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When it comes to eCommerce, whether you’re just starting out, or have been in business for awhile, you already know that dealing with shipping can take a big bite out of your work day. Instead of focusing on marketing, customer service, and developing your product line, you have to spend time packing and shipping your stuff to your customers. And the more product you ship, the more time you spend. But there’s good news:

The right fulfillment company can take a lot of the hassle out of the shipping end of your business. They can handle your orders, pretty much start to finish. You’ll get help with everything from getting your product from the manufacturer to the warehouse, assistance with documentation and importing inventory from the supplier, and working with just the right freight forwarder for your personal business.

The best fulfillment companies will use a premiere software to track everything through their system for you. That means that you can focus on the more important things—things like growing your business, or getting home at a reasonable hour to spend time with your family, or just being able to take a breather instead of running to the post office every other minute or calling UPS quick to catch their last delivery of the day. Sounds great, doesn’t it?

It is great, and it’s totally doable with the right fulfillment company. They can take the shipping load off your shoulders and here’s how:

First, you find—or design—a totally cool product, then set it up with a manufacturer or distributor. Then you set up your online ordering system, be it website and marketplace orders, shopping carts and/or retail sales. Then you hook up with a fulfillment company.

Let’s assume you (very wisely) chose a fulfillment company that uses software as savvy as you are. This software can track your orders and integrate for multichannel shipping. The right company with the right software can even handle dropshipping for you. They’ll also receive your products, assist with quality control, and even take pictures as needed, so you’ll know what product is where in the warehouse and what condition it’s in.

So now you’re partnered with a great fulfillment company with super-smart software. This is what happens next:

The first thing that software looks for is your product. Is it in the fulfillment company’s warehouse already? Is there enough of the product to complete the entire order? Do you need to order more from the manufacturer? If it’s in the company’s warehouse, no problem, and the order goes out pretty much in a heartbeat. If it needs to be ordered, that’s still no problem. Why not?

Because the software also keeps track of how much inventory you have on the shelves and will flag you when stock runs low. That lets you order from the manufacturer ahead of time, so there’s no delay in filling your customer’s order. Your fulfillment company can also handle freight forwarding and receiving and then log your inventory. The software will let you know every step of the way—pretty much the best possible tracking system on the planet!

The next step is relatively straightforward:

The fulfillment company’s team picks, packs and ships your order to your customer using the standards you’ve set for your brand. That means they (literally) pick your product off the shelf, pack it properly for safe shipping, then get you the lowest rate possible for the carrier most appropriate for your needs.

You can also ship pretty much anywhere in the world if you want, because a great fulfillment partner will pave the way with all that tricky international documentation. And you won’t have to build a warehouse overseas to handle your overseas orders.

Another great feature of a good fulfillment company’s packing step is that they’ll also include whatever non-order materials you’ve asked for. That includes leaflets, flyers, coupons and other printed materials as well as a quality filler to pad the product appropriately. Then they’ll either send it out in a generic box or another package that fits the product—always working to avoid that sticky volumetric weight “bag of potato chips” problem—or they’ll pack and ship your things in the package you supply such as a custom size box with your brand

The right fulfillment company—like ShipMonk, for instance—can also help you ramp up your customer’s unpacking experience by supplying niceties like colored crinkle cut paper, snappy bubble wrap, and all kinds of things to make the unboxing experience one your customer remembers.

Once the order is picked and packed just right and shipped to your customer, one of two things happens:

1) You have a super-happy customer who got exactly what he or she ordered, “had fun” unpacking your product, and is off to make good use of what they purchased from you.

2) Something went wrong along the way. Maybe the order got mixed up between the shopping cart and the warehouse. Maybe something in the package is wrong or got broken or damaged, or maybe your customer is unhappy for some other reason. It doesn’t matter. Here’s what your fulfillment partner can and will do:

With the help of—once again—that trusty software, they’ll accept the return and do whatever it takes to make your customer smile. They can return the product to their warehouse. They can hold it—or dispose of it—whichever you want them to do. Or they can refurbish it to your specifications. Then, depending on how you tell them to handle things, the process starts all over:

A new order comes in—it’s picked, packed and shipped—and this time (hopefully) you have a happy customer who will reorder from you because the return process was so easy, they almost couldn’t believe it.

