What is "Fulfillment" in simple words?
Have you ever heard of fulfillment? It's the process where a third-party company takes over the management of warehouse and logistical processes for your online store. This means that the fulfillment company will store your products in their warehouse, process orders, pack, and ship them to customers on your behalf.
Advantages for online stores:
1. Cost reduction. Fulfillment service can help reduce costs associated with warehouse management and logistics. Instead of investing in your own warehouse and personnel, you can pay for fulfillment company services only when you need them.
2. Time optimization. Fulfillment service allows you to focus on other aspects of your business such as product development, marketing, and sales. You don't have to spend time managing the warehouse.
3. Reduced risk of errors. With fulfillment service, you can reduce the risk of errors in order processing and delivery. Fulfillment companies specialize in inventory management and logistics, so they can ensure efficient and accurate order processing.
4. Business automation. With the help of fulfillment IT systems, you can fully automate routine processes of the online store. In the Sender Fulfillment personal account, you can track the statuses of each order, product stocks, warehouse replenishment. You can also set up integrations with your website, CRM system, or marketplace for complete automation of all processes.
5. Increased delivery options. Typically, fulfillment companies use more postal services than when shipping independently. For example, working with Sender Fulfillment, you can choose such postal services for sending your orders: Nova Poshta, Ukrposhta, Meest Express, Rozetka pick-up points, International shipments by Ukrposhta and Nova Poshta, there is also our own courier service in Kyiv, which delivers parcels to customers on the same day! This can increase customer loyalty and sales volume.
However, fulfillment, like any outsourcing service, has its drawbacks and is not suitable for all companies. What are the disadvantages of transferring the warehouse to fulfillment?
1. Not suitable for online stores with less than 100 orders per month. Fulfillment may not be suitable for very small online stores as they may not have enough orders to justify the expenses of renting space. It is worth considering outsourcing the warehouse at 100+ orders per month.
2. On the other hand, fulfillment may also be impractical for very large online stores. For online stores with more than 10,000 orders per month, it becomes more economically viable to maintain their own warehouse.
3. Specific products. Fulfillment is not suitable for online stores that require special storage conditions, such as refrigerators, freezers, or boxes for food products.
Conclusion
Fulfillment services are ideal for owners of growing online stores with 100 to 10,000 orders per month who want to take their business to the next level, automate and optimize logistical processes, and focus on increasing sales and business development without spending a lot of time on organizing and managing warehouse processes.
For entrepreneurs who want to rapidly expand their business, fulfillment operators can become invaluable assistants, allowing them to focus on strategic tasks and business development without spending time on minor details and warehouse processes.
