Top 3 Fulfillment Models in E-commerce: A Complete Overview

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If you are associated with an e-commerce business or intending to do so in the near future, then this post is quite valuable for you.

Though e-commerce and its supply chain management are full of challenges and complications, with regards to the marketing strategies, traffic conversion, shipping, delivering and others. These are not as important as the Fulfillment is.

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So, this is the right time for you to adopt a fulfillment model that include order fulfillment services, order fulfillment warehouse and drop shipping fulfillment services.

However, before moving ahead, you should know what these fulfillment models exactly stands for.

Order Fulfillment Services: Basically, this fulfillment model is recognized for receiving, processing and delivering the order to the end point consumers. The order fulfillment includes a third party, which execute the entire steps for a different party. For example- an online seller, who receive, process and deliver the order to the customers for renowned brands.

Order Fulfillment Warehouse: This model incorporates product storages, picking the product from stock after order received, packing the product and ends with shipping. All these get accomplished by a third-party fulfillment warehouse.

Drop Shipping Fulfillment Services: With drop shipping, the manufacturer or the wholesaler directly receive the orders from customers and then ships the items to the buyer. The point to be marked is that the buyer purchase a product through the retailers but the retailer doesn’t hold any merchandise in the stock.

Hope this section will assist you to comprehend and mark the difference between above said fulfillment model. Now, moving ahead with the post, I am going to tell you about some important benefits of employing a fulfillment network that you should know.

Important Advantages of Fulfillment Services

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  • Today with the advent of fulfillment services, it has become far easy for you to retrieve the current inventory status instantly. Simply, you are supposed to get logged in with the outsourced distribution center.
  • Outsourcing literally contributes a lot to improvise the radii of sales and marketing strategies with a constant focus. This tends to give up the hassles of handling, delivering and shipping. Therefore, you can target towards the growth plans of the company as well as explore the opportunities to venture with new possibilities.
  • Subject to the warehouse, it may be expensive, which requires financial maintenance of security acts, online presence and software development, labor issues and much Thus, outsourcing contributes to cutting down the additional costs and save capital.
  • With fulfillment mode, you can reduce the cost of shipping and make an inventory in closer proximity of buyer. Though, you will have to freight multiple inventories with bulk shipping that literally save money as compared to parcel shipping.
  • Outsourcing tends to invade foreign markets also that ensure local shipping rate and the advantages to the buyer. In case of product’s return or exchange, the case is handled by fulfillment centers. They eventually analyze the items and resolve accordingly.
  • The model of outsourcing allows your business to grow without any limitation by eliminating the necessities of investing large funds, infrastructure, and man power.

After going through the benefits of fulfillment services, you would like to be nourished with the things that you must consider before opting for a warehouse.

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  • It would always be a good decision to establish your warehouse in the proximity of your customers instead of the business.
  • You should comprehend that a single warehouse is sufficient to add wings to your business and thus is recommended to explore a warehouse in bigger market place.
  • Always attempt to go through the entire contract document. You will not like to find the hidden cost later, so you should watchfully look for hidden commitments and bring them out.
  • Before you land on the grounds of fulfillment warehouse, you must understand the technological caliber of your fulfillment provider that enables you to partner with renowned e-Commerce portals.
  • Ensure that your distribution center can offer you with all shipping options that you are presently offering to your clients and even more.
  • If you want to succeed, this is highly crucial to ensure an enhanced customer service backed up with smart professionals. This contributes to retain the existing customer as well as accelerate the rate of conversion and drive potential customers. Also, they are supposed to acknowledge once they receive the order and notify about delivery.
  • You should ensure seamless communication with the fulfillment center regarding orders, cancellations, change the shipping address, etc. Also, make sure that they are reachable and respond instantly to emails and phone.
  • In case of any error occurred in delivery or damaged goods, be known about the recovery option offered by the fulfillment center.
  • The distinct distribution centers have a different schedule of payment that varies on the ground of price per item and the contracts. So, you must be aware of the prices that a warehouse charges.
  • It is important for you to create a checklist of the features you desire to procure for your warehouse. Also, it is best practice to congregate feedback from your staff members and interview the concerned person.

Now, after going through the post, the difference between e-commerce business models, i.e., drop shipping and order fulfillment service, and order fulfillment warehouse would be clear to you. Moreover, the advantage and the things compiled here will literally assist you to boost up your e-commerce business likewise the USA order fulfillment services, the experts talking about. If this post helps you feel benefited in any manner, share your own ideas in the comment box and help others too.

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