To sum it all up, the real trick to a great fulfillment company’s shipping magic is three-fold:

First, there’s the custom software. It flags you. It flags the company. It tracks the product all the way from your inbound order through shipping from the manufacturer to pick, pack & ship to your customer.

Second, and actually crucial, is help with customer support, especially on returns. So as you’re interviewing fulfillment firms, ask their process on customer returns.

Third, and possibly most important of all, you want a company with a dedicated team that will keep a personal eye on your shipping needs. You also want a team that can answer pretty much any question you have—anything from what size box to use to how you can solve a particularly sticky return issue.    

So, there you have it. In a nutshell, your customer calls or clicks to place an order through any one of the available ordering systems—the order travels through the fulfillment company’s system—then it ends up on your customer’s doorstep.

No more wasting time running around finding product, putting it in a box, then running to the post office or the UPS office. No more overpaying for shipping because you didn’t have quite enough volume to get a really good rate. No more worries about running out of storage space and having to rent. And no more worries about expanding your business, especially overseas, not when you’re partnered with a fulfillment company that really knows its stuff.

Just be sure to choose your fulfillment partner very, very carefully. Make sure they have good software, that they’ll help you with paperwork, and that they have a dedicated team to answer your questions and look out for your interests.

When you find all of that in one company—and you can with a fulfillment firm like ShipMonk—you’ll feel like your shipping process is almost running itself!

Third Party Logistics providers (3PL’s) have grown tremendously in recent years as the expectations and buying habits of consumers continue to evolve. Customers expectations are higher than ever: Retailers top concerns in 2016 are meeting these customer expectations (38%) and having an inefficient supply chain (31%). This kind of data shows that customer relationships go beyond the product; customers expect not only timely and efficient packing, but affordable packaging too.

But if your fulfillment provider is so vital to the success of your ecommerce business, how should you go about evaluating the right options?

The owners of Red Stag have learned this answer the hard way. Red Stag Fulfillment is an ecommerce fulfillment company that was established when the owners of an ecommerce brand couldn’t find a high quality 3PL to handle their picking, packing, and shipping operations. While they eventually established a 3PL of their own, this isn’t an option for most entrepreneurs, so here’s a few tips on the “Do’s & Don’ts” of shopping for a 3PL.

Do’s

1. Define exact and measurable KPI’s

It’s hard to evaluate something if you don’t have anything to compare it to. So when shopping for, or trying out a 3PL, make sure to set measurable KPI’s that will guide your 3PL and give you something to track for efficiency. KPI’s can be set up through logs, time stamps, and even barcode scanning.

You should also have the ability to measure on-time delivery autonomously. Don’t rely on the reports from the 3PL, request access to this information so you can keep track of how well they’re performing. For example, Red Stag has a multifaceted tracking system in place that gives both their clients and their clients customers access to their shipping information.

2. Meet your 3PL partners           

It’s important that you not only understand how everything works, but how the company manages itself and its workers. When touring the facilities, talk to management about how the employees are compensated and incentivized. Are warehouse workers incentivized to get orders picked correctly and on time? Or is it all about getting orders out the door? Do you feel they are honest, trustworthy and sincere? Do they show you their passion for the business, and a commitment to customer service? By asking these questions you’ll get real insight into how your product and business are going to be handled.

3. Include systems capability and support as a criterion

Your business is probably prepared for the worst case scenario, and your 3PL should be too. Check their criterion for backup systems and plans for when the unexpected take place. For example, say their system crashes. Do they have an internal IT department, or do they outsource?

Check out this ecommerce fulfillment questionnaire for a list of other questions to ask your potential 3PL.

