Your business’s profitability depends on the quality of eCommerce fulfillment services you receive. Whether you’re outsourcing this service for the first time or switching service providers, make sure you hire a reliable fulfillment company. To achieve that, you must go beyond calling the available firms with impressive reviews and ads online. The vetting process of finding your suitable logistics provider will require sufficient time for intensive research. To lessen the difficulty of the search, you can access the Transaction Heroes ecommerce order fulfillment here.
Your investments and effort in finding the right fulfillment company for your business will pay off greatly because it is a vital partner in driving positive reviews, customer loyalty, and repeat sales. To get a reliable fulfillment service, you must look at the following factors:
- Check if the firm has monthly order minimums. If it does, will your order volume meet the minimums?
- The weight and mass of goods shipped from the fulfillment warehouse. Is it equivalent to your products?
- Check if the warehouse has an order-to-SKU requirement. If it does, can your eCommerce business meet the required SKU breadth ratio?
- Consider the location of the Company’s warehouses. Will it delay the delivery of products to your target customers?
Let’s get into the details of the above-mentioned factors.
Monthly Order Minimums
The perfect fulfillment company will be willing and ready to work with your monthly order volume. However, that will depend on the company’s strategy to maximize its profits. For instance, some firms rely on high volume sales for higher profits. Others only specialize in selling high-value products. Startups always have a challenge finding a perfect fulfillment company. That is because it is challenging to predict their monthly order volume. However, they can rely on fulfillment firms with monthly order minimums ranging from 0 to 1500 orders monthly.
Typical Parcel Weight
Every fulfillment warehouse process-specific packages. A warehouse that ships boats cannot process clothing orders and vice versa. That is because its packaging equipment and the width of its aisles were engineered to handle boats. When searching for a fulfillment company, ensure it ships products that match your typical order weight. Most firms handle parcels weighing 10 pounds or less because that is what most eCommerce businesses sell. If your products are heavy, bulky, and oversized, you will need to sample from the few equipped companies that can handle them.
SKU breadth is the number of Stock Keeping Units you can store on the subcontracted warehouse shelves. For example, if you outsource fulfillment services from a company with an order-to-SKU ratio of at least 5:1 when you stock 50 products, you will need to ship 250 orders each month to attain the company’s SKU breadth requirements. Therefore, when you sell fewer SKUs, your monthly minimum orders will be very low. Thus, it will be challenging to meet the required order-to-SKU ratio. You should partner with a fulfillment company whose order-to-SKU ratio is attainable for you.
Fulfillment Warehouse Locations
Many eCommerce customers want shipping and delivery of their products to be affordable (or free) and fast. However, all these factors are affected by the warehouse location. When the storeroom is distant from your target consumers, delays will be inevitable. The site also determines the shipping zones the product will go through before reaching the client. Fewer zones will reduce the shipping charges.
Your ideal fulfillment company will depend on your business model. Businesses shipping a high volume of orders or with clients demanding quick delivery services will need a fulfillment firm with multiple warehouses in various locations, including the densely populated cities and towns.
After examining the elements listed above, you can now select a suitable fulfillment service. Keep in mind not all companies with the above qualifications are perfect for your business. They might lack the skills to handle your products. Listed are guidelines you should consider in your search for an impeccable fulfillment service for your business:
- Ask about Special Services – If you are shipping high-end, fragile, or precarious products, it is vital to ask for special services. To be guaranteed of efficiency and safety of your products, prefer a company with experience of handling them. Such firms have the essential equipment and personnel to keep and transport your goods safely.
- Flexibility – While operating your eCommerce business, there is a possibility of growing. The perfect fulfillment company has the versatility to expand with your online business operations. At every level, it should provide reliable service, which is critical in boosting customer satisfaction.
- Reputation – Look for a company with a decent reputation in providing fulfillment services. Such firms provided impeccable service, which fascinated their previous customers. They are also highly preferred in the market due to their reliability.