Pauline E. Ranger You should do research to ensure you choose the best fulfillment partner for your online business. When it comes to choosing an order fulfillment company, there are eight factors you should consider.
1. Shipping Speeds
Amazon Prime’s 2-day delivery speed is the new standard, and modern consumers expect faster shipping than ever.
How can you adapt to these changing expectations? You can do this by working with a company that specializes in order fulfilment service. You could be losing out on revenue if you do not. 53% of online shoppers have abandoned a purchase due to slow delivery. Top fulfillment companies will have effective and efficient fulfillment processes to ensure that your products are delivered quickly to your customers. This becomes possible when they have numerous, strategically-located fulfillment warehouses and simplified order fulfillment software (which we’ll get to in a minute! ).
2. Location of Fulfillment warehouses
Customers expect lightning fast shipping and the warehouse’s proximity to the customer is a key component in this process. It’s a no-brainer: the closer your order fulfillment center to the customer is, the less distance the products will have to travel. This means faster shipping times (and lower shipping prices).
When choosing a fulfillment service, you should know the location of their warehouses. A fulfillment company that only has a few warehouses will most likely not be able deliver your products at the speed you expect. This could negatively impact your customer experience. Make sure that your fulfillment partner’s warehouses are located near your customers.
If you are selling internationally, make sure that the fulfillment company with whom you plan to work offers global shipping. If you cannot ship your product to your customers, then your business will not last very long.
3. Order Fulfillment Software Features
You’re an eCommerce business owner with a lot to do. As an eCommerce business owner, you have a lot on your plate. You already use a variety of digital tools, platforms, and applications in your daily operations. The last thing you want is to implement another software which is slow, unorganized, and difficult to understand. It’s vital to do research not only on the fulfillment company, but also the order fulfillment software that they use.
Different fulfillment companies have different order fulfillment programs with varying features and capabilities. You should understand your goals and needs, then choose a partner that uses a software that aligns with them. It’s important that the order fulfillment software you choose is simple to use and implement, and can be integrated with other business apps and platforms.
4. Transparency and visibility
Consumers can find it difficult to decide which companies sell similar products. When they trust a brand, they are more likely to stay with it. How can you build trust? Transparency.
A survey found that 56% of respondents would remain loyal to a business for the rest of their lives if it was transparent. 81% said they’d be willing to test out a brand’s entire line of products if they felt comfortable with this level of transparency.
This transparency is dependent on your fulfillment process. 88% of consumers find it important to be able to track their shipments in real time, and 69% are less likely than ever to do business with a retailer again if they don’t receive a product within two days after the date stated. If you cannot fulfill a promise (literally), then you should not make it.
If, for example, your website promises two-day shipping, but your fulfillment company is unable to meet this deadline, it’s likely that they will not become a returning customer (especially if the customer was a first time customer). Why? You have not built trust with the customer. It’s important to choose a fulfillment partner that gives you complete visibility into the fulfillment process and is dependable. You can also trust that they will be held accountable.
5. Branding Options
How can you make your brand stand out among the millions of other eCommerce companies that are competing for customers’ attention? It’s not a good idea to send your products in boring, generic brown boxes. This creates an unengaging and impersonal experience for the customer. On the other side, selecting an order fulfillment service that offers branding options can help build your brand and create buzz for your business.
Why is it so valuable? Brands that personalize the experience are more likely for modern consumers to engage. Your customers will be delighted by a fun and engaging user experience that is tailored to their needs. They will want to buy from you again.
What is the bottom line for branding? The bottom line on branding?
6. Packaging Options
You want to select a fulfillment centre that offers a variety of packaging options, depending on the product you’re shipping. You want to make sure that you can choose from a variety of boxes (see six different types of packaging). The right packaging can also help reduce product damage.
It’s not just the packaging that matters. Sometimes it’s also what’s inside! You’ll also want to make sure that you have a variety of insulation materials, corrugated cardboard, foam rolls or shredded paper.
Keep an eye on how your team packs your products. A warehouse kitting team ensures that your products are always packaged safely.
7. Returns Management
After all, 30% of online orders are returned. A customer may return a product for no reason at all (they just didn’t like it). However, a reputable fulfillment center will work with your company to manage returns and reduce controllable returns.
The software of your fulfillment company should be able help you identify serial returners. These are customers who make repeated purchases and then return them. You can then decide whether to send them promotional materials during a big sale or emails after a purchase that highlight the positive reviews of satisfied customers.
8. Costs
Unloading fulfillment services to a third party logistics provider is expected to incur some upfront costs. On the whole, you’ll save money on labor, overhead and packing supplies. You also want to make sure that the fulfillment center offers you the best deal possible.
Your fulfillment center should not charge you for long-term warehouse storage, since you are paying for fulfillment. After all, your products are always moving.
Due to their volume, fulfillment centers can also negotiate better rates with carriers. You want to make sure that they pass on some of those savings to you. This allows eCommerce retailers to compete against retail giants, offering reduced or free shipping.
