What is fulfillment service & How it can assist your online store?
Many people have heard of the word “Fulfillment”, but may not know exactly what it is. For ecommerce business, “Fulfillment Service” is a service that helps you conveniently manage your online store in a systematic way. With a well-manage back office, it is easier to achieve sales target and stable business growth. Let’s explore how “Fulfillment Service” can help you run your online store.
For many people, selling products online may sound easy. With internet, anyone can sell online just by posting product content through social media. Once receiving the sales order, the seller then just pack and send the parcel. It seems to have no complicated working process. However, when the number of sales order and number of customers are increasing, the seller may not be able to manage the orders well enough. There can be errors in many areas such as.
- Packing Errors – wrong products, shortage, or overage resulting in the need to resend the correct products – incurring higher delivery cost.
- Packing Delays – cannot finish the packing process within the same day of the sales orders – resulting in lower customer satisfaction, lower scores, poorer reviews.
- Wrong Inventory – inventory discrepancy due to errors during the storing, picking and packing process
These errors can create bad effects to our brand and our online store. Therefore, we need to find something to help us managing these problems. So that we can focus our effort on selling the products without worrying about the storing, packing, and shipping the parcels.
The “Fulfillment” service can help us.
Fulfillment service can fulfill our ecommerce business and help us sustainably grow our online trading by providing us the professional system in the following areas.
Stocking – the physical products to be sold online will be stored at the warehouse of the fulfillment service provider. The stock will be kept and categorized according to the types of your products. The stock will be managed by the online warehousing system.
Packing – when there is any sales order, the store will send the sales order info. into the online warehousing system. The system will check stock availability, and run the packing process according to each sales order.
Shipping – Once the packing is finished, the online warehouse, i.e. the fulfillment service provider will send the parcels to the Logistics company and send the tracking info. back to the seller.
Benefits of Fulfillment Service to Online store
When sales are up and the online stores have to manage greater volume of sales orders, the chances of shipment errors along the process are also higher. Fulfillment service can help you selling online in a more efficient and more systematic way by:
- Reducing time and increasing accuracy in sales order management – The system will help you efficiently checking the inventory, packing products, and shipping the parcels. You can focus mainly on selling and providing customer service to your customers.
- Reducing cost – by using a fulfillment service, when your sales are growing you don’t need to hire a lot of workers. Let the fulfillment service provider serves you in the areas of sales order management, inventory management, answering the Q&A of your online customer, packing, and shipping the parcels. When sales are up, the fulfillment services company manages the surge. When sales decline, you don’t have to bear the burden of excess employees.
- Enjoying the Systematic Online Selling Process – The fulfillment service provider brings technology to support your online selling experience. The I.T. system can help you managing and checking real-time stock availability. It can generate sales report according to your specific requirement by using information from the database, analyzing, and telling you which products are popular, which are not. You can use the info. to plan your sales and promotions at the right point in time.
You can see that the Fulfillment Service can help you run your online business in a more systematic and professional way. It helps reducing the costs of hiring staff, cost of technology and also saving the time of the shop and brand owners from the back office operations allowing you to focus more on the marketing and growing business.
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