When I decided to open my own salon and spa, I had so many friends excited to try my services that I didn't think I needed to invest in marketing. Those friends did come in frequently, but their business turned out to just not be enough to keep my bills paid. I then remembered that before I began as a hairdresser, I drove many miles to see my favorite hair-stylist that I loved. That made me realize that I needed to advertise not just locally, but throughout the entire region. I drove an hour to my favorite hair-stylist, so why wouldn't my customers? I held a great "new customer discount", and soon those new customers from neighboring cities became regular customers once they realized how much they loved my technique. I created this blog to help other struggling business owners. I hope you can learn from my experiences!
E-commerce has been growing at a rapid rate in the recent past. In 2020, for instance, the total e-commerce sales in the US reached $759.4 billion. If you have an online store, you need to work on your delivery system to prevent delays and enhance customer satisfaction. However, instead of handling the shipping process all by yourself, you can outsource order fulfillment services. Doing so will help you save money and time, enabling you to focus more on growing your business.
Who Is an Order Fulfillment Service Provider?
This provider is someone contracted to warehouse your goods. Apart from storing your products, they fulfill orders — meaning they deliver orders to respective customers — on your behalf. So, once a customer has purchased a product, the fulfillment service provider picks, packs, and prepares it for shipment.
Why Should You Use Fulfillment Services?
The order fulfillment process is complex for e-commerce merchants, especially if one doesn't have a warehouse and distribution facilities. However, you can delegate the delivery responsibilities to someone else. Here are the two main benefits you may enjoy if you use order fulfillment services:
1. Flexibility
Every business has its ups and downs. There are moments when sales are high, and at other times, you sell nothing. If you have many orders, you may be forced to hire more delivery workers and rent extra warehouse space. When sales go down, where do you take these employees and warehouses?
If you use order fulfillment services, you don't need to hire, manage, and train delivery employees. Going this route also eliminates the need to rent storage space and purchase equipment. You only engage a fulfillment service company when the need arises. So, when there is a sales decline, you don't have an idle workforce or equipment.
2. Saved Funds
One of the main challenges facing e-commerce merchants is surges in shipping costs. At a time when there is stiff competition in the e-commerce sector, some companies even offer free shipping. As such, how do you offer free delivery without affecting your profit margin? To do this, you need to start thinking about delegating shipping responsibilities to a third party. Most order fulfillment service providers have distribution facilities and warehouses located strategically around the country. If you use them, you can significantly lower shipping costs to a point whereby you can offer free delivery.
As an e-commerce merchant, you may not have the financial capability to establish storage facilities throughout the country. However, order fulfillment companies have national, regional, and international infrastructure. As such, you always enjoy substantial delivery discounts.
Conclusion
Efficient delivery management is one of the major determinants of success for any online business. However, it requires a lot of time and money to streamline the shipping process. To learn more, contact a fulfillment service.
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