4. Understand the 3PL’s ability to scale

Don’t just factor in the ‘now’ when choosing a 3PL, consider your future. Your business is probably brainstorming ways to grow right now, so you should be partnering with a 3PL that can handle those future booms. Or say you have a massive order volume increase unexpectedly, does your 3PL have the room and manpower to handle it? And will they have a system in place that can get those orders out the door just as quickly as before?

Dont’s

1. Don’t limit yourself your search to your immediate proximityShipping out of major metropolitan areas like Miami or LA may seem advantageous but these can actually be the worst places to ship to customers if your customers are spread all over the country. Instead it’s best to look at centrally located cities. Shipping parcels from these cities will be far less expensive than the freight cost to get your product there.
2. Don’t lock yourself into a long-term contractYour 3PL has the ability to influence the value experienced by your customers. Therefore, you should be able to walk away if their service levels waiver at all. And besides that, what if you scale, or have unexpected events? Your 3PL is much too important to your business to be stuck in a contract that can’t accommodate your growth, which is why some ecommerce fulfillment companies are moving to month-to-month contracts.
3. Don’t make a decision based on Price rather than Value

 This isn’t to say the highest quality service can’t be achieved at the lowest price, but it’s rarely the case. What you need to do is properly weigh price with the aspects of your business that are going to be directly affected: accuracy, and customer service.

Take into account strategic buying situations when fast processing (in order to have product available to sell) is paramount.

You also need to consider what the effects of customer service inquiries if 100% of products ship on time and accurately. Red Stag Fulfilment has safeguards and processes in place to ensure proper delivery, that kind of efficiency pays off when you don’t have an entire call center dialed into customers complaining about late, or undelivered packages. 

4. Don’t’ make a decision without comparing options

You shouldn’t be afraid to put a few 3PL’s on trial periods to test which one works best. In fact, it’s the smartest thing you can do. You want a 3PL who’s willing to earn your business over the long haul.

Courtesy efulfillmentservice.com

In order to have a successful order fulfillment business, there are a few trade secrets you will need to know. Below are the 7 most powerful secrets to get you moving in the right direction and experiencing success as quickly as possible!

Secret #1 – Be an Amazing Shopper!

Make sure that you shop around for all your order fulfillment needs. Check to see if it is more effective for you to do it yourself or to outsource your order fulfillment. Be sure you check fine print in contracts for any services you use in case there are hidden fees or costs. Do not contract any services you cannot cancel if you are unhappy with their service. Check to make sure there are no cancellation fees.

Secret #2 – Go Big and Be Ready!

When setting up your business, be sure you plan for growth. You may be a small business or a start-up, but make sure that you are mighty! Develop systems for your business that work for you as a small company, but with a little tweaking can keep you rolling as your company grows. You may not be able to see the possibility of getting large, but when it happens it will come quickly. Don’t be caught unprepared.

Secret #3 – Inventory and Customer Happiness Go Hand in Hand.

Make sure you have a real-time inventory management system in place to handle your customer base. Knowing what you have on hand or how far out a product delivery is can help to ward off unexpected shortages that will leave customers unhappy. Another system to have in place is a CRM system or customer relations management system. Here you can do special things for your current loyal customers and keep track of those who may be falling by the way side so you can scoop the back up and keep your profits rolling in.

Secret #4 – The Systems in Your Company Need to Be Transparent.

Making sure you are able to identify how effective your processes are will enable you to keep a handle on your business costs. With clearly defined and measurable systems you can keep up on what has been done, what needs to be done, and what isn’t being done with the company bottom dollar in mind.

Secret #5 – Have A Strong Brand and Make Sure Your Brand Is Seen

Do a little homework and investigate the ideas for your brand and how they will be perceived by the public. This is a huge consideration. Making sure you make the right impression is vital. Once you have your image right, place it everywhere. Making use of your brand and effective marketing methods can get the profits rolling in.

