Choosing a Fulfilment Service: What to Look for

Many eCommerce brands are now offering their customers the option to have their orders fulfilled by third-party service providers. It is a convenient solution for many brands who don't have fulfilment centres of their own or who might prefer not to invest in such a facility. But as with any other decision, choosing the exemplary eCommerce fulfilment service can be challenging. With so many services available, which one should you choose? What are the factors you need to keep in mind while making this decision? In this article, we list several considerations that you need to keep in mind before choosing a fulfilment service for your brand's eCommerce store.

1) Pricing

Whenever possible, businesses will use outsourcing to cut costs. When choosing a fulfilment provider, cost should be taken into account. The total price tag should include any subscription costs, whether they be paid monthly or yearly. Consider the impact of the per-transaction fees on your total cost. Paying close attention to prices can also help you find any additional hidden fees. When weighing the pros and downsides of a service, it is irrational to prioritise one that has prohibitively expensive per-order and additional storage expenses.

The service's worth should also be taken into account. Remember that trying to save money can end up costing you a lot. Even if you're looking for a cheap solution, you shouldn't skimp on the final step of serving your valuable customers.

2) Location of the fulfilment service provider

As more and more online stores provide same-day shipping options, the time it takes from placing an order to getting the product in hand has decreased significantly. Not only is being close to potential customers helpful but so are several additional considerations. Fulfilment services aim to expedite the delivery of products to their final destinations. The closer the fulfilment service provider is to the customer, the quicker the order will be delivered. If you're looking for a fulfilment firm, consider how close they are to your headquarters.

3) Experience

If you outsource fulfilment, you may rest assured that your customers will be happy. Thus, you should hire only experienced fulfilment centres. Dealing with an inexperienced startup can have disastrous results. Instead of opting for the cheapest solution, it is important to work with a seasoned fulfilment firm. If you care about your clientele, you shouldn't leave their requirements in the hands of a greenhorn.

4) The Use of Technology

E-commerce companies are adjusting their shipping practices in light of technological developments. In selecting a fulfilment partner, consider how they integrate technology into their operations. Any reputable distribution centre will use cutting-edge hardware and software to facilitate its standard operating procedures. If the distribution centre makes use of an RM system, that's a positive sign. The best distribution centres implement software that helps with stock control, improves data reporting, and monitors incoming and outgoing cargo.

5) Consider Scalability

The fact that you're just getting started doesn't mean you won't see expansion in the coming years. Find the proper fulfilling partner, and you should be able to expand your business over time. Most distribution centres have room for only so much growth. When selecting a fulfilment partner, scalability should be a top priority. If the facility cannot accommodate the future expansion of your company, it is not worth the cost. As the e-commerce industry continues to flourish, most online shops will open new locations within the next few years. To keep up with the industry's rapid expansion, fulfilment service providers must expand their capacities. You want to steer clear of the risk of rapid growth followed by a slowdown in productivity.

Conclusion

The process of outsourcing fulfilment services is an excellent way for businesses to save money. The costs associated with managing inventory, warehousing, and delivery are high. And with the increased competition, companies find it difficult to stay profitable. Fulfilment services by 3PL allow businesses to scale their operations and reduce their operational costs. While there are many benefits associated with outsourcing fulfilment services, it can also present some challenges. To find the right e-commerce fulfilment solution for your business, it's essential to get a sense of the different options, their benefits and drawbacks, and how they might fit into your business strategy.