Guide
SHOULD YOU OUTSOURCE YOUR ECOMMERCE FULFILLMENT?
Outsourcing your fulfillment can be an economical way of growing your online store.
Advantages of Outsourcing Your Ecommerce Fulfillment:
- Shelf space flexibility that can scale with your business growth.
- Trained fulfillment specialists will be picking and packing your orders.
- Resources are freed for you to pursue business development.
- You don’t have to lease warehouse space you may not need, reducing overhead.
- You become part of a network of strategically located fulfillment warehouses enabling faster shipments to your customers.
Questions to Ask: Evaluating Order Fulfillment Services
At the end of the day, you’re in charge of who you choose as your eCommerce fulfillment center. Asking questions is key to making sure you pick the 3PL fulfillment service that best fits your business’s needs. It’s not always simple to know what questions to ask. We want you to choose the perfect fulfillment service for your business, so use the following questions to get started:
Picking & Packing
These questions all depend on the kinds of products you ship. Heavy items will affect your fulfillment needs, and if you do ship heavy items, you will need a warehouse that can handle these types of products. Your provider should be able to advise you on the best way to package and ship your products. Adversely, if you specialize in smaller items, a warehouse that mainly handles bulky products might not be the best choice for you. This also rings true for hazardous materials or delicate items. Choose a fulfilment center that’s specialty is the items you distribute. At the end of the day, this will save you money on packaging and shipping.
What services do you have that add value?
An example of added value could be a warehouse that can kit and bundle your merchandise. Fulfillment services for eCommerce can also include custom lettering or made-to-order assembly.
What are your customer service abilities?
The company you choose could take customer service responsibilities off of your shoulders. If this is important to your business, make sure the company you choose can handle your customer inquiries.
Fulfillment Cost
How much do you charge for account set up and sales platform integration?
The answer they tell you should be “free.” Make sure you ask about all potential charges that may apply to your account from start to finish. Hidden fees can make or break your budget. Be sure you ask about these and to quotes reasonable.
If mistakes are made, who pays for those?
Does the fulfillment center offer guarantees if they pack or ship an order inaccurately? Will they waive fees in this circumstance? If this is a guarantee your service provider makes, then it’s a sign they are of high quality and have systems in place to reduce mistakes.
If my inventory decreases in size what are your policies on this?
You need to ask about inventory shrinkage in the beginning. A high-quality fulfillment warehouse should assure your inventory. This in-turn will protect your business from the costs of inventory damage and shrinkage.
Shipping Cost
Are there any discounts available on volume shipping?
3PL providers ship in high quantities, and because of this you may take advantage of their discounted rates. Make sure you know about this and these benefits can be passed on to you as well.
Are you able to offer international shipping?
You may only sell to domestic customers, currently, but there is no need to limit your shipping potential for the future. If desired, look into an eCommerce fulfillment provider that can take your business worldwide.
What program or systems do you have for tracking shipments?
Shipment notifications should be sent directly to you and your customers. Be sure that the notifications include tracking numbers so that you can see package progression and troubleshoot if needed.
What is the average shipping time of my orders?
Look for a company that can ship in three days or less. Your goal should be to reach at least 70 percent of the country within that time frame. Two-day shipping isn’t just appreciated, its expected. Talk to your provider and ask about turnaround time. Is same day shipping offered? This can also be a valuable service for your business.
Technology
Does your warehouse have a backup power supply?
No matter where your supplier is located, your customers still expect their orders on time. Inclement weather isn’t important to your customers. If you lose power, it’s not your customer’s problem. Talk to your provider about their experience with disaster recovery; you don’t want a service that doesn’t work when the unexpected happens.
What inventory management services are available?
Reduce shrinkage by looking for a partner that allows you to have contiguous inventory management and control. Software is more reliable than spot-checking inventories.
Does your service have ISP backups?
You need to be sure that an internet outage doesn’t take the whole warehouse out of commission. If your sales can’t be transmitted because of an internet lapse, orders can’t be shipped. Make sure your providers ISP channels are diverse and secure so that your service isn’t interrupted.
What security measures are in place?
Security applies to both the digital and physical security of your items. Discover what controls the 3PL provider has in place to protect your merchandise and sensitive information. Background checks on employees, as well as security cameras, should be in place to prevent theft or damage.
How will ecommerce fulfillment contribute to your success?
Choosing the wrong provider can stunt the growth of your business. Errors and delays can upset your customers. These customer experiences can result in bad reviews, negatively impacting your business for the future.
Now that you have a complete overview of the basics of the order fulfillment process, you are prepared to start your search for appropriate 3PL providers. Start with the questions posed above to get the answers you need from your fulfillment center.
Fulfillment is the bread and butter of your eCommerce store’s success. It can be a daunting task to evaluate your fulfillment center in such detail but be sure that you do. It’s worth it in the long run.
Another important aspect to eCommerce success is having an easy return and refund process. Review the best practices to ensure your provider is making this process as smooth as possible.
Are you ready to take the next step with Hubmatrix?
Please reach out to our team to discover how we can help you obtain FAST, EFFICIENT, TIMELY, RESULTS as you enhance your D2C relationship.