An eCommerce business is built on the foundation of a great product, but that alone isn’t enough to make it successful. How you pack and ship your products can make or break your success in the eCommerce industry. A professional order fulfillment company can help improve shipping efficiency and reduce costs for your business by streamlining the process of shipping orders for eCommerce businesses across multiple locations.
You cannot afford to lose your share in a business that has a prosperous future because of any reason. The global retail eCommerce business amounts to approximately $5.2 trillion in 2021 and is expected to reach $8 trillion by 2026. An effective order fulfillment service ensures more satisfied customers and business growth potential.
Order Fulfillment Services
To keep up with the competition, you should ensure that your customers receive their orders most efficiently and cost-effectively possible. It is where order fulfillment services come into play.
Order fulfillment services are vital for eCommerce businesses because they help you ship products to customers on time without sacrificing quality or efficiency. However, suppose you decide to outsource this task to an external company. In that case, there are many benefits that you should know before making a final decision on which professional service provider you should hire.
Reduce Employee Count
One of the biggest benefits of outsourcing your order fulfillment is you can reduce your employee count. Outsourcing the order fulfillment task to a professional fulfillment company eliminates the need for part-time or full-time staff members on your payroll. In addition to saving money on recruiting costs and employee wages, you also benefit by avoiding payroll taxes, health insurance premiums, and retirement plans for those workers. You’ll also be able to avoid training costs and other benefits such as paid time off or sick leave, which may not be available in some cases. The cost of training the employees has increased significantly. According to research, global spending on employee training reached $370 billion in 2019 and is expected to increase sharply in the coming years. Outsourcing your order fulfillment process ensures you save on additional staffing and training costs.
Inventory Management
Inventory management is a complex process that requires a lot of attention to detail. It is one of the most challenging aspects of running an eCommerce business. It is necessary to have an inventory management system in place to ensure accurate inventory counts and to track the movement of goods through the supply chain. This information can then be used for planning purposes and making decisions about purchasing and shipping products from suppliers or manufacturers.
Inventory management software allows businesses to manage their stock levels across multiple locations. It ensures that customers receive what they ordered when they expected it, at competitive prices, with no product shortages or overstocks on hand. It keeps costs low and profits high throughout this complex process.
Order Processing/Picking/Packing
Order Picking is the process of selecting a product from a warehouse based on an order. It’s one of the most important parts of shipping since it involves picking up items and placing them in boxes for shipment.
Order picking can be done manually or automatically by hand or machine, depending on your requirements. Manual order picking involves having employees pick out each item from its spot on the shelf. It is typically done by having workers walk up and down rows of shelves until they find what they’re looking for. Automatic order picking uses robotic arms to grab items off the shelf and place them into boxes waiting below it using X-ray vision technology designed specifically for this purpose.
Manage Storage Space
You may be storing your products in the wrong location. A professional can help you identify the best storage space location. They will also be able to help you with the size of storage space and materials used. One of the most important things they can do is advise you on how to manage your inventory, so it doesn’t get out of control.
There are many different types of storage facilities. Most businesses will have some storage facility, but that doesn’t mean it’s being managed properly. A professional can help you identify the best storage space location. They will also be able to help you with the size of storage space and materials used. One of the most important things they can do is advise you on how to manage your inventory, so it doesn’t get out of control.
Proper Product Handling
Proper product handling is essential to ensuring that your products are delivered to customers in the best condition. What is product handling? It’s preparing your products for shipment, ensuring they’re properly packed and protected, and then shipping them out.
According to reports, customers returned approximately $430 billion of merchandise ordered by them in 2020 due to various reasons. It amounts to nearly 10% of annual online retail sales in the US.
You must hire a professional order fulfillment company to ensure that your items arrive at their destinations undamaged and on time. They handle all aspects of order preparation, from packaging through shipping, so you must concentrate on running your business instead of worrying about whether or not your packages will arrive safely.
Free Packaging and Supplies
Another crucial thing to remember when hiring a professional fulfillment company is the cost of their services. It is especially true if you have a small business that does not make much money and your budget is already tight. Therefore, ask about the pricing structure before signing agreements to avoid surprises later.
It’s also worth noting that some fulfillment companies have free packaging and supplies, which means they don’t charge customers for shipping materials like boxes or bubble wrap. If you’re looking for such discounts, ask about them during negotiations since this could save you quite a bit of money over time.
Hiring Professional Services for Your E-Commerce Business is A Beneficial Decision
Shipping can be a hassle for many eCommerce businesses. It’s no wonder why so many people find fulfillment to be their biggest pain point. Hiring a professional for your eCommerce business is a beneficial decision. You can focus on other necessary tasks that will help you grow your business.
You can focus on the bigger picture, and it will help you get more done in less time. It’s better than hiring someone who doesn’t know what to do or how to handle the job at hand. Because it may take longer to complete the project than you anticipated, and even if they do it correctly, the lack of experience could lead to costly mistakes while trying something new and unfamiliar.
