Introduction
With the burgeoning success of eCommerce as an industry, especially in developing markets like India’s. There is an exceedingly high amount of competition. Retailers constantly have to battle it out in order to come out on top and earn purchases from customers. Because of the fact that there are multiple retailers vying for the same target audience and selling the same products. It is becoming increasingly difficult to have differentiating selling points compared to other sellers. Additionally, many big-name brands already have a sizeable market share and a significant advantage when it comes to order fulfillment. They have access to more technology and financial resources to be able to provide customers with an enhanced fulfillment experience while smaller retailers often get left behind.
How do eCommerce Fulfillment Providers help?
This is where eCommerce fulfillment services providers can help bridge the gap. They provide state-of-the-art facilities and technology at an affordable price. The fulfillment companies can help eCommerce retailers provide an on-par or even better experience than their bigger counterparts. In this article, we will take a look at what fulfillment companies are and the 5 major roles that they play in eCommerce.
What are Fulfillment Companies?
Fulfillment companies, also known as third-party or 3PL fulfillment companies, provide a wide range of eCommerce services for a specified charge such as inventory storage, warehouse management, picking, packaging, shipping, and last-mile delivery. While some companies offer all their facilities for a pre-determined bundle price, other companies enable you to only choose the services you need and pay accordingly.
Why are they useful?
3PL companies can help retailers better organize their inventory, store various products in multiple locations, provide ultra-fast delivery and assist with the management of returns. They are often equipped with technology. That are WMS software, nationwide warehouse networks, order tracking facilities, eCommerce marketplace integrations, and more. As a result, retailers are better placed to provide a satisfactory fulfillment experience for their customers. This can increase their chances of getting repeat purchases in the future.Â
5 Major Roles That Fulfillment Companies Play in eCommerce
Product Storage
As mentioned earlier, fulfillment companies generally provide access to warehousing facilities and some even have fulfillment centers scattered across the country. Charges are usually determined by how much storage space you opt for. We can adjust this according to current demand and future forecasts. This makes them more flexible than facilities such as Fulfillment by Amazon, which does not allow retailers to edit the amount of storage space they need. SKUs can be stored in different locations based on proximity to areas of high demand or transport facilities.
Inventory Management
Most fulfillment companies come stacked with WMS software for efficient inventory management. These software solutions can generally integrate with multiple eCommerce marketplaces such as Amazon and Flipkart, consolidate inventory data across multiple fulfillment centers and enable you to monitor and receive inventory updates in real-time. Additionally, each product will be labelled with an SKU number and stored according to their demand, weight, and dimensions. This makes them easier to organise and access in the event of an order.
Inventory Management
Most fulfillment companies come stacked with WMS software for efficient inventory management. These software solutions can generally integrate with multiple eCommerce marketplaces such as Amazon and Flipkart, consolidate inventory data across multiple fulfillment centers and enable you to monitor and receive inventory updates in real-time. Additionally, each product will be labelled with an SKU number and stored according to their demand, weight, and dimensions. This makes them easier to organise and access in the event of an order.
Order Management
Fulfillment companies take care of the entire order management process. The process such as locating the relevant SKU in the warehouse, packaging it and getting it ready for shipment, and dispatching it to the shipping company. Because of the use of advanced technologies and the automation that come with it. Picking, packing, shipping of orders can be done once the order is confirmed, all can be done in a matter of minutes from the time it is confirmed.Â
Order Delivery
All is till now carried out by the fulfillment company. The work of shipping comes company in after the product is dispatched. The order is transported through the quickest and most convenient means to the warehouse in the destination city of the customer. From there the last-mile delivery personnel will pick it up and deliver it to the customer’s doorstep. We try delivering orders, and when we can’t deliver them due to the unavailability of the customer or incorrect delivery information, delivery us attempted again.
Returns Management
Returns are inevitable for every eCommerce business, especially in the current day and age. Customers expect flexible return policies and can opt to return or exchange their goods for any number of reasons. Returns can often cause undue burdens and skyrocketing expenses. The fulfillment companies generally take care of these operations and provide various fail-safes. These are such as insurance and reduced logistics costs in the event of a return. The product is inspected for any damage and is eventually returned to the warehouse. Then it can be either resold as a new or refurbished product.
Conclusion
If you operate an eCommerce business and need assistance with the fulfillment process, it is definitely a worthwhile option to partner with a fulfillment company. They provide all the facilities you need and many additional benefits. They also offer cheaper prices than if you undertook the task yourself. Because competition in the fulfillment provider space is increasing, many companies seek to differentiate themselves by offering the widest selection of facilities for the cheapest prices. Because of that, the main beneficiaries will be you and your customers. However, not all fulfillment companies are equal. Some choose to focus on providing storage facilities. The other chooses to focus on order fulfillment and others offer a combination of everything. Prices can also vary between each. Analyse your requirements and financial resources so you can make a well-informed decision. Every company does the basics but the following options are the best in their respective fields:
Choosing a Fulfillment Company for Your Business (Our 3 Options)
- WareIQ: A rapidly growing eCommerce fulfillment business with its headquarters in India, WareIQ provides a wide range of services including a network of fulfillment centers across the country, super-fast shipping through more than 20 shipping companies, a personalised WMS, no minimum order requirements and much more. Two fine things they offer branded tracking and custom packaging.Â
- Red Stag Fulfillment: Another US-based provider of fulfillment services is Red Stag Fulfillment. It provides sophisticated features like a vast warehouse network, video monitoring, and same-day delivery, among other services.
- Deliverr: Based in the US, Deliverr launched its services in 2017 and offers a variety of eCommerce solutions, including online customer assistance, integration with different selling platforms, transparent pricing, and much more.
- ShipBob: Based in the US, ShipBob is a fulfillment company for online retailers. The business offers the majority of eCommerce services. That includes a sizable network of fulfillment centers, a WMS that can interact with numerous platforms, extremely quick delivery, and more.
- Shiphero: They are on a mission to make it easy for brands & fulfillment providers to ship eCommerce. The core values of the team and work are honesty, tenacity and purpose. This is their USP.