Secret #6 – You Need a Failsafe Correction for Errors or Returns

This secret is often forgotten or dealt with as they come in. This is detrimental for your business. Making sure you have a system in place for handling and compensating customers for their inconvenience due to company error is important. The smoother and easier the system the happier the customer. This is true for returns as well. If a customer is unhappy with a product and can send it back, the more likely they will be willing to take a risk on other products you may have. In the long run this will contribute to customer retention.

Secret #7 – Know Your Strengths and Leverage Them for Better Profits.

Finally, know what you are good at and use it as a selling points for your customers. What is it that you do or offer that other companies don’t offer, or that you do better. Making strong statements as to your abilities that shed light on your competitors inadequacies can prove to be points for your company that will be visible in dollars!

If you have a product you are selling, you will need to know about the order fulfillment process and how you can make the best choices to get your products to the world. You may also be considering the option of being the middle man. You would lie to get products from the manufacturer to the consumer. Either way, knowing about the order fulfilment process is knowledge that is essential to the profitable operation of your business.

What Is Order Fulfilment?

When we are talking about order fulfilment, we are speaking of the process that starts with the consumer placing an order for a product (the point of sale) and ends when that product reaches the hand of that consumer. That is a simplified explanation of the concept.

Depending on what the product is the process may vary a bit. For instance, when you order a product from a catalogue you have to deal with packing and shipping, but even a fast food restaurant has order fulfillment process. A consumer places an order, the order is produced, and finally the customer gets their food.

No matter what industry you are in, or the product you are delivering, there is one thing that is the same across all businesses. That concept is that the faster your customer gets their product the happier they are.

3 Types of Order Fulfilment

There are three types of order fulfillment that any business should be aware of. Having a clear understanding of these types can help you determine what is best for your business.

• Self-fulfilment – This is the process of handling the product and shipping it yourself. This is a process that anyone can do for themselves. It is cost effective and you are in control of the quality of packaging. The shipping is done through a third party such as the United Postal Service, Fed-Ex, or UPS. The downside to this method is that it cost you time and you need to have your own warehouse space for product.
• Outsourced Fulfillment – This method is where you hand over the process of filling an order, packaging, and shipping the order to a third party company. This is effective because it reduces the amount of work on your part, and saves you time. The downside to this method is that you hand over quality control to another company which will decrease your ability for branding, it costs money, and there are costs to over stocking should you have too much product.
• Drop Shipping – This method is when your consumer orders a product from your site and the product is shipped directly from the manufacturer to the customer’s door step. Some of the benefits of this method are hands-off of the product. You will be able to offer your customers a wider variety of products. And there is a lower risk for you as the seller because you only pay for the product you sell. There is no cost for inventory or a warehouse.

The Order Fulfillment Process

There are many steps required to fulfill a consumers order properly. Most commonly a lot of the steps are put together but let’s break it down for better understanding.

• Inventory – You might not think of this as order fulfillment, but it is one of the most important steps of the process. If you don’t have product, you cannot fill consumer orders.
• Receive the order and check for availability of product.
• Process payment for the order.
• Check your pricing and be sure you can still offer it for the price you have advertised. If not, make adjustments for future orders.
• Verify products ordered. – If there is more than one product you will need to decide where the items will come from. If they are from different companies or all in your warehouse.
• Track your inventory. Be sure to take the items sold from your inventory to maintain an accurate count of product.
• Go back and double check that your order has been properly tracked in the inventory.
• Create a bill or invoice for your customer so they may verify the order once it is received.
• Confirm the shipping address.
• Decide which carrier you will use to ship the item.
• Complete the order changes from the customer after the sale, update with new product, or substitute for unavailable items.
• Physically pick the order. This is where you will collect the items for delivery and set them aside to be packaged.
• Package the order and include any branding extras if you are fulfilling yourself.
• Ship your order.
• Delivery of the order to the customer. Make sure items are delivered on time.
• Take care of any returns.
• Update your inventory once again.

