Faster than ever, ecommerce is growing. The percentage of retail sales related to ecommerce has increased from 3.4% in 2007 to 21.3% in 2020. Ecommerce sales grew by 44% from 2007 to 2020. Due to the increase in online sales, order fulfilment companies are in high demand.
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Industry supply chains evolve along with technology. Small businesses and startups may find it difficult to cope with these changes. So many businesses are now realising the importance of using an order fulfilment company.
Order fulfilment companies fulfil orders. What do they do?
Outsourcing part or all of a company’s distribution and fulfilment to an order fulfilment company is part of logistics and supply chain management. A fulfilment company basically helps you deliver your products to your customers.
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Order fulfilment companies typically offer the following services:
A Fulfilment Company Can Help You
A company that fulfils orders has 5 benefits
Your company can benefit greatly from order fulfilment companies. A fulfilment partner can help your business reach new heights. Here are 7 ways in which they can help you.
1. Owning a warehouse isn’t necessary
By outsourcing your fulfilment, you don’t have to store your goods yourself, which is one of the biggest benefits. A warehouse is an expensive endeavour. You need to pay for more than just the space when running your own warehouse.
This varies by company size and order volume.
2. Compatible with a wide range of ecommerce platforms
For a stress-free ecommerce experience, your order fulfilment company can integrate all of your platforms. You can work with a company that has experience in order fulfilment that can help you integrate all your systems, instead of figuring out how to do so yourself and having to manage that (more money).
You will not only be sure that your system is set up right when the pros are on the job, but you will also be able to use your time and money to grow your business.
3. Reduce shipping costs by negotiating
You can benefit from lower shipping costs by using an order fulfilment company. How? You don’t have as much negotiating power if you are shipping 50 orders per day as part of a much larger group shipping hundreds of orders per day.
As the delivery companies (USPS, FedEx, etc.) want to maximise their profits, shipping as many orders as you can will give them a better price. When you work with a fulfilment company that ships hundreds or thousands of packages every day, you’ll be able to take advantage of the discount.
4. Warehouse employees aren’t necessary
In addition to paying for the warehouse and the equipment needed to run the system, if you keep order fulfilment in-house, you have to hire employees to run the warehouse. The process is time-consuming and expensive! We all know how much business owners care about their employees, so hiring when your business is growing or during a busy season, but then letting them go when sales slow can be extremely difficult.
You don’t have to worry about this with an order fulfilment company. Growth is our goal. We have amazing employees who work hard to respect and care for your brand. In our experience, we’re great at hiring, training, and managing great warehouse staff.
5. International capability
When going international, it’s not just about getting the product to the customer — it’s also about dealing with all the paperwork.
A bottleneck of expanding internationally, according to Shopify, is dealing with global fulfilment. Almost no one wants to deal with the paperwork, customs, duties, and other issues that may arise when dealing with overseas sales.”
You can reduce the hassle of going international by working with an order fulfilment company that has experience and understands the lay of the land.