add share buttonsSoftshare button powered by web designing, website development company in India

Outsourcing E-Commerce Fulfillment – Factors to Consider

Outsourcing e-commerce fulfillment is an easy capital way with lowered capital requirements to raise the operational competence of an online retail store. An order fulfillment company is a third-party organization that is held responsible for carrying out fulfillment tasks on behalf of the retailer.

While a company makes a decision on which 3pl eCommerce fulfillment center to choose, the following factors must be kept in mind:

Image Source: Google

1. Size

Fulfillment warehouses range from small business setups with a few employees to large companies selling services in fulfillment.

As an e-retailer, the essential component of your business is efficient customer relationship management. This explains the importance of choosing the right business size for order it. If you are a medium-sized enterprise, your orders will stay in a range that is easy for a medium-sized order company to manage.

2. Location

For businesses to deliver in time, it is necessary to have order fulfillment warehouses located close to where the target market lives. This will not only allow faster delivery of goods but also be cost-efficient.

Warehouses having a central location are more likely to be able to charge lesser to the consumers and hence, gain a competitive advantage based on price.

3. Error Rate

The Order Fulfillment Company might make mistakes with the delivery. Inquiring about the error rate of the order fulfillment company when interviewing them might reflect the efficiency of the service.

Many service providers will not have the relevant experience in the industry even though they might call themselves order fulfillment companies. For example, many companies promoting themselves as order companies might just be the ones with warehouses with no experience in product re-ordering, customer returns, packaging, inventory management, and shipping regulations. In this case, word of mouth and credible public relations will reflect experience in the field.