Common misconceptions about ecommerce fulfillment services exist among small business owners. One of the biggest questions is whether they are worth it. The truth is that they are but only if you choose the right ecommerce fulfillment service. Myth: You don’t need a full-time fulfillment center near your home. Fact: You need to be within a few miles of your customers in order to meet with all of their orders.
Another common misconception about ecommerce fulfillment services is that they are only for large companies that have offices in major cities. Fact: You can find services that will ship directly to the home of a customer. Instead of choosing a full-time fulfillment center or ecommerce fulfillment services company simply because of its proximity to you, it’s a best practice to use demographic analysis and let the statistics guide your choice. If a certain city has a high percentage of residents within a certain age range or a certain income level, then consider using an ecommerce shipping and packing service. On the other hand, if you live in a rural area, then consider shipping to the home or office of a customer.
Probably the most common mistake made by small businesses is ordering in bulk. In fact, one of the biggest mistakes in ecommerce fulfillment services is ordering just to fill a space. While it’s true that shipping orders are low-cost, this does not mean that you should order a ton of things to fill up a small space. Instead, plan on ordering in smaller quantities so you can reduce shipping costs and have an easier time fulfilling orders.
Another mistake small businesses make is storing too much inventory. Fact: When you plan on using ecommerce fulfillment services, you’ll be required to store at least some inventory. Ideally, you should have enough inventory to fulfill all of your customers’ orders and get them their products on time. Unfortunately, storage can quickly become the problem if you do not have a proper system for storing your inventory. For instance, did you know that keeping your inventory stored in the same place you keep your packing materials and tracking numbers can actually hurt your bottom line?
One of the most common reasons small businesses have problems with their ecommerce fulfillment services is shoddy workmanship. As you may have noticed, there are many products out there that look similar, but when you actually get to the checkout portion of the store, you find that they are quite different. Poor workmanship is one of the reasons that you want to contract with a professional ecommerce business fulfillment company. You want someone who can ensure that the products you purchase are delivered in the same condition as what you paid for.
The other reason that employing the services of a professional ecommerce fulfillment services company can really pay off is that they can provide an unparalleled amount of customer service. When you are working with a small business, chances are you will run into questions about shipping times or returns. If the staff of your ecommerce fulfillment services company has been trained to handle these types of questions quickly and professionally, your ecommerce businesses can experience a major boost in sales.
Perhaps the biggest reason small businesses use ecommerce fulfillment centers is because they eliminate or greatly reduce shipping costs. Instead of having to pay a middle man to take care of your inventory and shipping costs, you can implement an online shopping cart program that will handle those functions yourself. Using the same company that provides you with the inventory also cuts down on shipping costs because they will not have to rent a storage unit to hold all of your inventory. Instead, your orders will be stored in a computer database that is only accessed when your shoppers make specific orders. This means that ecommerce businesses can pass on large savings to the consumer.
By using a company that takes care of your shipping and storing inventory, you can cut out the middle man and save money. This makes sense when you think about how much you have to spend on basic overhead costs when you open up an ecommerce store. Ecommerce fulfillment companies can help to keep your costs down, your shipping costs down, and your inventory costs down. The more your store sells, the larger the profit you can realize. By outsourcing your warehousing needs and your inventory management functions, you can quickly turn a profit and expand your business without straining your budget.