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At the beginning of the eCommerce journey, most sellers rely on in-house order fulfillment. They handle every step themselves – storing the goods, sorting, packing, and sending the orders to their customers.
As your business grows and the number of orders increases, sellers start to face these challenges:
- Running out of warehouse space
- Making mistakes and failing to ship orders on time
- Employees are working overtime because of shipping
- Handling fulfillment in-house makes it more complicated to run a business
For smooth business expansion, it may be inevitable to start outsourcing your services.
Fulfillment services and warehouses can help automate and handle the shipping for you. Beyond storage and shipment, such companies can offer additional services such as packaging, order managing, and return handling.
Benefits of using fulfillment service
There are a significant number of advantages to outsourcing your fulfillment to a 3PL company that has dedicated resources and experience:
- Lower shipping costs. Fulfillment providers can negotiate cheaper rates with major carriers due to the enormous parcel volumes they send into the system, meaning your shipping costs will be much more manageable.
- Lower operational costs. 3PLs usually charge a flat storage fee for your products that are being warehoused. After that, you’re only paying for picked, packed, and shipped orders. If you experience a seasonal increase or decrease in sales, this will not affect your base costs. Your storage expenses only change when the number of units you warehouse changes.
- Knowledge and expertise. You won’t be prepared for all market conditions. Thus someone’s experience, knowledge, and resources will help you through more demanding situations.
- More focus on your business. Instead of spending time packing boxes, standing in line at the post office, or building out fulfillment infrastructure, you can focus on developing and marketing your products.
- Increased customer satisfaction. When you start struggling with high order volume, sooner or later, mistakes will occur. Order fulfillment centers have well-designed processes, innovative technology, and modern systems that eliminate as many errors as possible.
Amazon FBA
One of the best fulfillment companies to consider is Fulfillment by Amazon (FBA). FBA allows you to store products in Amazon’s fulfillment centers, and they will pick, pack, and ship them for you.
The main benefits of using Amazon FBA are:
- Effortless shipping. Amazon takes care of the fulfillment for you from start to finish – you just keep track of your listing and make sure they’re stocked on the product.
- Discounted Shipping Rates. Since Amazon is a global fulfillment giant, you will spend less on your shipping costs through the FBA platform. Even though you pay fees, it is still cheaper than managing your shipping and fulfillment in-house.
- Return Management. FBA also handles returns and refunds, which takes one more thing off your plate.
- Customer Service Management. Amazon offers its customer service for FBA sellers.
- Fast Delivery. Products sent via FBA automatically get the Prime badge and are eligible for “Prime” shipping. Additionally, you won’t need to pay or charge premium shipping rates because it’s included with the service.
Amazon MCF
You don’t have to be an Amazon seller to use Amazon fulfillment services. Amazon offers a Multi-Channel Fulfillment (MCF) service, which allows you to fulfill orders outside of Amazon, including your website.
Both FBA and MCF provide the same advantages to a retailer:
- Allows using Amazon warehouses to store your inventory
- Provides you with information about your stock levels
- Offers three types of shipping & delivery: priority, expedited, and standard
Using software to fulfill Amazon MCF orders
The way MCF works is that once you receive an order on, let’s say, your Shopify store, you must log in to your Amazon seller central account to manually create an FBA order for that customer.
After Amazon ships the order, you can take that carrier info and update your Shopify orders.
Going through these manual steps takes extra time and leaves room for error. With Multiorders, you can automate this process.
Sign up here to learn more about how Multiorders can help you fulfill your orders faster.
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