According to Etail Insights, there are around 9.1 million eCommerce sites globally. However, new ones are being launched daily. The above stats include 2.5 million eCommerce platforms in the US alone. It shows that an eCommerce business holds a lot of importance and needs a lot of proper management and processes to function correctly. To run an efficient eCommerce business, you must ensure that orders are shipped on time, appropriately, and accurately. It can be achieved by outsourcing an ideal order fulfillment company that offers fast shipping services at affordable rates. Here are some tips for finding the right order fulfillment service provider:
Location of Order Fulfillment Company
When choosing a fulfillment company, location is essential. Ensure that the order fulfillment company has warehouses and fulfillment centers located close to your business and even closer to your customers. You want to get products shipped out as quickly as possible. So having them within driving distance of you and your customers will help keep shipping costs down.
Location can also be an issue regarding suppliers for the product sold on Amazon FBA if you buy from various suppliers in different parts of the world. One centralized fulfillment center will make things easier for you regarding communication and logistics. Let’s say one supplier has products in China and another in Malaysia. Having items shipped together would mean they wouldn’t need additional postage charges. It is because they’re going through customs together at one location instead of two separate ones.
Accuracy of Order Fulfillment
Accuracy and quality are both essential metrics when it comes to ordering fulfillment. Both are also closely related to each other. Accuracy is measured by comparing the total number of units shipped against the total number of units called.
Accuracy is crucial because it measures how many orders are fulfilled correctly and shipped on time. These are the two things customers expect when they place an order online. Of course, your customers will feel confident in your business if they know their products will arrive as expected. Accuracy also helps maintain a good reputation with consumers. Those consumers will be more likely to shop with you again if they receive what they ordered without hassle or delay.
Scalability
The scalability of an order fulfillment service is an important consideration to keep in mind when choosing one. In addition to scaling up or down based on your business needs, it should also be able to quickly and easily adjust to your changing business needs. When looking for a company that can handle orders for all four seasons and adapts as necessary, ensure that their processes are flexible enough for this type of work.
Additionally, suppose a company has experience with seasonal businesses like Christmas shopping or Black Friday deals during the holiday season. In that case, they should have no problem accommodating high-demand periods. Maybe even helping you avoid them altogether.
Shipping Options and Pricing
When outsourcing your order fulfillment needs, it’s crucial to have a company that offers the correct shipping options and pricing. Shipping costs are one of the most significant expenses in any eCommerce business, especially if you have a large volume of sales.
The best way to avoid getting stuck with high shipping rates is by finding someone who can offer discounts on delivery fees. It can do it by choosing an order fulfillment company that has negotiated lower rates with certain carriers or offering free shipping on all orders.
Before choosing an order fulfillment service provider, you should also investigate how quickly your items will get from point A to point B. Also, what type of packaging do they use for different products? So that you know how much space consumers will need when receiving their products.
Fast and Effective Shipping Services
You can’t just send your customers an invoice and expect them to pay. Shipping is critical to order fulfillment and can be costly, time-consuming, and dangerous. Finding a company that offers fast and effective shipping services only makes sense. It will help you boost your eCommerce business. Also, your customers want their orders as fast as possible. Make sure the company you outsource to provides accurate shipping information. So they know what to expect when the client receives their package.
Inventory Management
Around 4.9 trillion dollars globally were spent on retail e-commerce in 2021. Furthermore, this amount is anticipated to increase by 50% over the following four years, reaching roughly $7.4 trillion in 2025. Due to this rise, it’s pretty understandable that for any eCommerce business, inventory management is an essential function. It’s directly related to your supply chain, cash flow, and customer service. You can’t manage all these things if you don’t have adequate inventory.
For instance, let’s say you’re selling a product on Amazon, and it’s in high demand right now because of the holiday season. Your sales are growing daily, and so are your costs since additional materials will need to be purchased. Also, more labor hours are dedicated to making your products. All your resources go into generating inventory, so you’ll miss out on potential sales if you don’t have enough cash to pay those expenses. It is because you won’t be able to get orders out quickly enough or at all.
It is why it’s essential that when outsourcing an order fulfillment company for eCommerce businesses, they ensure that there are no bottlenecks. So that everything keeps moving smoothly through their supply chain.
Return Management
As an eCommerce business owner, you know that returns are part of the deal. You have to be prepared for them and ready to accept them promptly. Returns may happen for many reasons, including:
- You sent the wrong item
- Your customer didn’t like their purchase
- The product was defective or damaged in some cases.
Your fulfillment firm must be capable of handling these circumstances effectively. If they can’t, it could cost you money and please customers. So be sure that you know how they take returns and whether or not they charge a fee for processing them.
Also read: Examining Direct to Consumer (DTC) Ecommerce: Why It Might Be Right for Your Business
Research in Advance and Use These Tips
As you can see, outsourcing order fulfillment is essential. It’s also crucial to conduct thorough research beforehand. It will help you ensure that there are no unforeseen costs or conditions if you want to locate the best one for your company and make it work. Look into pricing models and shipping options, so there aren’t any surprises when it comes time to ship out orders. Finally, ensure that whoever you choose offers all the services necessary for your business, such as space or returns processing. Your fulfillment provider must be capable of handling these circumstances with ease.