You will want to be sure to be as accurate as possible. Make sure you are quick in filling your orders for happy customers. Below are a few tips to help you make your order fulfillment process work like a charm.

Tips for Ecommerce Order Fulfillment

1. Have a daily routine. The more regular things become, the less chance for error or unexpected delays.
2. Shop around for carriers. Check to see if the pricing is worth the service. Make sure to have accurate shipping fees so you are not absorbing any costs.
3. Make sure your business is transparent. No hidden fees or unexpected charges.
4. Make sure you keep your delivery and return promises. People make mistakes. But if you stand behind your promise of your policies, the mistakes are more forgivable for the consumer.
5. Make sure you have the tools you need.
6. Stay focused to keep from making errors.
7. Always look for areas to improve your order fulfillment process to save time, money and increase quality.

Starting to outsource your fulfillment of online orders can be a bit tricky, especially for small businesses. A lot of fulfillment companies will not work with small business that cannot meet sales or shipment criteria. Companies will also hit you with monetary penalties for not meeting your monthly quota. Fortunately, here are some tips that can save you the headache of making the wrong choices when choosing a fulfillment company for your small business.

Ease of Use

How simplistic is your fulfillment company? You are going to want a company that makes things simple. Your company should have a platform that can be used at a glance or with just a small amount of training. With everything else you have to worry about, fees, set-up, and use are the last things that you will want to worry about.

Do a little bit of research and check out a few companies. You will want to be sure their platform is a fit for you and their needs. You also want to be sure that you can handle the operation of their software. The simpler it is to use the better.

Accommodating

Make sure your online order fulfilment vendor is flexible. You will want a company that can accommodate you and your small business. A few things you should consider is whether or not your business will be locked into a contract that is long term. Making sure you can change vendors is a must for small businesses. Especially if you find a company that is a better fit for your business.

Another consideration should be minimums purchase or shipping quantities. You want to be sure that your fulfillment company doesn’t have minimum orders or fulfilment quotas you need to meet each month. For a small company meeting these quotas could be difficult especially if you are a start-up. Penalties and stress can be added for not meeting monthly quotas.

Know Their Systems and Procedures

Making sure your company is completely transparent is a must. Some companies may have the attitude that since the fulfillment is part of their business you do not need to know what is going on behind the scenes…wrong! This portion of the business is very important. They are handling the heart of your company, getting the product to the customer. This needs to be an easy process and one you can rely on.

Be sure you have 24-hour access to your orders and the progress of those orders. That way you can help avoid problems before they arise. You should also have access to your inventory at all times. Be sure you know and are clear on how the orders are processed from beginning to end. This will help when working within your companies mission and vision.

Can You Count On Them?

Make sure the company is reputable and has a great rating with the Better Business Bureau. Be sure to ask about their accuracy rate, how they handle returns, and retention of staff. Do they have a lot of calls about wrong or missing products? If customers are not getting what they paid for, they will stop shopping with your company. Poor service is the number one reason for discontinuing patronage to a business.

Is it difficult to get an order corrected if it is wrong or the customer doesn’t like the product? Customer are usually okay with mistakes or products they don’t like if the return policy is uncomplicated. The easier it is the better it is for your business.

Is their staff experienced? This is important because workers will get frustrated and leave if there is an unreliable system in place or they become frustrated. If there is a high turnover rate in their staff, it is likely that there is not a lot of experience in their company. Having a knowledgeable staff to work with will make your job of running your business easier.

Cost Effectiveness

The most important for you and your business is whether or not you can afford the service. Meaning, is this option allowing you to make a healthy profit on the products you are selling? Do they stand behind their service so that errors are not costing your business money? Be sure there are no hidden costs as well. A number of companies have a lot of fine print regarding the price of their service. Be sure you know what you are paying and what it is for.

After these considerations here are a few companies that may help you on your way to success.

• Shipwire
• Webgistix
• eFulfillment Services
• Fulfillment By Amazon or FBA