The cool thing about eCommerce is that it helps every scale of business to scale up without necessarily having to spend all their finances on inventory. While handling a few orders at the start of your journey is possible to do on your own, it’s a major challenge as your customers increase and your brand becomes more recognizable.
Failing to scale up your order Fulfilment processes to meet these increased demands could be catastrophic to your business, and this is why most companies prefer to partner with a 3-PL company for a seamless transition from a startup to a well-known enterprise. A Fulfilment partner is needed when you suddenly experience an influx of orders and lack the inventory or industrial knowledge needed.
For those unfamiliar with the basic role that a fulfillment center plays, it’s basically completing orders on the eCommerce company’s behalf, that too in the most cost-friendly and professional manner. The most basic and crucial aspect of a healthy, sustainable business model is your ability to stock and later distribute these products to your customers. Here are just a few perks to get out of a Global Fulfillment agency:
# Lower Operating Costs:
A company that’s just starting out will have to manage its finances very carefully. Unorganized allocation of money on inventory and infrastructure can lead to overwhelming operational costs, especially during the seasonal fluctuation period when the product demand is low, making it difficult to pay the staff and still generate enough revenue to stay afloat.
Many companies don’t have the luxury of hiring temporary workers or scaling their operations based on the peaks and troughs in demand. But, with the help of a proficient eCommerce Fulfillment agency, there’s no need to spend a fortune on bigger infrastructure and equipment. This helps trim down the operating costs.
# lower Shipping Costs:
The only thing that can influence a customer’s decision-making more than the quality of the product itself, is the shipping cost. Many studies reveal that over 70% of your customers will cancel their orders if the shipping costs and too high. But how will you offer them free shipping and still make money out of the sale? That’s where a Fulfillment expert comes in.
The best order fulfillment agencies have a contractual agreement/relationship with numerous local, regional, and international shipping agencies. You can leverage their wide network of contractors to avail of expedited and affordable shipping solutions. Some fulfillment centers have sub-branches in other states/countries, enabling them to provide you with cheaper shipping costs.
# Inventory Management & Costs:
Warehousing your items is important to keep a consistent progression of activities. It permits you to screen your orders, examine the stock, keep up with the inventory, and survey your staff performance. Because of a Fulfillment agency’s low shrinkage allowance, they will not only assist you with tracking down a vacant storage space to reserve merchandise but also be responsible to make up for things that are lost or harmed under their support. Henceforth, your assets will be guaranteed against damages, and relying upon your changing business conditions, the warehousing costs will be changed likewise