What Is ECommerce Fulfillment?

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What Is ECommerce Fulfillment?

Safe Milli
| March 08, 2021 Last Updated 2021-03-08T10:57:35Z
Online businesses are booming thanks to the shift towards electronic transactions over the years. Add to this, the ongoing coronavirus pandemic made ecommerce purchases more practical and necessary. If you haven't built an online presence for your business, you're losing potential clients and additional revenue.

As technical as it may sound, ecommerce fulfillment is quite simple to understand. Learning about ecommerce fulfillment may be easier to learn than building your website or implementing digital marketing campaigns.

ECommerce Fulfillment


To better understand how it can benefit your business, you should know about the different types of ecommerce fulfillment services:
  • Dropshipping: A method of ecommerce fulfillment is known as dropshipping. Dropshipping is when your online store sends its products to a wholesaler, instead of keeping them in stock.

    If you're the buyer, this means that you don't have to purchase large quantities, which is a huge advantage for you. For businesses supplying these items, you can greatly reduce your expenses for inventory because you don't need to keep inventory on hand.

    A dropshipping wholesaler will place the items that you sell on their website and will make the rest of the arrangements to deliver the items to your customers.


  • Fulfillment company: When you work with a fulfillment company, you can sit back and allow them to do all of the hard work, especially shipping products to your customers. This type of ecommerce fulfillment will require you to order an upfront shipment of merchandise, which will include packing materials and other details. You won't be directly involved in the process, but it's a good way to ensure that everything goes according to plan.

    You can visit Red Stag Fulfillment where their article explains the concept and process of e-fulfillment.


What Are The Processes Involved In Ecommerce Fulfillment?


There are many different aspects involved in ecommerce fulfillment, but the basic tasks include storing products, packing orders, receiving and shipping orders, and tracking down customers.

Do note that these services don't end when the products have been shipped. A good ecommerce fulfillment warehouse should also provide advanced data collection systems that allow you to quickly and easily find out where all of your orders are located, how many you have left, and ensures that orders are on time and ready to be delivered.

What Are The Benefits Of Hiring Fulfillment Companies?


Many ecommerce fulfillment providers offer their clients a way to outsource some, if not all, of their inventory-management responsibilities. Hence, depending on how extensive and complicated your company's requirements are, you can outsource all or part of your inventory management.

Working with a reliable fulfillment company offers several benefits such as:

  • Fulfillment companies allow your staff to have more time for other operational duties and gives you more time to concentrate on your clients.

    Picking the right partner lets you pay a lower cost per item so you can pass the savings on to your customers.

    Whether you're starting an online business or operating a growing ecommerce business, you don't need the experience or a big budget to invest in a third-party fulfillment center.

    It also allows you to keep control over your overhead expenses because you won't have to hire additional employees to handle ecommerce fulfillment.

    To keep your business running smoothly, you’ll be expected to supply your orders on time. A fulfillment company with a good reputation will promptly handle these requirements.


How To Choose A Fulfillment Service Provider?


If you choose to go with a fulfillment service provider, you’ll want to find one that has been in business for a few years. Here are the other factors to consider:

  • A company that’s constantly growing will be more likely to provide exceptional customer service because they’ll have experienced staff working for them.

    Look for a provider that offers a free trial so that you can determine if the service is right for your business.

    Find a provider that offers a fair return policy. You want to be sure that your business is protected if the supplier fails to live up to their end of the bargain.

    Your fulfillment provider should have a state-of-the-art facility with well-maintained vehicles that are capable of loading and offloading merchandise to your customers. This ensures quick delivery, enables you to serve your customers quickly, and keeps track of inventory levels.

    One of the most important aspects to consider is a fulfillment partner that has trained employees who know how to handle your products as they're being delivered.


Takeaway


If you're unsure about whether or not ecommerce fulfillment warehouses are right for you, take some time and think about how you would like to run your online business. There are many different ecommerce fulfillment centers out there, so finding one that’s right for you depends on your budget, your level of experience, and what you expect to get out of your ecommerce fulfillment partner.
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