This is Part Two in a two-part series. You can read Part One here.
In the first part of this series on the basics of fulfillment services, we covered what fulfillment services offer to companies. From receiving products from manufacturers to making sure they successfully get out to customers, fulfillment services can help both B2C and B2B companies do business more efficiently.
With a fulfillment service’s help, companies can outsource a warehouse and shipping operations department, which streamlines the process and ensures that shoppers get the professional service they deserve. While there are some benefits that affect everyone – like efficiency – there are additional reasons why fulfillment services might be the right choice for a company.
Here are the basic reasons why fulfillment services may be the right choice for a company:
Do what you do best.
With more opportunities than ever before for customers to order from you or your competitors, it’s important that you maintain advantages wherever you can. You aren’t a shipping or warehouse specialist, so focus where you can have the biggest impact. By outsourcing to a fulfillment service, you can create a business that highlights your competitive advantage.
Manage seasonal swings in sales.
Depending on the nature of your business, you may see wild swings in sales and shipping needs throughout the year. This means that you may not have a need for a full-time staff and equipment for warehouse and shipping departments. Fulfillment services can help you fill orders without having to have extra hands on staff for these jumps in productivity and sales. Instead of hiring extra staff and training them during seasons like the period after Thanksgiving through New Year’s, your company only has to ensure that the warehouse has the products on hand.
Keep shipping costs low.
Shipping costs can eat into margins, so you should do everything you can to keep your shipping costs lowered. Many of your competitors may offer free shipping in order to entice orders. While you can’t ship things for free entirely, you can keep costs low so absorbing them into your operating costs isn’t that big of a problem. Alternatively, you can also pass along the shipping costs to customers – but even in this case you’ll want to be sure to keep the costs as low as possible. For example, if you have three locations, using a single distribution center can keep your costs low by letting you take advantage of bulk discounts. By placing your warehousing and shipping needs with a fulfillment service, you can keep your costs lower overall.
These basic reasons make working with a fulfillment house a no-brainer – save time, save (and make) money and improve customer service. The basics of fulfillment services just make sense.