How eCommerce Companies Benefit from Fulfilment Centers

beggers March 12, 2021 0
How eCommerce Companies Benefit from Fulfilment Centers

With online shopping on the rise, it’s not surprising that more and more aspiring entrepreneurs are choosing this business model for their next venture. Today, it’s possible to sell almost anything online, and there is definitely a market for every type of online shopping. However, when setting up an eCommerce business, it’s important to consider how you are going to get your products to the customers that order them. Most commonly, a fulfilment company and warehousing is the best choice.

What to Consider

A product fulfillment company helps eCommerce sellers complete orders and make sure that products are quickly and easily sent to the customers. When hiring a fulfilment company to provide shipping services for your business, it’s important to select a firm that is an expert in their field. After all, over 80% of customers say that they would avoid returning to a brand if they have just one bad experience with shipping.

What is Fulfillment?

Order fulfillment is when a third-party provider is tasked with fulfilling the customer order on behalf of the eCommerce store. This includes all aspects of getting the product to the customer including warehousing, inventory management, shipping, and more. All of these steps take place in a fulfillment center. Fulfillment services are useful to eCommerce companies for many different reasons. Mainly, it allows eCommerce business owners to delegate these important duties to somebody else, allowing them to focus on other business duties such as marketing, product selection, customer engagement and more.

How Does a Fulfillment Center Work?

A well-established fulfillment center will work in a very methodical, functional manner, providing eCommerce sellers with peace of mind knowing that this crucial part of the sales process is in expert hands. It is important to note the difference between fulfillment centers and dropshopping providers. Fulfillment centers are third-parties that are hired solely for the purpose of fulfilling the orders, while dropshipping companies are product distributors or manufacturers that ship the products directly to the customer.

How Orders Go Through the Fulfillment Center

An eCommerce company will hire a fulfillment provider to take care of fulfillment and shipping needs. Once this partnership is established, the fulfillment center will be sent products directly from the eCommerce seller. The inventory is then stocked in the fulfillment warehouse ready to be packaged and shipped once orders are processed. When a customer shops for an item on the eCommerce website, the order information is automatically sent to the fulfillment center via an integration platform or app. Then the fulfillment center will start the process of packaging the product and shipping it to the customer.

What Else Can a Fulfillment Company Offer?

In some cases, fulfillment centers are tasked with inventory management and shipping only. However, they will also often offer additional services such as customer service and handling returns, which can be ideal for eCommerce companies that handle a large volume of orders.

If you run or are thinking of starting an eCommerce store, working with a good fulfillment center can improve your reputation and the relationship with your customers.

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