Common misconceptions about ecommerce fulfillment companies Fact: Ecommerce fulfillment is not cheap. Fact: It’s not. The fact that it is cheap does not mean you should settle for shoddy or low-quality services. Instead of opting for a cheap fulfillment house location or ecommerce fulfillment service merely because of the close proximity to you, it’s a better bet to use the advice and analysis provided by our panel of industry experts. Let’s take a closer look at some common misconceptions regarding ecommerce fulfillment companies.
Fact: Picking and packing are two tasks that should not be outsourced. Fact: Many ecommerce fulfillment services offer to take on both tasks for you at a low cost. While you could certainly spend less on these services, you may be putting your business in jeopardy by trusting in untrustworthy operators. Instead, opt for a company that has strong experience in fulfilling orders and packing products to deliver them promptly to your customer.
Fact: You’re better off having an ecommerce fulfillment service handles your order fulfillment. Fact: This is where you need the expertise. Unless you’re a technical expert, you don’t want to have to outsource your picking and packing tasks. Ask the panel of experts what services they recommend. They’ll likely tell you to outsource your picking and packing to a specialty firm or multi-store distribution company.
Fact: It’s better to have a multi-store distribution company outsource your inventory than to have your own in-house warehouse. Fact: Most ecommerce fulfillment services have their own warehouses and picking centers. Some operate in multiple locations, with separate trucks and loading docks. If you operate in multiple locations, you may find yourself with too much inventory. By outsourcing, you won’t be tied to a specific time schedule or labor agreement with a single company.
Fact: Shrinking your inventory is a key factor in ecommerce businesses’ success. Fact: Many ecommerce businesses experience storage issues because they can’t meet their storage needs at their current locations. Fulfillment companies handle all the logistics involved in moving and storing inventory. They also make it easy for you to keep up with the orders coming in so you can quickly fulfill them. Rather than hiring a large and expensive warehouse, you can outsource your picking and packing to one of these fulfillment companies.
Fact: The key to running an efficient ecommerce fulfillment center is having an accurate current inventory level and accurately weighing products. Fact: Many fulfillment operations use rack-sizing equipment to accurately weigh products, which saves you time and money by reducing labor costs when it comes to lifting individual items. FBA companies also keep records of product inventories, allowing you to quickly find out what you have and make the best decisions for moving forward with your inventory needs. You’ll also experience more streamlined processes as your orders move through the system.
Fact: If your ecommerce fulfillment centers are shipping to long-term clients, you need to be aware of your costs. Shipping costs can vary dramatically, depending on the distance and frequency of your deliveries. These long-term clients could be paying up to 25% more per shipment, so be sure to check the cost of shipping your product from your end to theirs.
While some entrepreneurs prefer to handle the entire process themselves, most would benefit from using a third-party provider like FBA. By choosing to work with an FBA partner, you can focus on growing your ecommerce business without worrying about whether your fulfillment centers are meeting customer expectations. With an FBA partner, you have peace of mind that your business is running smoothly because they handle everything. This can also help you avoid costly mistakes and keep your ecommerce fulfillment centers running efficiently and effectively.