider. Choosing a fulfillment center with excellent customer service is insufficient. You’ll need a shipping partner who specializes in the products you sell and is close to your clients.
Your e-commerce fulfillment center is under your command. It’s fine to ask a lot of questions in order to choose the fulfillment supplier that’s right for your company. Here are some questions to ask to help you discover the best fulfillment provider for your business:
- What kinds of items do you ship? Look for a fulfillment center that specializes in the products you sell. You will save money on packaging and delivery as a result of this.
- What sort of value services do you offer? Your e-commerce business can benefit from a warehouse that can outfit your products.
- How do you cater to customer service? A good e-commerce fulfillment service provider will take a lot of customer service burdens off your shoulder.
- How much do you charge for setting up an account and how do you divide all the costs along with fulfillment mistakes? Properly inquire about how they divide their fees so that you don’t suffer from hidden costs later on and make sure to also ask who covers the additional expenses for a mistaken fulfillment.
- Do you have backup power? Make sure your fulfillment service provider has backup power in case of any technical difficulties to make sure your customers receive their orders on time.
You can also ask many different questions relating to their services and manpower.
Conclusion
Inefficient e-commerce fulfillment might stifle your company’s growth. Customers may be unsatisfied and leave negative reviews as a result of poorly packed boxes, shipment issues, and delays.
You now have a thorough understanding of the order fulfillment process’s fundamentals. So you’re ready to look into other fulfillment options. Answering these questions regarding what you require from your e-commerce fulfillment center is a fantastic idea. Then look for a partner who can assist you in growing your e-commerce business.
Your e-commerce success hinges on your ability to fulfill orders. It may be difficult to conduct a thorough assessment of your fulfillment center, but it is necessary. You’ll be grateful to us later.
