Fulfillment services offer a range of services that can often bog down a growing business’ expansion of resources and capital. By assuming control of a small business or ecommerce business’ logistics, customer service, and shipping responsibilities, order fulfillment and logistics fulfillment providers allow their clients the freedom to concentrate on growing their business’ size and flexibility, whether that entails enlarging their market share or growing their search engine footprint.
Save Resources By Outsourcing Warehousing and Shipping
Fulfillment providers offer their clients more than just tracking and shipping. For example, many third party fulfillment providers have the warehousing and storage capacities to accommodate their clients’ full inventory. This allows the fulfillment client to consolidate warehousing and shipping needs into a single location without sinking resources into relocation, property taxes, and transportation costs.
Many small businesses slam into a wall of logistics problems when they realize their warehousing, cold storage, and shipping needs fall well beyond their expertise and capabilities. This is especially true for ecommerce businesses, who can experience such rapid growth that their inability to keep pace with demand harms their reputations and online status. By outsourcing warehousing and shipping needs to a fulfillment provider, fulfillment service clients entirely avoid such pitfalls and can continue growing their business at an uninterrupted pace.
Find The Right Fulfillment Service For Your Business’ Size And Needs
The agreement between a fulfillment service provider and its client isn’t necessarily complicated, but nevertheless ecommerce businesses and others interested in employing a fulfillment service company should carefully research their choices before entering into a contractual agreement.
Typically, fulfillment service companies draw their profits as a percentage of each unit of product they store, ship, track, and provide customer service on behalf of the client business. The percentage itself varies according to the fulfillment service company as well as to the amount of volume the client business provides to the fulfillment service company. This contract may change over time, as well, provided the two sides of the third party fulfillment agreement – the business client and the fulfillment service provider – come to a legally binding arrangement beforehand.
Remember The Fulfillment Arrangement Is Built On Trust
Fulfillment service providers can oversee a large portion of a client business’ logistics and fulfillment needs, including customer service and conflict resolution services. As a final caveat, businesses researching fulfillment service companies should consider each potential provider’s services and packages, while evaluating the use of such a company by their competitors. Such an analysis will likely produce an important and insightful edge in the future.